Question: John has recently exercised an option given by Molly for the sale of her terrace house. A term in the Sale and Purchase contract stated

John has recently exercised an option given by Molly for the sale of her terrace house. A term in the Sale and Purchase contract stated that the property was sold "subject to satisfactory replies to the requisitions from the Local Authorities". About a week later, John's solicitors received a road interpretation from the Street Planning and Design Branch which deals with public works. It revealed that about 11 percent of the subject land would be required for a major road extension. In view of this, John does not want to proceed with the purchase and seeks a refund.

(a) What is the importance of legal requisitions and what is the likely outcome of this dispute?

(b) Would it make a difference to your answer if at the time of the sale, Molly had known about the major road extension but did not inform John about it?

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