Is Sales Contract Deposit NonRefundable? The Supreme Court's View

Introduction

In a recent legal dispute between a buyer and a real estate development company in Muscat, the issue of whether a deposit in a sales contract is truly non-refundable was brought before the courts. This case, which escalated to the Supreme Court, highlights significant interpretations of legal provisions related to deposits and advance payments in real estate transactions. The following article explores the details of the case, the judgments at various court levels, and the Supreme Court's final ruling, thus focusing into the legal aspect on non-refundable deposits in sales contracts.

Background of the Dispute

This case involves a dispute between a buyer and a real estate development company over a property purchase agreement in Muscat. The buyer initially paid 3,000 OMR as a deposit to reserve the property, followed by the remaining deposit, OMR 21,900, to make up 10% of the total contract value. The buyer was unable to complete the remaining