Carmarthen Developments Ltd v Pennington [2008] ScotCS CSOH_139 (24 September 2008)

Carmarthen Developments Ltd v Pennington [2008] ScotCS CSOH_139 (24 September 2008)

The postal acceptance rule does not apply to the intimation of purification or waiver of suspensive conditions in the contracts. Service of notice under the contracts required actual receipt by the defender or his solicitors. The pursuers' notices were served when the defender's solicitor collected the mail bag from the Post Office at 8.50am on Monday, before the defender's withdrawal could take effect at 9am. Therefore, the contracts were made unconditional before the defender's purported withdrawal.

Citation
[2008] ScotCS CSOH_139
Parties
Pursuer: Carmarthen Developments Limited; Defender: Samuel James Pennington
Jurisdiction
Scotland
Judgment Date
24 September 2008
Procedural Posture
Civil (contract Dispute) / First Instance Judgment
Outcome
Judgment for the pursuer
Legal Topics
Postal Acceptance Rule, Service of Notice, Conditional Contracts, Waiver and Purification of Suspensive Conditions, Interpretation of Notice Provisions
Contract Law Property Law Postal Acceptance Rule Service of Notice Conditional Contracts Waiver and Purification of Suspensive Conditions Interpretation of Notice Provisions

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Parties

Carmarthen Developments Limited

Pursuer

Samuel James Pennington

Defender

Procedural Posture

Civil (contract Dispute) / First Instance Judgment

Legal Issues

  1. 1 Does the postal acceptance rule apply to the intimation of purification or waiver of suspensive conditions in a contract?
  2. 2 When is service of notice effected under the contract's notice provisions?
  3. 3 Did the pursuers timeously intimate purification of the suspensive conditions before the defender's withdrawal took effect?

Ratio Decidendi

The postal acceptance rule does not apply to the intimation of purification or waiver of suspensive conditions in the contracts. Service of notice under the contracts required actual receipt by the defender or his solicitors. The pursuers' notices were served when the defender's solicitor collected the mail bag from the Post Office at 8.50am on Monday, before the defender's withdrawal could take effect at 9am. Therefore, the contracts were made unconditional before the defender's purported withdrawal.

Court Disposition

Judgment for the pursuer

Orders

  • Sustain the first and second pleas in law for the pursuers
  • Repel the first plea in law for the defender