Yewbelle Ltd v London Green Developments Ltd & Anor [2007] EWCA Civ 475 (23 May 2007)

Yewbelle Ltd v London Green Developments Ltd & Anor [2007] EWCA Civ 475 (23 May 2007)

The Court held that a term should be implied into the contract allowing the seller, after using all reasonable endeavours to obtain the section 106 agreement and after giving the buyer the opportunity to waive the requirement, to rescind the contract if the buyer does not waive. However, on the facts, the seller had not exhausted all reasonable endeavours, particularly in relation to the library issue, and therefore was not entitled to treat the contract as at an end.

Citation
[2007] EWCA Civ 475
Parties
Appellant Claimant: Yewbelle Limited; Respondent Defendant: London Green Developments Limited; Appellant Part 20 Defendant: Knightsbridge Green Limited
Jurisdiction
England and Wales
Judgment Date
23 May 2007
Procedural Posture
Appeal (civil) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Implied Terms in Contracts, Reasonable Endeavours Obligations, Specific Performance, Section 106 Agreements, Land Development Agreements
Contract Law Property Law Implied Terms in Contracts Reasonable Endeavours Obligations Specific Performance Section 106 Agreements Land Development Agreements

Case Brief

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Parties

Yewbelle Limited

Appellant Claimant

London Green Developments Limited

Respondent Defendant

Knightsbridge Green Limited

Appellant Part 20 Defendant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether a term should be implied into the contract allowing the seller to rescind if, after using all reasonable endeavours, a section 106 agreement could not be obtained and the buyer did not waive the requirement.
  2. 2 Whether the seller had used all reasonable endeavours to obtain the section 106 agreement as required by the contract.

Ratio Decidendi

The Court held that a term should be implied into the contract allowing the seller, after using all reasonable endeavours to obtain the section 106 agreement and after giving the buyer the opportunity to waive the requirement, to rescind the contract if the buyer does not waive. However, on the facts, the seller had not exhausted all reasonable endeavours, particularly in relation to the library issue, and therefore was not entitled to treat the contract as at an end.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the seller is not entitled to treat the contract as at an end.
  • The buyer's counterclaim for specific performance may proceed.