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| News » Company and Commercial Law » Developer told verbal agreement not legally binding |
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15/08/2008
Developer told verbal agreement not legally binding |
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A developer was forced to pay back £2 million to a property owner after the House of Lords ruled that a verbal agreement the two parties had made was not legally binding, Propertyweek.com reported.
The resolution of the four-year dispute restored the legal principle that agreements must be in writing in order for them to be valid, lawyers for the winning side said.
A verbal agreement had been made by James Cobbe who said to Mr and Mrs Lisle-Mainwaring that he would purchase the property for £12 million if he was granted planning consent to redevelop it.
Profits from the sale of the redeveloped property would then be split between the two parties.
Whilst Mr Cobbe received planning permission for the property, the Lisle-Mainwarings wanted to renegotiate the deal.
Mr Cobbe subsequently took them to court and was awarded with £2 million in settlement.
The Lisle-Mainwarings then took the case to the House of Lords where it was ruled that Mr Cobbe was only entitled to be paid for the time and cost of getting the planning permission. |
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