Put options equated with call options for formality purposes
Put options equated with call options for formality purposes
Q As regards the formalities prescribed by section 2 of the Law of Property (Miscellaneous Provisions) Act 1989, we are aware that these do not apply to the exercise of an option to buy (or lease) land provided that the option agreement complies with the section. Does the same apply to an option to sell?
A Yes: see Active Estates Ltd v Parness [2002] EWHC 893 (Ch); [2002] 36 EG 147, where Neuberger J applied the reasoning in Spiro v Glencrown Properties Ltd [1991] Ch 537 to the exercise of a “put option” created by the guarantee agreement considered in PP 2002/190.
