Mrs D had gone into business with the respondents to operate a residential care home. It was to be run from premises owned by the respondents. The respondents inter alia had failed to disclose previous convictions, the registration was cancelled, and the company was insolvent. Heads of agreement with an attached draft lease had been agreed but a lease was not signed by the Mrs D. As the business collapsed, Mrs D began another business taking the home’s residents. The respondents claimed arrears of rent from Mrs D.
Held: It is in principle wrong that an intended party to a lease should be treated as bound at a time before he has committed himself to the lease merely because the other party has delivered the lease in escrow and the escrow conditions are subsequently satisfied. The appeal by the respondents failed.
Lord Justice Peter Gibson Lord Justice Clarke and Lord Justice Keene
 EWCA Civ 1586, Times 02-Dec-2004
England and Wales
Distinguished – Alan Estates Ltd v WG Stores Ltd and Another CA 1-Jul-1981
The proposed tenant wanted to get into possession, and was given a key and paid a quarter’s rent to the lessor’s solicitors to be held as stakeholders, before the lease had been formally granted. An undated lease and counterpart were executed and . .
Lists of cited by and citing cases may be incomplete.
Company, Landlord and Tenant
Updated: 27 June 2022; Ref: scu.219716