Francis and another v Vista Del Mar Development Ltd (Cayman Islands)

Sale of land – Repurchase option. The proceedings concerned a repurchase option under a contract to develop a building plot in the Cayman Islands (the property), which the appellants had purchased from the respondent company (VDM). Under the agreement for sale, the appellants had agreed with VDM that, if they defaulted in performing their obligations regarding the construction of a residence, VDM would have the right to call for the sale to it of the property. The agreement for sale was, subsequently, varied. Construction was delayed and VDM gave notice to exercise the option on two occasions. The court at first instance allowed VDM's claim for specific performance. The Court of Appeal dismissed appellants' appeal. The Privy Council, in dismissing the appellants' further appeal, held that VDM's first notice had been validly given in view of the judge's findings and those of the Court of Appeal. Among other things, the court held that there was no finding to substantiate an argument that the contract of sale, to which exercise of the option by the first notice had given rise, had then been abandoned or that the right to enforce it had been waived.

Category: