Cases - Atlantic Estates Ltd v Ezekiel

Record details

Name

Atlantic Estates Ltd v Ezekiel

Date

[1991]

Citation

2 EGLR 202

Keywords

Estate agency

Summary

The plaintiff landlords put a property up for auction. Particulars in the auction catalogue described the trade of the property as a wine bar and included a photograph which showed what appeared to be a wine bar in use, with customers entering or leaving the premises. In fact, the tenant had lost his licence and the premises were not currently used as a wine bar.

The defendant attended the auction and, relying solely on the auction catalogue, purchased the property. When he discovered that the tenant had lost his licence and was in rent arrears, he refused to complete the contract. The plaintiffs sought an order of specific performance which was granted by the court of first instance, so the defendant appealed.

The Court of Appeal found that, taken together, the words and the photograph amounted to more than a representation that the wine bar was the permitted user, but that there was an existing on-licence. This amounted to a misrepresentation which justified the purchaser in refusing to complete the purchase.