Sparks v Biden

Contract – Implied term. The Chancery Division held that, where an option agreement with overage provisions had been made for the sale of land for a residential development, a clause fell to be implied into that agreement to the effect that the buyer was under an obligation to market and sell each house constructed as part of the development within a reasonable time of the option having been exercised and planning permission having been obtained. Such a clause was necessary as a matter of business efficacy and, without it, the option agreement lacked practical or commercial coherence.

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