Term
Record v Bell [1991]
COLLATERAL CONTRACT - A SEPERATE OCNTRACT ENTICING A PURCHASER IN TO A SALE - A collateral contract is where the 'consideration' is entry in to another contract |
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Definition
COLLATERAL CONTRACT (A contract used to entice buyer into purchase - not part of the express terms of the sale contract) -
Agreed to sell land.
Before exchange made, additional agreement for seller to present proof of ownership paperwork.
Contracts were exchanged, but additional agreement not contained within sale of land contract.
Judge ruled that additional contract was not part of the land exchange contract (therefore s2 LP(MP)A 1989 = irrelevant) instead = collateral contract. |
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Term
Tootal Clothing Ltd v Guinea Properties Management Ltd [1992]
SEPERATE CONTRACT NOT DIRECTLY CONCERNED WITH THE SALE OF LAND AGREEMENT DOES NOT NEED TO BE CONTAINED IN THE SAME DOCUMENT AS THE LAND SALE AGREEMENT |
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Definition
A contract committing seller to re-imburese leaseholder for £30000 worth of shop fittings he would have to carry out.
Contract regarding re-imbursement was 'hived off' in to another contract.
Judge ruled that the existence of the second contract was not in contravention with LP(MP)A 1989 (as both parties had agreed to the agreement re: money being 'hived off' in to a second contract + supplemantal agreement by itself is not a land agreement)
SEPERATE CONTRACT, WHICH IS DISTINCT FROM LAND CONTRACT, CAN CO-EXIST WITH LAND CONTRACT (MERELY THAT YOU CANNOT HIVE OFF 'LAND' ISSUES INTO THE ALTERNATIVE CONTRACT - AGREEMENT TO DO SHOP FITTINGS DOES NOT = RELATED TO THE LAND) |
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Term
Wright v Robert Leonard [1994]
AN OMMISSION IN A LAND AGRRMENT CAN BE RECTIFIED IF IT WAS LEFT OUT BY MISTAKE - BUT CLEARLY AGREED TO BY BOTH PARTIES |
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Definition
D agreed to sell the leasehold for a flat to C
Original agreement included an oral agreement that all of the fixtures and fittings would be included
The D then removed all of the fixtures and fittings
It was found that oral agreement was left out of the main agreement by mistake, therefore the original agreement was rectified to include the oral agreement |
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Term
Oun v Ahmad
IF THE PARTIES PURPOSEFULLY AND ACTIVELY AGREE TO HAVE CERTAIN TERMS (DIRECTLY RELATING TO LAND SALE) CONTAINED IN A SEPERATE CONTRACT, THIS WILL BE TREATED AS A SEPERATE CONTRACT, AND RECTIFICATION WILL NOT BE AN OPTION
RECTIFICATION CANNOT BE APPLIED BY THE COURTS TO REMEDY A DEFECT IN LAW - IT IS ONLY USED TO RECFTIFY MISTAKES |
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Definition
D agreed to sell property lease
Two contractS were drawn up, one regarding the sale of the leasehold, the second concerned the apportioning of the monies
A disagreement arose and the C sued D for breach of the contract
It was held that the first contract was void (under LP(MP)A 1989) as all the terms of the sale were not included in the main contract.
It was held that rectification was not an option, as both of the parties had consciously agreed to have two seperate contracts
IN THIS INSTANCE, APPORTIONING OF THE MONIES RELATING TO THE LAND = DIRECTLY RELEVANT TO SALE LAND CONTRACT (UNLIKE E.G. SHOP FITTINGS WHICH WOULD COUNT AS AN ADDITIONAL AGREEMENT, NOT DIRECTLY LINKED TO THE SALE OF THE LAND) |
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Term
McCausland and another v Duncan Lawrie Ltd and another [1997]
Whenever a material term in a contract for the sale or disposition of land is varied, that variation must comply with the LP(MP)A 1989 s2. |
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Definition
C ageed to purchase a house from the D with agreement that a portion of the deposit would be made on the completion date, and the remainder would be payable at a later date - on the proviso that the completion date was met - if not, the full deposit would be payable immediately
After agreeing to completion date & expressing it in the contract, D's realised that completion date fell on a Sunday and thus orally agreed with C's that completion date would change
C's missed the completion date and D's demanded the full deposit
C's paid full deposit & proceeded to sue D's
Judge found that 'there would be little point in requiring that the original contract comply with s2 if it might be varied wholly informally |
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