Taylor & Anor v Crotty & Anor [2006] EWCA Civ 1364 (03 October 2006)

Taylor & Anor v Crotty & Anor [2006] EWCA Civ 1364 (03 October 2006)

The tenant validly exercised the option to purchase by serving notice pursuant to clause 8 of the tenancy agreement, even though the three months' period was not expressly mentioned and the formal contract was not executed within the first two years. The subsequent steps in clause 8 were not conditions precedent to the creation of a binding contract. The landlord's refusal to accept the notice and dispute of the option's validity precluded any complaint about delay. The tenant remained liable for rent until the tenancy was terminated or the right to possession was otherwise extinguished.

Citation
[2006] EWCA Civ 1364
Parties
Claimants/appellants: Taylor & Anr; Defendants/respondents: Crotty & Anr; Part 20 Defendant: Part 20 Defendant
Jurisdiction
England and Wales
Judgment Date
03 October 2006
Procedural Posture
Appeal (civil) / Judgment on Appeal From Leeds County Court
Outcome
Appeal dismissed with variation as to payment of rent.
Legal Topics
Exercise of Option to Purchase, Specific Performance, Interpretation of Contract Terms, Tenancy Agreements
Contract Law Property Law Exercise of Option to Purchase Specific Performance Interpretation of Contract Terms Tenancy Agreements

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Parties

Taylor & Anr

Claimants/appellants

Crotty & Anr

Defendants/respondents

Part 20 Defendant

Part 20 Defendant

Procedural Posture

Appeal (civil) / Judgment on Appeal From Leeds County Court

Legal Issues

  1. 1 Whether the tenant validly exercised the contractual option to purchase the freehold reversion under the tenancy agreement
  2. 2 Whether specific performance should be granted despite alleged delay and non-compliance with all option terms
  3. 3 Whether the tenant was liable for rent or interest after the date fixed for completion

Ratio Decidendi

The tenant validly exercised the option to purchase by serving notice pursuant to clause 8 of the tenancy agreement, even though the three months' period was not expressly mentioned and the formal contract was not executed within the first two years. The subsequent steps in clause 8 were not conditions precedent to the creation of a binding contract. The landlord's refusal to accept the notice and dispute of the option's validity precluded any complaint about delay. The tenant remained liable for rent until the tenancy was terminated or the right to possession was otherwise extinguished.

Court Disposition

Appeal dismissed with variation as to payment of rent.

Orders

  • Specific performance of the option agreement ordered, subject to variation regarding rent and interest.
  • Tenant liable to pay rent until the end of the period of 21 days from the order for specific performance, not interest on the purchase price after the date fixed for completion.