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High Court adopts literal interpretation of development agreement

Litigation Letter

High Court adopts literal interpretation of development agreement

Dooba Developments Ltd v McLagan Investments Ltd [2016] EWHC 2944 (Ch), 23 November 2016

Asda (through its subsidiary McLagan) entered into a conditional development agreement with Dooba in July 2010. Asda intended that Dooba would build a superstore on the site in question. The agreement would take effect upon meeting four conditions: (1) obtaining satisfactory planning permission; (2) entering into a satisfactory s106 agreement; (3) acquisition of additional land and necessary consents for rebuilding the access to the site; (4) comply with outstanding conditions on an existing outline planning permission. Importantly, the agreement provided that “if all of the conditions have not been discharged […] by the Longstop Date then either Asda or Dooba may rescind this Agreement”.

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