Options To Purchase - Law Dictionary Search Results
Home Dictionary Name: options to purchaseOption of purchasing an undertaking
Option of purchasing an undertaking, the expression 'option of purchasing an undertaking' merely means the right of purchasing the undertaking. The word 'option' is used because two courses are open to the concerned authority namely, either to purchase the undertaking or renew the licence, Gujarat Electricity Board v. Shantilal Desai, AIR 1969 SC 239 (242): (1969) 1 SCR 580. [Electricity Act, 1910, s. 7]...
Options to purchase
Options to purchase a legal estate (including a lease), made or acquired after 1925, must be registered in the Land Registry under ss. 4 and 10 of the (English) Land Charges Act, 1925, as ESTATE CONTRACTS (q.v.), or they will be void against a purchaser for value (with or without notice), for money or money's worth. They do not fall behind the curtain and must be abstracted as the person entitled may register at anytime before completion of the purchase by the later claimant. A tenant for life may grant an option for purchase or to take a lease exerciseable over any period not exceeding ten years [see (English) Settled Land Act, 1925, s. 51]. Attention should be given to the (English) Law of Property Act, 1925, s. 149(3), which prohibits the granting of a ease as a rent or upon payment of a fine after 1925 to take effect more than twenty-one years from the date of the instrument purporting to create in except in regard to terms or interests under a settlement or under equitable powers ...
Option of purchase in a lease
Option of purchase in a lease. A clause giving the lessee the option of purchasing the reversion for a fixed sum within a limited number of years, or at anytime during the term, is sometimes inserted in leases. A clause giving an option of purchase at any time during a ninety-nine years' lease offends against the law of perpetuities (see that title) and cannot be specifically enforced, Woodall v. Clifton, (1905) 2 Ch 257; Worthing Corporation v. Heather, (1906) 2 Ch 532. For statement of opinion that the clause 'to be completely valid must be so expressed that the option must necessarily be exercised (if at all) within the limits of the time allowed by the rule against perpetuities,' so that probably not more than twenty one years could be allowed in a lease independent of life, see article by Mr. T. Cyprian Williams in the Solicitors' Journal for July 9, 1898; and for cases on option of purchase generally, see Woodfall, L. & T....
Hire-purchase agreement
Hire-purchase agreement, Hire-purchase agreements are executor contracts under which the goods are let on hire and the hirer has an option to purchase in accordance with the terms of the agreement. These types of agreements were originally entered into between the dealer and the customer and the dealer used to extend credit to the customer. But as hire-purchase scheme gained in popularity and in size, the dealers who were not endowed with liberal amount of working capital found it difficult to extend the scheme to many customers. Then the financiers came into the picture. The finance company would buy the goods from the dealer and let them to the customer under hire-purchase agreement. The dealer would deliver the goods to the customer who would then drop out of the transaction leaving the finance company to collect installments directly from the customer. Under hire-purchase agreement, the hirer is simply paying for the use of the goods and for the option to purchase them. The finance...
lease purchase (lease option)
lease purchase (lease option) assists low to moderate income homebuyers in purchasing a home by allowing them to lease a home with an option to buy; the rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment. Source: U.S. Department of Housing and Urban Development ...
Hire purchase agreement and contract for sale
Hire purchase agreement and contract for sale, a contract of hire-purchase is properly speaking a contract of hire by which the hirer is granted an option to buy but is not, as under a contract of sale, under a legal obligation to do so. The contract of hire-purchase is one of the variations of the contract of bailment, but it is a modern development of commercial life, and the rules with regard to bailments, which were laid down before any contract of hire-purchase was contemplated, cannot be applied simpliciter, because such a contract has in it not only the element of bailment but also the element of sale, Instalment Supply Ltd. v. S.T.O., (1974) 4 SCC 739: AIR 1974 SC 1105....
Hire purchase
A contract more fully called contract of hire with an option of purchase in which a person hires goods for a specified period and at a fixed rent with the added condition that if he shall retain the goods for the full period and pay all the installments of rent as they become due the contract shall determine and the title vest absolutely in him and that if he chooses he may at any time during the term surrender the goods and be quit of any liability for future installments upon the contract In the United States such a contract is generally treated as a conditional sale and the term hire purchase is also sometimes applied to a contract in which the hirer is not free to avoid future liability by surrender of the goods In England however if the hirer does not have this right the contract is a sale...
Perpetuity
Perpetuity, concerns rights of property only, and does not affect the making of contracts, which do not create rights of property, Ram Baran Prasad v. Ram Mohit Hazara, AIR 1967 SC 744: (1967) 1 SCR 293.Is a future limitation, whether executory or by way of remainders, and of either real or personal property which is not to vest until after the expiration of, or will not necessarily vest within the period fixed and prescribed by law for the creation of future estates and interests, Walsh v. Secretary of State for India, (1863) 10 HLC 367.Perpetuity, unlimited duration; exemption from intermission or ceasing, where, though all who have interest should join in a covenant, so that they could not bar or pass the estate. It is odious in law, destructive to the common wealth, and an impediment to commerce, by preventing the wholesome circulation of property.The rule against perpetuities, or the doctrine of remoteness, applies to the corpus of property whether real or personal, and whether li...
Fixtures
Fixtures. Things of an accessory character which are not something which is part of the original struc-ture, Boswell v. Crucible Steel Co., (1925) 1 KB 119, annexed to houses or lands, which become, immediately on annexation, part of the realty itself, i.e., governed by the same law which applies to the land, in conformity with the maxim quicquid plantatur solo, solo cedit. The application of this legal principle, however, is not uniform, as may be thus shown:(1) Between landlord and tenant. If the chattels be not let into the soil, they are not fixtures at all, and may be removed at will, like any other species of personal property. When the chattel is connected with the free-hold, by being let into the earth, or by being cemented or otherwise united to some erection attached to the ground, the question arises-when may the tenant remove such fixtures?The general rule as to annexations made by a tenant during the continuance of his term is the following-Whenever he has affixed anything...
Pre-emption, Right of
Pre-emption, Right of, the power of buying a thing before others, as superfluous lands under the (English) Lands Clauses Consolidation Act, 1845, s. 128, which must before sale be offered to the persons from whom they were originally taken, or to the adjoining owners; as to registration of contracts or deeds giving the right of pre-emption as estate contracts, see (English) Land Charges Act, 1925, s. 10. Compare the right of pre-emption which a county council has by virtue of s. 12 (4) of the Small Holdings and Allotments Act, 1908. Also, a privilege formerly allowed to the royal purveyor, but abolished by 12 Car. 2, c. 24. See OPTION TO PURCHASE....
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