Irani v Irani & Ors

A contract may be concluded where a written offer is accepted orally. If the offer itself is in writing, the resulting contract is a contract in writing for the purposes of Law of Property Act 1925, section 40, and is not unenforceable merely because the acceptance was not recorded in a separate memorandum. The court may infer acceptance from the evidence, including the presumption that a solicitor acts on properly given instructions and subsequent conduct consistent with the agreement.

The claimant, Edward Irani, sought a declaration that he was entitled to a share in property forming part of his deceased father’s intestate estate. His former wife, Mrs Irani, claimed that in 1984 the deceased had offered not to dispose of the property and to leave it equally to four children, in return for her abandoning ancillary-relief proceedings.

The central factual issue was whether Mrs Irani’s solicitor had communicated acceptance of the written offer. The legal issue was whether any resulting contract was unenforceable because the acceptance was oral.

1. Contract concluded. The court accepted the evidence of Mrs Irani and the other supporting witnesses. It inferred that her solicitor had notified the deceased’s solicitors of acceptance. The presumption that a solicitor performs the duty entrusted to her was supported by the deceased’s execution of a document in the agreed terms, his assurances that he had fulfilled his obligation, and Mrs Irani’s abandonment of the ancillary proceedings.
2. Subsequent conduct. The absence of a properly executed will did not prevent the contract from being established. The deceased believed that the document he signed was valid and that it fulfilled his contractual obligation. The abandonment of the proceedings was attributable to the agreement, rather than to disclosure concerning Mrs Irani’s property in India.
3. Section 40. The contention that the agreement was unenforceable for want of a written memorandum under section 40 of the Law of Property Act 1925 failed. Where an offer is made in writing and accepted orally, the contract is in law a contract in writing: Tiverton Estates Ltd v Wearwell Ltd [1975] Ch 146.
4. The claimant’s claim was dismissed and Mrs Irani’s claim was upheld.

Not stated in the judgment.