§ Mr. McCrindleasked the Attorney-General if he will introduce anti-gazumping legislation making a contract legally binding as from the moment of acceptance in writing of a firm offer to purchase; and if he will make a statement.
The Attorney-GeneralThe problem of gazumping was fully considered by the Law Commission in its report on "subject to contract" agreements, which was 621W published in 1975—Law Com. No. 65. For the reasons given in that report, it is considered that legislative intervention of the type suggested would not work to the advantage of either purchasers or vendors. The practice of entering into agreements as to price "subject to contract" is not mandatory on the parties, but is accepted as conveying advantages to each, one consequence of which to either is that the other may resile prior to the conclusion of the contract of sale.