The Court of Appeal has ruled that Aubergine Enterprises Ltd is not entitled to rescind a contract for the £6m purchase of a leasehold interest, or to recover a 5% deposit of £234,000 that it paid to letting agent Lakewood International Ltd.
Aubergine had claimed that the seller, Lakewood had failed to obtain the landlord’s written consent to the assignment, as required under the lease.
In the High Court Deputy Judge David Vaughan QC dismissed an application by Aubergine for a declaration that it had validly rescinded the contract, and gave judgment for Lakewood on a counter-claim for forfeiture of half of the 10% deposit, that is £234,000 plus interest of £32,316.
Upholding the High Court’s decision, Auld LJ said today, in the Court of Appeal, that Aubergine was not entitled to rescind the contract because it had obtained the necessary written consent to assign.
Aubergine Enterprises Ltd v Lakewood International Ltd Court of Appeal (Auld, Ward and Robert Walker LJJ) 25 February 2002.
Elizabeth Weaver (instructed by Fladgate Fielder) appeared for the appellant; Michael Pryor (instructed by Beveridge Milton) appeared for the respondent.
PLS News 25/02/02
