Penman v. Mackay [1922] ScotLR 366 (17 March 1922)

Penman v. Mackay [1922] ScotLR 366 (17 March 1922)

The pursuer, having breached the lease by transferring his business and ceasing to carry it on, was not entitled to exercise the option to purchase. The notice given was not a valid exercise of the option, as the pursuer was in breach and had disabled himself from fulfilling lease conditions. The landlord's postponement of termination pending negotiations did not entitle the pursuer to take advantage by exercising the option.

Citation
[1922] ScotLR 366
Parties
Pursuer: Andrew Clark Penman; Defender: Mrs Helen Mossman or Mackay
Jurisdiction
Scotland
Judgment Date
17 March 1922
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary's Decree
Outcome
action dismissed
Legal Topics
Lease, Option to Purchase, Breach of Contract, Irritancy, Assignation
Property Law Contract Law Lease Option to Purchase Breach of Contract Irritancy Assignation

Case Brief

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Parties

Andrew Clark Penman

Pursuer

Mrs Helen Mossman or Mackay

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary's Decree

Legal Issues

  1. 1 Whether tenant in breach of lease conditions can validly exercise option to purchase
  2. 2 Effect of assignation and breach on tenant's rights under lease
  3. 3 Whether notice to purchase was valid under lease terms

Ratio Decidendi

The pursuer, having breached the lease by transferring his business and ceasing to carry it on, was not entitled to exercise the option to purchase. The notice given was not a valid exercise of the option, as the pursuer was in breach and had disabled himself from fulfilling lease conditions. The landlord's postponement of termination pending negotiations did not entitle the pursuer to take advantage by exercising the option.

Court Disposition

action dismissed

Orders

  • interlocutor recalled
  • defender's first plea-in-law sustained