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Scottish Court of Session Decisions |
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You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> Campbell (t/a Campbell Associates) v. Ferguson, Macsween Stewart & Others (a firm) [2003] ScotCS 118 (24 April 2003) URL: http://www.bailii.org/scot/cases/ScotCS/2003/118.html Cite as: [2003] ScotCS 118 |
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OUTER HOUSE, COURT OF SESSION |
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CA93/02
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OPINION OF LORD CLARKE in the cause ALLAN CAMPBELL, trading as CAMPBELL ASSOCIATES Pursuer; against THE FIRM OF FERGUSON, MACSWEEN & STEWART AND OTHERS Defenders:
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Pursuer: Anderson, Q.C.; Brodies W.S.
Defenders: McNeill, Q.C., Smart; Brechin Tindal Oatts
24 April 2003
Introduction
The issue
The relevant factual history
"It is a condition of this offer and the missives to follow hereon that:-
(a) The purchaser obtains to his complete satisfaction and that of his nominee detailed Planning Permission, Building Warrants and all other necessary consents required by the purchaser or his nominee for the proposed development of the subjects and in the event of such Planning Permission being refused or granted subject to unacceptable conditions, the purchaser shall be entitled but not bound to go to Appeal, in which case it is a condition of this offer that such Appeal is successful.
(b) The Local Authority approve the construction and installation of all services necessary for the proposed development of the subjects.
Condition 14 of the offer was in the following terms:
"This offer is conditional on:-
(1) The purchaser concluding a contract with the seller for the acquisition by the purchaser of contiguous subjects lying to the east of the subjects being acquired in terms of this offer, said contiguous subjects extending to Nine Thousand and Sixty-three square metres (9063m2) or thereby; and that on terms satisfactory to the purchaser.
(2) The purchaser concluding a contract with the proprietors thereof for the acquisition by the purchaser of contiguous subjects lying to the east of the subjects being acquired in terms of this offer, said contiguous subjects extending to One Thousand Two Hundred and Seventy-three square metres (1,273 metres2) or thereby; and that on terms satisfactory to the purchaser."
By letter dated 18 January 1995, 6/3/2 of process, the sellers' agents wrote to the defenders saying that they accepted the terms and conditions of the offer of 31 October 1994, but subject to certain other conditions. For present purposes the significant condition which the sellers' agents sought to impose was as follows:
"3. With regard to your conditions 5, 6 and 14, in the event that your clients have not obtained the necessary consents referred to in the said conditions, or carried out the reports referred to therein, or concluded a contract as per your condition 14, within a period of six months from the conclusion of missives hereunder, then our clients shall be free to resile from any contract that has been concluded, and that without penalty" (emphasis added).
The defenders wrote to the sellers' agents by letter dated 19 January 1995, 6/3/3 of process. In that letter they refer to "our offer dated 31 October 1994" and "your Qualified Acceptance thereof dated 18 January 1995". They then stated:
"on behalf of and as instructed by our said client we hereby accept the Qualifications contained in your said Qualified Acceptance of 18 January, 1995 and hold the bargain between our respective clients concluded".
While parties were agreed before me that as a result, as at 19 January 1995, there was a concluded bargain between the pursuer and the sellers, that bargain contained in the letters, which I have just referred to, was never implemented.
"On behalf of and as instructed by our said client "the purchaser" we hereby amend the terms of the foregoing missives as follows:-
(one) Condition 3 of said Qualified Acceptance dated 18 January, 1995 is hereby deleted and conditions 5, 6 and 14 of our said offer of 31 October 1994 are thereby restored.
(two) Condition 15 of our said offer dated 31 October, 1994 shall be amended by adding after the word 'latest' therein the following 'or such other date and on such other conditions' as may be mutually agreed".
The defenders, however, followed that letter by another letter dated 19 April 1996, 6/3/5 of process, addressed to the sellers' solicitors. That letter referred to "our formal offer dated 31 October 1994", "The Qualified Acceptance thereof dated 18 January, 1995", "our further missive dated 19 January, 1995 concluding the bargain" and what is described as "Our further qualifying missive dated 4 Marc,h 1996". The letter then stated:
"On behalf of and as instructed by our said client we hereby amend the aforesaid missives as follows:-
(1) The date of entry shall be no later than six months from the date of conclusion of missives as amended in terms of our said missive dated 4 March, 1996 and in terms hereof.
(2) There shall be added at the end of Condition 14 of our said offer of 31st October, 1994 the following:-
'The purchaser may at his discretion waive the foregoing Condition 14(2)'."
Some further four months elapsed and, then, on 20 July 1996, the sellers' solicitors wrote to the defenders by letter of that date, 6/3/6 of process. In that letter the sellers' solicitors offered "to amend the terms of the missives concluded between the said Trustees and your client Alan (sic) Campbell ... dated 31 October 1994, 18 January 1995 and 19 January 1995". It will be noted that no mention is made therein of the letters of 4 March and 19 March 1996, 6/3/4 of process and 6/3/5 of process. The "amendments" proposed were in two parts. The first was as follows:
"Condition 3 of our clients' qualified acceptance dated 18 January 1995 is hereby deleted as is Condition 6 of your client's Offer of 31 October 1994. With regard to Conditions 5 and 14 of your client's Offer dated 31 October 1994 in the event that these conditions are not both purified within a period of six months from the date of this letter then our clients shall be free to resile from these missives and that without any penalty due to or by either party".
The second matter the letter dealt with was to make it an essential condition that there should be reserved to the sellers an irredeemable right of pedestrian and vehicular access to subjects retained by them. That letter was, in turn, responded to by a letter from the defenders dated 1 August 1996, 6/3/7 of process in which they stated as follows:
"we hereby accept the amendments contained in your amending missive dated 20 July, 1996 amending the further missives described therein dated 31 October 1994, 18 January 1995 and 19 January 1995 in relation to our client's purchase of ALL and WHOLE the subjects at Dunvegan Road, Portree, Isle of Skye, extending to 1,570.2 m2 or thereby and now hold the bargain between our respective clients concluded."
"Condition 3 of our clients' qualified acceptance dated 18 January 1995 is hereby deleted as is Condition 6 of your client's offer of 31 October 1994. With regard to Conditions 5 and 14 of your client's offer dated 31 October 1994 in the event that these conditions are not both purified within a period of six months from the date of this letter then our clients shall be free to resile from these missives and that without any penalty due to or by either party".
It was then proposed in the letter that:
"in the event that the sellers are unable to implement any of the conditions contained in condition 13 of your client's said offer then they, or the sellers, shall be entitled to resile from the bargain without penalty".
The letter then went on to deal more specifically with the right of access which the sellers wished to retain. It lastly provided that the defenders' letter dated 4 March 1996, 6/3/4 of process, "shall be deemed as withdrawn". The defenders responded, by letter dated 8 November 1996, 6/3/9 of process. In that letter they stated that they accepted "the qualifications contained in your formal missive dated 17 September, 1996" but subject to further qualifications which were four in number. The defenders sought, in the first place, to qualify the first condition contained in the letter of 17 September 1996 in the following manner:
"Condition 1 of your said formal missive dated 17 September, 1996 shall be amended (a) by adding between the words 'purified' and 'within' where these occur on line five thereof the words 'or waived by the purchaser' and (b) by the deletion of the words 'this' and 'letter' where these occur in lines five and six respectively and there shall be substituted therefor 'conclusion of missives'."
The defenders' letter, furthermore, proposed that:
"Condition 2 of your said formal missive dated 17 September, 1996 shall be amended by adding between the words 'implement' and 'any of them' where these occur in the first line thereof the words 'or the purchaser declines to waive'."
A further qualification was proposed relating to the route of the access in respect of which the sellers were to be granted a servitude right. Lastly, the letter stated "Our formal missives dated 4 March and 19 April, 1996 shall be deemed to be withdrawn". This letter was responded to by the sellers' agents on 13 November 1996, by their letter of that date, 6/3/10 of process. In that letter they wrote as follows:
"On behalf of and as instructed by our clients, the Trustees of the late D J Macsween, we hereby accept your formal letter dated 8 November 1996 on behalf of your client Allan Campbell, trading as R & A Property Co., 22-24 Glen Street, Edinburgh, following on missives dated 17 September 1996 (in respect of the subjects described therein as extending to 1,570.20 m2) at Dunvegan Road, Portree, and we now hold the bargain between our respective clients as concluded."
"On behalf and as instructed by our clients, THE TRUSTEES OF THE LATE D J MACSWEEN, we hereby modify the missives entered into by our clients and your client, ALLAN CAMPBELL trading as R & A PROPERTY COMPANY, 22-24 Glen Street, Edinburgh following on missives dated 30 November, 8 November, both 1996 and other dates relating to the subjects described therein as extending to 1,570.20 metres squared at Dunvegan Road, Portree, as follows:
(a) It is an essential condition of the missives that there shall be delivered to our clients at date of entry a validly executed Deed of Servitude in terms of the draft adjusted between us.
(b) It is an essential condition of these missives that the sellers shall forward to the Registers of Scotland within ten days of the date of entry the Disposition, or Dispositions, conveying to him the subjects over which the Deed of Servitude is being granted and, if required to do so by the sellers, will produce evidence that the said deeds have been so submitted.
(c) the sellers shall, at the date of entry, deliver to the purchaser a validly executed Disposition conveying the superiority of the above subjects in terms of the Disposition adjusted between us".
It will be noted that the letter refers to missives dated 30 November, 8 November both 1996. It was agreed by both sides that there was in fact no missive of 30 November 1996 and that the reference should probably have been to 17 September 1996. I pause to comment that this mistake was not picked up by the defenders in their reply to this letter and the mistake and the defenders' omission to pick it up are, in my judgement, symptomatic of a general slackness which arose in the drafting of the correspondence in this case. The defenders' reply to the last mentioned letter was dated 19 March 1997 which is 6/3/12 of process. It was in the following terms:
"We refer to your formal offer dated 17 March 1997 on behalf of your clients, the Trustees of the late D J MacSween to modify the concluded missives between your said clients and our client, Allan Campbell, trading as R & A Property Company in respect of subjects at Dunvegan Road, Portree, Isle of Skye
On behalf of and as instructed by our said client we accept the modifications contained in your said offer and now hold the bargain concluded as modified by your said offer dated as aforesaid".
That is the last letter in the correspondence which bears to deal with what were to be the agreed terms of any bargain between the parties. On 15 May 1997, the sellers' agents wrote to the defenders in a letter, which is 6/3/13 of process, in the following terms:
"On behalf of an as instructed by our clients RONALD MACSWEEN, MRS CHRISTINA MACLEAN MACSWEEN AND DONALD JOHN MACSWEEN, the Trustees of the late D J MacSween, we hereby resile and withdraw from the missives entered into between our clients and your client, Allan Campbell t/a R & A Property Co, 22-24 Glen Street, Edinburgh, the said missives dated 31 October 1994, 18 January 1995, 19 January 1995, 4 March 1996, 10 July 1996, 1 August 1996, 17 September 1996, 8 November 1996, 13 November 1996, 17 March 1997 and 19 March 1997 relating to your client's purchase of ALL and WHOLE the subjects at Dunvegan Road, Portree, Isle of Skye extending to 1,570.20 metres2 or thereby due to your client's failure to intimate purification of conditions 5 and 14 of your client's offer dated 31 October 1994 and we now treat the bargain between our clients as at an end".
I pause to note that the sellers' agents apparently considered that the missives from which they were resiling included the missives of 17 March 1997 and 19 March 1997. Notwithstanding the terms of that letter, it appears that further correspondence took place between the defenders and the sellers' agents and in a letter, which is 6/3/16 of process, the sellers' agents wrote to the defenders, by recorded delivery, on 2 December 1997 in exactly the same terms as their letter of 15 May 1997, 6/3/13 of process, save for the addition at the beginning of the new letter of the words "For the avoidance of doubt".
The parties' submissions
Decision
"The missives must also import a finished obligation on both sides, without any reservation or condition on the one side not assented to on the other. If any stipulation is made by one and not agreed to by the other, there is locus poenitentiae, and the intended transaction may be broken off by either party, however far it may have been adjusted as to other particulars".
Applying that passage to the present case, the sellers' agents by their letter of 17 March 1997, 6/3/11 of process, sought to introduce two new stipulations described as "essential conditions" into the contract which, in terms of their own letter of 13 November 1996, 6/3/10 of process, they had held to be concluded. What the position of the pursuer would have been had he refused to agree to these conditions is not a matter that I need decide. The fact is that because of that letter the transaction was re-opened, not for the first time, and was only finally concluded by the acceptance of the conditions by the defenders' letter of 19 March 1997, 6/3/12 of process. That was what produced, in this case, the final agreement to which the present litigation relates. While the correspondence, in the present case, used the expression "conclusion of missives", I am of the opinion, as already indicated, that what was meant by the parties by their use of that expression was, as counsel for the defenders submitted, conclusion of the exchange of correspondence which constituted the final bargain between the parties. A missive is merely a letter setting out the terms and conditions upon which parties are prepared to contract for the sale and purchase of heritage. Such terms and conditions must, in Scots law, appear in writing if the contract for the sale of heritage is to be enforceable. Suspensive conditions which suspend the performance of such a transaction, and on whose non-performance one party may resile, normally only have a legal and practical effect when the transaction in question has been finalised and has been embodied in a contract which is conclusive of the entire agreement between the parties. The embodiment of the entire agreement is to be found in the letters, or missives, from which the entire terms and conditions of the agreement can be read. Accordingly, in the present case, when the parties referred to six months from the conclusion of missives, their intention was to provide for suspensive conditions to operate for a period of six months from the conclusion of their bargain. It follows therefore that, in my judgement, the relevant date by which the conditions either had to be fulfilled or waived was 19 September 1997.