Pease & Anor v McMillan & Ors

Pease & Anor v McMillan & Ors

Clause 13.3 of the contract encompasses the entirety of the SPS payments, including the historic element, for 2005 and subsequent years and creates an enforceable obligation to use reasonable endeavours to comply with a reasonable request for transfer. However, as no reasonable request was made or refused, there was no breach of contract and no entitlement to damages.

Parties
Appellant: John Simon Frederick Pease; Appellant: Carole Ann Pease; Respondent: David William McMillan; Respondent: Freya Jeannie McMillan; Respondent: W A McMillan Limited
Jurisdiction
England and Wales
Judgment Date
02 April 2009
Procedural Posture
Civil Appeal / Appeal From County Court Judgment
Outcome
appeal dismissed
Legal Topics
Construction of Contract Clauses, Transfer of Agricultural Subsidies, Single Payment Scheme, Breach of Contract, Damages
Contract Law Property Law Agricultural Law Construction of Contract Clauses Transfer of Agricultural Subsidies Single Payment Scheme Breach of Contract Damages

Case Brief

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Parties

John Simon Frederick Pease

Appellant

Carole Ann Pease

Appellant

David William McMillan

Respondent

Freya Jeannie McMillan

Respondent

W A McMillan Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From County Court Judgment

Legal Issues

  1. 1 Whether clause 13.3 of the sale contract includes the historic element of Single Payment Scheme (SPS) payments for 2005 and subsequent years
  2. 2 Whether the sellers breached clause 13.3 by failing to use reasonable endeavours to procure the transfer of the benefit of the historic element of SPS payments to the buyers

Ratio Decidendi

Clause 13.3 of the contract encompasses the entirety of the SPS payments, including the historic element, for 2005 and subsequent years and creates an enforceable obligation to use reasonable endeavours to comply with a reasonable request for transfer. However, as no reasonable request was made or refused, there was no breach of contract and no entitlement to damages.

Court Disposition

appeal dismissed