Introduction Other key expressions for the purposes of paragraph 10
51.Schedule 2A Paragraph 11 sets out the meaning of certain expressions used in paragraph 10.
52.Sub-paragraph (1) sets out that, subject to other provisions in paragraph 11, “the first appropriate transaction” in paragraph 10 is the original contract.
53.Sub-paragraph (2) provides that where the original contract is not performed as the same time, and in connection with, the performance of the specified transaction (see paragraph 10(3)), “the first appropriate transaction” is the pre-completion transaction in relation to that original contract, provided that pre-completion transaction meets the conditions set out in sub-paragraph (3).
54.Sub-paragraph (3) sets out the conditions in order for the pre-completion transaction to fall within the definition of “the first appropriate transaction”.
55.Sub-paragraph (4) sets out the meaning of “performed” for the purposes of paragraph 11. In relation to a contract for a land transaction, it is treated as “performed” on the earlier of: (i) substantial performance; or (ii) completion. In relation to a free-standing transfer, it is treated as “performed” when the subject-matter of that free-standing transfer is acquired.
56.Sub-paragraph (5) provides that where there is a series of two or more contracts the original contract is the first contract in the series and the specified transaction is the last pre-completion transaction in the series. Sub-paragraph (6) provides that the specified transaction is the last pre-completion transaction before the transferee acquires the subject-matter of the contract.