Henderson Group PLC v Superabbey Ltd
Henderson Group PLC v Superabbey Ltd
- 1988
- Estates Gazette (8839) 1 October 1988, 82(4) .
ChD 29 January 1988. Action by tenants (H) seeking determination as to whether an initial exchange of letters between H and the landlords (S) constituted a binding contract with regard to the amount of reviewed rent. A rent review notice had been sent to H by S`s surveyor; headed " without prejudice " and " subject to contract " proposing a new rent of £26,944pa in place of the existing rent of £16,682pa. H was invited to notify acceptance, in which event a memorandum would be prepared. H notified acceptance, but, on receipt of the formal memorandum for signature, H wrote back saying there had been a misunderstanding and they could not agree to the proposed rent. S argued that the exchange of letters constituted a binding contract. Case law on the "subject to contract" formula were reviewed and the judge enumerated several basic principles . He rejected a number of suggested reasons put forward on behalf of S as to why the words in the present case did not have their prima facie mean
ChD 29 January 1988. Action by tenants (H) seeking determination as to whether an initial exchange of letters between H and the landlords (S) constituted a binding contract with regard to the amount of reviewed rent. A rent review notice had been sent to H by S`s surveyor; headed " without prejudice " and " subject to contract " proposing a new rent of £26,944pa in place of the existing rent of £16,682pa. H was invited to notify acceptance, in which event a memorandum would be prepared. H notified acceptance, but, on receipt of the formal memorandum for signature, H wrote back saying there had been a misunderstanding and they could not agree to the proposed rent. S argued that the exchange of letters constituted a binding contract. Case law on the "subject to contract" formula were reviewed and the judge enumerated several basic principles . He rejected a number of suggested reasons put forward on behalf of S as to why the words in the present case did not have their prima facie mean