Can a vendor obtain a new consent from a regulatory tribunal for the purpose of performing a construction contract?

In Orchard v. Fournie, the vendors had obtained the consent, but it had lapsed. It was held that “[n]ormally, the court will not order specific performance of a contract which remains to be approved by a regulatory tribunal, but in the present circumstances it can be assumed that consent will be given again.” Further, the purchasers had at no time repudiated the contract on the ground of that defect. The vendors were therefore entitled to have until the date fixed for closing to obtain a new consent.

In Ludlow v. Beattie, the contract did not refer to the need for compliance with the Planning Act. The parties disagreed as to which party had undertaken the responsibility to make the necessary application. The purchaser sought rectification of the agreement, a declaration that it was binding and specific performance. The court granted the relief, adding terms that the contract was conditional upon compliance with the Planning Act and the vendor was responsible for obtaining the necessary severance. The contract was to be specifically performed upon the application being successfully made.