If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. 1 Eq. For a full discussion, see Harpum, [1987] Conv. 337, especially at p. 340, Lord Ellenborough C.J. Brief facts . 6 Ch. 82 and 83. 620;Besley v.Besley (1878) 9 Ch.D. (even if it appeared to affirm the contract if the innocent party wasn't aware of . cit., pp. 272, 274. There had been earlier suggestions that a decision that the purchaser's deposit should be returned under section 49(2) had the practical effect of terminating the contract:Schindler\. 774, C.A., it was not). 20 Eq. An estoppel must be based upon an informed choice, but: When a party has legal advice, he will be more easily presumed to know the law and evidence or special circumstances may be required to rebut the presumption.May LJ said: The next feature of the doctrine of election in these cases which in my opinion is important is that when the person entitled to make the choice does so one way or the other, and this has been communicated to the other party to the contract, then the choice becomes irrevocable even though, if and when the first person seeks to change his mind, the second cannot show that he has altered his position in any way. technology developed exclusively by vLex editorially enriches legal information to make it accessible, with instant translation into 14 languages for enhanced discoverability and comparative research. 2) [1895] 2 Ch. 426,433434, Grant MR. For the way in which the distinction between patent and latent encumbrances underwent a transformation, see Harpum, (1992) 108 L.Q.R. On 3rd May, 1979 Mr. Peyman issued a writ against all three defendants. 32 [1980] A.C. 827, 842843, Lord Wilberforce. 190, 199203. 1, C.A., a case concerning a sale of surplus land by a railway company. 207, 209, Parke J.;Robinson v.Musgrove (1838) 2 M. & Rob. 256 See,e.g., Charles Hunt Ltd. v.Palmer [1931] 2 Ch. (N.C.) 370. 207 Bestv. It was possible for the Court of Chancery to refer the question of title to one (or more) of the common law courts for an opinion either by means of an issue (if the question were one of fact) or a case (if it were one of law), but the parties could not be compelled to choose this expensive course:Willcox v.Bellaers (1823) Turn. TEVERSON (instructed by Messrs. Fremont & Co, Solicitors, London W1H OED) appeared on behalf of the Plaintiff (Appellant), MR. R. REID QC and MR. R. WAKEFIELD (instructed by Messrs. A.L. It examines the various devices which the courts have developed in order to limit the effect of such clauses and suggests that one of these devices has emerged as paramount: the principle that a vendor may, in appropriate circumstances, be estopped from relying on a condition by reason of his knowledge or conduct. 89, 91, Lindley L.J. A case in which a purchaser was allowed compensation in such circumstances,Lett v.Randall (1883) 49 L.T. shall not be completed then both contracts shall be automatically declared null and void and all deposit received thereunder shall be (repaid) forthwith to the respective parties concerned and each party shall bear their own legal costs throughout. 379, 384, Lord Westbury L.C. 1,8, Alexander C.B. See too Kelly C.B. Note that in Peyman v Lanjani [1985] Ch 457, the Court of Appeal held that the plaintiff had not lost his right to rescind because, knowing of the facts which afforded this right, he proceeded with the contract, unless he also knew of the right to rescind. Jun. 778, 789. Kelsey's translation of 1925). 253, Mervyn Davies J.Photo Production does not seem to have been cited. 260 InRe Forsey and Hollebone's Contract [1927] 2 Ch. 270 It has been argued elsewhere that the rule ought to apply equally to a condition which restricts the vendor's liability for a failure to give vacant possession: Harpum, [1988] Conv. At that interview Mr. Moustashari successfully impersonated Mr. Lanjani to a Mr. Bourne of Richard Ellis. & Cr. 194 This was in part due to the introduction (by the Vendor and Purchaser Act 1874, s. 9) of a mechanism for resolving such doubts, the vendor and purchaser summons:Re Nichols' and Van Joel's Contract [1910] 1 Ch. "11. cit., 4.3.32 (p. 354 of C.G. ;Rignall Developments Ltd. v.Halil [1988] Ch. 109 Oakden v.Pike (1865) 34 L.J.Ch. ;Re O'Flanagan and Ryan's Contract [1905] 1 I.R. 214 Re Woods and Lewis's Contract [1898] 2 Ch. For the current version of the condition, see SCS, c. 7.1. It is clear that the issue of substantiality will be judged with regard to the use for which, to the knowledge of both parties, the property was sold:Re Puckett and Smith's Contract[1902] 2 Ch. 1 Eq. 22 See,e.g., Re Banister (1879) 12 Ch.D. . 193 Marlow v.Smith (1723) 2 P. Wms. See: Long v Lloyd [1958] 1 WLR 753. 7677. Cited Scarf v Jardine HL 13-Jun-1882 If there has been a conclusive election by the plaintiffs to adopt the liability of one of two persons, alternatively liable, they cannot afterwards make the other liable. There were good historical reasons for this: see Simpson, A.W.B., A History of the Common Law of Contract (1975), pp. Peyman agreed to purchase the lease from Lanjani for 55,000 and then found out about the impersonation and the defective . A 213 See,e.g., the National Conditions of Sale (20th ed., 1981) c. 7(1).Cf. 207, 211, Lord Cottenham L.C. 8 Exch. Rogue lawyer advised C to affirm. 196, Lord Romilly M.R. Application was made for consent to assign a lease. 95 For a modern analysis, seeSuisse Atlantique Sociiti d' Armement Maritime S.A. v.N.V. 131, 143. 201 See,e.g., Re Scott and Alvarez's Contract (No. ;Simmons v.Heseltine (1858) 5 C.B. 175, 183, Pollock B. Rotterdamsche Kolen Centrale [1967] 1 A.C. 361, 433, Lord Wilberforce. 67 Ayks v.Cox (1852) 16 Beav. The plaintiff had agreed to purchase the lease of premises in the Piazza, Covent Garden. 290, 294, Romilly M.R. 457, 496-497, Slade L.J. 276 Simpson v.Gilley (1923) 92 L.J.Ch. Mr. Peyman came to England on 1st December 1978 on a one month's visitor's visa, which he asked the Home Office to extend. Rather better is Byrne J. C.C. 188 See,e.g., Hume v.Pocock (1865) L.R. This rule was eventually reversed by statute: Vendor and Purchaser Act 1874, s. 2; Conveyancing Act 1881, ss. I shall begin as the judge did, with the facts, before tackling the claims to which they have given rise and stating my opinion on the right answers to those claims. 220 Else v. Else (1872) L.R. 603, 613, Lindley L.J. ;Smith v.Colbourne [1914] 2 Ch. But it has not been suggested that on 2nd February the transfers were delivered in escrow or otherwise. The former may in practice be easier to prove then the latter. 655, 661, Lord Eldon L.C. The Court of Appeal in Concrete Parade Sdn Bhd v Apex Equity Holdings Bhd & Ors [2021] 9 CLJ 849 issued significant rulings on the interpretation of sections 85 and 223 of the Companies Act 2016 ('CA 2016'). 169, 178, Lord Eidon L.C. 705, Lush J. 596. . at p. 790. The two claims are mutually exclusive or impossible in law. 14, 24, Lord Esher M.R. It was only on the exercise of the option some four years later, that the existence of the mortgage was discovered. 77, art. 620, Kindersley V.-C, a case cited inWant v. Stallibrass, but which is not conclusive, because the vendor's title was almost certainly good. 302, 305, Leach M.R. Carter (1992) 5 JCL 198,215. The idea can be traced back to Aristotle,Ethics, V, 1133;via Thomas Aquinas,Summa Theologica, IIII, Q. 666, 670. 505, Grant M.R. Wolfe (1874) L.R. 83 Mr Pymont also relied on the decision of the Court of Appeal in, 75 All these points are apparent from the speech of Lord Goff in The Kanchenjunga [1990] 1 Lloyds Rep 391. 11. Blackburn v.Smith (1848) 2 Ex. 261;Sakkas v.Donford Ltd. (1982) 46 P. & C.R. 80, Lords Commissioners;Sheffield v.Lord Mulgrave (1795) 2 Ves. Application was made for consent to assign a lease. 390, 391, Pennycuick J. 261. 603, C.A. 155, 171172, Danckwerts L.J. Obviously if the misdescription is insubstantial, the vendor will still be able to enforce the contract, but unless the conditions of sale state otherwise, it will be with an abatement of the price. 603, C.A. Peyman v Lanjani: Discharge by breach: Election If decide to affirm/ terminate not knowing your rights, you can change mind. 9 Q.B. I. 14, 28, Lindley L.J. 119 (1903) 19 L.Q.R. 78 Cordingley v.Cheeseborough (1862) 4 De G.F. & J. 675, 678; and inKnatchbull v.Grueber(1817) 3 Mer. 445,447, ChittyJ. 209 For a discussion of the working of the section, see Harpum, [1984] C.L.J. 219 See generally the remarks of Fry J. inRe Banister (1879) 12 Ch.D. 1(6). 96 George Mitchell (Chesterhall) Ltd. v.Finney Lock Seeds Ltd. [1983] 2 A.C. 803, 813814, Lord Bridge, H.L. that transactions induced by misrepresentation are voidable rather than void that the title to any property 76 Peyman v Lanjani , Election, supra n 9. 192 Cooper v.Denne (1792) 1 Ves. The court was asked 1 Citers LJ, May LJ whether or not the purchaser of a leasehold interest in a property, who had elected to affirm the contract despite a repudiatory breach by . 68, 70, Page Wood V.-C. 351, C.A. 181 Re Scott and Alvarez's Contract (No. 261, Wills J.; (1886) 16 O.B.D. 195 Osborne to Rowletl (1880) 13 Ch.D. When Mr. Lanjani bought the restaurant he had paid 59,400; 39,400 the price referred to in the contract documents, 20,000 "under the table" to some agents. 291 This was a deeply held article of faith in equity courts throughout the nineteenth century. 14 terms. He had worked for the Iranian Railway Service and had managed a restaurant in Iran. 20 Q Peyman v Lanjani [1985] Principle. Vigers v Pike (1842) 8 CI&F 562. Nevertheless, he felt compelled by authority to follow it: Vancouver v. Bliss (1805) 11 Ves. 86 Ex p. Riches, reported only in short form at (1883) 27 S.J. 222 Harnett v.Baker (1875) L.R. The purchaser had waived his right to investigate the vendor's titleby virtue of his conduct as it happens, rather than because of any condition of sale. 101 For the present version of the condition, see SCS cc. 162,51 L.J.Q.B. On 2nd February there were two further meetings, morning and evening. 170. ; Jones v.Rimmer (1880) 14 Ch.D. 48 See,e.g., Poole v.Shergold (1786) 1 Cox 273, Kenyon M.R. 38 The Standard Condition s of Sale, 1st edition, 1990 (hereafter SCS). 412. 313, C.A. Mr. Lanjani and Mr. Moustashari seem to have had doubts whether the landlords would consent to Wellmack assigning the lease to an Iranian who spoke no English and presented the scruffy appearance which Mr. Lanjani presented. In his notes (ibid., p. 53), Evans refers to Vattel's The Law of Nations or the Principles of Natural Law (1758), and the chapter in that book on the interpretation of treaties, which is equally applicable to the case of contracts. 1. Farrer, (1903) 19 L.Q.R. 93. On this classification, see J.T. 23, 24, Romilly M.R. I, p. 58 of Evans' translation of 1806). Roythorne & Co (Roythornes), a firm of solicitors, acted for Mr & Mrs Dring and, following his death on 28 September 2008, the executors of Mr Dring, Mr Pola and Mr Doubleday. ;Palmer v.Johnson (1884) 13 Q.B.D. 774, 778, Greene M.R. 194. ;Re Davis and Cavey (1888) 40 Ch.D. in argument in the Court of Appeal, according to one report: 46 L.T. 266. ;Re Belcham and Gawley's Contract [1930] 1 Ch. 8 e.g., Tomkins v.White (1806) 3 Smith's Rep. 435, K.B. There Mr. Rafique senior arranged that he would act for Mr. Peyman. ACCEPT. There are a number of gradations of title, though these cannot be measured or even defined with scientific precision. 647, 648, Lord Loughborough L.C. 155. His claims against the first and third defendants failed and a counterclaim by the first defendant against him succeeded. 280, at p. 332. 588, Hall V.-C. and comment thereon: Harpum, [1990] Conv. 754, 762, Jessel M.R. Ghersinich. Peyman v Lanjani. 718, 722, Knight Bruce V.-C;Stanton v.Tattersall (1853) 1 Sm.