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Conditions precedent and planning: High Court backs Sainsbury’s termination; specific appeal threshold overrides general reasonable endeavours and good faith obligations (England and Wales)

Published on: 03 September 2015

Published by a LexisNexis Property expert
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Sainsbury’s Supermarkets Ltd v Bristol Rovers (1883) Ltd [2015] EWHC 2002 (Ch), [2015] All ER (D) 145 (Jul)

The Chancery Division determined that Sainsbury’s was entitled to terminate a conditional contract to purchase the defendant’s stadium, as a condition precedent—requiring Sainsbury’s to obtain an acceptable planning permission for a store to redevelop the ground as a supermarket—had not been satisfied.

What was the background to the case?

In March 2011, Sainsbury’s entered into a conditional agreement to acquire the Memorial Stadium, Bristol, from Bristol Rovers Football Club for £30m. At the same time, the club concluded an agreement with the University of the West of England (UWE) to develop a new stadium. The intention was for Sainsbury’s to build a new supermarket on the Memorial Stadium site. The club would apply the purchase price to finance the new stadium project with UWE, to which it would then move. Completion of the agreement was conditional upon the satisfaction of a number of detailed conditions, to be met by a defined cut-off date...

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