Real Estate Law - Assignment
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Added on 2021-02-22
Real Estate Law - Assignment
Added on 2021-02-22
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Real Estate Law[Just1137]First Assignment Contract Law
Real Estate Law Assignment OneContentsDefinitions.............................................................................................................................................2Facts......................................................................................................................................................2Issue......................................................................................................................................................3Commentary..........................................................................................................................................3Did the contract exist?...........................................................................................................................3Conclusion.........................................................................................................................................4Misrepresentation..................................................................................................................................4Remedies...........................................................................................................................................5Recommendation...............................................................................................................................5Estoppel.................................................................................................................................................5Findings.............................................................................................................................................6Conclusion.............................................................................................................................................6Luqman Nazzal s3318357 - Page 1
Real Estate Law Assignment OneDefinitionsBMG: Blue Maroon and Gold Pty LtdIC: IntercorpCON: Consolidated Properties Pty LtdFacts1.The land was advertised for sale in the national newspaper around September 20102.The land offered an easy access road to shoppers3.No other land in the area offered the same zoning for shopping centre4.BMG, under a condition, agreed to purchase the land for $3.5m on 15th September 2010 and the settlement to be on 15th July 20125.The condition of purchase of the land was that: the purchaser of the land (BMG) is to enter into a lease contract with a tenant before 1st July 20126.In September 2010, BMG entered into discussion with IC, for IC to lease the to be built shopping centre on the purchased land7.In September 2010, a Memorandum of Understanding was reached between BMG and IC to lease the shopping centre; this agreement was concluded and agreed on 1st February 2011.8.BMG informed IC that it will complete the purchase of the land from CON9.The directors of BMG and IC shook hands on the lease deal however; no documents were signed, although there was written MOU. The parties agreed that their respective solicitors would draw up the necessary documents to reflect what was set out in the last agreed version of the MOU. 10.On 2 May 2012 the solicitor for BMG prepared the final version of the proposed Lease, whichwas sent to IC for signature. 11.On 14 May 2012, IC solicitor wrote BMG stating that they wanted some significant amendments to the Lease, which BMG agreed on 12.On 17 May 2012, BMG requested IC to executed signed copy of the Lease, together with the supporting bank guarantee.13. On 24 May 2012, IC wrote to BMG indicating that they are happy to proceed with the agreement and they hope that BMG are ready to proceed with the construction of the project.14.On 24 May 2012, IC Stated that the executed Lease will be considered by the Board of Directors and then the Chairman and CEO will sign the Lease.15. On 15 June, 2012 BMG elected to settle its purchase of the land earlier than the due date under the contract "which was conditional upon IC entering into a lease with BMG". 16.On 30 June 2012 BMG demolished the old building on the land.17.On 3 July, 2012 BMG requested IC that the executed Lease be signed and returned to them byway of exchange with bank guarantee.18.Again on 4 July, 2012 IC advised BMG that the signed lease is awaiting board approval19.On 8 July, 2012 after receiving the market survey and a due diligence report from their consultants, IC changes its mind about taking up the lease as the Board of Directors were given documents recently received to consider, and those documents revealed:a.The market survey was unfavourable as to the demand for a Shopping Centre Complexb.There was other land offered for sale in the area, with similar characteristicsc.Access to the property at 100 Busy Road, Geelong was to be affected by a proposed Freeway, which was gazetted by VicRoads on 20 May, 2011Luqman Nazzal s3318357 - Page 2
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