lettingsearch.co.uk
misrepresented as being larger than it was. In the circumstances,
Help us grow
Mr Ahmed argued both that the sale contract was rescinded and
the cheque was not enforceable and that he had a counterclaim for
the amount of the cheque.
The auctioneer served Mr Ahmed with a Statutory Demand in
respect of the dishonoured cheque which was upheld by the Judge
in the first instance. Mr Ahmed argued that he would have a claim
for the return of the deposit directly or indirectly and as such, it
would be wrong to allow a Statutory Demand to stand where the
sum would have to be repaid.
A Statutory Demand may be set aside if the debtor appears to
have a counterclaim, set off or cross demand which is equal to or
exceeds the debt claimed, or the debt is disputed on substantial
grounds and if the court is satisfied on other grounds that the
demand ought to be set aside. In Ahmed, the court found that
there was a seriously arguable case that the sale contract and
8
already
cheque were induced by misrepresentation and so there may be a
taken
cross demand for the amount of the cheque, particularly given that
the land was sold to another purchaser. Mr Ahmed received
nothing of value for the cheque tendered, for which he would be
As the UK’s largest ‘lettings only’ portal we
entitled to damages. The court took the view that it might even are already attracting over 5 million visitors
give rise to a defence of circuity of action; that is “it is no good
a month and feature over 155,000 rental
trying to get something back which immediately afterwards you
are going to have to hand back”. It would not be satisfactory if Mr
properties.
Ahmed was made bankrupt on the basis of the cheque only for his
Trustee in Bankruptcy to immediately recover the same sum.
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identity and website.
From a property law perspective, the court held that it was
doubtful that the usual rule that an auctioneer had no implied or
Not only do we have the main website but also over
ostensible authority to make representations could apply where in
300 ‘town specific’ portals right across the UK which
essence he was carrying out the job he was employed to do: merely
puts us at the top of the Google rankings.
identifying the property he is offering for sale.
This was particularly so where, as in this case, the general To help us grow we are offering a unique and
conditions of sale to which the auction was subject advised buyers
potentially lucrative business opportunity. We want
to make all necessary enquiries with the auctioneer’s firm in
to recruit 22 Area Managers each with their
respect of the plot’s measurements. It may be possible to argue that
own large, exclusive territory who will responsible
had the case been brought forward as a result of a regular sale of
for winning new subscriptions and developing
land ie, not at auction, then the claimant’s argument of
relationships with local letting agents. There are also
misrepresentation may not have stood up in court as the onus
would have been on the buyer to check the accuracy of the plot
opportunities to drive further income from web
measurements before handing over the cheque.
design consultancy, search engine optimisation and
This case is illustrative of the court’s approach to consider all the
local advertising.
circumstances of a case when deciding whether or not to allow an
application to set aside a Statutory Demand and what may amount To join our team you will need to demonstrate:
to “other grounds”.
A Statutory Demand is still, therefore, an effective method of
• Knowledge of the estate agency/lettings industry
debt collection in respect of a variety of situations where monies
• Computer literacy
become due, including transactions involving property. However,
• Proven sales & marketing ability
it appears that an application to set aside a Statutory Demand will
• Ability to build effective business relationships
succeed where there has been a misrepresentation involving a
property transaction, such as in Ahmed. Nevertheless, each case
will continue to turn upon its individual facts and where the court
Our exciting licensing opportunity could provide
thinks appropriate, it will dismiss such an application without a
you with a secure and repeating income in excess of
hearing or notice to the creditor.
£100K in your exclusive area.
For more information call
Verona Cocks is a partner and heads up Commercial Dispute Resolution
and Insolvency in the Midlands offices of Weightmans LLP.
Peter Everett
Do you have any wisdom to add? Post your comments at:
0845 363 1972
www.propertydrum.com/articles/statutorydemands
email: peter@lettingsearch.co.uk
lettingsearch HP recruit ad June.indd 1 21/5/09 14:41:29
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