Option to Purchase in UK Law

Leading Cases
  • Sudbrook Trading Estate Ltd v Eggleton
    • House of Lords
    • 08 Jul 1982

    The option clause cannot be classified as a mere "agreement to make an agreement". There are not any terms left to be agreed between the parties. In modern terminology, it is to be classified as a unilateral or "if" contract.

    On the other hand where an agreement is made to sell at a price to be fixed by a valuer who is named, or who, by reason of holding some office such as auditor of a company whose shares are to be valued, will have special knowledge relevant to the question of value, the prescribed mode may well be regarded as essential.

  • Lyle & Scott Ltd v Scott's Trustees
    • House of Lords
    • 18 Jun 1959

    I see no reason for reading the Article in that limited way. Transferring a share involves a series of steps, first an agreement to sell, then the execution of a deed of transfer and finally the registration of the transfer. Moreover the ordinary meaning of "transfer" is simply to hand over or part with something, and a shareholder who agrees to sell is parting with something. The context must determine in what sense the word is used.

  • Pritchard v Briggs
    • Court of Appeal (Civil Division)
    • 11 Abr 1979

    I cannot accept that, however, because a right of pre-emption gives no present right, even contingent, to call for a conveyance of the legal estate. The grantee cannot require him to do so, or demand that an offer be made to him. Moreover, even if the grantor decides to sell and makes an offer it seems to me that so long as he does not sell to anyone else he can withdraw that offer at any time before acceptance.

  • Mercedes-Benz Financial Services UK Ltd
    • First Tier Tribunal (Tax Chamber)
    • 17 Dic 2012

    [91]The Tribunal prefers HMRC's alternative construction of in normal course of events namely that the possible passing of title was an essential feature of Agility rather than an eventuality which may only arise in limited and exceptional circumstances. HMRC's alternative construction did not stray away from the governing principle that the application of eu-directive 2006/112 subsec-or-para 2 article 14article 14(2)(b) was determined by the terms of contract.

  • Yeoman's Row Management Ltd and another v Cobbe
    • House of Lords
    • 30 Jul 2008

    Taylors Fashions was a case where the "certain interest" was an option to renew a lease. The present case is one in which an unformulated estoppel is being asserted in order to protect Mr Cobbe's interest under an oral agreement for the purchase of land that lacked both the requisite statutory formalities (s.2 of the 1989 Act) and was, in a contractual sense, incomplete.

  • United Scientific Holdings Ltd v Mayor, Aldermen and Burgesses of the County Borough of Burnley now The Council of the Borough of Burnley
    • House of Lords
    • 23 Mar 1977

    However, where a rent review clause is associated with a true option (a "break" clause, for example), it is a strong indication that time is intended to be of the essence of the rent review clause—if not absolutely, at least to the extent that the tenant will reasonably expect to know what new rent he will have to pay before the time comes for him to elect whether to terminate or renew the tenancy (cf. Samuel Properties Ltd. v. Hayek [1972] 1 W.L.R. 1296).

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Legislation
  • Law of Property Act 1925
    • UK Non-devolved
    • 1 de Enero de 1925
    ....... (1) A conveyance to a purchaser of a legal. estate in land shall overreach any equitable interest or. ...either expressly or by statutory implication. a valid option to purchase, a right of preemption,. or any other like right;. . . (v) ......
  • Magee University College Londonderry Act (Northern Ireland) 1970
    • Northern Ireland
    • 1 de Enero de 1970
    ...... and other employees of that College; to give that University the option to purchase the premises of the Magee Theological College Londonderry; to ......
  • Consumer Credit Act 1974
    • UK Non-devolved
    • 1 de Enero de 1974
    ...... the provision of credit, or the supply of goods on hire or hire-purchase, and their transactions, in place of the present enactments regulating ...by the debtor of any option to purchase goods conferred on. him by the agreement, and deal with any ......
  • Law of Property Act 1922
    • UK Non-devolved
    • 1 de Enero de 1922
    ......S-3 . Purchaser of legal estate not concerned with certain equitable interests or powers; ...a legal estate (including a contract conferring a. valid option of purchase, a right of pre-emption,. or any other like right);. . . ......
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Books & Journal Articles
  • EQUITABLE RELIEF FOR THE PURCHASER OF HIRE‐PURCHASE GOODS
    • Núm. 19-5, Septiembre 1956
    • The Modern Law Review
    ...... It is A complex contract which creates a bailment of thc goods and grants the hirer an option to purchase them on fulfilment of certain conditions. If, instead of granting the hirer an option to purchase, it imposes ......
  • Aborted property transactions: seller under‐compensation in the absence of legal recourse
    • Núm. 17-2, Mayo 1999
    • Journal of Property Investment & Finance
    • 126-144
    Property purchasers who rescind on their contracts and forfeit the initial deposits are exercising their right to not proceed with the purchase. The deposit to purchase endows on the buyer an impli...
    ...... Buyers, Compensation, Sellers, Singapore Abstract Property purchasers who rescind on their contracts and forfeit the initial deposits are ...The deposit to purchase endows on the buyer an implicit call option that is valuable and the value exceeds the face value of the deposit. As ......
  • SALE OF MOTOR‐VEHICLE BY HIRE‐PURCHASER
    • Núm. 17-3, Mayo 1954
    • The Modern Law Review
    ...... The House of Lords has long since decided that in law a hire-purchase agreement is an agreement of hire with an option to purchase. To the ordinary small man, however, it is a purchase on credit terms, which is, indeed, from a common-sense ......
  • New South Wales Hire‐Purchase Legislation*
    • Núm. 25-6, Noviembre 1962
    • The Modern Law Review
    ......, a number of sigdcant modifications.J2 An 27 '' ' Hire-purchase agreement ' includes a letting of goods with an option to purchase and an agreement for the purchase of goods by instalmenta (whether the agreemen!,descnbee the instalments y ......
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Law Firm Commentaries
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