At a hearing scheduled for 25 January 2017, the Supreme Court will consider a cassation appeal drafted by the firm’s lawyers in a case involving one of the largest development projects planned for Poland’s Tricity area (Gdańsk–Gdynia–Sopot). The project did not go forward because each of the parties renounced the contract for sale of land worth PLN 314 million, resulting in the seller’s retaining a down payment of PLN 30 million and a further advance payment of PLN 14 million.
In the cassation appeal by the buyer of the property, an Israeli investor, two major legal issues are raised. The first is whether the seller’s violation of the obligation to provide necessary clarification of the legal and factual condition of the property gives the buyer the right to renounce the sale contract and demand a payment equal to twice the down payment. (Civil Code Art. 546 §1 in connection with Art. 394 §1). The second issue refers to the connection between the reservation of a contractual penalty, as well as matching the down payment, for the same breach of contract. The case also involves the issue of protection against retention of the down payment through abuse of a right (Civil Code Art. 5).