New queries, issue 4566

Determining a date

What is the date of disposal of land where the contract is subject to a condition?

Mr A owned land that recently obtained planning permission. The land had an overage provision in favour of Mr B. Z Ltd agreed to buy the land from Mr A.

Contracts for the sale from Mr A to Z Ltd were exchanged on 12 March 2016. The contract contains a condition precedent stating that the contract would not be unconditional until Mr A obtained a binding agreement from Mr B to execute a covenant in favour of Z Ltd. However Z Ltd had the right in its absolute discretion to waive at any time the requirement for the fulfilment of that condition. The contract further provided that if the condition was not fulfilled by 30 June 2016 either party could terminate the contract for sale by serving...