1926 Present : Dalton and Lyall Grant J J.

PERIS v. VIEYRA

172-D. C. Negombo, 623.

Agreement to by land-Part payment of purchase price-Deposit-Forfeiture-Conditions of agreement.

Where a person paid money in part payment of the purchase price of property he had agreed to buy, and then made default in carrying out the terms of the agreement.

Held, that he was entitled to recover the money so paid.

Money paid by way of deposit is forfeited on the repudiation of the contract by the payer.

The question whether the payment is on account of the purchase price or by way of deposit depends upon the terms of the agreement.

APPEAL from a judgment of the District Judge of Negombo.

The plaintiff sued the defendant to recover a sum of Rs. 1,200 paid by him as part payment of the purchase price of a property belonging to the defendant. The defendant admitted the receipt of the money, but pleaded that the transaction fell through owing to the fault of the plaintiff, and therefore the plaintiff was not entitled to claim back the advances. The learned District Judge held that as the plaintiff notified to the defendant that he could not complete the trans