Bahrain: Civil Court Orders BD5000 Refund to Customer in Realty Contract Dispute

The Lower Civil Court has ordered a real estate company to refund BD5000 to a customer after the company refused to honour the refund request, citing a breach of contract terms. According to the contract, the customer would not be eligible for a refund if failed to complete the purchase process within two months.

However, since the plaintiff had made the full payment in a single cheque, the court determined that they are entitled to a refund. The case originated when the complainant entered into a contract with the real estate company to purchase a villa within a two-month timeframe. Additionally, the person applied for financing through the Mazaya programme, which was approved. The deal was finalised with a single cheque payment. However, when the plaintiff later requested a refund, the company refused, claiming a breach of contract citing that the payment was late.

The plaintiff argued that the agreement stipulated eligibility for a refund when the deal was closed with a single payment. In its ruling, the Lower Civil Court emphasised that if the defendant had failed to complete the purchase process and did not make the full payment within two months, they would have forfeited the down payment. However, since the plaintiff had paid the full amount, the court concluded that they are indeed entitled to a refund.


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