Yewbelle Ltd v London Green Developments Ltd & Anor

Yewbelle Ltd v London Green Developments Ltd & Anor

Yewbelle did not discharge its obligation to use all reasonable endeavours to obtain a section 106 agreement substantially in the form annexed to the contract. The changes proposed by the local authority regarding the library lease were substantial, but Yewbelle failed to take further reasonable steps to resolve the issue. The contract was not automatically discharged, and LGD was entitled to specific performance as the buyer could waive the condition. The action by Yewbelle fails and the counterclaim for specific performance succeeds.

Parties
Claimant and Part 20 Defendant: Yewbelle Limited; Defendant: London Green Developments Limited; Part 20 Defendant: Knightsbridge Green Limited
Jurisdiction
England and Wales
Judgment Date
08 December 2006
Procedural Posture
Civil (contract/property) / Judgment After Trial
Outcome
Claim dismissed; counterclaim for specific performance granted
Legal Topics
Conditional Contracts, Section 106 Agreements, Reasonable Endeavours, Specific Performance, Implied Terms, Waiver of Conditions
Contract Law Property Law Planning Law Conditional Contracts Section 106 Agreements Reasonable Endeavours Specific Performance Implied Terms +1 more

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Parties

Yewbelle Limited

Claimant and Part 20 Defendant

London Green Developments Limited

Defendant

Knightsbridge Green Limited

Part 20 Defendant

Procedural Posture

Civil (contract/property) / Judgment After Trial

Legal Issues

  1. 1 Whether the sale contract was discharged due to inability to procure a section 106 agreement substantially in the form annexed to the contract despite reasonable endeavours
  2. 2 Whether the buyer could waive the condition and enforce specific performance
  3. 3 Whether the seller complied with its obligation to use all reasonable endeavours

Ratio Decidendi

Yewbelle did not discharge its obligation to use all reasonable endeavours to obtain a section 106 agreement substantially in the form annexed to the contract. The changes proposed by the local authority regarding the library lease were substantial, but Yewbelle failed to take further reasonable steps to resolve the issue. The contract was not automatically discharged, and LGD was entitled to specific performance as the buyer could waive the condition. The action by Yewbelle fails and the counterclaim for specific performance succeeds.

Court Disposition

Claim dismissed; counterclaim for specific performance granted

Orders

  • Specific performance of the sale contract ordered in favour of London Green Developments Limited
  • No damages awarded for delay