The consideration given by the appellants for the purchase of a residential property was the deposit paid plus the balance of the purchase price and not (as the appellants contended) the deposit plus the grant of the annuity. 

The appellants bought a residential property. The contract price for the purchase was £765,000. The appellants paid a 5% deposit of £38,250. The contract also stated that the appellants could satisfy their obligation to pay the balance of the purchase price by granting an annuity to the vendors.  

Between contract and completion, the appellants granted the annuity. Subsequently, before completion, the vendors redeemed the annuity in return for the right to receive a lump sum of £726,750. On completion of the contract, the vendors were paid £726,750 which, together with the deposit of £38,250, came to the stated