Hi I have a question.

Question:

Abby agrees to purchase a house from Norma for $300,000 and pays a deposit of $25,000. Abby also had Norma sign an agreement showing the sale price as $400,000, which Abby would show to her Credit Union. The Credit Union would only lend up to 75% of the value of the property and Abby needed to borrow all $300,000 in order to purchase the property.

The agreement also included a clause that stated that it was conditional upon Abby being able to obtain financing from the Credit Union within 30 days. It also had a clause saying that Abby could waive this condition.

Property values have dropped dramatically and Abby wants to get out of this deal and get her deposit back. She does not contact the Credit Union about financing and the financing condition is not met. Abby now wants to sue Norma for the return of the deposit.

-Which would be the appropriate Court for Abby to commence legal action against Norma and why?

-What arguments are available to Norma in defence of the claim by Abby?

-What is the basis of any claim that Norma might have against Abby and what defences might be available to Abby?