A judge in Belfast has ruled that a man who had agreed to buy an apartment but is now unemployed cannot be forced to honour the contract with the developer.
He may, however, be liable for damages.
The action by the company rebuilding the Titanic Quarter was the latest in a series taken by leading developers in the city over uncompleted contracts.
Three years ago, Neil Rowe from east Belfast agreed to purchase a £265,000 apartment in the landmark Titanic Quarter development.
He paid a 10% deposit. Since the downturn in the economy, he has lost his job and cannot get a mortgage.
Titanic Quarter Limited, owned by Dublin-based property company Harcourt Developments, sought a High Court order to make him pay the balance.
His legal representatives challenged the action.
Mr Rowe's lawyers based his defence on his impecuniosities.
Mr Justice Deeny ruled that he had a clearly arguable case that it was impossible for him to pay as he was now unemployed and had no significant assets.
On the grounds of impossibility of performance, the judge refused to grant the developer an order known as specific performance.
The case could have implications for other people who purchased apartments and have since found themselves genuinely unable to pay.
The case will be back in court next month.
The judge will be told the attitude of the developers about proceeding with an action for damages against Mr Rowe for breach of contract.
