Weir v Area Estates Limited


Reference:
LTL 4/1/2010 : [2010] BPIR 806 : [2010] 1 EGLR 77 : [2010] 10 EG 121 : [2010] 2 P & CR DG2; [2010] EWCA Civ 801 LTL 20/7/2010 : [2010] BPIR 1459 : [2010] 3 EGLR 91 : [2010] 42 EG 106 : [2010] 30 EG 62 (CS) : [2010] NPC 84

Date:
15th July 2010

Court:
High Court

Comment:

Recission of a contract for the sale of land.  Mr Weir, for whom Jane acted,  entered into a contract to buy the freehold title of a property.  The OCE disclosed the existence of a lease.  The contract, however, stated that the lease had been surrendered by operation of law and required the purchaser to accept that fact without further proof.  In fact, the lessee was the subject of bankruptcy petition at the time of the purported surrender therefore he could not surrender the lease.  The bankruptcy petition and subsequent order had been entered against the leasehold title which was vested in the lessee’s trustee in bankruptcy at the time of the contract.  At first instance Mr Weir obtained summary judgment.  That decision was upheld, albeit on different grounds, by the Court of Appeal which held that such a provision would be ineffective if untrue unless the vendor had taken reasonable steps to investigate its accuracy.  No such steps had been taken in this case.


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