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Anglo-Continental educational Group (GB) Ltd v Capital Homes (Southern) Ltd [electronic resource]

Language: English Publication details: 2009Subject(s): Online resources: Summary: [2009] EWCA Civ 218, 17 March 2009. The Court should try to make sense and give effect to badly drafted agreements, and the Court can impose its own interpretation when it disagrees with the arguments and interpretation put forward by both parties. The appellant seller (X) appealed, and the respondent buyer (C) cross-appealed, against a decision (see L144544) declining to declare the meaning of an agreement for the sale of property which left both parties in limbo. The dispute arose around the meaning of a contractual provision about the calculation of a purchase price for the sale of property. Both parties sought a declaration in the terms it put forward. Held: appeal dismissed, cross-appeal dismissed. The agreement was not well drafted, but the Court applied the principle that it should try to find an interpretation which the parties are likely to have contemplated and which makes the agreement enforceable, rather than void due to uncertainty. The Court considered that the appropriate discount would be based on what the extent of the development was at the time of completion and the amount payable to allow the proposed development to go ahead. Given that C had obtained planning permission for nine flats, the discount would be based on a nine flat development. It was left to the parties to agree the amount of this discount.
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Law report Virtual Online ONLINE PUBLICATION (Browse shelf(Opens below)) 1 Available 147277-1001

[2009] EWCA Civ 218, 17 March 2009. The Court should try to make sense and give effect to badly drafted agreements, and the Court can impose its own interpretation when it disagrees with the arguments and interpretation put forward by both parties. The appellant seller (X) appealed, and the respondent buyer (C) cross-appealed, against a decision (see L144544) declining to declare the meaning of an agreement for the sale of property which left both parties in limbo. The dispute arose around the meaning of a contractual provision about the calculation of a purchase price for the sale of property. Both parties sought a declaration in the terms it put forward. Held: appeal dismissed, cross-appeal dismissed. The agreement was not well drafted, but the Court applied the principle that it should try to find an interpretation which the parties are likely to have contemplated and which makes the agreement enforceable, rather than void due to uncertainty. The Court considered that the appropriate discount would be based on what the extent of the development was at the time of completion and the amount payable to allow the proposed development to go ahead. Given that C had obtained planning permission for nine flats, the discount would be based on a nine flat development. It was left to the parties to agree the amount of this discount.