Woodar Investment Development Ltd v Wimpey Construction UK Ltd

Between 1970 and 1973, Wimpey Construction UK Ltd entered into extensive negotiations to purchase 14 acres of land owned by Ronald Cornwall near a proposed motorway bypass near Esher.

However, the land was eventually sold by the vendor to Woodar Investment Development Ltd, who in turn entered into a sale contract with Wimpey Ltd for £850,000 (equivalent to £13,000,000 in 2023).

[1] The panel sitting, Buckley, Lawton and Goff LLJ, found no entitlement to terminate and held reluctantly that they were bound by Jackson v Horizon Holidays Ltd into holding that the additional £150,000 could be recovered.

[1] The Judicial Committee held by a majority (Lords Salmon and Russell dissenting) that there had in fact been no repudiatory breach as Wimpey, as they had calculated, were entitled to rescind following the intervening compulsory purchase affecting the site.

[1] As obiter dicta the Lords discussed where the Court of Appeal was right that if Woodar did have a good claim for breach of contract, they could claim damages on behalf of Transworld Trade Ltd. Lord Wilberforce said that Jackson could be supported on its special facts, as a type of contract including family holidays, ordering meals in restaurants and hiring a taxi for a group.