Allan & Ors v. Armstrong & Ors [2004] ScotCS 92 (07 April 2004)

Allan & Ors v. Armstrong & Ors [2004] ScotCS 92 (07 April 2004)

The enforceability of the break clause against the singular successor (Midland Bank Pension Fund) depends on the factual issue of the Bank's actual knowledge of the missives; without proof of such knowledge, the right remains personal and does not transmit. The matter requires proof before answer.

Citation
[2004] ScotCS 92
Parties
Pursuers: Alistair Graham Allan and Others; Defenders: David J Armstrong and Others
Jurisdiction
Scotland
Judgment Date
07 April 2004
Procedural Posture
Civil / Procedure Roll (preliminary Hearing on Relevancy)
Outcome
Proof before answer allowed; all pleas standing.
Legal Topics
Leases, Break Clauses, Transmission of Personal Rights, Binding Effect on Singular Successors
Property Law Contract Law Leases Break Clauses Transmission of Personal Rights Binding Effect on Singular Successors

Case Brief

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Parties

Alistair Graham Allan and Others

Pursuers

David J Armstrong and Others

Defenders

Procedural Posture

Civil / Procedure Roll (preliminary Hearing on Relevancy)

Legal Issues

  1. 1 Whether a break clause in missives, not incorporated in the lease, is enforceable against a singular successor to the landlord
  2. 2 Whether knowledge of the break clause by the singular successor affects enforceability
  3. 3 Whether a break option is inter naturalia of a lease and thus transmissible

Ratio Decidendi

The enforceability of the break clause against the singular successor (Midland Bank Pension Fund) depends on the factual issue of the Bank's actual knowledge of the missives; without proof of such knowledge, the right remains personal and does not transmit. The matter requires proof before answer.

Court Disposition

Proof before answer allowed; all pleas standing.

Orders

  • Case to proceed to proof before answer to determine factual issues, particularly the knowledge of Midland Bank Pension Fund.