Q&As

Our client entered into an agreement, under which a contingent right exists for a purchasing company to purchase various plots of land from our client over a number of years. The right was drafted to ensure that it was exclusive to the purchasing company, allowing no right of assignment. The purchasing company has since been dissolved and we understand that its assets have passed to the Crown bona vacantia. Is the Treasury Solicitor now able to enforce the rights under the contract to purchase land from our client? There is no right to terminate the contract upon dissolution.

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Published on LexisPSL on 18/06/2021

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Our client entered into an agreement, under which a contingent right exists for a purchasing company to purchase various plots of land from our client over a number of years. The right was drafted to ensure that it was exclusive to the purchasing company, allowing no right of assignment. The purchasing company has since been dissolved and we understand that its assets have passed to the Crown bona vacantia. Is the Treasury Solicitor now able to enforce the rights under the contract to purchase land from our client? There is no right to terminate the contract upon dissolution.

Our client entered into an agreement, under which a contingent right exists for a purchasing company to purchase various plots of land from our client over a number of years. The right was drafted to ensure that it was exclusive to the purchasing company, allowing no right of assignment. The purchasing company has since been dissolved and we understand that its assets have passed to the Crown bona vacantia. Is the Treasury Solicitor now able to enforce the rights under the contract to purchase land from our client? There is no right to terminate the contract upon dissolution.

We have assumed that the purchasing company in question was not subject to any insolvency process immediately prior to its dissolution.

It is also assumed that the agreement entered into is in nature similar to a conditional contract or option exercisable upon the happening of specific events. The dissolved company has a contingent personal right to purchase property under the agreement.

A conditional contract is an agreement that only works if an uncertain event actually occurs. It is an agreement conditional upon a specific event, the occurrence of which, at the date of that agreement, is uncertain. Conditions can either be conditions precedent or conditions subsequent. In the former case, the contract will not bind the parties unless the identified event takes place. In the latter case, of a

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