Scrowther v Watermill Properties [2009] EW Misc 6 (EWCC) (23 October 2009)

Scrowther v Watermill Properties [2009] EW Misc 6 (EWCC) (23 October 2009)

The collateral contract requiring Miss Scrowther to pay £31,250 to Watermill is void under section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 as it is inconsistent with the contract for sale and not contained in the written contract; Miss Scrowther is entitled to recover the sum.

Citation
[2009] EW Misc 6 (EWCC)
Parties
Claimant: Miss Scrowther; Defendant: Watermill Properties
Jurisdiction
England and Wales
Judgment Date
23 October 2009
Procedural Posture
Civil / Judgment
Outcome
Judgment for the claimant
Legal Topics
Collateral Contracts, Section 2 Law of Property (miscellaneous Provisions) Act 1989, Unfair Terms in Consumer Contracts Regulations 1999, Penalty Clauses, Equity Release Schemes
Contract Law Property Law Consumer Protection Collateral Contracts Section 2 Law of Property (miscellaneous Provisions) Act 1989 Unfair Terms in Consumer Contracts Regulations 1999 Penalty Clauses Equity Release Schemes

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Parties

Miss Scrowther

Claimant

Watermill Properties

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether Watermill is entitled to retain £31,250 paid by Miss Scrowther under a collateral contract
  2. 2 Whether the collateral contract is void under section 2 of the Law of Property (Miscellaneous Provisions) Act 1989
  3. 3 Whether the contract terms are unfair under the Unfair Terms in Consumer Contracts Regulations 1999

Ratio Decidendi

The collateral contract requiring Miss Scrowther to pay £31,250 to Watermill is void under section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 as it is inconsistent with the contract for sale and not contained in the written contract; Miss Scrowther is entitled to recover the sum.

Court Disposition

Judgment for the claimant

Orders

  • Watermill Properties to return £31,250 to Miss Scrowther
  • Provisional stay of execution pending appeal for 21 days, extendable if Notice of Appeal is served