When Deals Fall Through: Lessons From Regal BA Ltd v Zhang

The law does not require parties to achieve the best possible commercial outcome – only that they act reasonably. That principle was reaffirmed in the case of Regal BA Ltd v Zhang [2026] EWHC 1446, a case arising from the collapse of a multimillion-pound property transaction. Decided by HHJ Hacon in the High Court (Chancery Division) on 23 June 2026, the judgment examined whether the seller had failed to mitigate its losses by selling a property at an alleged undervalue. In doing so, this case has provided an important reminder of where the burden of proof lies and how courts assess resale prices following a buyer’s default in high-value property disputes.

The judgment contains lessons not only for property developers and investors, but for anyone involved in commercial transactions where a deal has fallen through.