Bonner Properties Ltd v McGurran Construction Ltd [2009] NICA 49 (28 October 2009)

Bonner Properties Ltd v McGurran Construction Ltd [2009] NICA 49 (28 October 2009)

The letter of 8 August 2007 from Bonner’s solicitor constituted a clear rejection of McGurran’s offer, particularly regarding Special Condition 5, and the marking 'Subject to Contract' did not prevent this rejection from terminating the offer. Therefore, there was no offer in existence for Bonner to accept on 7 September 2007, and no binding contract was formed.

Citation
[2009] NICA 49
Parties
Plaintiff/appellant: Bonner Properties Limited; Defendant/respondent: McGurran Construction Limited
Jurisdiction
Northern Ireland
Judgment Date
28 October 2009
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal in Northern Ireland
Outcome
Appeal dismissed
Legal Topics
Offer and Acceptance, Specific Performance, Authority of Solicitor, Subject to Contract, Statute of Frauds
Contract Law Property Law Offer and Acceptance Specific Performance Authority of Solicitor Subject to Contract Statute of Frauds

Case Brief

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Parties

Bonner Properties Limited

Plaintiff/appellant

McGurran Construction Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal in Northern Ireland

Legal Issues

  1. 1 Whether the letter of 8 August 2007 constituted a rejection of the purchaser’s offer to purchase
  2. 2 Whether the solicitor had authority to write the letter rejecting the offer
  3. 3 Whether the marking 'Subject to Contract' prevented the letter from constituting a rejection

Ratio Decidendi

The letter of 8 August 2007 from Bonner’s solicitor constituted a clear rejection of McGurran’s offer, particularly regarding Special Condition 5, and the marking 'Subject to Contract' did not prevent this rejection from terminating the offer. Therefore, there was no offer in existence for Bonner to accept on 7 September 2007, and no binding contract was formed.

Court Disposition

Appeal dismissed

Orders

  • No binding and enforceable contract existed between the parties
  • Specific performance suit dismissed