Area Estates Ltd v Weir: CA 20 Jul 2010

The parties contracted for the sale and purchase of land with vacant possession. It was subject to a lease which the seller said had been surrendered, and it refused to accept any requisitions of objections. After exchange it appeared that the tenant was bankrupt, and the surrender ineffective in law. Upon discovery of this the purchaser sought rescission. The seller now appealed an order giving summary judgment rejecting their defences.
Held: The vendor, properly advised, could and should have known that the purported surrender, unsupported by any order of court, was ineffective. His appeal failed.

Judges:

Carnwath LJ

Citations:

[2010] EWCA Civ 801, [2010] 42 EG 106, [2010] BPIR 1459, [2010] NPC 84, [2010] 30 EG 62 (CS)

Links:

Bailii

Statutes:

Insolvency Act 1986 284(4)(a), Law of Property Act 1925 42(3)

Jurisdiction:

England and Wales

Citing:

CitedIn Re Banister; Broad v Munton CA 1879
Property was sold from a deceased estate under an order of the Court.The purchaser found the title was defective.
Held: A condition in a contract for the sale of land which purports to oust any right to object to the title or to raise . .
CitedHeywood v Mallalieu 1883
A house was sold at auction by a mortgagee ‘subject to any easements.’ It turned out to be subject to an easement in favour of a neighbour entitling her to come and wash her clothes in the kitchen. The vendor’s solicitor had been told that the . .
CitedCumberland Consolidated Holdings Limited v Ireland CA 1946
A vendor of a warehouse left in the cellars of a warehouse rubbish including bags of hardened cement which would be difficult to remove, and which affected the value of the property and precluded the proper use of the cellar. The buyer complained . .
CitedBecker v Partridge CA 1966
The contract for sale of an underlease provided that the vendor’s title ‘has been accepted . . and the purchaser shall raise no requisition or objection thereto’. there had been breaches of covenant in the superior lease giving grounds for . .
Lists of cited by and citing cases may be incomplete.

Land, Contract

Updated: 21 August 2022; Ref: scu.420973