Gibbons v Doherty & anor [2019] IECA 275 (30 October 2019)

Gibbons v Doherty & anor [2019] IECA 275 (30 October 2019)

General Condition 30 permits a purchaser who signs in trust or as agent to nominate a principal or beneficiary at any time before completion, regardless of whether the principal existed at the time of contract. Once the principal is identified, personal liability shifts to the nominee. The contract was indivisible, and Mr Doherty was relieved of personal liability upon nomination of ADT Investments Limited.

Citation
[2019] IECA 275
Parties
Plaintiff/appellant: John Gibbons; Defendant/respondent: Daniel Doherty; Defendant/respondent: ADT Investments Limited
Jurisdiction
Ireland
Judgment Date
30 October 2019
Procedural Posture
Appeal / Judgment
Outcome
appeal dismissed
Legal Topics
Specific Performance, Agency, Trust, Nomination of Purchaser, Interpretation of Contract Conditions
Contract Law Property Law Specific Performance Agency Trust Nomination of Purchaser Interpretation of Contract Conditions

Case Brief

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Parties

John Gibbons

Plaintiff/appellant

Daniel Doherty

Defendant/respondent

ADT Investments Limited

Defendant/respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether a purchaser signing a contract 'in trust' is personally liable when the nominated beneficiary did not exist at the time of contract
  2. 2 Interpretation and application of General Condition 30 of the Law Society General Conditions of Sale
  3. 3 Whether the contract for sale was divisible or indivisible

Ratio Decidendi

General Condition 30 permits a purchaser who signs in trust or as agent to nominate a principal or beneficiary at any time before completion, regardless of whether the principal existed at the time of contract. Once the principal is identified, personal liability shifts to the nominee. The contract was indivisible, and Mr Doherty was relieved of personal liability upon nomination of ADT Investments Limited.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed
  • Adjourned re: costs to Monday, 11/11/19, at 10.00 a.m.