The plaintiffs sought to enforce the sale of estate land in Co. Tipperary, which they claimed was concluded by a handshake between the parties. They also claimed a breach of an exclusivity agreement. The defendants denied that any oral agreement had been concluded by a handshake and that there was no document meeting the requirements of s.51 of the Land and Conveyancing Law Reform Act, 2009.
The plaintiffs put considerable reliance on a handshake that took place in the kitchen of plaintiff John Magnier’s home, which the plaintiffs claim was an agreement for the purchase of the defendant’s 750-acre Barne Estate.
The defendants contended that they did not have the authority to agree to a sale as the land was held in a trust, and the trustees' consent was required for any sale. They also referred to correspondence between the parties that carried the ‘subject to contract’ notations and that an exclusivity agreement was subsequently executed which itself described the stage as ‘pre-contract.’
The presiding High Court judge, Mr Justice Barrett accepted that any handshake agreement was expressly qualified by the need for trustee consent, a caveat communicated on the night, and which was confirmed by actions taken the following day to obtain approval.
An Coimusiun Pleanala had ruled that the change of use from publicly accessible open space to private use is a development and cannot be considered exempt. That would mean Mr. Howell would have to apply for planning permission.
The judge referred to the lack of supporting documentary evidence to support the plaintiffs’ case. He observed that there was no evidence of even an “outline” option agreement having been struck and that the idea of such an option existing alongside a concluded land sale was equally unconvincing, but rather “the continued discussion of an option pathway is characteristic of ongoing negotiation, not of contractual closure”.
In this regard, the court held that the option agreement lacked certainty as to material terms such as the price and mechanism for exercise, and that the most that could be said was that after the handshake over the land, “Mr Magnier brought up keeping the company route ‘open’. There is no evidence this was accepted or that any commercial detail (e.g., price, liabilities, or time frame) was discussed.”
The judge was further satisfied that the none of the parties in attendance from the defendants’ side had authority, ostensible or otherwise, to commit the first defendant vendor and rejected the plaintiff’s argument that express ratification had occurred on part of the principal or through acquiescence.
Further, the judge rejected the contention that what was agreed on 22 August 2023 amounted to a contract subject to a condition precedent, namely trustee approval of the terms reached, finding that position to be untenable as a matter of legal principle, having regard to O’Connor v Coady [2004] 3 IR 271, and on the evidence.
The judge also found inter alia that the notion of a concluded contract being in place was inconsistent with the later execution of the exclusivity agreement. That where no oral agreement for the sale of land had been formed, that the requirement under s.51 of the 2009 Act for a note or memorandum in relation to the sale of land was not merely unmet, but rather it was not engaged.
In conclusion Mr Justice Barrett observed “shifting sands” in respect of the plaintiffs’ accounts of the events central to the case, highlighting that those accounts had altered materially since the inception of the proceedings, and that the changes were fundamental, unexplained and called into question the reliability of the accounts.
In that regard, the judge explained: “The credibility difficulties here arise not from subjective impressions but from the stark divergence between the plaintiffs’ evolving narrative and the fixed points of the contemporaneous documentary record.”
Accordingly, the High Court dismissed the plaintiffs’ claim.
Wachman, Magnier and Magnier v Barne Estate Limited & Ors [2025] IEHC 491