Intense Investments Ltd v Development Ventures Ltd & Anor [2006] EWHC 1586 (TCC) (29 June 2006)

Intense Investments Ltd v Development Ventures Ltd & Anor [2006] EWHC 1586 (TCC) (29 June 2006)

There was a binding bilateral contract between the Claimant and the First Defendant as of 19 April 2004, executed by both parties, under which the Claimant loaned £350,000 in return for repayment and 50% of net profits. Acceptance was effectively communicated by payment of the loan. The contract was not terminated or superseded by later negotiations, as no new agreement was executed. The Claimant is entitled to 50% of the net profits from the sale, in addition to repayment of the loan.

Citation
[2006] EWHC 1586 (TCC)
Parties
Claimant: Intense Investments Ltd; First Defendant: Development Ventures Ltd; Second Defendant: Cleveland Properties Ltd
Jurisdiction
England and Wales
Judgment Date
29 June 2006
Procedural Posture
Commercial Contract Dispute / Judgment After Preliminary Issue Trial
Outcome
Judgment for the Claimant
Legal Topics
Formation of Contract, Intention to Create Legal Relations, Communication of Acceptance, Estoppel, Repudiation and Termination, Implied Terms
Contract Law Commercial Law Formation of Contract Intention to Create Legal Relations Communication of Acceptance Estoppel Repudiation and Termination Implied Terms

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Parties

Intense Investments Ltd

Claimant

Development Ventures Ltd

First Defendant

Cleveland Properties Ltd

Second Defendant

Procedural Posture

Commercial Contract Dispute / Judgment After Preliminary Issue Trial

Legal Issues

  1. 1 Whether there was a binding contract between the parties as of 19 April 2004
  2. 2 Whether acceptance of the contract was communicated
  3. 3 Whether the contract was terminated or superseded

Ratio Decidendi

There was a binding bilateral contract between the Claimant and the First Defendant as of 19 April 2004, executed by both parties, under which the Claimant loaned £350,000 in return for repayment and 50% of net profits. Acceptance was effectively communicated by payment of the loan. The contract was not terminated or superseded by later negotiations, as no new agreement was executed. The Claimant is entitled to 50% of the net profits from the sale, in addition to repayment of the loan.

Court Disposition

Judgment for the Claimant

Orders

  • Declaration that a binding contract existed as of 19 April 2004 between the Claimant and First Defendant for repayment of £350,000 and 50% of net profits from the sale of the site.
  • Order for the First Defendant to account to the Claimant for 50% of the net profits from the sale of 116-122 Woodgrange Road, Forest Gate, London, E7.