Keay & Anor v Morris Homes (West Midlands) Ltd [2012] EWCA Civ 900 (11 July 2012)

Keay & Anor v Morris Homes (West Midlands) Ltd [2012] EWCA Civ 900 (11 July 2012)

Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 requires all expressly agreed terms of a contract for the sale or disposition of an interest in land to be incorporated in a signed written document; omission renders the contract void. The alleged oral 'works obligation' was, on the pleaded case,...

Source-derived case information.

Citation
[2012] EWCA Civ 900
Parties
Claimant/respondent: David Norma Keay; Claimant/respondent: Linda Mary Keay; Defendant/appellant: Morris Homes (West Midlands) Limited
Jurisdiction
England and Wales
Judgment Date
11 July 2012
Procedural Posture
Civil Appeal / Appeal From Summary Judgment/strike Out Application in High Court (chancery Division)
Outcome
Appeal allowed in part; summary judgment/strike out application dismissed; declaration in favour of Keays set aside.
Legal Topics
Section 2 Law of Property (miscellaneous Provisions) Act 1989, Oral Agreements and Enforceability, Variation of Contracts for Sale of Land, Collateral Agreements, Summary Judgment, Strike Out Applications
Property Law Contract Law Civil Procedure Section 2 Law of Property (miscellaneous Provisions) Act 1989 Oral Agreements and Enforceability Variation of Contracts for Sale of Land Collateral Agreements Summary Judgment +1 more

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Parties

David Norma Keay

Claimant/respondent

Linda Mary Keay

Claimant/respondent

Morris Homes (West Midlands) Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Summary Judgment/strike Out Application in High Court (chancery Division)

Legal Issues

  1. 1 Does section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 render void an alleged oral agreement to perform building works as part of a land sale variation?
  2. 2 Is the alleged oral 'works obligation' a collateral agreement or a term of the land sale variation requiring compliance with section 2?
  3. 3 Does completion of the land elements of a void contract revive or validate non-land obligations omitted from a section 2-compliant document?

Ratio Decidendi

Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 requires all expressly agreed terms of a contract for the sale or disposition of an interest in land to be incorporated in a signed written document; omission renders the contract void. The alleged oral 'works obligation' was, on the pleaded case, at least arguably a term of the variation of the land sale contract, not a collateral agreement. Completion of the land elements of a void contract does not revive or validate omitted terms. The judge was correct to leave the factual issue (the Grossman point) to trial, but erred in holding that Tootal supported enforceability of the works obligation after completion; Tootal...

Court Disposition

Appeal allowed in part; summary judgment/strike out application dismissed; declaration in favour of Keays set aside.

Orders

  • Set aside the fourth recital to, and the declaration in paragraph 1 of, the judge's order.
  • Dismiss the Keays' application notice dated 5 January 2011.