P&O Property Holdings Ltd v Norwich Union Life Insurance Society
P&O Property Holdings Ltd v Norwich Union Life Insurance Society
- 1994
- Property and Compensation Reports (1994) 68 P&CR 261-268(8) .
HL 17 February 1994. A site was developed as a shopping centre by P and financed by N. Under the agreement N was to meet development costs up to an agreed amount and P to meet costs in excess of this. Reverse premiums were were made part of the costs subject to N`s agreement. Also P had to use reasonable endeavour to obtain a letting for each part of the scheme. On completion many units remained unlet. N argued that P was bound to agree to payment of a reverse premium to a tenant if a hypothetical landlord would regard such premiums as good estate management in current conditions. The decision in favour of N was reversed by CA. On appeal, appeal dismissed.
DEVELOPMENT AGREEMENT
P&O PROPERTY HOLDINGS LTD V NORWICH UNION LIFE INSURANCE
REVERSE PREMIUMS
SHOPPING CENTRES
HL 17 February 1994. A site was developed as a shopping centre by P and financed by N. Under the agreement N was to meet development costs up to an agreed amount and P to meet costs in excess of this. Reverse premiums were were made part of the costs subject to N`s agreement. Also P had to use reasonable endeavour to obtain a letting for each part of the scheme. On completion many units remained unlet. N argued that P was bound to agree to payment of a reverse premium to a tenant if a hypothetical landlord would regard such premiums as good estate management in current conditions. The decision in favour of N was reversed by CA. On appeal, appeal dismissed.
DEVELOPMENT AGREEMENT
P&O PROPERTY HOLDINGS LTD V NORWICH UNION LIFE INSURANCE
REVERSE PREMIUMS
SHOPPING CENTRES