MOUNTFORD V SCOTT (1975) TERMINATION OF OFFERS: Revocation

'Unless something has been provided in return to keep that offer open'

Defendant was the owner of a dwelling-house. He signed an agreement with plaintiffs whereby, in consideration of the sum of £1, he granted plaintiffs an option to purchase his house at the price of £10,000. Subsequently plaintiffs gave notice exercising the option. Defendant refused to complete the sale and plaintiffs brought an action for specific performance. The judge held that plaintiffs were entitled to the order sought on the ground that an option to purchase land constituted an equitable interest in land and it was immaterial that it had been granted gratuitously or for a token payment. Defendant appealed contending, inter alia, that, since the consideration for the grant of the option was a token payment equity would not enforce the contract, and that plaintiffs should therefore have been left…