Andrew Francis examines the reasonableness of standard conditions in property contracts
Cleaver v Schyde Investments Ltd [2011] EWCA Civ 929, [2011] All ER (D) 285 (Jul) is authority from the Court of Appeal for the proposition that, on its facts, standard condition 7.1.3 of the Standard Conditions of Sale (4th Edn) (SCS) was not fair and reasonable under s 3 of the Misrepresentation Act 1967 (MA 1967) and s 11 of the Unfair Contract Terms Act 1977 (UCTA 1977). The purchaser, who was the victim of an innocent misrepresentation, was allowed to rescind the contract for the purchase of the land it had contracted to buy.
Important decision
The decision is important because:
- The SCS are much used and often varied, but are infrequently the subject of judicial consideration. A decision of the court on the SCS is worthy of examination.
- It deals with the factual question of whether the reasonableness test has been established under UCTA 1977, s 11.
- It reminds us of the difficulty placed on appellants in cases on MA 1967, s 3 and UCTA 1977, s 11 of persuading
