August 31, 2025
Regalian Properties Plc v London Dockland Development Corpn 02 Nov 1994 [1995] 1 WLR 212, Ch D
A property developer incurred substantial costs during 'subject to contract' negotiations for a development project. When the other party withdrew, they sought restitution for these expenses. The court held that such pre-contractual costs are a normal commercial risk and not recoverable. Facts The London Dockland Development Corporation (LDDC), the defendant, invited tenders for a licence to develop a valuable site in Wapping. Regalian Properties Plc, the plaintiff, submitted a proposal and was selected as the preferred bidder. All subsequent negotiations for the final building agreement were conducted explicitly on a ‘subject to contract’ basis. During this period, and as a
