Legal2025Individual
Court Orders Real Estate Company to Refund Paid Amounts with Legal Interest Post Contract Rescission
A ruling ordering a real estate development company to refund EGP 527,500 to our client, plus 4% annual legal interest. The judgment follows the company's breach of contract and failure to deliver the residential unit (chalet) as per specifications. This complies with a prior final ruling rescinding the initial sales contract and ordering the restitution of both parties to their pre-contractual status.
The facts of the case entail that our client filed a lawsuit requesting the defendant, in his capacity, to refund all amounts paid toward purchasing a residential unit (Chalet No. B33, 1st & 2nd floors, Group B) under the initial sales contract dated August 28, 2014.
The lawsuit was initiated after the defendant company failed to deliver the property according to the agreed-upon specifications and terms. Consequently, a final judicial ruling was previously rendered to rescind the contract. Our firm presented the defense and legal memoranda supported by all necessary payment receipts and documentation, establishing the client's legal right to a full refund under Articles 160 and 181 of the Egyptian Civil Code.
Case Outcome
The Court Ruled: "Ordering the defendant, in his capacity, to refund the plaintiff the amounts paid under the subject contract dated August 28, 2014, totaling EGP 527,500 (Five Hundred Twenty-Seven Thousand and Five Hundred Egyptian Pounds), plus 4% legal interest annually from the date of the judicial demand (May 26, 2025) until full payment is made, provided that the total accrued interest does not exceed the principal amount awarded. The defendant is also ordered to pay the litigation expenses and EGP 75 for attorney fees.
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