Dahlia Ltd v Four Millbank Nominees Ltd & Anor [1977] EWCA Civ 5 (24 November 1977)

Dahlia Ltd v Four Millbank Nominees Ltd & Anor [1977] EWCA Civ 5 (24 November 1977)

A unilateral contract to enter into a contract for the sale of land, even if fully performed by the offeree, is unenforceable under section 40 of the Law of Property Act 1925 unless evidenced in writing or supported by sufficient acts of part performance. The acts relied on by the plaintiffs did not unequivocally indicate the existence of a contract and were consistent with mere negotiations, thus failing to satisfy the requirements for part performance.

Citation
[1977] EWCA Civ 5
Parties
Plaintiff (appellant): Dahlia Limited; 1st Defendant (respondent): Four Millbank Nominees Limited; 2nd Defendant: Slaughter & May (sued as a firm)
Jurisdiction
England and Wales
Judgment Date
24 November 1977
Procedural Posture
Appeal From High Court (chancery Division) / Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Unilateral Contracts, Statute of Frauds, Law of Property Act 1925 S.40, Part Performance, Enforceability of Oral Agreements, Contracts for Sale of Land
Contract Law Property Law Unilateral Contracts Statute of Frauds Law of Property Act 1925 S.40 Part Performance Enforceability of Oral Agreements Contracts for Sale of Land

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Parties

Dahlia Limited

Plaintiff (appellant)

Four Millbank Nominees Limited

1st Defendant (respondent)

Slaughter & May (sued as a firm)

2nd Defendant

Procedural Posture

Appeal From High Court (chancery Division) / Appeal Judgment

Legal Issues

  1. 1 Whether a unilateral contract to enter into a contract for sale of land is enforceable
  2. 2 Whether such a contract is caught by section 40 of the Law of Property Act 1925
  3. 3 Whether acts of part performance were sufficient to take the case out of the statute

Ratio Decidendi

A unilateral contract to enter into a contract for the sale of land, even if fully performed by the offeree, is unenforceable under section 40 of the Law of Property Act 1925 unless evidenced in writing or supported by sufficient acts of part performance. The acts relied on by the plaintiffs did not unequivocally indicate the existence of a contract and were consistent with mere negotiations, thus failing to satisfy the requirements for part performance.

Court Disposition

Appeal dismissed

Orders

  • Statement of claim struck out as against the first defendants
  • Action dismissed with costs (at first instance)