Source: All England Reporter
Publisher Citation: [2012] All ER (D) 120 (Feb)
Neutral Citation: [2012] EWHC 120 (Ch)
Court: Chancery Division
Judge:

Vos J
Representation Anthony Tanney (instructed by Clarke Willmott LLP) for the claimants.
  Caroline Hutton (instructed by Bircham Dyson Bell LLP) for the defendant.
Judgment Dates: 2 February 2012

Catchwords

Contract - Construction - Contractual term - Claimants holding tenancy from defendant (original tenancy) - Parties agreeing to add extra area of land - Parties engaging in arbitration as to rent payable from relevant date - Extra land purportedly being added to original tenancy by memorandum stating rent payable £16,333 pa - Execution of memorandum effecting automatic surrender of original tenancy and re-grant of new tenancy - Arbitrator determining annual rent £27,700 - Claimants issuing proceedings - Recorder determining rent agreed for new tenancy £16,333 pa - Defendant appealing - Effect of execution of memorandum on rent payable under new tenancy.

The Case

Contract Construction. In allowing an appeal concerning the rent payable in respect of an annual tenancy, the Chancery Division of the High Court held that, when considering the implication of a term or the construction of a contract, it was permissible to assume that the reasonable observer had knowledge that the parties did not in fact have, certainly if that knowledge was as to established and well-known legal principles.

Practice Areas

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