Parties entered into an agreement of purchase and sale for residential property. The purchaser was unable to close on the closing date as the purchaser could not obtain financing to complete the deal. The vendors re-listed the property and sold it for $275,000 less than the price that the initial purchaser had agreed to pay. The vendors brought an action for breach of contract. Summary judgment motion judge awarded the vendors the difference in price, and ordered that the deposit paid be forfeited and not credited towards the damage awards. Purchaser appealed. The Court of Appeal allowed the appeal in part and ruled that the motion judge had erred in her decision on the effect of the deposit on the calculation of damages. The Court of Appeal found that deposits paid by the defaulting party will be credited against an award of damages.