Bashir v Ali & Anor [2010] EWHC 2320 (Ch) (30 September 2010)

Bashir v Ali & Anor [2010] EWHC 2320 (Ch) (30 September 2010)

The contract, properly construed, requires the Defendants to convey the freehold of 66 Leytonstone Road to the Claimant, subject to the Claimant granting 125-year leases of both the First Floor Flat and the Ground Floor Flat to the Defendants at a rent of £100 per flat. This construction reflects the only sensible and workable outcome, given the clear mistake in the contract documents and the economic reality intended by both parties. Rectification and voidness for mistake do not arise as the contract can be construed to give effect to the parties' objective intentions.

Citation
[2010] EWHC 2320 (Ch)
Parties
Claimant: Mohamed Bashir; First Defendant: Mohammad Safraz Ali; Second Defendant: Mohamed Arshad Khan
Jurisdiction
England and Wales
Judgment Date
30 September 2010
Procedural Posture
Chancery Division Contract Dispute / Judgment After Trial
Outcome
Specific performance ordered
Legal Topics
Construction of Contracts, Common Mistake, Rectification, Specific Performance, Auction Sales, Freehold and Leasehold Interests
Contract Law Property Law Construction of Contracts Common Mistake Rectification Specific Performance Auction Sales Freehold and Leasehold Interests

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Parties

Mohamed Bashir

Claimant

Mohammad Safraz Ali

First Defendant

Mohamed Arshad Khan

Second Defendant

Procedural Posture

Chancery Division Contract Dispute / Judgment After Trial

Legal Issues

  1. 1 What is the proper construction of the contract for sale of 66 Leytonstone Road?
  2. 2 Does the contract require rectification due to mistake?
  3. 3 Is the contract void for common mistake?

Ratio Decidendi

The contract, properly construed, requires the Defendants to convey the freehold of 66 Leytonstone Road to the Claimant, subject to the Claimant granting 125-year leases of both the First Floor Flat and the Ground Floor Flat to the Defendants at a rent of £100 per flat. This construction reflects the only sensible and workable outcome, given the clear mistake in the contract documents and the economic reality intended by both parties. Rectification and voidness for mistake do not arise as the contract can be construed to give effect to the parties' objective intentions.

Court Disposition

Specific performance ordered

Orders

  • Defendants to convey the freehold of 66 Leytonstone Road, London E11 to the Claimant, subject to the Claimant granting 125-year leases to the Defendants at a rent of £100 per flat for both the First Floor Flat and the Ground Floor Flat.
  • Court to hear parties on costs and consequential matters.