PUT OPTION HELD TO BE SPECIFICALLY ENFORCEABLE

In Bovis Homes Ltd v Persimmon Homes Ltd [2010] EWCA Civ 1252, [2010] All ER (D) 50 (Nov) the Court of Appeal held that a put option which entitled the claimant to require the defendant to re-purchase property was specifically enforceable. The put option was exercisable in the event that the bypass which the defendant was required by the terms of the contract to construct was not open to the public by 31 October 2009. The principal issue which divided the parties on the facts was whether the bypass was indeed open to the public by that time. The Court of Appeal held that it had not been opened, despite the fact that an opening ceremony was held on 30 October. The principal reason for this conclusion was that the bypass was defined in the agreement as ‘part dual carriageway’ and only a single carriageway had been opened by 31 October. This being the case, it was held that the bypass was not open to the public, that the claimant was entitled to exercise the option and to bring the present claim specifically to enforce the option.