Beachfront Deal Breaks Down

Published in Coffs Coast News of the Area on 1 May 2026

Solara, a boutique spa and therapy retreat operating from a prominent beachfront premises on the Gold Coast, agreed to sell their business to Lai Liora, a newly established wellness and recovery centre, for the sum of $2.7 million.

Specialising in cryotherapy and lymphatic drainage treatment, Lai Liora, were eager to establish themselves within the rapidly growing wellness market and viewed the acquisition as a strategic opportunity to secure an established and high-end clientele base in the perfect location.

Lai Liora paid a deposit of $270,000 and the parties executed a standard contract for the sale and purchase of business.

The contract included several special conditions, one of which set out various conditions for completion. It further provided that either party, could rescind the contract by written notice if the completion conditions were not satisfied and upon valid recission, the purchaser was entitled to a refund of the deposit.

Completion was conditional on the purchaser obtaining a lease of the premises within 3 months after exchange. Despite entering into active negotiations with the landlord, Lai Liora was unable to secure a lease within the specified timeframe.

The vendor’s solicitor subsequently issued a notice of termination on the purchaser, stating their client’s intention to retain the deposit, alleging that their failure to obtain a lease constituted a default under the contract. Additionally, claiming Solara had suffered damage exceeding the sum of the deposit.

The purchaser commenced proceedings in the Supreme Court, seeking repayment of the deposit, together with interest and costs.

Satisfied that the contract had been validly rescinded, the Court found that Lai Liora was entitled to a refund of the deposit and ordered in favour of the plaintiff in the amount of $270,000 plus interest and a further order the defendant pay the plaintiff’s costs and disbursements.

Thank you to Rhiannon Beck, for her assistance with this column.

Email Manny Wood, Principal Solicitor and Accredited Specialist in Wills and Estates at TB Law at [email protected] or call on (02) 66 487 487. This fictional column is not legal advice.