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

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

The Heads of Terms did not constitute a consensus or informal lease as they were 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 first alternative case was excluded from probation.

Citation
[2005] ScotSC 24
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
Pursuers' first alternative case dismissed; record amended; proof allowed on remaining averments; expenses reserved.
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 the pursuers' pleadings disclosed a relevant case of consensus sufficient to invoke statutory rei interventus

Ratio Decidendi

The Heads of Terms did not constitute a consensus or informal lease as they were 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 first alternative case was excluded from probation.

Court Disposition

Pursuers' first alternative case dismissed; record amended; proof allowed on remaining averments; expenses reserved.

Orders

  • Record amended in terms of 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