Workers Trust and Merchant Bank Ltd v Dojap Investments Ltd

Workers Trust and Merchant Bank Ltd v Dojap Investments Ltd [1993] UKPC 7 is a contract law case of the Judicial Committee of the Privy Council, on appeal from the Court of Appeal of Jamaica.

The case concerns the dividing line between a penal requirement for a deposit and liquidated damages.

The sellers said the 25% deposit was forfeit after the buyers failed to pay the balance in 14 days as the contract required.

The Privy Council advised that the sellers could not retain the deposit, and must return, subtracting any loss they could prove they suffered.

Lord Browne-Wilkinson said it was "not possible for the parties to attach the incidents of a deposit to the payment of a sum of money unless such sum is reasonable as earnest money."