Where a vendor of land enters into a contract to purchase a substitute property in reliance on the purchaser completing the first contract, and the purchaser knows of the vendor's intention to do so, the vendor's losses on the second contract (including forfeited deposit) are recoverable as damages not too remote under the second limb of Hadley v Baxendale. Interest damages for delayed receipt of the purchase price are recoverable under Hadley v Baxendale principles and are calculated on the gross balance of the purchase price (less deposit and costs of sale), not on the net equity after deducting mortgage debts. The vendor's continued occupation of the property after termination does not necessarily reduce the interest damages award where the vendor was forced to remain in occupation against his wishes.
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