Stratton (Trade Sales) Ltd v. MCS (Scotland) Ltd [2005] ScotSC 22 (24 March 2005)

Stratton (Trade Sales) Ltd v. MCS (Scotland) Ltd [2005] ScotSC 22 (24 March 2005)

The Heads of Terms document did not constitute a consensus between the parties as it was expressly stated to be not legally binding and lacked agreement on the duration of the lease, a cardinal element. Therefore, the pursuers failed to plead a relevant case under section 1(3) and (4) of the 1995 Act, and their case based on the existence of an informal lease was excluded from probation.

Citation
[2005] ScotSC 22
Parties
Pursuer: Stratton (Trade Sales) Ltd; Defender: MCS (Scotland) Ltd
Jurisdiction
Scotland
Judgment Date
24 March 2005
Procedural Posture
Civil / Pleadings/debate on Relevancy
Outcome
Partial dismissal; exclusion from probation of the pursuers' case based on an informal lease; proof allowed on remaining averments.
Legal Topics
Requirements of Writing, Informal Lease, Rei Interventus, Personal Bar, Tacit Relocation
Contract Law Property Law Requirements of Writing Informal Lease Rei Interventus Personal Bar Tacit Relocation

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Parties

Stratton (Trade Sales) Ltd

Pursuer

MCS (Scotland) Ltd

Defender

Procedural Posture

Civil / Pleadings/debate on Relevancy

Legal Issues

  1. 1 Whether the Heads of Terms constituted an informal lease between the parties under section 1(3) and (4) of the Requirements of Writing (Scotland) Act 1995
  2. 2 Whether there was sufficient consensus to found a contract of lease
  3. 3 Whether actings can be used to evidence the existence of an agreement

Ratio Decidendi

The Heads of Terms document did not constitute a consensus between the parties as it was expressly stated to be not legally binding and lacked agreement on the duration of the lease, a cardinal element. Therefore, the pursuers failed to plead a relevant case under section 1(3) and (4) of the 1995 Act, and their case based on the existence of an informal lease was excluded from probation.

Court Disposition

Partial dismissal; exclusion from probation of the pursuers' case based on an informal lease; proof allowed on remaining averments.

Orders

  • Record amended in terms of the pursuers' minute of amendment.
  • Defenders' second plea-in-law sustained to the extent of excluding from probation the pursuers' averments regarding an informal lease constituted by the Heads of Terms.