Gibbons v Doherty (Approved) [2020] IESC 72 (11 December 2020)

Gibbons v Doherty (Approved) [2020] IESC 72 (11 December 2020)

Condition 30 does not relieve personal liability where the principal did not exist at the time of contract; however, the appellant, by conduct and acceptance of ADT as purchaser for Lots 1 and 2, acquiesced to ADT as principal, thereby discharging Mr. Doherty from liability for Lot 3. The appellant cannot seek specific performance against Mr. Doherty personally after accepting ADT as purchaser.

Citation
[2020] IESC 72
Parties
Plaintiff/appellant: John Gibbons; Defendant/respondent: Daniel Doherty; Defendant/respondent: ADT Investments Limited
Jurisdiction
Ireland
Judgment Date
11 December 2020
Procedural Posture
Civil Appeal / Final Appellate Judgment
Outcome
appeal dismissed
Legal Topics
Specific Performance, Agency, Pre Incorporation Contracts, Ratification, Novation, Interpretation of Contract Conditions, Trustee Liability
Contract Law Property Law Company Law Equity Specific Performance Agency Pre Incorporation Contracts Ratification +3 more

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Parties

John Gibbons

Plaintiff/appellant

Daniel Doherty

Defendant/respondent

ADT Investments Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Final Appellate Judgment

Legal Issues

  1. 1 Whether the appellant is entitled to specific performance against the first-named respondent for Lot 3
  2. 2 Interpretation of Condition 30 of the Law Society General Conditions of Sale
  3. 3 Effect of signing 'in trust' for a non-existent company

Ratio Decidendi

Condition 30 does not relieve personal liability where the principal did not exist at the time of contract; however, the appellant, by conduct and acceptance of ADT as purchaser for Lots 1 and 2, acquiesced to ADT as principal, thereby discharging Mr. Doherty from liability for Lot 3. The appellant cannot seek specific performance against Mr. Doherty personally after accepting ADT as purchaser.

Court Disposition

appeal dismissed

Orders

  • Specific performance denied against Daniel Doherty personally
  • Order for specific performance stands only against ADT Investments Limited