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VENDOE AND PURCHASER
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Whose wish it was that his Son should keep his name in
Remembrance in Lincoln's Inn,
IS A FFECTl ON A TEL T INSCRIJi ED.
722831
( ^ )
PREFACE
TO THE SECOND EDITION.
In this edition arc incorporated all the changes made
in the law since the first publication of the book (aj,
and the whole of the text has been carefully revised.
Besides these emendations, the author has been
emboldened by the very kind and gratifying recep-
tion, which his treatise met with at the hands of the
profession, to add a considerable amount of entirely
new matter. This work, in its first edition, was
originally planned on a smaller scale than that on
which it was executed. But over ten years elapsed
between the commencement of the book and its
completion ; and the author, in the course of working
out his design, was led to elaborate the later part of
his treatise in a way which rather exceeded the pro-
portions observed in the earlier chapters. The aim of
the additions now made, which occur chiefly in the
first half of the book, has been to harmonise those
proportions with the lines on which the work was
finished.
(a) Vol. i., containing Chaps. I. — XII., was published in October, 1903 ;
a temporary volume, containing Chaps. XIII. — XVI., appeared in
January, 1905 ; and vol. ii. in its entirety was published in April, 1906.
VI PREFACE TO THE SECOND EDITION.
The writer is well aware how delicate a task the
enlargement of a law book is, and knows that such an
undertaking too often results in marring the symmetry
and injuring the literary quality of the original work.
But he has done his best to avoid these evils ; and
trusts that his additions have not damaged the book,
but will make it more useful to the profession.
As the additions are much intermixed with the
original text, it may be convenient to point out
exactly what they are. The following matter is
new: — The note (p. 4, n. {ni)) on the question whether
on the sale of land without naming the price the law
implies an agreement to buy at a reasonable price ;
the examples stated on p. 6 of the sale of land by a
general description (notes (u — (>) ), and the criticism
in note (b) of the case of Plant v. Bourne (b) ; the
whole paragraph on pp. 24 — 26 as to the inadvertent
acceptance of a bidding lower than the reserve
price, &c. ; the paragraph on pp. 29, 30, as to altera-
tions in the contract ; the sentences on pp. 33 — 35, to
which are annexed notes (k, n and u) ; the statements
on p. 36 as to the remedies for breach of the contract ;
the sentences on pp. 37 and 39, to which are annexed
notes {a, c and k) ; paragraphs (3) and (4) on pp. 44, 45
(these have been re-written); the paragraph on pp. 54,
55, as to re-sale as owner ; the paragraph on pp. 69,
70, as to the stipulations left to be implied on sales by
auction, and the sentences, to which notes {(/, h) are an-
{h) 1897, 2 Ch. 281.
PREFACE TO THE SECOND EDITION. Vll
nexed, in the succeeding parao^raph ; the whole of p. 76 ;
the paragraphs on pp. 78 — 83, as to special stipulations
usually made in particular cases of sale by auction ;
the sentences on pp. 106, 107, as to the conveyance of
an equity of redemption and a transfer of mortgage ;
that on p. 114 as to documents incorporated by refer-
ence; the paragraph on pp. 119, 200 as to title-deeds
executed by attorney; those on pp. 124 — 180, as to
title-deeds in the custody of a mortgagee or subject to
a solicitor's lien ; the sentence on p. 139 as to state-
ments of fact in public documents and notes {c, d)
thereto ; that on p. 154 to which note (/) is annexed;
the statements on pp. 155 — 159 as to presumptions;
the statement at the end of note (n) to p. 166, calling
attention to what seems to have been an oversight in
the decision of Parker, J., in Halkett v. Dudley {c)\
note (,y) to p. 168 ; the sentences on pp. 176, 177, to
which notes (c, , o, ^>, ^, r) are annexed ; those on
pj). 183, 184, to which notes (,^, 5-, , /) are annexed;
the last half of p. 185 from ''It is held," and
notes (/<:, I) thereto, the latter note containing a
criticism of the grounds alleged by Parker, J., in
Halkett v. Dudley [d)^ for the purchaser's right to
repudiate the contract at once, if the vendor fail to
show a good title ; the sentence on p. 1 87 to which
note {n) is annexed ; the last two sentences on p. 191 ;
the sentence on p. 244, to which note {t) is annexed ;
that on p. 264, to which note (/) is annexed ; that on
(c) 1907, 1 Ch. 590, 606. {d) 1907, 1 Ch. 590.
Vlll PREFACE TO THE SECOND EDITION.
p. 267, to which note (d) is annexed ; p. 269 down to
note(o) ; note (d) to p. 294, dealing with the execution
of powers by will ; the statements on pp. 297, 298, as
to the exercise of powers to appoint land amongst
unborn issue ; the paragraph in the middle of p. 299 ;
the first sentence on p. 317; pp. 318 — 327, dealing
with the law expounded in Be Dickin (ind KehalVs
Contract [e], as to a tenant for life's power of convey-
ance under the Settled Land Acts, &c. ; the latter
half of p. 329 from " It is submitted " to the end of
p. 331 ; the sentences on pp. 332, 333, to which notes
{n, 0, s) are annexed ; that on p. 339, to which note (a)
is annexed ; the paragraph on pp. 344, 345, as to sale
by the mortgagee's attorney ; that on pp. 349, 350, as
to fines on admittance after the death of an unadmitted
surrenderee ; pp. 363 — 372, dealing with the sale of
renewable leaseholds, satisfied terms, merger of terms,
enlarged terms, leaseholds settled to go with freeholds,
options to purchase contained in leases, and rever-
sionary leases ; note {Jc) to p. 374 ; note {z) to p. 377 ;
the sentences on p. 379 to which notes [n, o, p) are
annexed; the statements in note (/>) to p. 385, dis-
cussing the criticism made in the " Law Quarterly
Review " on a passage in the text ; pp. 386 (from '' It
is also desirable") to 393 (end of § 3), dealing princi-
pally with the possibility of evading compulsory regis-
tration of title ; so much of pp. 396 — 398 as relates to
the changes made by the Finance (1909-10) Act, 1910 ;
(e) 1908, 1 Ch. 213.
PREFACE TO THE Si:COND EDITION. IX
the paragraph on pp. 400, 401, as to sale of the reversion
on a lease, where succession duty is payable at the end
of the term, ) ; where a
purchaser receives notice of some unregistered process of execu-
tion (q) ; and with regard to the effect of orders made in exercise
of bankruptcy jurisdiction in creating a charge on land (r). He has
suggested (s) that the assignee of part of land let on lease, who pays
the rent for the whole under threat of distress, may have a remedy
which was overlooked in the case of Johnson v. Wild{t). And he has
criticised the decisions in Bolton v. London School Boiird (u), Re
Selous (x), Re Williams and Netvcasile's Contract {y) and the late
case of Re Highett and Bird\i Contract (z). Besides this, he has
inquired into the advantages of official over private searches {a).
He has made a strong effort to convince his readers of the great
hardship which may befall a purchaser by private contract, whose
advisers tamely submit to the incorporation in the contract of the
conditions usual on London sales by auction {b). He has dealt with
the subject of the investigation of title in view of a mortgage (c).
And he has treated at some length of the law of restrictive
covenants (r/), a subject on which many important decisions have
been given during the last few years, and on which the latest
leading case (e) is of such recent date that it has not yet been
reported in the Law Reports. He has moreover taken account,
from the outset (y"), of the additional burthen laid on conveyancers'
(«) See p. 319, n. (i). (y) 1897, 2 Ch. 144; see p. 681,
(o) See Chap. XXI. below.
{p) Pp. 242—245. (z) 1902, 2 Ch. 214 ; 1903, 1 Ch.
[q) P. 584. 287; seep. 354, below.
(»•) P. 386. [a) Pp. 605 sq.
(a) P. 362. (*) Pp. 83—93.
{t) 44 Ch. D. 146. [c) P. 498.
\u) 7 Ch. D. 766; below, p. 137. {d) Pp. 491 ,sq., 647, 666, 670, 674.
n. {p). [e) Formbi/ v. Barke)-, C. A. (July
(a:) 1901, 1 Ch. 921; see p. 466, 14), 1903, W. N. 133; 72 L. J. Ch.
n. {z), below. 716; 51 W. R. 646.
(/) Pp. 38, 39, 88, 204—208.
FIRST VOLUME OF THE FIRST EDITION. XVll
shoulders by the development of the doctrine, which culminated {g)
in the extraordinary case of Scott v. Alvarez (h).
It is hoped that this book may be useful, not only to practitioners
but also to students preparing for conveyancing practice in either
branch of the profession. With this object the author has en-
deavoured, throughout the vrork, to write in a manner intelligible
to those who have no greater preliminary knowledge of the subject
than an acquaintance with the elements of the law of real property
and of contract. He may point out that the earlier part of his
treatise (Chapters I. — V.), which 'gives a general account of the
subject, is especially adapted to the use of students, and that it is
designed to prepare them to understand the rest of the book, in
which matters of interest to practitioners are more particularly
dealt with. The writer has started with the assumption that his
readers will at least have such an acquaintance with the law of real
property as may be gathered from a text-book like " Williams on
Eeal Property " ; and he has not thought it necessary to repeat here
descriptions of those parts of the law, which are explained in that
book in an elementary way. Thus he has not inserted an account
of the historical progress of the law of creditors' rights (/) as an
introduction to his discourse about searches {k). But he has tried
throughout so to treat his subject that readers may understand,
who have no greater knowledge than this.
((/) This doctrine appears to have minster Hall a man may succeed in
originated with the case of Best v. his suit under circumstances in which
Ilamancl (1879), 12 Ch. D. 1 ; see Fry, he would undoubtedly be defeated on
Sp. Perf. § 1325, p. 592, 3rd ed. the other side" (Wms. Real Prop.
(A) 1896, 1 Ch. 596; 2 Ch. 603. 129, 1st ed. ; 177, 13th ed.). But this
This case must have shattered the last npparent paradox is eclipsed by the
ruins of the delusion that law and judicial ruling that, in the same Court
equity were fused by the Judicature and cause and in a matter depending
Acts. It appears in truth to be on the effect of the same stipulation in
equally destructive of the pretensions the same contract, a suitor may at the
put forward by eminent judges (see same time obtain and be denied sub-
p. 58, n. («), below), that a contract is stantial relief according as his claim is
really construed in the same manner rested on the doctrines of equity or of
in equity as at law. In the days when law.
the Courts of Common Law and Chan- (i) See Wms. Real Prop. Chap. XI.,
eery were separate, the student's curi- 2l8t ed.
osity used to be stimulated by the (/•) Below, p. 580.
statement that ' ' on one side of West-
XVlll INTRODUCTION TO THE
The writer is conscious of many imperfections in his treatise, and
for these he must ask the indulgence of the profession. He has
been occupied with the task of its production for several years ; hut
he has only been able to prosecute his undertaking during such
time as he could spare from his other work. He will be much
obliged if readers, who discover mistakes or omissions, will kindly
inform him of them.
Mr. J. F. Iselin is responsible for the correction of the press,
except as regards pp. 1 — 128 ; and he has undertaken the work of
preparing the Index. He has also supplied the writer with many
valuable notes for the preparation of Chapter XI., and is aflfording
him the like assistance with regard to certain parts of the second
volume. The author has endeavoured to make up for the absence
of the Index from Vol. I. by using particular care in compiling the
Table of Contents, and by inserting therein references to the pages
under each heading.
7, Stone Buildings, Lincoln's Inn,
Sfh October, 1903.
The following parac/raph, relating to Chaps. XIII. to
XV., now included in the First Volume (^l), originallg
formed part of tfie Introduction to the Second Volume.
The writer may mention thai; at the very outset he
lias found himself beset with many doubts and diffi-
culties as to the true theory of English law with
respect to mistake as a ground of avoiding the
contract. The view he has put forward is warranted,
he believes, by the English authorities ; and it is
supported by the statements made by the late Mr.
Benjamin's classical treatise on Sale. On the other
(/) See above, p. xi.
FIKST VOLUME OF THE FIRST EDITION. XIX
hand, it seems to conflict with the opinion maintained
by Mr. Justice 0. W. Hohnes, of the Supreme Court
of the United States, who is perhaps the most brilliant
and original of all living writers on the Common Law,
and with that adopted by Professor Holland. And it
is with extreme diffidence that the writer ventures to
criticise their conclusions (m). The question, how far
mistake is available, either as a ground of avoiding a
contract for the sale of land at law, or of resisting its
specific performance in equity, was raised in an acute
form in the recent case of Van Praagh v. Everidge (w),
which unfortunately went off in the Court of Appeal
on the point of non-compliance with the 4tli section of
the Statute of Frauds. The writer has fully discussed
the case in both of these aspects (o). Another difficult
point, relating partly to the law of mistake and partly
to that of misrepresentation, is the effect upon the
contract at law and in equity of non-disclosure by the
vendor of a latent defect of quality, of which he is
aware ; and the authorities on this point have been
carefully considered (^?). A full examination has been
made of the questions, whether one may well claim
the rectification of a written executory agreement
together with the specific performance of the agree-
ment as rectified (y), and whether rectification ought
ever to be granted wliore the mistake has been
unilateral nnd not counnon to l)ntli parties (r). In
(w) Soe pp. 750, 7.")1, and note (i). (/>) See pp. 764 — 7<'>S.
(;/) ]'.>02, 2 Ch. '2GG; 190;',. I Ch. (y) Pp. 7SG-791.
434. (>•) Pp. 70;)— 802.
(o) Pp. 7t)l, 7'2G, 77<) and note (.r).
63
XX INTRODUCTION TO FIRST VOLUME OF FIRST EDITION.
connection with these questions, the cases of MaTj v.
Piatt {s)^ Garrard Y. Frankel{t), Harris y. Pep2Jerell{ti\
Bloomer Y. Spittle [x)^ and Paget v. Marshall [y) have
been criticised. Under the head of fraudulent mis-
representation, the much discussed case of Cornfoot v.
Fowhe {z) has been considered ; and it is suggested
that the decision there given may yet be in point
where an agent has innocently and without express
authority made a false statement as to some fact, on
which his principal was accurately informed, and it is
sought on this ground to set aside the contract after
completion («).
(.v) 1900, 1 Ch. 616. (y) 28 Ch. D. 255.
[t) 30 Beav. 445. (;) 6 M. & W. 358.
{u) L. R. 5 Eq. 1. , . p j,.,^ ^^^ ^^^^ ^^. ^^_,^ ^^24.
[x] L. R. 13 Eq. 427. > a ,
( xxi )
TABLE OF CONTENTS.
4
PAGE
ABBREVIATIONS xlviii
ERRATUM xlviii
ADDENDA xUx
Chap. I.
OF THE FORMATION OF THE CONTRACT OF SALE.
PAGE
Sale defined 1
Requisites of a valid contract .... 1
Capacity 2 I
General capacity to buy or sell land 2 |
Exceptional cases reserved for I
future consideration . . 2 |
Expression of consent 3
Form 3
Consideration 3
Statute of Frauds requiring signed
writing 3
The whole agreement must appear
from the writing 4
Description of the parties o
Description of the property 6
Flnnt V. Boiime 6
The memorandum may be made
out by several documents 7
Rule as to connecting dociunents. . 7
The signature required 9, 10
Signature of the party to be charged
or his agent sufficient 11
Memoi'andum subsequent to the
contract 11
Cases where agreement enforceable
without compliance with Statute
of Frauds 11
1. Sale by Court 11
2. Where defence of statute
not taken 11
3. Fraud 12
A. Part performance 12
PAQK
Formation of contract, ofFer and
acceptance 14
Communication 14, lo
Revocation 15
Communication through the post. . 15
Time for acceptance 17
Negotiation of a contract for sale. . 17
Open contract 17
Answering proposals as to sale .... 18
The whole of the correspondence
will be looked at 19
Oral agreement 19
Oral acceptance of written offer . . 19
Sale by auction 20
Auctioneer agent to sign 20
Auctioneer's clerk 20, u.
Question of revocation of the au-
thority to sign 21 , n.
Employment of a puffer at an
auction 22
Inadvertent acceptance of bidding
lower than reserve 24
Liability of the o^\'ner advertising
a sale without reserve 25
Advertisement of
offer
sale is not an
Payment of a deposit 26
Deposit on sales by private contract 27
Stamj) on contract for sale of lands 28
Alterations in the contract 29
XXll
TABLE OF CONTENTS.
Chap. II.
OF THE parties' RIGHTS, OBLIGATIONS AND KEMEDIES GENERALLY.
TAGE
Conveyancers' duties on sales .... 31
Outline of the effect of the contract 32
Whether the right to a good title
is an imj^lied term of the contract
or a collateral right 32, n.
Proof of title 35
Requisitions and answers 3")
Remedies for breach of the con-
tract 36
1. Rescission and rcHtitiitio in
intcfinim 36
2. Action for damages 36
3. Action for specific perfonn-
ance 37
Unfairness • 38
Hardship 39
4. Vendor and purchaser sum-
mons 39
Formal and informal memorandum
of an open contract 40
The fee simple sold, unless other-
wise specilied 41
Terms of an open contract 41
Vendor to show a good title 41
Delivery and verification of abstract 41
Proof of identity 41
PAGE
Necessity of a good root of title . . 41
Proper evidence of title 42
Recitals in documents 20 years old . 42
Inquiries as to earlier title 42
Vendor must produce a property
identical with that described in
the contract 13
Substantial errors to purchaser's
detriment 43
Insubstantial errors 44
EiTors to vendor's detriment 44
Verification of the abstract 4.5
Purchaser to accept the title, if
shown to be good 46
Completion of the purchase 46
Delivery of or statutory acknow-
ledgments, &c. as to muniments
of title 47, 48
Time for carrying out the contract 48
Rights of property and possession
pending completion 49
Interest payable if completion de-
layed ^O
Has vendor a right of re-salc with-
out express stipulation":' ol
Re-salc as owner after rescission or
judgment *34
Chap. HI.
OF THE USUAL CONDITIONS OF SALE.
Stipulations usually made on sales
by auction 56
Reserving right to bid 56
Deposit; signing a memoi'andura.. 57
Time for completion 57
Time when of the essence of the
contract 58
Effect of fixing day for completion
without fui'ther stipulation .... 00
Fixtures nr timber to be taken at a
valuation 60
Eufon'ing contract to sell at a
valuation 61
Commencement of title 61
Limiting time for making requisi-
tions 62
Purchaser should ask for abstract . 64
Reservation to vendor of right to
rescind the contract 64
TABLE OF CONTENTS.
XXlll
Chap. III. — condnued.
PAGE
Evideuce of ideutity 65
EiTors of description ; compensa-
tion 65
Conveyance 66
Apportionment of rents and out-
goings 67
Interest in case of delay in com-
pletion 67
Right to re-sell 68
Stipulations left to be implied in
sales by auction 60
Fonu uf conditions of sale l)y
auction of freeholds in one lot . . 70
Bidding; right to bid reserved. ... 70
Deposit ; contract to be signed .... 71
Fixtures and timber to be paid for
at a valuation 71
Commencement of title 71
Time limit for making requisitions
on title, &c 71
Reservation to vendor of right to
rescind the contract 72
Identity 72
No compensation for errors of
description 73
Completion 73
Rents, outgoings, &c 74
Interest 74
Power of re-sale 74
Memorandum to be indorsed on
the conditions 74
General condition on sale under a
trust or power 76
Sale by mortgagee 76
Special conditions of sale 77
tipulations iu crrtain i>articular
cases 7.S
Insufficiently btaiuped documents.. 7S
PAGE
Unregistered documents 79
Sale of leaseholds 79, 80
Duplicate of conveyance 80
Sale of land held by underlease , . 80
Sale of land subject to some rent or
statutory charge 81
Sale of land by auction in lots .... 82
Custody of title deeds 82
Sale of land subject to restrictive
covenants 83
Purchaser to be entitled to one
abstract only 83
Stipulations in formal contracts
for private sale 83
Vendor's reasons for not desiring
an open contract 86
Points to be considered in settling
a private contract 87
Deposit 87
Time for completion 89
Fixtures or timber at a valuation . . 89
Commencement of title 89
Limiting time for making requisi-
tions or objections 89, 90
Reservation to vendor of right to
rescind the contract 90
Expense of verification of the
abstract 90
Evidence of identity 91
Compensation for errors of descrip-
tion 91
Conveyance 91
Apportionment of rents and out-
goings 92
Interest iu case of delay in com-
pleti< "U 92
Re-sale 92
XXIV
TABLE OF CONTENTS.
Chap. IV.
OF THE vendor's OBLIGATION TO SHOW A GOOD TITLE
AND ITS DISCHARGE.
§ 1 . Of the general nature of the proof required.
Origin of the rule that the vendor
must show a good title 94
Proof of sixty years' title prima
facie proof of a good title .... 95
Sixty years' title had to be shown ,
as a rule, in all cases 96
When earlier title could be re-
quired 97
1 . Advowson 97
2. Long term 97
3. Tithes or property held by
Crown grant 97
4. Reversionary interest .... 97
Contract to grant a lease 97, n.
Vendor and Purchaser Act, 1874.. 98
Forty years' title only now re-
quired 98
Title on purchase of leaseholds . . 99
Enfranchised copyholds .... 99, and n.
The present law as to showing
title 100
PAGE
Freeholds or copyholds 100
Enfranchised copyholds 100
Leaseholds 100
Lease when intended to mean lease
from the freeholder 100, u.
Contract to grant a lease for years
or underlease 101
Advowson 101
Tithes or property held by Crown
grant 101
Reversionary interest 101
Property held by underlease . . 101, n.
Best and the usual evidence of
title is production of the title
deeds 102
Other evidence of title 103
Title depending on Statute of
Limitations 1 04
Vendor must produce the title
deeds, if he can 105
2. Of the abstract of title.
Vendor bound to make and deliver
an abstract of title 105
What the abstract ought to con-
tain 106
The abstract should commence
with a good root of title 106
General devise 106
Conveyance of equity of redemp-
tion 106, 107
Transfer of mortgage 107
Reason of the rule requiring a
good root of title 107
Deed exercising a power 108
Disentailing assurance 108
Whether the abstract must com-
mence with a conveyance for
valuable consideration 108
Voluntary conveyance 109
Family settlement 109
Specific devise 109
Root of title where the time for
showing title is curtailed by
special stipulation 109
What documents should be ab-
stracted after the root of title. . 109,
110
The manner of making an abstract 112
What are material clauses 113
Execution of deeds, &c. should be
stated 114
Tracings of maps or plans 115
TlBLE OF CONTENTS.
XXV
Chap. IV. — continued.
§ 3. Of the verification of the abstract.
PAOfe
Vendor bound to verify the abstract 115
Expense of procuring evidence
not in vendor's possession .... 116
Evidence requii-ed is (1) of docu-
ments, (2) of facts 116
Proof on sales differs from proof
in litigation 116
Proof of documents in Court .... 116
Documents thirty years old 116
Attested documents 116
No evidence of the execution of
any document required on sales 116
What is the strict right of a pur-
chaser as to proof of execution
of title deeds 118
Title deeds executed by attorney . 119
Documents may be in private or
official custody 121
Vendor must produce evidence of
documents in official custody . . 121
Expense of proving documents not
in vendor's possession 121
Evidence of public document .... 121
Examined copy 122
Exemplification 122
Office copies 122
Certified copies 122
Proper place for verification of the
abstract 123
Expense of examining title deeds
not in vendor's possession. . 123, 124
Deeds in possession of vendor's
mortgagees, or other persons
than vendor 124
Mortgagor's right of access to
deeds in possession of mort-
gagee 124, 125
Where vendor has a mere right
to production 126, 127
Where vendor has a covenant for
production 127
Solicitor's lien 128
Solicitor acting for vendor 128
Solicitor acting for both parties . . 1 29
Lien of solicitor commensurate
with client's right to hold the
deeds 129
Stamps 130
Evidence of facta required on sales 131
Evidence that certain events, which
would certainl)'^ have affected the
title, did not happen 132
Rule as to presumptions of fact . . 134
Events of which the happening
may or may not have affected
the title 134
Expense of proof of facts 136
Recitals and statements in docu-
ments twenty years old 136
Criticism of Bolton \. London School
Board 137, n.
Recitals of documents forming part
of the title prior to the time for
commencing the ab.stract . . 137, 138
Recitals no evidence, as a rule :
exceptions 138
Recital in a public statute or
document 1 38, 1 39
Statutory declarations 140
Recitals in deeds of other docu-
ments 140
When the dociunent is lost 141
Recitals of fact do not excuse
vendor from proof 141
Acceptance of in-egular evidence . . 141
Great importance of verification of
the abstract 143
And of the examination of the
deeds with the abstract 143
Proof of identity of property .... 144
Evidence of particular matters . . 145
Acknowledgment 145
Act of Parliament 146
Award of enfranchisement or in-
closure 146, 147
Bankruptcy 147
Copyhold assurances 148
Courts, proceedings of 149
Office copies 149
XXVI
TABLE OF CONTENTS.
Cliap. lA'. § o — cundnued.
PAGE
Crown grants 150
Deeds 150
Missing- documents 150
Enrolment 151
Exchange or partition, order of. . 152
Fine 153
Lease for a year 153
Pedigree, birth 153
Age 153
Blarriage 154
Death 154
PAGE
Presumption as between vendor
and purchaser in matters of
pedigree 155
No presumption of death 15G
Presumption of marriage ; Legi-
timacy or paternity 157
Record in Record Office 159
Recovery 1 GO
Registration in Middlesex or York-
shire KiO
Seisin Kid
Will 161
Chap. V.
OF ADVISING ON TITLE GENERALLY.
Duty of conveyancer advising the
purchaser on title 163
What should be the general scope
and residt of the abstract .... 164
Vendor need not show the whole
estate to be vested in himself, if
he have the right to procure its
conveyance 164
Distinction between showing a
good title on the abstract and
proving it 166
Good title not shown, if any estate
outstanding in one, whom the
vendor has no right to direct to
convey 167
lie Bryant unci Baniingh((m''fi Con-
tract 1G8
Purchaser nuist at once repudiate
the contract, if he wisli to insist
on this objection 168
Requisitions as to the contents of
and manner of making the ab-
stract 169
Estate of grantee to uses 172
Identity 173
Calling for evidence of facts .,,. 173
Death duties 174
Stamps 174
Inquiries respecting the property
sold 175
Vendor bound to answer all rele-
vant questions 178
Ee Ford and Hill 178
Course usually taken by counsel
advising on title 179
Searches 179
Time for making requisitions. ... 179
IFant v. StaUlbrass 180
Jic Tanqiierai/- Willaume and Landau 180
What requisitions should be made
and insisted on 182
Where the vendor may rescind . . 182
Where the vendor has no title . . 184
Obligation of the vendor to show
a good title 186, u.
Where the vendor has knowingly
or recklessly made a material
misrepresentation 187
Objection as to matter of convey-
ance 187
Waiverof objectionsorrequisitions 188
Purchaser desiring to go on where
the abstract shows an objection
to the title 190
TABLE OF CONTENTS.
XXVll
Chap. VI.
0¥ STIPULATIONS LIMITING THE OBLIGATION TO SHOW A GOOD TITLK.
PAGE
The statutory limitations 192
Sect. 3 (3) of Conveyancing Act,
1881 193
Its effect 194
Phillips V. Caldcleugh 195
Xottinyham, t^r. Co. v. Bidhr .... 196
lie Marsh and Eurl Granville .... 197
Vendor discloHUig a defect of title 199
Misrepresentation 199
He Banistif, Broad v. Mitntun .... 199
Construction of express stipula-
tions before the Conveyancing
Act, 1881 200
Special stipulations as to title .... 202
Humr V. Beidleij 202
Purchase with notice that a good
title cannot be made 203
Difference in purchaser's position
when resisting specific perform-
ance and seeking to recover his
deposit 204
Best v. Hainund 204
I'AOE
Ee Davis to Carey 205
Re National Vrovinvial Bank of
England and Marsh 20G
Re Scott and Alvarez's Contract . . 206
Recovery of deposit under agree-
ment that title shall commence
with some specified instrument
which turns out not to be a good
root of title 208
Purchaser under usual condition
as to identity requiring further
evidence 210
Course to adopt in making requi-
sitions 210
Conditions jequiring assumptions
of fact 211
Positionof purchaser buying under
special conditions as against jier-
Hons claiming adversely to the
vendor 211
Purchaser not investigating title
has constructive notice of equities
which he might have discovered
by inquiry 211
Chap. VII.
01' DEVOLUTION ON DEATH
Devolution on death before 1898.. 213
Dower 213
Curtesy 215
Succession to freeholds after death
before 1898 215
Estates tail and pur aatre vie ;
gavelkind and borough-English 216
Copyholds 216
Leaseholds 217
Equitable estates 218
Estates held un trustor in mortgage 219
Vendor and Purchaser Act, 1874 . 220
Sect. oO of Conveyancing Act,
1881 221
Copyholds , . 222
Liability of real estate to deceased
owner's debts 222
Executors formerly had no interest
in their testator's real estate . . 225
Power for executors to sell real
estate might be implied
Statutory powers
Administrators
Land Transfer Act, 1897
Personal representative trustee for
the heir or devisee
Powers of personal representatives
over real estate
Liability of real estate to deceased
owner's debts
Personal representatives' assent Ut
devise of real estate
Effect of the Act
Order of application of assets on
death 231
Estates tail
Equitable estates
Copyholds, ajuitiiblc estjites in . .
Escheat
225
22<;
228
228
229
229
230
230
231
I u.
234
235
235
236
XXVlll
TABLE OF CONTENTS.
Chap. VIII.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
§ 1. Of notice of trusts.
PAGE
Notice of a tru«t '237
Mortgage to trustees 238
Course taken on appointment of
new trustees 238
Acceptance of statements intended
to conceal the fact that mort-
gagees or owners are trustees. . 239
Notice of a document disclosing
the trust 240
Cii-cumstances may make disclo-
sure of a trust unavoidable. ... 241
Succession and estate duty on
death of one of several mort-
gagees not appearing to be
trustees 241
Notice of a document, how far
notice of its contents 24.3
Notice, actual or constructive. . . . 246
Restriction on constructive notice
by sect. 3 of the Conveyancing
Act, 1882 246
Reason for the rule that notice to
the agent is notice to the prin-
cipal 248
The exception in case of fraud . . 248
The law previous. to the Convey-
ancing Act, 1882 249
Kennedy v. Green 250
Boursot v. Savage 250
Atterbury v. Wat'is 251
Bradley v. Richea 251
Sharpe v. Foy .". .'. 251
Cave v. Cace 252
Effect of the Conveyancing Act,
1882, s. 8 252
Taylor v. London and County Banl; . 252
Vendor or mortgagor acting as
purchaser's or mortgagee's soli-
citor 253
What inquiries ought a purchaser
to make ? 254
Oliver V. Hinton 255
Notice that property is subject to
charges or incumbrances 255
§ 2. Of sales by trustees.
Sales by trustees 256
Trusts for or powers of sale .... 257
Milh V. Bugmore 257
Time for exercising such a trust
or power 257
Acceleration of time for exercis-
ing a power or trust 258
Ti-vists for sale and settlement of
the purchase -money 259
Trusts declared by will for sale in
order to pay testator's debts . . 260
Re Homnaill 260
Executor's power of sale under
the Land Transfer Act, 1897 . . 261
Rule against perpetuities in con-
nection with trusts for and
powers of sale 262
Order of tli6 Court for adminis-
tration of the trust 263
Duties of trustees for sale 263
Trustees for sale must sell for
money 266
Whether a trust for or power of
sale. authorizes a mortgage .... 267
Whether a trust or power to
mortgage authorizes a sale, or
a mortgage with power of sale . 268
Sale of leaseholds by way of
underlease 269
TABLE OF CONTENTS.
XXIX
Chap. VIII. § 2 — contmued.
PAGK
Timber aud miaei'als ; 269
Trustees .should not sell at a valu-
ation 270
Option of purchase 271
What persons, besides the original
trustees, can exercise a trust for
or power of sale 271
As to trusts or powers coupled
with an interest. ..-.•..• 272
Survivorship of the trust 272
Disclaimer ...'.' 272
New trustees 272
Trustees appointed by the Court. . 273
Persons succeeding to the estate
ou the death of a sole or last
surviving trustee 273
Heir of sole or sur\nving trustee . . 274
Devisee 274
Personal repi-esentatives of sole or
surviving trustee 275
Failure of devise of legal estate to
trustee 275
Question in case of a devise by a
sole, trustee under the present
law 276
Power without an interest 278
Survivorship of powers given to
tru-stees 278
Survivorship of bare powers .... 278
General rule 278
PAGE
Powers given to executors 278
Powers arising by implication of
law 279
Powers given to trustees 279
Powers given to a class 279
Release and disclaimer of powers . 280
Release of power, where a breach
of trust 281
Exercise of a bare power by neR-
trustees 281
By any others after the death of
the original donees 281
Trustees exercising a power con-
ferred by a settlement for some
purpose provided for in the
Settled Laud Acts 282
Where two or more persons to-
gether constitute the tenant for
life 285
Estate duty chargeable on land
settled on trust for sale 287
Sale of land purchased in breach
of trust 287
Trustees' receipts 288
Purchase by trustees 288
What kind of property should be
bought by trustees for persons
entitled successively 290
Valuation on behalf of trustees
selling or purchasing 291
Chap. IX.
OF TITLE UNDER THE EXERCISE OF TOWERS.
Title depending on exercise of a
power of appointment 293
Domicile of testator 294, n.
Equitable relief against defective
execution of a power 295
Title undt'r .a special power of
appointment 296
Fraudulent execution 296
Remoteness of limit^itiou 297
Attestation clause to instruments
exercising powers 298
Inquiry whether a power men-
tioned in the abstract has been
exercised 299
Sale under statutoiy power 299
Sales under the Settled Land Acts 300
As to giving notice of an intended
.sale . i . . ; . . I . . ; 301
XXX
TABLE OF CONTENTS.
Chap. IX. — continued.
PAGE
As to whether there are trustees
of the settlement at the time of
sale ;502
Who are trustees for the purposes
of the Settled Land Acts 304
Deposit on sale hy auction of
settled land 306
As to the power of conveyance
under the Settled Land Acts . . 306
What is "the settlement" 307
Re Aileshury and Iccagh 307
Re Miwdy and Roper'' x Contract . . 308
Assignments of or charges on the
life estate in consideration of
marriage or by way of family
arrangement 310
The compound settlement 310
Trustees of the compound settle-
ment 310
Principle to determine under what
settlement one is tenant for life 313
Criticism of Rf CornicnUl>< West
and Mnnro's Contract 314
The courses open to a tenant for
life after a re -settlement 315
Sale by a tenant for life deriving
his estate from the re-settle-
ment alone 317
The exceptions to the tenant-for-
life' 8 power of conveyance .... 317
Estates, &c. having priority to
the settlement 317
Estates, &c. conveyed or created
for securing money actually
raised 318
Re Dickin and Keh((Ws Contract . . 318
Mortgages by beneficiaries of their
interests under the settlement . 318
Mortgage by a tenant for life or
remainderman of his estate. ... 318
Purchaser cannot require the con-
currence of such mortgagees ,. 319
Mortgage by the tenant for life
and remainderman in fee 319
Mortgages by a remainderman
alnne 319
What mortgages come within the
second exception 320
PAGE
Purchaser must require the con-
currence of all whose charges
fall within the second exception 320
The third exception from the life
tenant's power of conveyance. . 321
Dispositions made by the tenant
for life in exercise of the right
of alienation incident to his
ownership 321
Rights of an assignee for value of
the life estate 321
Mortgages by the tenant for life
of his life estate 322
Lease granted by the tenant for
life at common law 323
Absolute assignment for value of
the life tenant's estate ........ 323
Assignments of the life estate in
consideration of marriage or by
way of family arrangement . . 323
Settlement and re-settlement limit-
ing rentcharges in priority to
the original life estate 323
Gratuitous assignment of the life
estate 324
Release of the life estate 324
Bankruptcy of the tenant for life. 325
Act of bankruptcy after the sale
but before completion 325
Sale under the Settled Land Acts
by a bankrupt tenant for life . . 326
Trustee taking the life estate
under a composition or scheme
of arrangement 327
Purchaser should require evidence
of the non-existence of estates,
&c. which the tenant for life
cannot convey 327
Practice as to abstracting the
settlement on sales under the
Settled Land Acts 329
The second and third exceptions
relate to interests created before
the date of the conveyance, not
of the contract for sale 330
As to seeing that a tenant for life
selling has not committed any
breai'h of his duty as trustee , . 332
TABLE OF CONTENTS.
XXXI
Chap. IX. — co7ifiniie(h
PAGE
Stipulation that the purchaser
shall pay the vendor's costs of
the sale 3.'>o
Title depending on the exercise of
a mortgagee's power of sale . . 335
Title under a mortgagee's statu-
tory power of sale 337
Waiver of any particular re-
striction on the exercise of a
mortgagee's power of sale .... 338
Conveyance should be in profes^srd
exercise of the power of sale . . 339
Mortgagor's concurrence cannot
be required 339
What estate the mortgag-ee can
convey 339
PAGK
Copyholds 340
Title under the power of sale given
to mortgagees by Lord Cran-
worth's Act c40
Conveyance by mortgagee selling
under Lord Cranworth's Act . . 341
Mortgagee selling under power of
sale bound only to act in good
faith 341
Sale by mortgagee in possession
after mortgagor's title barred. . 343
Sale after foreclosure absolute .. 343
Sale pending foreclosure or re-
demption proceedings 34;'.
Sale by mortgagee's attorney .... 344
Re Bounou and JenJcbiH^ Contract . . 344
Purchase of foreclosed property. . 34 o
Chap. X.
OF P A R T I C U L A K TITLES.
§ 1. Sdh' of copi/holds.
Wliat the purchaser is entitled to Wliat fines payable and by wliom
require on sale of copyholds . . 346 349, 3.')0
Devise by unadmitted surren-
Where no tenant on the rolls .... 349 deree 3.")0
§ 2. Sale of leaseholds.
Leaseholds 3.50 Criticism of Re HighHt and Bird's
Lease from the freeholder must be f 'on tract 3;")4
shown unless otherwise agreed.. 3.)0 Sale of land held by underlease . . 3.J7
Covenants more onerous than Sale of leaseholds not assignable
usual an objection to title witliout the landlord's licence
unless disclosed 3.')1 :{o8 3.)9
Evidence that a lease held subject Where landlord's consent not to
to a condition of re-entry has be unreasonably withheld .... 3(11
not determined 3.V2 f^.^,,. ^f j,,^^.^ ^f ^^^^ j^^i^j ^^, ,^^^^^
Waiver of forfeiture by receipt of for yeai-s ' 3Gi
'■''"* • • ■'•'•^ Sale of leaseholds in lots .36:!
Pun^hascr buying le.'iseliolds with a ^ e i i i i 1 1
t I -I t: ,. Sale oi renewable leaseholds 'M]^
notice ot a breach oi covenant '"'
that cannot or will not be Sale of lease granted on sun-ender
remedied 3-53, 3,)4 of prior lease , 365
XXXll
TABLE OF CONTENTS.
Chap. X. § 2 — continued.
PAGK
Satisfied tenns 365
Proviso for cesser 365
Merger 366
Surrender of term by trustees .... 366
Cesser under Satisfied Terms Act. 366
Merger at law and in equity .... 367
Purchase of fee by termor or of
term by freeholder 368
Present law as to merarer 368
PAGE
Enlargement of long term into fee
simple 368
Leaseholds settled in trust to go
with freeholds 369
Options to purchase contained in
leases 370
How far subject to rule against
perpetuities 370
Reversionary leases 372
Terms to commence in futaro .... 372
§ .3. Sale of lands in a register county or compulsory
registration district.
Lands in Middlesex or Yorkshire. . 373
Effect of an unregistered assurance 374
Wills 376
Yorkshire Registries Act, 1884 .. 377
Exceptions 378
Wills of leaseholds 379
Lands registered in the Land
Registry 380
Lands in a district where registra-
tion of title is compulsory on sale
380, 381
Leaseholds 382
Sale of unregistered land situate
in a compulsory district 385
Sale of leaseholds in compulsory
districts , 386
Priority noti(;e in favour of pur-
chaser's application for first
registration 386
Registered transfer or charge by
purchaser before his own regis-
tration 387
Suggested evasion of compulsory
registration 387
Successive purchases of several
undivided shares 388
Conveyance on purchase of an
undivided share alone 389
Purchase of undivided shares from
different owners 389
Successive purchases of undivided
shares from the owner of the
entirety 390
Completion of a contract to buy
the entirety by successive con-
veyances of undivided shares . . 391
Suggested scheme for avoiding
registration of title in a com-
pulsory district 392
Lands forming part of the Bedford
Level 392
§ 4. Voluntary conveyances.
In favour of a charity 393
Tending to defeat or delav credi-
tors
393
Bankruptcy within 2 or 10 years
thereafter 394
Leaseholds 395
Proof that a voluntary conveyance
has not been avoided 39;'}
Liability to estate duty after a
voluntary conveyance 396
Stamp duty on voluntary convey-
ances 397 and n.
TABLE OF CONTENTS.
XXXlll
Chap. X. — continued.
§ 5. Sole of ground rents., reversions and remainders, mines, roads,
rivers, &c.
PAGE
Purchase of ground rents 398
Inquiries on purchase of the re-
version on a lease 399
Succession duty 400
Reversion duty 401
Effect of grant of reversion on
lessee's covenants and con-
ditions 401
Rights given by the Conveyancing
Act, 1881, as to covenants and
conditions 403
Remedy given to the person en-
titled to the income of the land
leased 404
Assignee of reversion cannot sue
for rent due before his time . . 404
Effect of severance of reversion on
a lease for years 405
Notice to quit where reversion has
been severed 406
Stipulation precluding legal ap-
portionment of rent 400
Reversions or remainders on an
estate of freehold 40G
Subject to exercise of the powers
given by the Settled Land
Acts 407
Subject to succession and estate
duty 408
Sale of reversionary interests at an
undervalue 408
Time the essence of the contract
on sale of reversion . . 408
Allotments under an Inclosure
Act 409
Exchange effected by mutual con-
veyances 409
Exchange by order under the In-
closure Act, 1845 410
Sale of mines and minerals 411
Royal mines 411
What are minerals 411
Powers implied in an exception of
mines and minerals 412
Surface cannot be let down with-
out special power 413
W.
Mines and minerals go with the
surface until severed 414
Title to severed mines by adverse
possession 415
Mines under copyholds 415
Soil of roads 416
Streets within an urban district . . 417
Mines and iniucrals thereunder . . 417
Streets in the metropolis 418
Public conveniences under roads
in London 418
Main roads 418
Soil of rivers 419
Island in a river 419
Owner of several fishery pre-
sumed to be owner of the soil. . 420
Soil of tidal rivers 420
Public right of navigation 420
Sea-shore 420
Foreshore 420
Several fishery over foreshore. ... 421
Laud below low watermark .... 421
Foreshore when a barrier against
the sea 421
Land bounded by the sea-shore . . 421
Riparian owner's right of access
to the sea 421
No public right to walk on the
foreshore 421
Inland lake 422
Water rights in natural rivers . . 422
Surface or underground water not
flowing in a defined channel .. 423
Water rights in artificial water-
courses 423
Rights of fishing and sporting . . 425
Rights of fishing in tidal and non-
tidal waters 425
Severed from the ownership of
the soil 426
Several fishery . 426
Common of piscary 426
Right of sporting 427
XXXIV
TABLE OF CONTENTS.
Chap. X. § 5 — continued,
PAGE
Lessee's rig-hts of fishing aud
sporting 427
Ground Game Acts 428
Waste land of a manor 428
Approvement of part of a common 429
Right of lateral support 429
Sale of land with buildings or for
building purposes 430
PAGE
Support of buildings by buildings
on adjoining land 430
Party walls 430
Boundary hedges and ditches .... 43 1
Undivided share in land 431
Tenant in common buying other
shares 431
Title under trust for conversion . . 432
§ 6. iSale of purely incorporeal hereditaments.
Sale of purely incorporeal here-
ditaments 433
Contract to grant an incorporeal
hereditament de novo 434
Rent-charge 434
Perpetual rents, when redeemable 434
Remedies of owners of rents ... 434
Covenant to pay a rent-charge . . 435
Proviso for re-entry on non-pay-
ment of rent- charge 435
Release of part of land subject to
a rent-charge 436
Release of part of land subject to
a rent seek 436
Registration of a rent-charge,
where necessary 436
Land charges 437 & n.
Tithe rent-charge 438
Lands sold as tithe-free 438
Advowson 439
Benefices Act, 1898 441
Prohibition as to sales of advowsons
by auction 443
Right of presentation pending
completion of sale of an ad-
vowson 443
Devices formerly used on sale in
expectation of a vacancy 444
§ 7. Sale of charity lands.
Points to be considered on pur-
chase of charity lands 445
Requisites of the conveyance of
land to charitable uses . . . .445, 446
Assurance by registered disposi-
tion under the Land Transfer
Acts 447
Enrolment of separate deed of
trust 447
Power to enrol instruments not
enrolled within due time 448
No power to amend other defects
than want of enrolment 449
The assurance will be void though
the charitable trusts be not
disclosed 449
The charity may gain title under
the Statutes of Limitation .... 449
To what interests in land the
Mortmain and Charitable Uses
Act extcjids 449
Assurance of personal estate to be
laid out in purchase of land for
a charity 450
Exemptions from the requirements
of the Mortmain Acts 450
Gift of land by will to a charity , . 454
Construction of Consolidation and
Codifying Acts 454, n.
Contract to sell land for the use of
a charity 456
Restriction on the sale, mortgage,
or leasing of charity lands .... 459
Dispositions of charity lands by
authority of the Charity Com-
missioners 462
Assurance of lands purchased
from a charity 463
Board of Education substituted for
Charity Commissioners 465
TABLE OF CONTENTS.
XXXV
Chap. X. — continued.
§ 8. Partnership property.
Sale of land which is partnership
property 465
Devolution on death of land which
is partnership property 466
Criticism of lie Selous 466, n.
Disposition of land which is
partnership property 468
Power of surviving partner to sell
or mortgage the firm's lands . . 469
§ 9. Sale by order of the Court.
Title under an order for sale made
by the Court 470
Jurisdiction of the Court to order
a sale of land 471 Sc n.
What interests are bound by an
order for sale 472
Conveyance of the legal estate . . 47^
The order should have been duly
made, and must be properly
carried out 474
Order of the Court not to be in-
validated for wantof jurisdiction 475
10. Sale of an equity of redemption.
Risks on purchase of an equity
of redemption
Prior eqiiities, consolidation, tack-
ing
What inquiries the purchaser
shoiild make
Notice to the mortgagee
Purchaser's right of tacking ....
Puri'hasor of equity of redemption
paying off the first mortgage . .
Keeping the charge on foot ....
476
477
478
478
480
480
481
Purchase by mortgagee of the
equity of redemption 481
Marshalling securities 482
Tacking 485
Interest now chargeable on a
mortgage 486
Mortgage cannot be made irre-
deemable 486
Equity of redemption not to be
closrared 487
Mortgages to moneylenders
48(
§11. Sale of licensed property .
Obligations of vendor of licensed
property 488
Time of essence of the contract . . 488
Compensation for non-renewal of
licence 489
Compensation charge on licences 489
Effect of refusal to renew licence
in case of a leasehold licensed
house 400
§12. Land subject to restrictive covenants.
How x'estrictions on land may bo
created 403
Devolution of the benefit of re-
strictive covenants 49G
Loss of right to enforce them. . . . 497
Title to benefit of restrictive
covenant must be proved 498
c2
Restrictive covenants a defect of
title 491
Statutory restriction 491
Devolution of the biu-then of
restrictive covenants 492
Furmbii v. liarker 492
Covenants to do some positive act
on laud 493
XXXVl
TABLE OF CONTENTS.
Chap. X. — continued.
§ 13. Investigation of title in vieiv of a mortgage.
Intending mortgagee in a different
position from purchaser 498
He should stipulate for payment
of his costs in any event 499
Not an implied term of an agree-
ment for a mortgage that mort-
gagor shall show a good title . . 499
PAGE
Euforcement of contract to lend
or borrow on mortgage ."lOO
What title should be required on
behalf of a mortgagee •''00
Good marketable title •'iOl
Evidence of title in view of a
mortgage •''02
Title on transfer of mortgage .... .'i02
Chap. XI.
OF THE EFFECT OF THE CONTRACT PENDING COMPLETION.
§1.0/ the rights and liabilities of the parties pending completion
in respect of the property sold.
Effect of the contract in equity . . 504
Subject to vendor's duty to show
title, his lien, and right to pos-
session until the proper time for
completion, the lands are the
purchaser's .504 si?.
Conversion ^505
The vendor's trusteeship 505
Losses and improvements pending
completion 507
Destruction by fire pending com-
pletion of a house insured by
the vendor '^08
Rights of the parties and the in-
surance oifice in i-espect of the
policy ■ '508
Purchaser should himself insure
against fire '512
Vendor's duty to take care of the
property sold 512
Repairs, &c 512
Vendor not bound to inijirove the
property 513
Vendor entitled to retain posses-
sion untQ actual completion . . 515
Vendor's liability to account for
the rents ^'5
The vendor's beneficial interests
pending completion 516
Vendor's lien 51G
His right to the profits 517
Wliat profits he may take 517
He must not diminish the value
of the inheritance 518
He may be restrained from dis-
posing of the legal estate to the
purchaser's prejudice 518
Vendor remaining in possession
after the date fixed for comple-
tion 519
Vendor's duty to discharge the
outgoings 520
What outgoings he must dis-
charge 521
Apportionment of outgoings .... 523
Purchaser taking possession before
completion 524
Purchaser already in possession as
vendor's tenant 525
Orders for purchaser in possession
to pay price into Court or give
up possession 526
TABLE OF CONTENTS.
XXXTll
Chap. XI. — cnntimied.
§ 2. Of the transfer pendiny completion of the rights and liabilities
under the contract.
Transfer pending coinpletion of
the rights and liabilities under
the contract 527
Death of the vendor .528
Devolution of the vendor's estate. 528
Freeholds in fee 529
E>*tate tail 532
Sale by tenant in tail under the
Settled Land A.ct9 532
Copyholds 533
Leaseholds 534
Conversion of the land sold in the
vendor's hands 534
Option to purchase 535 & n.
Conveyance of deceased vendor's
estate by vesting order 536
When the Court may make a
vesting order 537, n.
Death of vendor who sold under a
power 538
Contracts for the sale of settled
land under the Settled Laud
Acts 539
Devolution of the burthen of the
contract on the vendor's death . 540
Death of the piu-chaser 540
Purchaser's heir or devisee now
takes subject to the vendor's
lien 542
Test of the property devolving as
land on the purchaser's death . . 543
Devolution of the burthen of the
c(mtract on the purchaser's
death 544
Banki'uptcy of either party to the
cont ract 544
Bankruptcy of the vendor 546
Act of bankruptcy by the vendor. 547
Insolvent vendor when discharged
from liability on the cimtrait . . 550
Vendor an undischarged bankrupt
at the time of the contract .... 550
Bankruptcy of tenant for life em-
powered to consent to a sale . . 551
Bankruptcy of the purchaser .... 552
Act of bankruptcy by the pur-
chaser 552
Adjudication of bankruptcy
against the purchaser 554
Insolvent p\irchaser when dis-
charged from liability on the
contract 556
Purchaser an undischarged bank-
rupt at the time of the contract 556
Land taken in execution pending
completion 557
Notice of unregistered process of
execution 559
Lunacy 560 & n.
Marriage of either party to the
contract 561
Conviction of treason or felony . . 563
Outlawry 564
Party becoming an alien enemy. . 564
Assignment by a party to the con-
tract 564
Assignment by the vendor of the
land sold 564
To purchaser for value without
notice 565
Tacking by vendor's alienee .... 567
Alienation by the purchaser of the
land sold 567
Assignment of the benefit of the
contract 568
Shaw V. Foster 569
As to the burthen of the contract
after an assignment 570
Transfer of part of the benefit of
the contract 570
Browne v. London Necropolis Co. .. 571
Contract specifically enforceable
against persons whose estate
would be displaced by a con-
veyance 572
XXXVlll
TABLE OF CONTENTS.
Chap. XII.
OF THE COMPLETION OF THE CONTKACT.
§ 1. Of completion generally.
PAGE
Time for completion 57.'5
Where time of the essence of the
contract 575 — 578
Making time of the essence, where
not originally so, by subsequent
notice 577
Time for performance by vendor
of a condition which is a term
of the sale 578
The acts to be performed on either
side for completion 578
The purchaser's duties 579
Acceptance of the title 579
Searches and inquiries to be made
by the purchaser 57'.'
Acceptance of title by not send-
ing in requisitions in time .... 580
Soper V. Arnold 580
2. Of searches and inquiries.
Searches, their object 580
Judgments, Crown debts and writs
of execution 581
Land Charges Act, 1900 581
Notice of judgments or Crown
debts of record or by specialty
or public accountantship 584
Crown debts by simple contract. . 584
Notice of unregistered process of
execution 584
Orders made in exercise of bank-
ruptcy jurisdiction 586
Annuities or rent-charges 587
Notice of life annuities 587
Land charges 588
Notice of unregistered ] and charges 588
Land improvement charges created
before 1889 588
Land improvement charges not
requiring registration before
1889 591
Statutory charges on land of a
principal sum, not payable by
way of annuity 591
What are land charges created
after 1888 592
Lis pendens 593
Lands in Lancashire or Durham.. 594
Banki'uptcy 594
Deeds of arrangement 595
DisentaiHng assurances
Deeds acknowledged
Search in Middlesex and York-
shire Registries
Copyholds
What searches should usually be
made
1. Writs and orders affecting
land
2. Lis pendens
3. Life annuities
4. Bankruptcy
5. Deeds of arrangement ....
G. For registration of title . .
7. Land charges
8. Middlesex or Yorkshire
Registers
9. Com-t rolls
10. On purchase of land from
a company 599
Against what names seai'ches
should be made
No obligation on purchaser to
search
Search is notice
Duty of purchaser's solicitor to
search
Official searches
59G
596
597
597
597
597
597
597
597
598
598
598
598
599
&n.
601
603
604
604
604
TABLE OF CONTENTS.
XXXIX
Chap. XII. § 2 — continued.
PAGE
Official searches for disentailing
deeds, and in the Yorkshire and
Middlesex Registries 607
Inquiries to be made before com-
pletion 607
As to statutory charges 607
As to discharge of outgoings pay-
able by the vendor 608
Ascertaining that possession is in
accoi'daiice with the title 609
Inquiry of tenants and occupiers
as to their interest
609
Inspection and survey of the pro-
perty 610
Purchaser's rights before and after
completion in respect of vendor's
innocent misrepresentation .... GIO
Purchaser buying w-ithout inspec-
tion must accept patent, but not
latent defects 611
•3. Of the preparation of the conveyance.
Preparation of the conveyance .. 612
Wlio are necessary parties to the
conveyance 612
Intermediate trustees 614
Incapacity of any party to the
convej'ance 615
Parties to the conveyance on the
grantee's side 615
Conveyance to the purchaser's
nominee 615
To sub-purchaser 616
Form of the conveyance 617
Sale of lauds subject to incum-
brances 619
The usual stipulation as to the
costs of conveyance C20
Discharge of incumbrances on sale
by payment into Court 621
Vendor should never be allowed
to obtain the legal estate 622
Purchase followed by an imme-
diate mortgage 624
Purchaser receiving notice of
mesne incumbrances 625
Framing the conveyance 627
Recitals 627
Parcels 629
When is the purcha*
Covenants for title on sale of
copyholds 663
Payment of price on sale of copy-
holds 664
Where the laod sold is to be con-
veyed subject to any incum-
brance 664
Covenants for title intended to
cover an apparent defect 665
Purchaser agreeing to observance
of restrictions on the use of the
land bought must enter into an
absolute covenant to that effect 666
In what cases the purchaser is
bound to indemnify the vendor. 667
On sale of leaseholds 667
Indemnity on sale of land subject
to restrictive covenants 670
Indemnity on sale of laud subject
to a charge for which the vendor
will remain liable 672
PAGE
Sale in consideration of a rent-
charge 672
To what remedies the vendor is
entitled 673
Sale partly in consideration of an
agreement by the purchaser to
build 674
Whether the usual remedies for
securing a rent-charge in fee are
void for remoteness 674
Power of re-entry to satisfy arrears 675
Power to limit a terra 676
Power of re-entry by way of for-
feiture 677
Criticism of Re UoUis'' Hospital and
Hague 678, n.
Power on breach of covenant to
enter and hold imtil perform-
ance thereof 679
Delivery of title-deeds on comple-
tion 680
What documents must be handed
over 680
Criticism of Re Williiait.s and New-
castle's Contract 681
Vendor who has covenanted to
produce the deeds 682
Vendor who has given a statutory
acknowledgment and under-
taking 683
Sale of land in lots 683
Solicitor's lien on the deeds 684
Vendor's duty to fui-nish statutory
acknowledgments and under-
takings 684
What documents should be in-
cluded in a statutory acknow-
ledgment 684
Statutory declarations ... 686
Where the purchaser will have the
legal right to enforce an exist-
ing covenant or acknowledg-
ment for production 687
Vendor must, as a rule, give both
acknowledgment and under-
taking 689
Exceptions 690
TABLE OF CONTENTS.
xli
Chap. XII. § 3 — continued.
PAGE
Proper acknowledgment and un-
dertaking can only be given by
the person retaining possession
of the documents 690
Sale by mortgagor witli mort-
gagee's concurrence (500
Person in constructiye possession
of documents 692
Acknowledgment, whether to be
g'iven by separate document . . 693
Endorsement of memorandum on
conveyance 693
Expenses of acknowledgment and
undertaking 694
Liability created by acknowledg-
ment or undertaking 694
Endorsement of receipt on con-
vej'anoe 695
Settling the conveyance 69o
Conveyancing etiquette 695
Engrossment 696
Stamps on conveyance 696
Increment value duty stamp .... 696
Stamp duty on conveyances on sale 696
Meaning of conveyance on sale in
Stamp Act, 1891 . 698
How ad valorem duty to be calcu-
lated in respect of stock and
securities 698
How consideration consisting of
periodical payments to be
charged 699
How conveyance in consideration
of a debt, &c. to be charged . . (599
Duty on conveyance in separate
parcels of property sold for one
consideration 699
On conveyance in separate parcels
of property bought fur one con-
sideration by or for several
persons 700
Where there are several instru-
ments of conveyance for com-
pleting one sale 700
Sub-sale by purchaser before con-
veyance 700
PAGE
Conveyance in separate parcels
after a sub-sale 700
Where sub-purchaser has taken a
conveyance of the purchaser's
interest 700
As to sale of annuity or right not
before in existence 700
Conveyance by se veral instruments 701
Copyholds conveyed by deed .... 701
By surrender 701
Sale of an equitable interest in
lands 701
Of equity of redemption 701
Stamp duty on forefilosure order . . 702
Conveyance in consideration of a
rent-charge 703
Conveyance partly in considera-
tion of improvement or covenant
to improve 703
Where several transactions are
carried out by one instrument . 704
Where incumbrances are got in by
the conveyance 704
Or prior to conveyance 70.")
Expense of stamping 70.5
Increment value duty 70o
Sale of a lease of a separate tene-
ment, &c., part of a larger
building 706
Ou what occasions is increment
value duty payable 706, n.
Regulations as to the collection of
increment value duty 707, n.
Increment value duty stamps. ... 70S
When increment value duty
stamps are required 708
Vendor must pay increment value
duty 709
Whether the contrac^t or the con-
veyance should be stamped with
increment duty stamp .... 710 & u.
Where it is advisable to stamp the
contract 710
Conditions of sale as to increment
value duty stamp 711
xlii
TABLE OF CONTENTS.
Chap. XII. — continued.
§4.0/" the adjustment of accounts.
Apportionmeut of rent ou com-
pletion 713
Of outgoings 713
Of duties imposed by stat. 10
Edw. VII. c. 8 714, n.
Of land tax and tithe rent-charge 716
Sale of land subject to a rent at-
taching thereon and on other
land 71G
Sale of reversion of part of land
let at one rent 717
Purchaser' s liability to pay interest 717
Under an open contract 717
Under the stipulation usual on
London sales 718
Contract to pay interest in case of
delay from any cause 719
To pay interest except in case of
vendor' s wilful default 719
To pay except on vendor's default 721
Purchaser in default to pay interest 721
Items chargeable against or for
vendor 721
Deterioration of the property 722
Compensation for errors of descrip-
tion 722
Claims to compensation under an
open contract 722
The vendor's position at law and
in equity 723
The purchaser's right to specific
performance with compensation 724
Exceptions 725
Condition excluding any right to
compensation for errors of de-
scription 727
Condition allowing compensation ;
the vendor's rights 727
Re Fawcett and Holmes 728
The rule in Flight v. Booth 728
Extent of the condition for com-
pensation 729
Behenham v. Sawbridge 730
Purchaser's rights under condition
providing for compensation. ... 731
Neither party can enforce specific
performance with an indemnity 733
Costs of the sale and of conve}'^-
ance 733
Costs of concuirence of necessary
parties other than the vendor . . 734
Where the vendor's interest has
been transfeiTed pending com-
pletion 730
I 5. Of the execution of the conveyance.
On a sale by trustees 74 1
Where the conveyance is executed
Completion 73G
Attestation of the conveyance by
a witness of the purchaser's
choosing 737
Vendor must convey in person . . 738
Power of attorney when revoked . 738
Execution of the conveyance by
attorney 739
Execution of some title deed by
attorney 740
To whom the purchase money
should be paid 740
Solicitor's authority to receive the
purchase money on production
of the conveyance 741
by attorney 742
Payment should be made to the
solicitor acting for the person
entitled to give a receipt 743
Payment to solicitor ostensibly
acting for a conveying party . . 743
King v. Smith 744
The deed must be produced at the
time of payment 744
Payment to the solicitor's clerk . . 744
What is a proper payment 745
Effect of the execution of the con-
veyance 745
TABLE OF CONTENTS.
Lliii
Chap. XIII.
OF MISTAKE.
§ 1. Of luisfake as precludiny true consent.
WhcTo the coutract i^ iiupfucluihlu
for mistake, rai'^i-epicseiitatioii,
fraud, &c., there is always an
apparent couseut 748
No real assent in the case of mis-
take 748
In tlie case of misrepresentation,
fraud, &c., there is real con-
sent induced by belief in non-
existent facts or by coercive
influence 748
Mistake makes the contract void
from the beginning 748
Contracts induced by misrepre-
sentation, fi-aud, &c., are void-
able only 749
Necessity of consent to convey-
ance 749, n.
The rule is that, whei'e owing to
mistake the parties' minds are
not at one, there is no contract. 749
Unilateral mistake 750
If one manifest a certain inten-
tion, he is estopped from prov-
ing that his real intention was
different 750
Necessity of consent to contract.. 7 5 0,n.
Mistake on some point going to the
whole subject of the contract . . 751
liaJjUx V. Wivliclhaus 751, u.
Estoppel by manifestation of a
parti(^ular intention 753
Mistake^ in the nature of the trans-
action 75li
Letter of acceptance sent without
the writer's authority ,. 754
Uuilaternl mistake 755
Estoppel ai'ising from a man's own
careles.sness 755
Executing, without inquiry, a
document presented by one's
solicitor 75(3
Misunderstanding as to effect of a
legal document 756
Difference between transactions
void and voidable 75C
Conveyance induced by misrepre-
sentation, fraud, &c. , not void-
able as against a purchaser for
value without notice 757
Contracts induced by fraud remain
voidable, as against the other
contractor's assigns , . . 758
Where a sale of land is executed
by payment of the purchase-
money 758
Mistake as tu the pei'son of the
other party to the contract .... 75'J
Estoppel from proving error in
the person 75'J
Smith V. fVheatcraft 700
Mistake as to the property sold or
the price 760
Van Praagh v. Evcrldije 761
Mistake as to price 76J
Mistake as to the property or
price goes to the root of the
contract 762
Mistake as to quality 763
Warranty of quality 763
Mistake as to the quality of a
thing sold 763
The rule is caveat emptor 763
Defect of quality amounting to
a defect of title 763
No warranty of quality implied by
the sale of land 764
Latent defects of quality 764
xl
IV
TABLE OF CONTENTS.
Chap. XIII. § 1 — continued.
PAGE
Unknown latent defects 764
Latent defect known to the vendor 76'>
Sale of a thing with all its faults . 765
The rule in equity as to a mere
silence about a defect of quality 765
Lucas V. James 766
Silence of the purchaser about a
fact enhancing- the value 767
Specific performance may be re-
fused on grounds of unfairness
or hardship 768
Non-disclosure of a fact material
to the title 708
Representation that land is fit for
a particular purpose 769
Representation obviously inappli-
cable 769
Active concealment of defects ... 769
Misleading conduct 770
Specific performance may be re-
sisted in some cases where the
contract cannot be rescinded . . 770
Hope V. Walter 770
Specific performance not granted
where the thing sold in positively
noxious iu quality 771
Purchase under a mistaken im-
pression as to quality 771
Vendor not bound to disabuse
purchaser of his erroneous belief
as to the quality of the thing
sold 772
It does not alter the case that the
purcha.ser believed the vendor
to be warranting the quality, if
the vendor did not know this 772
But if the vendor knew of this
belief, the contract is void for
want of true consent 773
A<;ceptauce of an offer which the
acceptor knows to be mistaken . 773
Mistake as avoiding true consent
in equity 774
Unilateral mistake in equity .... 774
Specific performance against a
party mistaken may be refused
on the ground of hardship .... 776
Where one has contributed to the
other's mistake 777
Where one has notice of an error
in the particulars 777
Where one knew of the other's
mistake and sought to take
advantage of it 778
Common mistake as to some fact
which is a condition precedent
to the formation of a contract. . 778
Depreciation in quality unknown
to the contracting parties 780
Common mistake as to private
ria-ht 780
§ 2. Of mist((ke in the expression
Mistake iu the expression of con-
sent
780
Rectification of written instru-
ments a matter of the exclusive
jurisdiction of Courts of Equity 781
An exception to the rule that ex-
trinsic evidence is not admissible
to explain or vary written in-
sti'uments 781
Con'ection of obvious errors
781
of consent, and its rectification.
Rectification may be obtained
where a written instrument
does not express the parties'
real agreement 782
1. There must be an ante-
cedent contract 783
2. There must be a common
intention to embody or
give effect to the contract
by writing 783
3. The antecedent contract
and intention to embody
or give effect to it by
writing must be clearly
proved 784
TABLE OF CONTENTS.
xlv
Chap. XIII. § 2 — continued.
PAGE
EflPect of denial of the agreement
by one party 785 & n.
It has ever been held that one
may clainn rectifioiition as
plaintiff 786
Rectification granted of instru-
ments embodying executory as
well as executed agreements . . 7^7
Claim for rectification might be
joined with claim for relief
under the Avriting rectified .... 787
Rule that specific performance of
a written contract with a parol
variation cannot be enforced by
a plaintiff 788
Rich V. Jackson ; Woollam v. Ream 788
Davies v. Fitton 788
The defendant in specific perfor-
mance may set up a parol varia-
tion 788
Olley V. Fisher ; May v. Plait 790
Thompson v. Hickman 790
Distinction where a parol varia-
tion is proved, and whore the
defendant's own mistake is
alone proved 791
Where a parol variation is pleaded
in defence, the relief may vary
according to the facts proved . . 791
To obtain rectific^ation there must
be a common mistake 793
PAGE
Cases where rectification -with the
alternative, at the defendant's
option, of rescission, has been
ordered on the ground of uni-
lateral mistake 794
Garrard v. Frankel 794
Harris v. Pepper ell 795
Bloomer v. Spittle 796
Payet v. Marshall 796
Criticism of the above-mentioned
cases 797
^fay V. Flatt 797
Analysis of the circumstances in
which rectification may be
claimed 798
1. Common mi-stake 798
2. Plain tifi^ mistaken, but
estopped at law 798
3. Defendant mistaken, but
estopped at law, and sub-
sequent correction of the
error 800
4. No antecedent contract at
all 801
5. Fraud 802
Rectification of a conveyance can-
not be had against a purchaser
for value with notice 803
On sale of land, rectification may
be obtained either before or
after conveyance 803
Chap. XIV.
OF FH.\UI), MISREPRESENTATION, DURESS AND UNDUE INFLUENCE.
§ 1. Of Fraud and Misrfpresentntinn.
Contract voidable for fraud or
misi'epresentation 805
Representation 805
The representation must have in-
duced the contract 805
Fraudulent representation at coni-
mou law 806
Innocent misrepresentation, .-ind
even non-disclosui'e, might
avoid contracts uberrimte fiffet . . 806
Effect of innocent misrepresenta-
tion at common law in the case
of other contracts 807
xl
VI
TABLE OF CONTENTS.
Chap. XIV. § 1 — continued.
PAGE
The common law treatment of
misrepresentation was a par-
ticular instance of its rules re-
specting the dependence of
mutual stipulations 808
Equitable rules as to fraud or mis-
representation inducing con-
tract Sll
Contract induced by fraud might
be set aside in equity Sll
Innocent misrepresentation in
equity 813
No rescission for innocent misre-
presentation after completion . . 813
Difference in principle between
the rules of common law and
equity as to innocent misrepre-
sentation 814
The law since the Judicature Acts 814
To be fraudulent, a false repre-
sentation must be made know-
ingly or recklesjsly 816
No obligation to take pains to
ascertain the truth 816
What must be proved to give rise
to the right to rescind a con-
tract for misrepi'esentation .... 816
1 . Falsity essential 816
2. There must be a represen-
tation 816
Ambiguous statements 817
Promise not properly a represen-
tation 818
3. The representation must
be of some fact 818,819
Representation of intention,
whether a representation of
fact 818, n.
4. The fact must be material 819
5. The representation must
be made by a party to the
contract or his agent . . 820
False representation by agent. . . . 820
Cnrtifoot V. Fowke 820, n.
6. The representation must
be a part of the trans-
action ending with the
formation of the contract 821
7. The representation miist
have induced the con-
tract 821
PAGE
8. The party claiming to
have been misled must
not have known that the
statement was false .... 822
What is requisite to maintain an
action for a false representation
inducing a contract 822
Motive, as a rule, immaterial .... 822
Principal when liable in an action
of deceit for a false representa-
tion made by his agent 823
Agent, where liable 825
Action of deceit may lie against
one not a party to the contract . 820
Contracts for sale of land are not
voidable for non-disclosure .... 820
Except in case of suppression of
defects of title 826
Suppression of the existence of
restrictive covenants 826
Misrepresentation as a defence to
a claim for specific performance 826
Sale by mistake, or through fraud,
of land to which the vendor has
no title 827
Election to rescind or affirm a
contract induced by misrepre-
sentation 828
Purchaser's right to specific per-
formance with compensation . . 828
Election to rescind must be made
within a reasonable time 828
Must be communicated 828
Election may be evidenced by acts 829
No rescission after an election to
affirm the contract 829
Nor where by the act of the party
claiming to rescind restitutio ii/
integrum has become impossible 829
No rescission as against a pur-
cliaser for value withoiit notice 830
No rescission for innocent misre-
presentation after completion. . 830
By what persons the right of res-
cission is exercisable 831
Assignee of a voidable contract
pending completion 831
Against what persons the right of
rescission is exercisable 832
Action of deceit maintainable after
death of party deceived 832
TABLE OF CONTENTS.
xl
Vll
Chap. XIV. § 1 — continued.
PAGE
But not of deceiving party 833
On what terms the contract will
be rescinded before completion . 834
Purchaser's Hen, where the con-
tract is rescinded ... 834
Effect of taking possession ... 83 1, n.
On what terms the contract will
be rescinded after completion . . 836
PAGE
Whether purchaser chargeable on
the footing of wilful default . . 837
Forged documeuts 838
Adoption of a forged instrument . 838
Recovery of money paid on the
faith of a forged document. . . . 839
Liability of agent propounding a
forged authority 839
2. Of Duress and Undue Influence.
Contracts induced by duress or un -
due influence are voidable .... 839
Duress at common law 840
Equitable doctrine of undue in-
fluence 840
Marriage induced by duress, &c.. 840, u.
Two classes of cases of undue in-
fluence 841
1. Where exercised indepen-
dently of any special re-
lation between the parties 84 1
2. Where implied from the
existence of some confi-
dential relation 841
Examples of relations where in-
fluence is presumed 842
The doctrine not confined to any
particular set of relations .... 842
Husband and wife 843
Voluntary conveyances 843
Gifts by will 843
Undue influence presuined from
confidential relation on the
ground of public policy 844
What the duty of advising another
imports 844
It includes the duty of communi-
cating facts material to the
value 844
Non- disclosure of these avoids the
sale 844
Purchase by trustee from astiii-
que-trmt 845
How far a solicitor buying from
his client must see that the client
has independent advice S4.'i
Solicitor or adviser buying from
client after the relation has been
severed 84G
Trustee so buying from ccstui-que-
trust 84G
E.xamples of the exercise of undue
influence 846
(Viliiams v. Baijley 846
FJli" v. Barker . . 846
Stitrge v. Slurge 846
Inequality of position between the
parties, coupled with unfair-
ness 847
Longmate v. Ledger 847
Clark V. Malpas 847
Inequality of position alone is not
sufficient 848
Inadequacy of con.xideratiou alone
is not sufticient 848
Inadequacy of consideration alone
no ground for resisting specific
performance 849
luadetjuacy of consideration on
sale of a reversion 8.')0
Contracts induced by duress or un-
due influence voidable within
the .same limits as those induced
by fraud 8.51
Tenns of .setting aside sales in-
duced by duress or undue in-
fluence
Whether purcha-ser accountable on
the footing of wilful default . .
8.')2
853
xlviii
TABLE OF CONTENTS.
Chap. XV.
OF ILLEGALITY IN THE CONTRACT.
PAGE
There must be nothing: unlawful
in the object of the afj:reenient . . 854
Sales for illegal purpcses void. . . . 854
Contract for sale of land including
some unlawful term 854
What contracts or stipulations are
unlawful 854
Contracts particularly prohibited . 855
Sale by auction of an advow^son
alone 855
Sale by way of lottery 855
Contracts infringing some rule of
law 855
Contracts contemplating an il-
legal act 855
Stipulations in unreasonable re-
straint of trade 857
Contracts made with the inhabit-
ants of hostile states 857
Sales involving maintenance or
champerty 857
Sale of a right of entry or action
to recover land 857
PAGE
Sale of pretenoed right or title . . 858
Sales made void or unenforceable,
but not prohibited 860
Contract to sell land for the use
of a charity 860
What i.s an assurance 860, n.
Illegal contracts are void 860
Property transferred thereunder
cannot be recovered back 860
Sale for illegal purposes known to
both parties 861
To one party only 861
Exceptions to the rule that pro-
perty parted with under an
illegal contract cannot be re-
covered . .861, 862
Property transferred under void
contracts 863
Contracts unenforceable under the
Statute of Frauds 864
Contract for sale of land to a
charity 865
Illegality supervening since the
formation of the contract .... 866
A BBRE VIA TIONS.
Fry, Sp. Porf. . .Fry on Specific Performance. The 3rd edition, the last revised
by Sir Edward Fry himself, is referred to : but the para-
graphs cited have the same numbering in the 4th edition.
Dart, V. &- P. . .The 5th edition, the last revised by Mr. Dart himself, is cited
as an authority, but references are given to the parallel
passages in the 6th and 7th editions.
ERRATUM.
Page 616, n. [l). . .For Hvcherhy read Hiwkksby.
ADDENDA.
Page
5, note (?•) Add, " See also Commins v. Hcolt. L. R. 20 Eq. 11."
11, note (/) Add at end, " Humphries v. Hi4mphries, 1910, 2 K. B. 531."
19, note {d) After Rossiter v. Miller, insert " Filby v. Hounsell, 1896, 2 Ch
737," and after Winn v. j?m//, add " Santa Fe Land Co. v.
Forestal, ^-c. Co., Ld., 26 Times L. R. 534."
35, line 3 After "title," add a note, " Cozens-Hardy, M. R., Re
Taylor, 1910, 1 K. B. 562, 571, 572."
47, after line 8 ..Add, "(4) The vendor shall, before the completion of the
purchase, do what is requisite on his part for enabling the
purchaser to procure the contract or the convej'ance to be
stamped with the appropriate increment value duty
stamp; see stat. 10 Edw. VII. c. 8, ss. 1, 4, 11 ; below,
pp. 696, 705—712."
64, line 20 After "contract," add a note, " Cozens-Hardy, M. R., Re
Taylor, 1910, 1 K. B. 562, 571, 572."
159, note (c) Add at end, " Re Hoyles, 1910, 2 Ch. 333, 341."
165, note ((/) Add, " i?e Hucklesby ^ Atkinson's Contract, 102 L. T. 214,
217, where it appeared that the vendor was entitled under
an uncompleted contract of purchase."
224, note (.i) Add, "The heir or devisee of land charged by wOl with
debts and also with legacies or annuities could give a good
discharge to a purchaser or mortgagee without the con-
currence of the legatees or annuitants : but if the land
were charged with legacies or annuities only, the con-
currence of the legatees or annuitants was necessary in
order to sell or mortgage the land free from their charge ;
see Jebb v. Abbott, Co. Litt. 290b, note (1), sect. xiv. 3;
Horn V. Horn, 2 S. & S. 448 ; Johnaon v. Kennett, 3 My.
& K. 624, 630 ; Rage v. Adam, 4 Beav. 269 ; Sug. V. & P.
658 ; Williams on Real Assets, 62—64 ; Wuis. Real Prop.
223, 13th ed. (261, 262, 21st ed.); Re Rebbcck, 63 L. J. Ch.
596 ; Re Hvnson, 1908, 2 Ch. 356."
294, n. (i), line 10.. Add after Fepin v. Brnyhe, ''Re Hoyles, 1910, 2 Ch. 333,
341,"
297, note (0 Add, "Cloidtew Storey, 1910, W. N. 163, 103 L. T. 131."
359, note (/), 2nd column, 4th line. .After Jenkins v. Friee, add " If'ilbnott v.
London Road Car Co. Ld., C. A., 1910, W. N. 209, reversing
S. C, 1910, 1 Ch. 754."
361, note [t) Willmott v. London Road Car Co. Ld., has been reversed in
theC. A. ; 1910, W. N. 209.
450, note {s) Add, " Re Hoyles, 1910, 2 Ch. 333."
W. d
THE LAW
RELATING TO
VENDOR AND PURCHASER OP LANDS.
CHAPTER I.
OF THE FORMATION OF THE CONTRACT OP SALE.
The subject of the present treatise is the sale of real Sale defined.
estate and chattels real, or the formation and completion
of contracts for the conveyance of land or other
hereditaments in consideration of a price in money (a).
Now in order to create a valid contract, that is, an Requisites of
agreement enforceable at law, it aj^pears that there contr^t
must be : —
(1.) Due capacity to contract on the part of the
persons entering into the agreement ;
(2.) The expression by all parties of a common inten-
tion to create an obligation binding some or
one of them ; tliat is, an intention that some
or one of them should do or forbear some-
thing affecting their legal relations for the
benefit of the others or other of them ;
(3.) Due compliance with the forms or the presence
of other matter required to make a promise
enforceable by English law, beyond the mere
expression of a common intention ;
(a) See Wills, J., /. <^- P. Coats v. Commissiotitrs of Itilaud Revenue,
1897, 1 Q. R 778, 78:5.
W. 1
^r
OF THE FORMATION
(4.) Nothing unlawful in the object of the agreement;
(5.) True, full and free consent of the parties ; that
is, consent unimpeachable as having been
induced through mistake, misrepresentation,
fraud, duress or undue influence (h).
Capacity.
General
capacity to
buy or sell
land.
Exceptions
— reserved
future con-
sideration.
Applying ourselves to the first of these elements of
contract, it is to be observed that, in order to form a
valid contract for the sale of land, the parties must
have, not only capacity to make contracts generally
but also due capacity to buy and sell land. As a
general rule, all natural persons enjoy either capa-
city : but there are exceptions in the case of infants,
persons of unsound mind, drunken persons, married
~ women and convicts. Outlaws, too, and alien enemies
are disabled by their incapacity for bringing actions
from enforcing though not from making contracts (c).
And corporations are limited in their capacity for
buying and selling land (d). There are also eases in
which the formation of an unimpeachable contract for
the sale of land is prevented by the relation existing
either between the vendor and purchaser, as in the
instances of solicitor and client, trustee and ce>ifu/ que
trust, or between one party to the sale and the beneficial
owner of the land or money dealt with, as where a man
exercising a trust or power to sell or purchase land
endeavours in the one case to buy the land himself, or
in the other to sell his own land for the purpose [e) .
^°^ All these exceptional cases are reserved for subsequent
consideration ; and it is proposed fii'st to examine the
formation, incidents and usual course of a contract for
sale of land made between persons of full contractual
capacity ; and to treat afterwards of any grounds for
[b) Wms. Pers. Prop. 158,
16th ed.
{c) Bar. Abr. Outlawry, D. (3),
Aliens, D. ; Co. Litt. 129 b. See
below, Chap. XVI.
[d) See below, Chap. XVI.
{e) See below, Chap. XVII.
OP THE CONTRACT OF SALE. «*
imjDeaching the contract. For the present therefore we
will pass over the first, fourth and fifth of the above-
mentioned elements of a valid contract, and devote our
attention to the second and third, namely, the expres-
sion of consent, and its form.
The common intention or consent of the parties to Expression of
an agreement may be expressed either by their uniting
in a set form of written or spoken words, or by the
acceptance by some or one of them of an offer made to
them or him by the others or other of them (./'). As Form,
to the forms or other matter requii-ed to make a promise
enforceable by English law beyond the mere expression
of a common intention, the main rule is that the con-
tract must be evidenced b}^ deed or else there must be a
consideration for the promise (r/). In contracts for the
sale of land the element of consideration is always
present. The promise on the vendor's part to convey
the land to the purchaser is made in consideration of
the purchaser's promise to pay tlie price, and vice verm.
So that a contract for sale of land, though it be not
made by deed, fulfils the requirements of English law,
in so far as consideration is essential to its validity. A
contract for sale of land is however one of those con-
tracts on which the law imposes a requisite of form
besides the element of consideration. For by the fourth
section of the Statute of Frauds (A), no action shall be
brought to charge any person upon any contract or sale
of lands, tenements or hereditaments, or any interest in
or concerning them, unless the agreement upon which
such action shall be brought, or some memorandum or
note thereof, shall be in writiug and signed by the
party to be charged therewith, or some person by him
thereunto lawfully authorized. So that writing and
signature by the party to ho charged or hix agent are
(/) Wnis. VovH. Prop. 160, (./;) Ibid. 161.
IGth f(l. (),) Stat. 29 Car. II. r. 3.
1(2)
OF THE FORMATION
The whole
agreement
must appear
from the
writing.
necessary to make a contract for the sale of land
enforceable at law (/).
Contracts for the sale of land are generally concluded,
on a sale by private treaty, by the signature by both
parties or their agents of a formal written contract ; and
on a sale by auction, by the purchaser or his agent
signing a memorandum embodying formal conditions
of sale, which the auctioneer also signs as agent for
the vendor. But such contracts may also be established
by informal written memoranda or letters signed by the
party to be charged therewith or his agent. So that a
binding contract may result from the acceptance in
writing duly signed of an offer to sell land. It is
essential, however, whether the writing given in
evidence be of a formal or an informal nature, that the
terms of the agreement sought to be proved thereby
should be sufficiently ascertained therein (./). The
parties to the contract (k) and the property to be sold
must therefore be sufficiently described (/), and the
price, or the means of ascertaining it, be stated (ni) ;
(i) The writing required by the
fourth section of the Statute of
Frauds need not be executed
with pen and ink ; the note of
the agreement may be made in
pencil or print, by engraving,
lithography or photography, or
"in any other mode of repre-
senting or rei)roducing visible
words." And the signature of
the party to be charged or his
agent may be affixed by any
similar means. See Schneider v.
Norris, 2 M. & S. 286 ; Geary v.
Physic, 5 B. & C. 234 ; Bennett y.
BrionfUt, L. R. 3 C. P. 28 ; Bench
V. Bench, 2 P. D. 60 ; Tourrct v.
Cripps, 48 L. J. N. S. Ch. 567 ;
Stat. 52 & 53 Vict. c. 63, s. 20.
{j) Seagood v. Meale, Prec. Ch.
560 ; Wain v. Warlters, 5 East,
10 ; lUagden v. Bradbcar, 12 Ves.
466, 471.
[k) Williams v. Lake, 2 E. & E.
349.
{I) See next paragraph.
(•;«) Milnes v. Gery, 14 Ves. 400 ; Elmore v. Kinqscote, 5 B. & C.
583, 584 ; Morgan v. Milman, 3 De G. M. & G. 24. It is thought
that the rule applying to the sale of goods, that in the absence of
express agreement as to the price the law implies an agreement to
biiy at a reasonable price {Hoadlcu v. McLaine, 10 Bing. 482, 487 ;
Joyce V. Swann, 17 C. B. N. S. 84, 102; stat. 56 & 57 Vict. c. 71,
s. 8 (2)), has no application to the sale of land. This rule appears to
have been laid down with respect to commodities so regularly sold
that the market or the usual price is easily ascertainable. With
regard to land, tlie law of specific performance of contracts to sell it is
founded on the principle that the advantage of the possession of a
OP THE CONTRACT OF SALE.
and any other terms of the bargain (except, of course,
such as are implied by law, as that a good title shall
be shown (w) ) must be defined (o).
Witli regard to the question, What is a suflfieient Description
description of the parties to the contract, or the property ° ^ ^'^
to be sold ? the rule is id cevtum est quod ccrtum reddi
potent [p). Thus a man may be sufficiently identified
by reference to some character which he fills, if there
can be but one answer to the inquiry. To whom does the
description apply () ? So that the description of a
vendor as the proprietor, owner or mortgagee of certain
land is good enough (/•). But if the description be so
vague that it does not necessarily apply to some
particular person, it is insufficient. Thus it is not
particular piece of land may be inestimable, and no amount of money
may be assessable as an exact equivalent for it ; Addcrley v. Dixon,
1 S. & S. 607, 610; Falcke v. Gray, 4 Drew. 651, 657; Hexter v.
Pearce, 1900, 1 Ch. 341, 346; see below. Chap. XIX. s. 3. Au
express agreement to buy land at its fair value is, however, valid,
and would, it seems, be specifically enforced ; Grant, M. R., Milncs
v. Gery, 14 Ves. 400, 407 ; Cranworth, C, Morgan v. Milman, 3 De
G. M. & G. 24, 34 ; Sug. V. & P. 287. And aii agreement to buy at
the fair value of the land may be inferred from the terms of the
memorandum ; see Gregory v. Zlighcll, 18 Ves. 328, 333, 334 ; Goarlay
V. {ioiiwrsct, 19 Ve.'i. 429, 431. But it is submitted that, if the
memorandum do not specify the price or the means of ascertaining it,
and contain no evidence of an intention to sell at a fair price, it is
insufficient to prove a contract of sale. It is quite clear that, where
the price is in fact agreed upon, it must be mentioned in the memo-
randum ; Elmore v. Kbxjscote, ubi sup. ; Re Kharoskhoma, /) Hubert v. Trehcrne, 3 Man.
& Gr. 743 ; 6'. C, nom. Hubert v.
Turner, 4 Scott, N. R. 486.
iz) Johnson v. Dudyiion, 2 M. t^-
W. 653 ; see also Schneider v.
Norris and Evans v. Hoare, ubi
sup., which were decided upon
this principle ; Hucklesby v. Hook,
82 L. T. 117.
OF THE CONTRACT OF SALE. 11
The memorandum mentioned in the 4th section of the Signature of
Statute of Frauds is required to be signed b}' the party ^har^ai or
to be charged, or his agent. It is settled that the other hi« agent,
pnrty need not sign the memorandum, in order to enforce
the agreement ; it is sufficient that he be ready and
mlling to perform his part of the contract {a). An
agent authorized to sign a memorandum of contract for
his principal need not, it is held, be thereunto authorized
in loritiny (/>). And the memorandum may well be Memoraudum
made or signed at any time after the contract has been t" th^"^"
entered into, but before an action is brought to enforce contract,
it {c). Agreements made without complying with the
requirements of the Statute are held to be, not void, but
only not enforceable {d).
An oral agreement for the sale of land may be enforced Cases where
in certain exceptional cases, although the requirements enforceable
of the Statute of Frauds have not been complied with, without com-
These are, first, where the sale is made by the Court, statute of
when the judicial character of the proceedings is held Fi'aiKi^-
to preclude the danger of the mischief, which the Statute Court.^ ^
was intended to prevent {e) . Secondly, according to the 2. Where
present practice, the defence of non-compliance with statute not
the requirements of the Statute of Frauds must be taken,
specially pleaded in an action upon a contract (./). So
that if one sued in respect of an oral agreement for the
sale of land omit to plead the defence of the Statute, the
agreement may be established either by the admission
of its existence in the defendant's pleading (^), or if not
(a) Lnythonrp v. Bryant, 2 {e) A.-G. v. Daif, 1 Ves. sen.
Bing. N. C. 735 ; Jieu.ss v. Picks- 218, 221; Sug. V. A: P. 109;
Iry, L. R. 1 Ex. 342. Dart, V. & P. 197, 1201, 5th ed. ;
(A) IFalln- v. Hendon. .5 Viu. 227. 1329-30, 6th ed. ; 218, 1168,
Abr. 524, pi. 45 ; Sug. V. Ac P. ^th ed. ; Fry. Sp. Perfce. § 562.
145; Sim.s v. Landroy, 1894, 2 (/) R. S. C, Order 19, r. 15;
Ch. 318. Clarke v. CnUoic, 46 L. J. N. S.
I \ -D II 11 7 lono .J r>u -irn Q- B- '"'3; See Oiham.s v. Bnin-
(c) Jie lIoll(ni(i, 1202, liyh. 660. i.i rp- t t> .jr..>
^ ' ' ' ntny, 12 Times L. R. 303, re-
(d) Lerotix v. Brown, 12 C. B. versed 13 Times L. R. 65.
801 ; Maddi'^on v. Afderson, 8 (g) See R. S. C, Ordor 19. rr.
App. Cas. 467, 474, 488. 13-20.
12
OF THE FORMATION
3. Fraud.
4. Part per-
formance.
SO admitted by oral evidence (A). Aud the Courts will
now enforce an agreement so established, whether the
relief claimed be the specific performance of the contract
or damages for its breach (^). Thirdly, an agreement
may be established by oral evidence, notwithstanding
the terms of the Statute of Frauds, where it would be
a fraud to repel proof of the agreement under cover of
the Statute (/>•). Thus if an absolute conveyance of land
be obtained under an oral agreement for a mortgage,
the mortgagee will not be allowed to set up the Statute
of Frauds as a defence to an action to enforce the right
of redemption (/). So if one be induced to sign a
written contract for the sale or purchase of land on the
faith of some variation being made in the terms of the
written agreement or of the performance of some col-
lateral stipulation, oral evidence of the variation or
stipidation so agreed upon will not be excluded by
reason of the Statute {m) . So where it is arranged that
an agreement made orally shall be put into writing, but
this is prevented by the fraud of one of the parties, he
will not be allowed to avail himself of the defence of
the Statute («). Fourthly, if an oral contract for the
(k) Ollcij V. Fisher, 34 Ch. D.
367 ; James v. Smith, 1891, 1 Ch.
384.
(«) Under the old Chancery-
practice, an oral agreement would
be specifically enforced, if it
were admitted by the defendant's
answer, and he did not insist on
the Statute ; Limondson v. Swecd,
Gilb. 35 ; Gunter v. Halscy, Amb.
.'580 ; Ridgway v. Wharton, 3 De
G. M. & G.'677, 689-692. But
at common law, it was not neces-
sary or proper to plead the Sta-
tute specialh/. If the defendant
pleaded the general issue (that is,
a general denial of the contract),
the plaintiff had to establish a
contract enforceable at law ; and
if he failed to prove compliance
with the Statute of Frauds, the
defendant might then raise the
defence of the Statute ; see Butte-
mcre v. Hayes, 5 M. & W. 456,
460 ; Leaf v. Tuton, 10 M. & W.
393. And see Futeher v. Futcher,
45 L. T. N. S. 306.
{K) Eldon, C, Mestaer v. Gil-
hspie, 11 Ves. 627-8 ; Haiyh v.
Eaye, L. R. 7 Ch. 469, 474 ;
Rochefoucauld v. Boustead, 1897, 1
Ch. 196, 206.
{D 1 Eq. Ca. Abr. 20, pi. 5 ;
Walker v. Walker, 2 Atk. 98 ;
England v. Codringtmt, 1 Eden,
169 ; Lincoln v. Wright, 4 De G.
& J. 16, 22 ; Loiiglas v. Culver-
well, 3 Giff. 251 ; 4 De G. F. & J.
20.
(;«) See Pember v. Mathers, 1
Bro. C. C. 52 ; Clarke v. Grant,
14 Ves. 519 ; Jervis v. Berridge,
L. B. 8 Ch. :-!5I ; Fry, Sp. Perfce.
^ 568, 809.
(?*) Maxwell v. Montacute, Prec.
Ch. 526. But unless there be
OF THE CONTRACT OF SALE. 13
sale of land be partly performed by one of the parties
thereto, that may preclude the other from setting up the
defence of the Statute of Frauds to an action under the
equitable jurisdiction of the Courts for the specific en-
forcement of the contract (o). For it is held in equity
that when there has been part performance of an oral
contract for the sale of land (which, as we have seen, is
not void {]))), the parties are to be charged not so much
upon the contract (q) as upon the equities arising from
the acts of performance. The case is considered to have
gone beyond the stage of mere contract and therefore
to be outside the mischief aimed at by the Statute ; and
in order to do justice between the parties, oral evidence
of the contract is admitted (/•). But to have this effect,
the acts of part performance must, according to the
authoritative phrase, be " unequivocally and in their
own nature referable to some such agreement as that
alleged " (.s). That is to say, the acts must be such
that the existence of an agreement such as alleged is the
only reasonable inference therefrom ; they must be not
only consistent with the contract asserted but referable
to no other title (f). The acts moreover must be such
as would render it a fraud to raise the defence of want
of signed writing {u). The terms of the agreement, of
fraud, au oral agreement to put on account of part performance
in writing and sign the terras of of the contract ; Lavnii v. Pur-
a contract rcguhited by the 4tli sell, 39 Ch. D. 508, 518.
section of the Statute of Frauds {p) Above, p. 11.
cannot be enforced; Wood v. () See the words of the Sta-
Midgleij, 5 Do G. M. & G. 41, 45 ; tute ; above, p. 3.
see Fry, Sp. Perfce. \ 575, p. 267, (r) See Maddison v. Alderxon, 8
3rd cd. ; p. 254, 4th ed. ; Johns- App. Cas. 475-8.
, C, Muddison Vcs. jun. 378, 381 ; .^forp/icff v.
V. Aldemon, 8 App. Cas. 467, 474 Jones, 1 Sw. 172, 181.
et seq. A party sued for dam- (h) Biukmastery. ITarrop^'iYen.
ages on an oral contract imdcr 341, 345; Redesdale, Ir. C, 6Vi«(?w
the common law jurisdiction of v. Cooke, 1 Sch. & Lef. 22. 41 ;
the Courts is not precluded from .Viindi/ v Jolift'e, 5 My. it Cr.
raising the defence of the Statute 167,177.
14
OF THE FOKMATION
which the existence is so inferred, must be duly proved
by oral evidence (./•). And the agreement so proved must
be a contract enforceable (in all respects save the absence
of signed writing) under the equitable as distinguished
from the common law jurisdiction of the Courts (y).
To give examples, taking possession of land under an
oral agreement for the purchase or lease of it is the
strongest case of an act of part performance raising the
equity in question. For " the acknowledged possession
of a stranger in the land of another is not explicable
save on the supposition of an agreement, and has there-
fore constantly been received as evidence of an ante-
cedent contract " (s). But mere holding over by a
tenant whose term has expired is not unequivocally
referable to a new contract with his landlord {a). So
payment of part and possibly the whole of the purchase-
money is not sufficient to let in oral evidence of a
contract for the sale of land ; for " the payment of
money is an equivocal act, not (in itself), until the
connection is established by parol testimony, indicative
of a contract concerning land " {h).
Offer and
acceptance.
Communica-
tion.
In regard to the expression of the parties' consent, the
formation of a contract for the sale of land is governed
by tlie general law of contract, subject of course to the
requisite of form (e) (namely, signed writing), which
has just been considered. Thus in order that the accept-
ance of an offer {d) may make a contract, it is essential
that there should be eonimunicafio)! of the offer and its
(.r) Cooth V. Jackson, 6 Ves. 12,
38 ; Thynnew. Glengall, 2 H. L. 0.
131, 158 ; Muddison v. Alder son,
8 App. Gas. 467.
(y) Britain v. Eossifcr, 11 Q. B.
D. 123 ; McManus v. Cooke, 3o
Ch. D. 681 ; Laveri) v. Pursell,
39 Ch. D. 508, hik ; Fry, Sp.
Perfce. §^ 592-098.
{z) Pluraer, M. R., Morphett
V. Junes, 1 Sw. 181 ; and see
Jesse], M. R., TJngley v. TJngh'y,
5 Ch. D. 887, 891) ; Dickinson v.
Barrow, 1904, 2 Ch. 339, 344.
(a) Wills V. Stradling. 3 Ves.
jun. 381 ; Maddison v. Aldcrson,
S App. Cas. 480.
[h) M add lion V . Alder son, 8 App.
Cas. 478-9.
(r^ .Above, p. 3.
{d) See above, p. 3.
OF THE CONTRACT OF SALE. 15
acceptance to each party respectively (c), and the ac-
ceptance must be absolute and identical with the terms
of the offer (/). If therefore you offer to sell me your
land, though I make up my mind to accept, there is no
contract between us until I duly signify to 3'ou my
acceptance. And this Avill be the ease, even though
you state in your offer that, unless you hear from me,
you will con5>ider the matter as concluded ; for though
you may indicate to me the manner in which my accept-
ance shall be signified, you are not at liberty to stipulate
that my acceptance shall be implied, if I do nothing (//).
Again if I offer to sell you my land for 1,0(»()/., an
answer that you will give 950/. for it is no acceptance
of my offer, but a counter- proposal on your part ; it is
a rejection of my offer ; and if I should decline your
proposal, you would not be at liberty to bind me by ac-
cepting my terms, unless I had renewed my offer to
you {/i). An offer may be revoked {i) at any time Revocation.
before its acceptance be duly communicated to the pro-
poser : but, as in the case of acceptance, mere change
of mind is not enough to revoke an offer ; the change
must be communicated to the other party (/.•) . When
the acceptance of an offer is duly commimicated to the
proposer, the contract is completely formed, and neither
party is at liberty to recede (/). Here we may notice Communica-
that, where the parties are in communication through *j°" through
^ " the post.
(e) Fclthou.se v. Bindleif, 11 C. man v. Mnrn/af, '21 Beav. 14, 20,
B. N. S. 869 ; Dickinson v. iJodds, affd. 6 H. L. C. 112.
2 Ch. D. 463 ; Brogden v. Metro- [k) Byrne v. Van Tienhoven, ft
politaii Ml/. Co., 2 App. Cas. 666, C. P. D. U4, 317 ; Henthorn v.
691-2. Frii.sn; 1892, 2 Ch. 27, 31, 32, 36.
(/) Hyde v. Wrench, 3 Beav. It appears, however, that an offer
334 ; and see Fe/thon.se v. Bindley, may be effectually revoked, if the
ubi sup. ; lionnewell v. Jenkins, H proposer liave distiucily siu-iiiti.d
Ch. D. 70. 'li'^ change of mind and this come
(ff) See cases cited in hist note *" *^'^ knowledge of the other
but one. party, though the proposer did
not make the communication ;
1) ayae v. nreiicn, .) neav.
334
{h) Hyde v. Wreiich. 3 Beav. j)ickimon v. Dodds, 2 Ch. D. 463!
(/) Adams V. I.indsetl, 1 B. I'i:
(i) Or varied, variation hciiig a A. 681 ; Byrmy. J'an Tienhovni,
revocation and new offer ; Honey- Henthorn v. Fnuer, ubi .sup.
16
OF THE FORMATION
the post, or where the post is the natural channel for
sending the answer to a proposal of contract, acceptance
of the offer is held to be duly signified when a letter of
acceptance is posted [m) . So that the proposer is bound,
notwithstanding that the letter be delayed in the
post beyond the time when he naturally expected to
receive it (n), and even though the letter be lost in the
post and he never received it (o) ; and he cannot
withdraw his offer after a letter accepting it has been
posted to him {■/>) . This is a rule of convenience, and
its best explanation seems to be that a proposer making
an offer, to which he might naturally expect the answer
to be sent by post, must be taken, if not to have autho-
rized that mode of communication, at least to have
accepted its usual conditions and risks. Posting a letter
of acceptance of such an offer is therefore considered as
a compliance with the conditions of the offer as regards
the signification of acceptance (q) . It follows that the
acceptor ought not to be prejudiced by anything which
may occur after his letter has been posted. Thus it
would be unjust, and it would be impossible to carry on
business through the post, if the proposer were allowed
to withdraw in the interval between the posting of the
acceptance and its arrival. So delay or loss of a letter
in the post is no fault of the sender, who parts with all
control over it when it is posted ; and he ought not to
suffer therefrom (>•). This doctrine, it should be stated,
has no application in the case of the revocation of an
offer ; which, if communicated by post, only takes effect
{ill) See Household Fire Insurance [p) Re Imperial Land Co. of
Co. V. Grant, 4 Ex. D. 216 ; Hen- Marseilles, Harris's Case, L. R. 7
thorn V. Fraser, 1892, 2 Ch. 27; Ch. 587 ; Byrne v. Van llenhorcn,
lie London and Northern Bank, 5 C. P. D. 344 ; Henthorn v.
1900, 1 Ch. 220. Fraser, 1892, 2 Ch. 27.
{n)l)unlop V. Hiygins, 1 H. L. ^^^ g^^ Henthorn v. Fraser,
Air 7 ;^ c- r n 1892, 2 Ch. 27.
(o) Household tire Insurance Co. '
V. Grant, 4 Ex. D. 216, diss. (»•) Sec the cases cited in the
Bramwell, L. J. five preceding uotes.
OF THE CONTRACT OF SALE. 17
when the lettei' actually reaches the person to whom it
is addressed ; for the revocation of an offer is not a
matter which its recipient can be expected to con-
template, and his acceptance of the exigencies of postal
communication cannot be infen-ed (s). In order to bind Time for
the proposer, an offer must in general be accepted within
a reasonable time after it is made (t). What is a reason-
able time is of course a question of fact in each parti-
cular case («). Here it may be noticed that a promise
to keep an offer open for a particular time is unenforce-
able for want of consideration (x) ; so that an offer
accompanied by such a promise may be withdrawn,
provided it has not been accepted, before the time speci-
fied has elapsed {y).
Owing to the above-mentioned provisions of the Negoiiation
Statute of Frauds, tlie object of all negotiations as to fo/sale! ^'^'^
the sale of land is to arrive at an agreement, not merely
expressed orally, but put into writing and signed (;:).
And it is usually desired, on the vendor's part at least,
not to enter into an open contract (that is, a contract Open
simply ascertaining the parties, the property to be sold
and the price and leaving the other terms to be implied
by law), but to modify by express stipulation the legal
incidents of the bargain. For as we shall see, the law
imposes on every vendor of land the duty of strictly
proving his title ; and it is not often advisable that
he should undertake his full legal liabilities in this
respect {(i). Thus a formal contract for the sale of land
(.*) Set! the cases cited in note If the promise be made by deed
(/>) to p. 1(), above; iii«(> Curtice or for valuable consideratiou, it
V. Lundon, ('ilijnud Midlaud liauk, is of course enforceable.
Ltd., 190S, 1 'K. B. 'ifKJ. [ij) RouUediie v. Grant, \ Bing.
(<) liummcnn v. liolniis, 3 De G. 653 ; JJickiiixon v. Doddi, 2 Cli. D.
J. & S. 88 ; liaiiisgatc rutoria 463 ; Hcnthorn v. Frascr, 1892,
Hotel Co. V. Moiite/iure, L. R. 1 2 Ch. 27.
Ex. 109. (z) See above, pp. 3, 4.
(m) See Diiiilo/) V. Jii(/!/i>ii, 1 (a) It is frequently desirable
H. L. C. 3j1. that a vendor should limit by
[x) Cooke V. Oxiey, 3 T. R. 653. express stipulation the time for
w. 2
18 OF THE FORMATION
generally contains special stipulations of a teclinical
character. It is therefore very necessary for those who
negotiate the sale of land to understand the principles
of the formation of contract. The main thing to
remember is that unconditional acceptance of an offer
makes a contract, to which no new term can be added,
and from which neither party can recede, except by the
consent of both : whilst any acceptance, which is con-
ditional on the variation of some term of the offer, is
really a new proposal, and must in its turn be accepted
Answering \)y the other party before a contract is formed (h). Any
^g"o"saie. one, who receives an offer of sale or purchase, to which
he is favourably inclined, should make up his mind
before answering whether he wishes to conclude an
immediate contract or merely to signify his assent that
the terms proposed shall form the basis of a future
contract. In the former case he should accept un-
conditionally and in the simplest words ; for instance,
" I aocej)t the offer contained in yoiu- letter of such a
date." In the latter event he should be very careful to
express [daiuly his intention to give a provisional assent
only and not to be bound until all the terms of a future
agreement have been settled. The best way to do this
is to state clearly that the intended contract may contain
other terms than those provisionally accejited ; to say,
for example, " I am willing that the terms of purchase
proposed in your letter dated, &c. shall form the basis
of a future contract between us to be approved by my
solicitor and to contain such stipulations as he may
advise me to insert therein" (c). For if an offer be
which he is to show title ; audit p. 15; and Chi/mock v. Mar-
is always advisable that he should chioness of Ely, 4 De G. J. & S.
reserve to hinuself the power of 638 ; Cronshy v. Maijcovh, L. E,.
rescinding the contract if the 18 Eq. 180.
purchaser should insist on any (c) See Winn v. B((ll, 7 Oh. D.
requisition as to title which he is 29, where an .agreement as to
unable or unwilling to comply terms of lease, "subject to the
^itli. preparation and approval of a
(h) See the cases cited above, formal contract," was held not to
OF THE CONTRACT OF SALE. 19
accepted with the suggestion that a formal contract shall
be prepared but without expressing any intention that
the terms proposed shall or may be varied thereby, the
acceptance is practically unconditional and the contract
is formed at once (d) . Here we may notice that, when The whole of
it is sought to establish a contract by letters which have *^® correspon-
Y . . . dence will be
passed between different parties, the Court will take looked at.
into consideration the whole of the correspondence which
has passed, and will not draw the line at any particular
letter or letters, which might have afforded evidence of
a contract, if considered apart from the rest {c) . Where Oral agree-
an agreement for the sale of land is made by word of "^®'^*-
mouth, an enforceable contract is of course not made
until a proper memorandum of the agreement be wTitten
out and signed by one of the parties (/). But an offer Oral accept-
in writing specifying all the terms of a proposed agree- ^^^t^^n offer
ment and signed by the proposer may be accepted orally,
and will then be a sufficient memorandum of the contract
to bind him under the Statute of Frauds {[/).
constitute a contract, the refer- the acceptance is unconditional
ence to the approval of the formal or not. If not, it is merely a
contract being considered to imply count»^r- proposal and no contract
contemplation of the poss-ibilit}^ of is made. See the cases cited in
introducing new terms ; Ilairkis- this and the two preceding notes,
irorlh V. ChaJ/'ei/, rib L. J. Ch. 335. and Vale of Xvath Colliery Co. v.
As to the effect of a stipulation Fumess, 45 L. J. N. S. Ch. 276 ;
for the approval of one's solicitor, Harrty v. Barnard^ s Inn, 50 L. J.
see Bartlett v. Greene, 30 L. T. N. S. Ch 750 ; Xorth v. Percivnl,
N. S. 553 ; Hudson v. Buck, 7 Ch. 1898, 2 Ch. 128 [quare if rightly
D. 683 ; Huxsey v. Hume Payne, decided ; JFinn v. Bull, 7 Ch. D.
8 Ch. D. 670, 4 App. Cas. 311, 29, w-as not cited).
322 ; Clack v. Jrood, 9 Q. B. D. (e) Hussey v. Home Pai/ne, 4
276. App. Cas. 311, 31ti; Bristol, Car-
{d) See Fowle v. Freeman, 9 Ves. dift and Swansea Aerated Bread
351 ; Lewis v. Brass, 3 Q. B. D. Co. v. Mayys, 44 Ch. D. 616, a
667; Bouniwell \. Jmkins, 8 Ch. case in which, after there had
D. 70 ; Rossiter v. Milkr, 3 App. been unqualified acceptance of
Cas. 1124 ; Jluckle^by v. Hook, 82 an offer, the parties continued to
L. T. 117. When an offer is negotiate about other terms of
accepted in writing with a refer- their agreement,
ence to the preparation of a (/) See above, pp. 3, 12, n. (n).
formal contract, it is of course a () Reitss v. PicksUy, L. R. 1
question of the construction of Ex. 342; Lever v. Koffler, 1901,
the particular document, whether 1 Ch. 543.
2(2)
20
OF THE FORMATION
Sale by
auction.
Auctioneer
ag-ent to siorn.
With regard to the formation of the contract on the
sale of land by auction, a bidding at an auction is no
more than an offer, and no contract is created until that
offer is accepted by the auctioneer, as the vendor's
agent ; acceptance being signified by the fall of the
auctioneer's hammer. As an offer is revocable before
acceptance, a person bidding at a sale by auction may
audibly retract his bidding at any time before the fall
of the hammer (/*) . For this reason a stipulation that
no bidding shall be retracted is almost invariably made.
It seems however that su.ch a condition cannot be
enforced (/) . For, as Lord St. Leonards pointed
out (/t), to hold that an action would lie on an implied
undertaking not to retract a bidding would be an
invasion of the before-mentioned provision of the
Statute of Frauds (/), whereby no action shall be
brought to charge any person upon any contract or sale
of lands, unless the agreement be in writing and signed
by him or his agent. And sales by auction are within
the Statute {m). On a sale by auction the auctioneer
is held to be the agent both of the vendor and the
purchaser for the purpose of signing a memorandum of
the contract. This authority is given by the vendor by
his appointment of the auctioneer to conduct the sale.
In the case of the purchaser, the agency is conferred by
the acceptance of his bidding, which is considered to
imply an offer of such authority (n). The vendor may
(h) Payne v. Gave, 3 T. E,. 148.
(i) Such a condition made on a
sale by the Court has been held
to bind the solicitor of a mort-
gagee, who consented to the sale
but was not a party to the suit ;
Auctioneer's Freer v. Rimner, 14 Sim. 391.
clerk. {k) Sug. V. & P. 14 ; 1 Dart,
V. & P. 124, 5th ed. ; 139, 6th
ed. ; 136, 7th ed.
(I) Above, p. 3.
\m) B lagden v . Bradbear, 1 2 Ves .
466.
(w) Emmerson v. Heelis, 2 Taunt.
38 ; Whiie v. Froctor, 4 Taunt.
209 ; Kemeys\. Proctor, IJ. & W.
350 ; Sug. V. & P. 42, 43, 147 ;
Fry, Sp. Perfce. § 529 ; the auc-
tioneer cannot delegate his autho-
rity in this respecc. Fur vendor
or purchaser to be bound by tlie
signature of the auctioneer's
clerk, he must have authorized
the clerk to sign for him. It
seems that such authority may
be implied on the part of the
vendor from his appuintment of
the auctioneer, the usual course
OF THE CONTEACT OF SALE.
21
of course revoke the authority given to the auctioneer
at any time before the bidding is accepted (o) . There is
no doubt that if property be knocked down to any one
at an auction and the auctioneer sign a memorandum
of the contract directly after the sale, neither vendor
nor purchaser can then withdraw his authority from the
auctioneer (yj). But the authority impliedly given by
the pm'chaser to the auctioneer is an authority to sign
immcdiateh/ after the sale ; and if this be not done, the
authority will cease ((/). And it has been held that
after the fall of the hammer neither party can revoke
the auctioneer's authority to sign for him ; so that a
memorandum signed by the auctioneer immediately
after the sale will bind both parties, notwithstanding
that one of them expressly forbade the auctioneer, after
the fall of the hammer, to sign on his behalf (>•). If
of business being for the clerk to
take down the names. But it has
been held that no similar autho-
rity can be implied on the part of
the purchaser from his bidding :
Bell V. Balls, 1897, 1 Ch. C63. If,
however, either party assent in
any way to the clerk's signature
on his behalf, he is bound. See
Bird V. Boidtcr, 4 B. cV: Ad. 443 ;
Peirce v. Corf, L. R. 9 Q. B. 210 ;
Dyaa V. Stafford, 7 L. R. Ir. 590,
G02; Sug. V. (& P. 146; Fry,
Sp. Perfce. ^ 531 ; Siiii.s v. Land-
raij, 1894, 2 Ch. 318, where the
purchaser stood by while the
auctiiineer's clerk inserted his
name in the memorandum.
(o) See Warhw v. Harrison, 1
E. & E. 295, 309; Johmton v.
Boije.s, 1899, 2 Ch. 73.
( p) See the cases cited at the
beginning of the last note but
one.
(?) Bell V. Balls, 1897, 1 Ch.
663
(>■) ]'nn Braaqh v. Evcridge,
1902, 2 Ch. 206,270, reversed on
other grounds, 1903, 1 Ch. 43t.
The proposition in the text is
also countenanced by the fact that
in Mason v. Arinitagc, 13 Ves. 25,
37, a memorandum signed by an
auctioneer was considered to bind
the vendor at law, though he
swore in his answer that he had
revoked the auctioneer's autho-
rity before such signature : and
by the fact that in I)a>i v. Jf'elh,
3U Beav. 220 (approved by Stir-
ling, J., Bellx. Halls, 1897, 1 Ch.
672), an argument against spe-
cific performance, that the vendor
so revoked the auctioneer's autho-
rity, was held to call for no reply ;
and by the statements in 1 Dart,
V. &P.182,5thed.; 209, 6th ed.;
208, 7th ed. ; Fry, Sp. Perfce.
§ 530. In Mason v. A riiiiiaffr and
Day V. Wells, however, the actual
decision was that, if there were a
contract enforceable at law, spe-
cific perfonnance thereof would
not be enforced in equity on
account of circumstances of mis-
take. And it is said that if one
authorize another to sell his land
privately, and the agent make an
oral contract for sale, the princi-
pal may withdraw his authority
at any time before the agent signs
a written contract on his behalf ;
Farmer v. Rohhtson, 2 Camp. 339,
n. ; Sug. V. & P. 146. H in the
22
OF THE FORMATION
however after a sale by auction the vendor or the purchaser
refuse to sign a memorandum of the contract and the
auctioneer will not sign for him, it is difficult to see
what remed}^ the other party has to enforce his bargain.
For, as we have seen, apart from fraud, an agreement
to put into writing and sign a contract for sale of land
cannot be enforced (s) . And in the absence of a signed
memorandum no action lies to charge any person upon
the contract for sale {t).
Employment Under the present law, if a puffer, that is, a person
at an auction, engaged to bid on the vendor's behalf in order to
prevent a sale at an undervalue or to force up the
price, be employed without the vendor having expressly
reserved to himself the right to bid, the sale will be
invalid. At common law it was well settled that the
employment of puffers or of a single puffer on the
vendor's behalf rendered the sale void on the ground of
fraud, where it had been announced that the sale would
be without reserve or that the highest bidder should be
the purchaser {ii). In equity however there was autho-
rity to the effect that the employment of a single puffer,
to prevent a sale at an undervalue, would not invalidate
the sale, unless the property were expressly or impliedly
offered for sale without reserve (x) : though Lord
case of a private sale made orally
by an agent, the policy of the
Statute of Frauds is sufficiently
strong to prevail over the general
principle that agency cannot be
revoked after the agent has so
acted under his authority as to
induce a third party to alter his
legal position (as to which, see
Story on Agency, §^ 466-8), it is
difiBcult to see why a sale by
auction should be governed bj' a
different rule ; especially when
the publicity of an auction is
expressly held to be no reason for
excluding the operation of the
statute; Blagden v. Bradbear. 12
Ves. 466.
(«) Above, p. 12, n. («).
[t) Blagden v. Bradbear, 12
Ves. 466 ; and see Rainbow v.
Soivkins, 1904, 2 K. B. 322, 324.
(m) Eou-ard v. Castle, 6 T. R.
642 ; Thornett v. Haines, 15 M. &
W. 367 ; Sug. V. & P. 9, 10 ;
Green v. Barerstoek, 10 Jur. N.S.
47 ; 3Iortimer\.Bell,lj. R. 1 Ch. 10.
{x) Smith V. Clarke. 12 Ves.
477 : JFoodicardv. Miller. 2 Coll.
279; Sug. V. & P. 9, 10 ; 1
Dart, V. & P. 195, 5th ed. ; 224,
6th ed. ; 209, 7th ed.
OF THE CONTRACT OF SALE. 23
Cranworth, in Mortimer v. Beli {//), doubted whether he
would be bound to hold that the rule, which had been
established at common law, did not hold good in equity.
The law is now settled by the Sale of Land by Auction
Act, 1867 (2), whereby it is enacted (r/) that whenever
a sale by auction of land would be invalid at law by
reason of the employment of a puffer, the same shall
be deemed invalid in equity as well as at law. The
Act also provides (b) that the particulars or conditions
of sale by auction of any land shall state whether such
land will be sold without reserve, or subject to a reserved
price, or whether a right to bid is reserved ; and if it is
stated that such land will be sold without reserve, or to
that effect, then it shall not be lawful for the seller to
employ any person to bid at such sale, or for the
auctioneer to take knowingly any bidding from any
such person. And it is further enacted {c) that, where
any sale by auction of land is declared either in the
particulars or conditions of such sale to be subject to a
.right for the seller to bid, it shall be lawful for the
seller or any one person on his behalf to bid at such
auction in such manner as he may think proper. It
has been held, under this Act, that if it be stated that
land will be sold by auction subject to a reserved price
or bidding, without saying that a right to bid is reserved,
it is not lawful to employ a puffer to bid up to the
reserve price {'/). And the opinion has been judiciall}'-
expressed that the Act limits a vendor, who has reserved
the right to bid, to the employment of one person only
to bid on his behalf (e). The terms of a condition
reserving the right to bid must of course be strictly
((/) L. E. 1 Ch. 10, 16. (rf) Gilliat v. Gilliaf, L. R. 9
(;) Stat. 30 & 31 Vict. c. 48. Eq. 60.
(«) Sect. 4. (f) Grove and Lindley, JJ.,
(A) Stat. 30 & 31 Vict. c. 48, Par/in v. Jepson, 46 L. J. N. S.
s. 5. C. P. 529, 532, 533.
(c) Sect. G.
24 OF THE FORMATION
observed ; as if the vendor reserve tlie right of bidding
once, a second bidding on his behalf will invalidate the
sale (_/'). In consequence of this law, when land is to
be sold by auction, the conditions of sale usually provide
that the vendor reserves the right to bid as often as he
may please ; and if the sale be stated to be subject to a
reserved price, the right of bidding generally is reserved
to the vendor as well (g).
Inadvertent Where land is sold by auction subject to a condition
biddm^'^lower ^^^^ there will be a reserve price, and the auctioneer
than the inadvertently accepts a bid lower than the reserve price,
he is at liberty to retract such acceptance and to decline
to sign a memorandum of the sale, and will incur no
liability in so doing ; for the condition is in effect that
the property will not be sold for less than the reserve
price, and every bidder is bound by that stipulation (h).
It appears that, if land be placed in the hands of an
auctioneer to be sold, he has authority, in the absence
of instructions to the contrary, to put up the property
for sale without reserve (t), and that the vendor would
be bound by a memorandum signed by the auctioneer
on his behalf of a sale so made (A-) . But it seems that
if an auctioneer instructed to put property up to auction
subject to a reserve price should nevertheless advertise
the sale to be without reserve and accept a bidding
lower than the reserve price and sign a memorandum
of such sale, the vendor would not be liable on the
contract so made without his authority (/). It has
(/) FarJiU v. Jepson, 46 L. J. (k) Above, p. 21.
N. S. C. P. 529, 532, 533.
(g) 1 Davidson, Prec. Conv. (l) See McMannK v. Fortrscuc,
607, 4th cd. ; 618, oth ed. ; Key 1907, 2 K. B. 1, 6, 7, apparently
& Elphinstone, Prec. Conv. 257. tjverruling the decision or dicta in
258 and n. {a), 4th ed. ; 245 and Rainbow y. Hoioliins, 1904, 2 K. B.
n. (^), 8th ed. 322, to the contrary. The general
(h) McMannsv.Foytcseuc, 1907, rule certainly is that a plaintiflp
2 K. B. 1. suing a principal upon a contract
(i) Rainbow v. Howkins, 1904, made by his agent has the omm
2 K. B. 322. of proving that the principal did
OF THE CONTRACT OF SALE. 25
been held that, where an auctioneer instructed to put Liability of
up propei-ty to auction at a reserve price, inadvertently advert?^inff a
adveitises (without disclosing who is his principal) that sale without
the sale will be held without reserve and accepts a bid
lower than the reserve price, but declines to sign a
memorandum of tlie contract or to carry out the sale,
he is liable in damages to the bidder for breach either
of a coutract or of an implied warranty of authority
that the sale shall be without reserve {/n). 13 ut it has
been decided that an auctioneer, who advertises that by
the dii'ection of his principal, whose identity he dis-
closes, a sale will be held without reserve, does not
himself become liable to any bidder at the auction upon
a contract that the sale shall be without reserve (w). It Liability of
has been considered that a \endor, who as principal property
issues an advertisement that a sale of land by auction advertising a
: . sale by
will be held without reserve or under the condition that auction
the highest bidder shall be the purchaser, is liable, if ^g*g{.yg*^
the sale be held and lie then decline to sell to the
highest bidder, upon an independent contract that the
sale shall be carried out under the conditions advertised,
and such contract is not required to be put in AVTiting
by the Statute of Frauds (o). But it has been held Advertise-
. 1.11 IP T ment of a sale
that, if it be advertised that a sale of property by by auction is
auction will be held on a certain day and that the "°*^ ^^ °^°'''
•^ open to
highest bidder shall be the purchaser, that does not become a
amount to an offer capable of being turned by accept- aoieptance,
ance into a contract that the sale shall be held on the *^=\^, ^^^ ^^^
shall take
day specified or at all ; and if on the day named the place,
property be not put up for or be withdrawn from sale,
in fact authorise the apent so bidding.
to coutract for him ; 8i>e below, {ti) Maitipricc v. Wcstleij, 6 B. &
Chap. XIX. § 2, at end. S. 420.
(;w) Warlow v. llarrison, 1 E. ('*) Johnston v. lioyes, 1899, 2
& E. 295, 309. This was so Ch. 73, 77, following JFurlow v.
decided on the theory of the Harrison, above, u. {m) ; and see
advertisimcnt being an offer open Blackburn and Quaiu, JJ. , Harris
to all, which wiis turned into a v. Nirhirson , L. K. 8 Q. B. 286,
contract by acceptance of the 288, 289.
26 OF THE FORMATION
a person, who bad intended to bid for it, has no cause
of action to recover damages for his disappointment or
his expenses of attending in expectation of the sale (p).
If an advertisement of a sale by auction be fraudulently
made, any person who is thereby induced to incur useless
expense or other detriment has a good cause of action
against the advertiser (q) .
Payment of A matter to be considered before the formation of a
a deposit. contract is the payment of a deposit. For no deposit
of any part of the purchase- money can be lawfully
demanded after an open contract for sale has been
concluded ; as the whole price is not payable until the
time for completion, w^hich in the case of an open contract
is the time when the vendor shall have shown a good
title (r). On sales by auction a stipulation is invariably
made that a deposit of a certain proportion (generally
ten per cent.) of the purchase-money shall be paid by
the purchaser immediately on entering into the contract.
On London sales, it is usually provided that the deposit
shall be paid into the hands of the auctioneers; on
country sales, the vendor's solicitors are generally ap-
pointed to receive it (.s) . The deposit is taken not only
( in part payment of the purchase-money, but also as a
"^i guarantee for the due performance of the contract ; and
it is liable to be forfeited b}^ the purchaser if he fail to
carry out the agreement. This is the case, whether the
stipulation for payment of the deposit expressly so
provide, or not {f). When the deposit is paid to an
(p) Harris v. Xkkersun, L. E. 630, 5th ed. ; 711, 6th ed. ; 023,
8 Q. B. 286. 7th ed.
[q] Mainpncev. Westley, 6 B. (*■) 1 Davidson, Prec. Conv. 619
&S. 420, 427; Richardson \. Sil- and n. (c), 5th ed. ; 1 Key &
■vester, L. R. 9 Q. B. 34. Elphiustooe, Free. Conv. 258 and
(>•) Bulks y.ltokebij, 2 Swans. u. (i), 4th ed. ; 246, n. («), 8th ed.
222; lioe d. Grai/v. iitainon,! M. {t) JIuue v. ^miiJi, 27 Ch. J).
& W 695, 701 ;'2 Dart, V. & P. 89 ; Spraytir \. Booth, 19U9, A. C.
576, 579, 580.
OF THE CONTRACT OF SALE. 27
auctioneer, he receives it as stakeholder, being liable to
pay it to the vendor, should the contract be completed
or the purchaser break the contract, but to the purchaser,
should the contract be broken by the vendor (u). The
auctioneer is responsible for the sum deposited with
him ; and as he receives the deposit in this character
and with this responsibility, and not as agent for
either party, he is entitled to retain for his own benefit
any interest he may make by the use of the money,
whilst it remains in his hands. Until the purchase is
completed, the auctioneer ought not to part with the
deposit without the consent of the purchaser as well as
of the vendor (.^•). Where the deposit is paid to the
vendor's solicitor, it is generally received by him as
agent for the vendor. In that case he cannot put it out
at interest without accounting therefor to the vendor ;
and if the vendor demand payment of the deposit to
himself, the solicitor will be bound to hand it over to
him (//) . If however the vendor's solicitor receive the
deposit in the character of stakeholder, and not as the
vendor's agent, he will be subject to the same responsi-
bilities and enjoy the same advantages as any other
stakeholder (~) .
Sometimes provision is made for payment of a deposit Payment of
on sales by private contract. The insertion of such a ^aleahy'^
condition is of great advantage to the vendor, owing to pii^ate
the rule that the deposit is a guarantee for the pur-
chaser's performance of his agreement (a). To the
purchaser, however, the payment of a deposit is cor-
respondingly prejudicial; as it leaves him exposed to
the danger of losing his deposit in a case where the
(m) Ilariiifjton v. Uoijgurt, 1 B. (y) Edgcll v. Daij, L. R. 1 C.
& Ad. 577. See below, Chap. P. 80.
XIX. § 1. (z) Jn(fgi,isv.LurI,iBe&v.SO.
{x) 1 Dart, V. & P. 178, 5th (a) Above, p. '26.
ed. ; 205, 6th ed. ; 203, 7th ed.
28 OF THE FOEMATION
Court, while refusing to enforce specific performance
against him, will yet hold him to his bargain at law (b).
A purchaser by private treaty should therefore take
care not to bind himself by a stipulation for payment
of a deposit, if he can possibly avoid doing so. And if
the vendor refuse to sell except on condition of the pay-
ment of a deposit, the purchaser should on no account
agree to the payment of the deposit to the vendor, or
to the vendor's solicitor as his agent, but should insist
on placing the deposit in the hands of a stakeholder.
If the vendor's solicitors be of good repute, they may
usually be accepted as holders of the deposit, the con-
tract expressly providing that the same is to be paid to
them as sfakeJiol'Ifrs. For if a purchaser submit to pay
a deposit to the vendor's solicitors as the vendor's
agents, he may find that the vendor can make no title
to the property sold and is insolvent ; and in such a
case the purchaser will hnve no right to sue the solicitors
for the recovery of his deposit {r).
Stamp on AH contracts for the sale of land, whether made by
safeoTlands. formal memoraudum or by letter (rf), must be duly
stamped ; otherwise they cannot be given in evidence,
except in criminal proceedings, and are not available for
any purpose whatever. But they may be stamped after
execution, and so received in evidence on payment of
the proper duty and the appointed penalty {e) .
(I)) IScott V. Alvarez, 1895, 2 Ch. (iO'?. See below, Chap. VI.
((■) Jdcis V. GouUon, 1893, 1 Q. B. 350.
(d) See Gvcythor v. Gordon, 3 Times L. R. 461 ; Carlill v. Carbolic
Smolce Ball Co., 1892, 2 Q. B. 484, 489, 490, affirmed 1893, 1 Q. B. 256.
{e) Stat. 54 & 55 Vict. c. 39 (Stamp Act, 1891), ss. 14, 15, rfiplamng
33 i: ."^4 Vict. c. 97, ss. 15—17, and M k 18 Vict. c. 125, ss. 28, 29.
Under the Stamp Act. 1891, asreements under hand only are, as a
rule, iharjieable with the duty of sixpence, which may be deuoted by
an adliesive stamp to lie cancelled by the person by whom the agree-
ment is first executed ; and agreements under seal »re chargeable, as
deeds, with the duty of ten shillings ; sect. 22 & 1st schedule. But
by sect, h\): —
(1) Any contract or agreement mad(! in England or Irelaud under
seal, or under hand ovlj, or made in Scotland, with or without any
OF THE CONTRACT OF SALE.
29
Any alterations made, after a written contract for Alterations in
the sale of land has been signed, in the terms of the
the contract.
clause of registration, for the sale of any equitable estate or interest in any
property ivhatsoever, or for the sale of any estate or interest in any
property except lauds, tenements, hereditaments, or heritages, or property
locally situate out of the United Kingdom, or goods, wares or mer-
chandise, or stock, or marketable securities, or any ship or vessel, or
part interest, share, or property of ur in any ship or vessel, shall be
charged with the same ad valorem duty, to be paid by the purchaser,
as if it were an actual conveyance on sale of the estate, interest, or
property contracted or agreed to be sold.
(2) Where the purchaser has paid the said ad valorem duty and
before having obtained a conveyance ur triinsfer of the property
enters into a contract or agreement for the sale of the same, the
contract or agreement shall be charged, if the consideration for that
sale is in excess of the consideration for the original sale, with the
ad valorem duty payable in respect of such excess consideration, and
in any other case with the fixed duty of ten shillings or of sixpence,
as the case may require.
(3) Where duty has been duly paid in conformity with the fore-
going provisions, the conveyance or transfer made to the purchaser or
sub- purchaser, or any other person on his behalf or by his direction,
shall not be chargeable with any duty, and the Commissioners, upon
application, either shall denote the payment of the ad valorem duty
upon the conveyance or transfer, or shall transfer the ad valorem duty
thereto upon production of the contract or agreement, or contracts or
agreements, didy stamped.
(4) Provided that where any such contract or agreement is stamped
with the fixed duty of ten shillings or of sixpence, as the case may
require, the contract or agreement shall be regarded as duly stamped
for the mere purpose of proceedings to enforce specific performance or
recover damages for the breach thereof.
(5) Provided also that where any such contract or agreement is
stamped with the said fixed duty, and a conveyance or transfer made
in conformity with the contract or agreement is presented to the
Commissioners for stamping with the ad valorem duty chargeable
thereon within the period of six months after the first execution of
the contract or agreement, or within such longer period as the Com-
missioners may think reasonable in the circumstances of the case, the
conveyance or transfer shall be stamped accordingly, and the same,
and the said contract or agreement, shall be deemed to be duly
stamped. Nothing in this provision shall alter or affect the provisions
as to the stamping of a conveyance or transfer after the execution
thereof.
(G) Provided also, that the ad valorem duty paid upon any such
cimtract or agreement shall be returned by the Commis-^iouers in case
the contract or agreement be afterwards rescinded or annulled, or for
any other reason be not («ubstantially jierformed or carried into effect,
80 as to operate as or bo followed by a conveyance or transfer.
The provisions of sub-section ] of the above enactment have been
considered in Smelting Co. of Australia, Ld. v. Commrs. of Inland
Revenue, 1897, 1 Q. B. 17o ; JFest London Syndicate, Ld. v. Commrs. of
Inland Revenue, 1898. 2 Q. B. 507; Farmer,^- Co., Ld. v. Commrs. of
Inland lievnue, 1898, 2 Q. B. 141 (contract made in England for
sale of equity of I'edemption of lands in New South Wides held
chargeable with ad valorem duty) ; Chesterfield Brewery Co. v. Inland
30 OF THE FORMATION OF THE CONTRACT OF SALE.
agreement must also be put into writing and signed,
or the contract will not be enforceable in its altered
form (./') ; and such further writing must be stamped
as a new agreement.
Revenue Connnrs., 1899, 2 Q. B. 7 ; Banuhian Sugar Factories, Ld. v.
Inland Revenue Commrs., 1901, 1 Q. B. 245; Inland Revenue Commrs.
V. jVidler, ^-c. Id., 1901, A. C. 217.
The practical result appears to be that contracts for sale of any-
legal estate or interest in any lands, tenements or hereditaments are
only chargeable with the stamp duty of sixpence or ten shillings
according as they are under hand or seal. While contracts for sale of
any equitable estate or interest in any pro^jerty whatsoever, including
lands wherever situate, are chargeable with ad valorem duty, but
may be stamped with the fixed duty of sixpence or ten shillings, if
a further conveyance of the estate or interest sold be contemplated.
To leave the last- mentioned contracts unstamped would appear to
involve the risk of having to pay double the ad valorem duty on
stamping after execution ; see sect. 15 of the Stamp Act, 1891.
(f) See below. Chap. XVIII. § 1.
31
CHAPTER II.
OF THE parties' RIGHTS, OBLIGATIONS AND
REMEDIES, GENERALLY.
Having considered the formation of a contract for the
sale of land, let us pass on to examine its terms. As
we have seen {a) , such contracts generally contain special
stipulations varying the rights and obligations of the
parties as defined by law. And a conveyancer's busi- Convey-
, • •>i 1 £ 1 1 • 1 1 1 • ancers' duties
ness m connection with sales or land includes drawing ^^ g^^i^^g
up the conditions of a sale by auction, a task in which
he is engaged exclusively in the vendor's interest ;
arranging the terms of a private contract, when he may
be acting for either party, making requisitions on title
for the purchaser or answering them on the vendor's
behalf, and settling the conveyance on either side. It
is obvious that these duties cannot be efficiently dis-
charged without an accurate knowledge of the position
of the parties to any open contract, and a clear under-
standing of the conditions generally made in more
formal agreements. Our object therefore will be to
ascertain the rights and obligations implied by law on
a contract to sell land, when the parties, the property
and the price are the only terms defined ; and to con-
sider at the same time the stipulations by which the
contractors' legal relations are commonly modified.
And our design is first to take a general view of the
contract and the remedies for enforcing it, and then to
(rt) Above, p. 17.
32
OF THE PARTIES RIGHTS,
examine more fully each incident of the sale in turn,
as far as possible, in order of time according as each
part of the contract has to be performed.
Outline of
the effect of
the contract
When two persons have entered into the relation of
vendor and purchaser by duly signing a contract for the
sale of land, their chief duties are these : — The vendor
is bound to show a good title to the property sold {b),
and for that purpose to deliver at his own expense to
the purchaser a proper abstract of title to the property,
{b) Flureau v. TlwruhiU, 2 W. Bl. 1078 ; Smiter v. Brake, ,5 B. &
Ad. 992 ; Doc d. Gna/ v. S/aniuii, 1 M. & W. 695, 701 ; Li/saf/ht v.
Edwards, 2 Ch. D. 499, 507 ; £l/is v. Eoffers, 29 Ch. D. 661, 670, 672.
In the last-menlioued case, Cotton, L..I., suggested a qviestion whether
the right to a good title is an implied term in the contract or a col-
lateral right given by the law. It is submitted, however, that the
obligation to show a good title on a sale of land is not an undertaking
collateral to in the sense of independent of the main contract.
Cotton, L. J., quoted the authority of Lord St. Leonards (Sug. V. &
P. 16) and Parke, B. {Doe d. Grai/ v. Stanton, ubi sup.), for the view
that this obligation is an implied term of the contract. The opposite
view he rested upon a dictuni of Grant, M. R., in Og'ilvie v. FoJjamhe,
3 Mtr. 53, 64. On examining this dictum, however, it appears that
Grant, M. R., meant to say nothing more than that in the particular
case before him the purchaser's right to have a good title was not
provided for by the written agreement between the parties. It is
true that he spoke of the controvcrst/ between the parties, as to what
title the purchaser could require, as being collateral to the agreement,
because no term in the written agreement was sought to be varied or
added to ; and said that the right to a good title was a right not
growing out of the agreemeut between the parties but given by law.
But this sui ely means no more than that, in the particular case before
him, the exteut of the purchaser's right to require a good title was a
matter depending, not on the express, but on the implied terms of the
contract. As the failure to show a good title, on the sale of land, is
such a breach of contract as discharges the purchaser from the neces-
sity of performing his part of the agreement, it seems clear that the
obligation to show a good title is an integral part of the agreement ;
see J)Hke of St. Albamv. Shore, I H Bl. 270, 278 ; Sranardv. Willock,
5 East, 198, 202 ; Soiiter v. Drake, Ellin v. Rogers, ubi sup. ; Breuer
V. Broadu-ood, 22 Ch. D. 105, 109 ; below, Chap. XYIIL, >{ 2. This
would not be the case, if the obligation to prove title were strictly
collateral to the contract of sale. Breach by the vendor of a strictly
collateral warranty upon a sale does not discharge the purchaser from
the main contract, as in the case of a warranty of quality on the sale
of specific goods, whei'e the buyer has had the opportunity of inspect-
ing them ; Street v. Blai), 2 B. & Ad. 456 ; Eeiiivortli v. Hutchitison,
L. R. 2 Q. B. 447 ; Benjamin on Sale, 448, 741, 748, 749, 2nd ed. ;
Sale of Goods Act, 1893 (stat. 56 & 57 Vict. c. 71), ss. 63, 62 'l) ; see
below, Chap. XIV., § 1.
OBLIGATIONS AND REMEDIES, GENERALLY.
showing the. dealings therewith and devolution thereof
during the period for which title is by law or express
agreement required to be shown (c) . In the absence of
special stipulation this period is, as a rule, forty
years {(I). The vendor is also bound to verify the
abstract by producing proper evidence of all the deeds,
wills and other documents appearing on the abstract
and of all material facts stated therein, such as births,
deaths, marriages or bankruptcies [fi) ; and he is bound
-to prove the identity of the property sold with that to
which the documents of title relate (/). But the
purchaser, in the absence of stipulation to the contrary,
must now bear the expense of producing all documents
of title, which are not in the vendor's possession (^),
and of procuring all other evidence of title which the
vendor has not in his possession (h). The purchaser
also bears all expense of the examination of the title
deeds by his solicitor (i). The vendor is further bound
to produce land corresponding substantially in all
respects with the description contained in the contract
and available to be transferred to the piu'chaser in
fulfilment of the agreement (A-). If the title shown be
accepted, the vendor is bound to convey the property
to the purchaser free from all incumbrances : unless of
course the purchaser should have agreed to take the
(c) Suix.Y. &V. 405 ; Ee John- Olivant and Seadon's Contract,
son and Tmtin, 30 Ch. D. 42. 1896, 2 Ch. 328.
{d) Stat. 37 & 38 Vict. c. 78, (A) Stat. 44 & 45 Vict. c. 41,
8. 1. s. 3, sub-8. 6, reversing the pre-
[e] Sug. V. & P. 406, 414 et vious rule,
seq., 447—450 ; 1 Dart, V. & P. (i) Sug. V. & P. 406, 429, 430 ;
142, 143, 310 et seq., 407, 5th ed., Wms. Conv. Stat. 47—50.
159, 160, 350 et seq., 470, 6th ed., (A-) See Hahnjv. Grant, 13
155, 156, 345 etseq., 481, 7th ed. ; Ves. 73, 77—79 ; Fliyht v. Booth,
1 Davidsun, Prec. Conv. 550, 4th 1 Bing. N. C. 370 ; Itc Arnold,
ed., 457, oth ed. 14 Ch. D. 270 ; Jacobs v. RevcU,
(/) Ffoucrv. Ilartopp, G Bea-v. 1900, 2 Ch. 858; lie Hare and
476 ; Cnrlinii v. Austin, 2 Dr. & O'Morr's Contract, 1901, 1 Ch. 93 ;
Sm. 129; 1 Davidson, Prec. Conv. Be Puckctt and Smith's Contract.
557, 4th ed., 463, 5th ed. 1902, 2 Ch. 258 ; below. Chap.
{(/) See He Willett and Argenti, XII., j 4.
Times L. R. 476 ; Re Stuart ^•
w. 3
33
34
OF THE parties' RIGHTS,
property subject to an}^ specified incumbrances (/).
The vendor is therefore bound, on payment of the
purchase-money, to execute a proper deed of conveyance
to the purchaser of the estate sold (in), and to put the
purchaser into possession of the land so assured (n).
And in the deed of conveyance the vendor must give
the usual vendor's covenants for title (o). But the
purchaser must bear the expense of preparing this
I conveyance ; although, in the absence of special
stipulation, the expense of the concurrence therein
of all necessary parties other than the vendor (such as
1 mortgagees or incumbrancers) and of the execution
: thereof by the vendor will fall on the vendor (p).
The vendor is also bound to hand over to the pur-
chaser on completion all deeds and other muniments
of title relating solely to the property purchased (q) ;
and must, as a rule, furnish the purchaser, at the pur-
chaser's expense (r), with a proper statutory acknow-
ledgment of right to production and undertaking for
safe custody of all such documents, necessary to make a
good title, as may be withheld from the purchaser,
either because they relate to other property retained by
the vendor or because their custody rightly belongs to
some other person than the vendor (.s). The chief
duties of the purchaser under a contract for sale of land
(l) Wms. Real Prop. 452, 13th
ed., 594, 595, 21st ed.
{m) Ee Gary Ehves' Contract,
1906, 2 Ch. 143, 149.
(w) Enyell v. Fitch, L. R. 4
Q. B. 659; Royal Bristol, ^c.
Building Society v. Bomash, 35
Ch. D. 390.
(o) See post, p. 46.
(p) Sug-. V. & P. 561, see
557-8; Dart, V. & P. 707, 721,
722, 5th ed. ; 798. 814, 6th ed. ;
714, 723, 7th ed. ; 1 Davidson,
Prec. ConT. 570-2, 612, 4th ed.,
477-9, 5th ed. ; He Sander and
Walford's Contract, 1900, W. N.
183; 83 L. T. 316.
{q) Sug. V. & P. 407, 433 ; Re
Duthy and Jesson's Contract, 1898,
1 Ch. 419.
{r) Stat. 37 & 38 Vict. c. 78,
s. 2 (rule 4).
(s) Cooper V. Emery, 1 Ph. 388 ;
Sug-. V. & P. 446—450, 453;
Stat. 44 & 45 Vict. c. 41, s. 9;
the vendor must also furnish the
purchaser with attested copies of
such last-mentioned muniments
of title, if the purchaser require
them, but at the purchaser's ex-
pense ; stat. 44 & 45 Vict. c. 41,
8. 3 (6).
OBLIGATIONS AND REMEDIES, GENERALLY. ^^
are to examine the evidence of title offered by the
vendor, and if and when a good title is shown, to accept
the title, to prepare a conveyance of the property and
tender the same to the vendor for his execution, and
thereupon to pay the price {f} and to take the con-
veyance accordingly (u).
The most prominent term of the contract is that which Proof of title,
requires the vendor to show a good title. This obligation
is the cause of most of the disputes and litigation between
buyers and sellers of land. As is well known, the procedure
usually adopted to secure the fulfilment of the vendor's
duties is for the purchaser's advisers, after they have
perused the abstract of title, to send in written requisi- Requisitions
tions dealing with the points in which they consider the ^^^ answers.
title to be deficient or insufficiently proved or the
vendor's obligations to be otherwise imperfectly dis-
charged. To these requisitions the vendor returns
written answers confessing or repudiating his liability
to comply with them, as the case may be. Unless he
accede to every requisition, his answers will evoke
replies from the other side ; and these again will demand
further response. So the contest continues until all
grounds of difference are removed, the title is accepted,
and the parties proceed to completion, or the questions
on which neither party will give way are submitted to
the determination of the Court. In advising as to the
conduct of these negotiations, it is of course of the
highest importance to know when to insist and when to
yield. On each point the conveyancer's attitude will be
determined by the countenance he ma}^ expect his con-
tention to receive from the Court, in ease he should fail
to convince his opponent ; and at every step ho must
{t) Baxter v. Z^'M.-is, Forrest, 61 ; Siig. V. & P. 240, 211.
Martin v. Smitfi, 6 Eiist, .'iSo : (»<) Jir Cart/ Elwei>' Contract,
Poole V. Hill, 6 M. & W. 835 ; 1906, 2 Ch. 143.
3(2)
36
OF THE parties' RIGHTS,
consider the alternative of submission or litigation. It
is thought therefore that, before entering into a detailed
examination of the terms of the contract, it will be well
to take a brief survey of the remedies provided to secure
its performance and of the principles on which the
Court will administer relief against its breach {x) .
^
1. Rescission
and restittitio
in integrum.
Remedies for In the case of a breach of any of the main duties of
contract. the contract {i.e., those duties of which the performance
by one of the contractors is a condition precedent to the
other party's liability, as for the vendor to show a good
title to or to convey the property sold or for the pur-
chaser to pay the price (//) ), the party injured is at
liberty, wdiere the contractors can be restored to their
former position, either to rescind the contract and to
obtain restitutio in integrum including the return of any
property transfeiTed and the reimbursement of the
expenses incurred by him in consequence of the con-
2. Action for tract, Or to affirm the contract and recover damages
damages. thereunder for the breach. These riglits are given by
_ the common law : but the party electing to rescind the
I contract for such a cause may either bring an action for
the required return of property or reimbursement of
money under tlie common law jurisdiction of the Court,
or sue under its equitable jurisdiction to enforce rescis-
sion and procure the consequent restitution. Where
the contract has been so far performed that reditutio in
integrum is impossible, or where the duty broken is such
that its performance is not a condition precedent to the
other party's liability, the party aggrieved is not entitled
to rescind the contract, and his only remedy at common
laic is to sue for damages in affirmance of the contract (s).
Damages The damages recoverable by a vendor of land for breach
[x) The remedies for breach of
the contract are fully discussed
below, Chap. XIX.
(«/) See above, pp. 32, and n. [b),
33-3.5.
{z) See below, Chap. XIX.,
kk 1, 2.
OBLIGATIONS AND EEMEDIES, GENERALLY.
37
purchaser.
of the contract for sale are governed by the general recoverable by-
common law rule as to the measure of damages, by which ~
the parties are to be placed in the same position, so far
as can be attained by a money payment, as if the agree-
ment had been actually performed (a) . Thus if the
vendor have conveyed the land to the purchaser without
receiving payment, he can recover the whole price. But
if he sue at law for breach of contract, without having
parted with his legal estate in the land, he cannot re-
cover the full price as damages, but is limited to the
amount of the loss he has actually sustained (i). The
damages recoverable at law by a purchaser of land for ^y the
breach of the contract are regulated by an exceptional
principle ; and, as a rule, he is not enabled to recover
any damages for loss of his bargain, but can only obtain
reimbursement of his expenses of investigating title,
&c. and the amount of his deposit, if any (c) . This ex-
ception to the common law rule regarding damages for
breach of contract seems to have been allowed in con-
sideration of the difficulties attending the fulfilment of
the vendor's obligation to show a good title. But the 3. Action for
most effective remedy of either party is one which the formance.^^"
common law did not aiford, and which is granted or
withheld on principles entirely different from those of
the parties' iegal liability for breach of their agreement —
that is, to enforce the specific performance of the con-
tract under the equitable jurisdiction of the Court.
The administration of this relief, though in unobjec-
tionable cases it is granted as much of course as damages
are given at law (r/) , is nevertheless held to be in the
discretion of the Court — a discretion however which is
[a) Parke, B., HobinsoHv.Har-
man, 1 Ex. 850, 855 ; Wall v.
City of London Real Property Co.,
L. R. 9 Q. B. 249, 253; see
below. Chap. XIX., § 2.
{b) Laird y. Pirn, 7 M. & W.
474.
[o) Flureau v. Thornhill, 2 W.
Bl. 1078; Bain v. Fothergill, L.
E,. 7 H. L. 158 ; see below, Chap.
XIX., ^ 2.
[d) Grant, M. R., Hall v.
Warren, 9 Ves. 605, 608 ; ILexter
V. Pearcc, 1900, 1 Ch. 341, 346 ;
Ruddy. Lascelles, ib. 815, 817.
^^ OF THE parties' EIGHTS,
not arbitrary or capricious, but judicial, to be exercised
accordiug to fixed rules and principles {e) . To obtain a
decree of specific performance is not a matter depending
merely on proof of the contract and refusal to perform
it, but the Court will have regard to circumstances
outside the contract, and especially to the conduct of
the parties, and, considering these, will determine
whether it is equitable (that is, in accordance with the
principles by which Courts of Equity are guided) to
grant the desired relief or not (./). Thus it is that in
deciding whether the specific performance of a contract
should be enforced, the Coui't enters into considerations,
which it would not examine in adjudging what relief
either party should have for a breach of the same
Unfairness. contract at law (g). For example, a vendor of land will
not be entitled to enforce specific performance of the
contract unless his conduct has conformed to the
standard of fair dealing, which the Courts of Equity
have set ; although he may be allowed at the same
time to stand upon his contractual rights at common
law, and to exact his full measure of compensation
thereunder. If therefore special stipulations restrictive
of the purchaser's rights be inserted in the contract in a
manner which a Court of Equity regards as unfair, the
Court will not grant specific performance of the contract
at the instance of the vendor {//) ; notwithstanding that
the vendor may be able to insist on those same stij)ula-
tions in any proceedings in which the relief administered
is determined solely by the rules of law (?). So also the
(e) Elrlon, C, White \. I)amo)i, {h) Re Marsh and Earl Gran-
7 Ves. 30, 35; Romilly, M. R., ville, 24 Ch. D. 11.
JIaytiood V. Cope, 25 Beav. 140, (t) Me Davis and Caveij, 40
151; Lord Chelmsford, Lainare Ch. D. 601, 607; Be National
V. Dixo>i, L. R. 6 H. L. 414, 423. I'rovincial Bank of England and
(/■) Cloives V. Hiygimon, 1 V. & Mar.sh, 1895, 1 Ch. 190; Scott v.
B. 524, 527; lainare v. Bixon, Alvarez. 1895, 2 Ch. 603; see
L. R. 6 H. L. 414, 423, 428. below, Chap. VI
(ff) See below, Chap. XIX. , § 3 .
OBLIGATIONS AND REMEDIES, GENERALLY.
39
Court may decline to enforce the specific performance of Hardship.
a contract on the ground that that would involve great
hardship on the contractor in default, but may at the
same time adjudge him to be liable in damages
for a breach of the agreement (/»•). Besides an 4. Vendor
, . „ , , ^ 'r> p • and purchaser
action lor damages at law or specinc pertormance m gunimons.
equity, there is another proceeding in which questions
arising between vendors and purchasers of land may be
decided. This is a summons under section 9 of the
Vendor and Purchaser Act, 1874 (/). In such a sum-
mons the rights of the parties may be measured by the
rules of equity or law, according to the relief claimed.
Questions, of which the solution must result in binding
either party to complete the purchase (as where it is
claimed that the vendor has shown such a title as the
purchaser is bound to accept) are determined according
to the rules of equity applied in actions for specific per-
formance. But if the purchaser claims not only to be
relieved from performing the contract, but also to have
his deposit (if any) returned to him, and his expenses of
investigating the title paid, he is virtually pursuing the
remedy accorded for breach of the contract in a Court
of law {tn) ; and his title to relief will be governed
strictly by the rules of law, without reference to the
considerations which would guide the Court in granting
or withholding specific performance {n).
To give a clearer view of the terms implied by law
in an open contract of sale, the writer has endeavoured
to express them in a manner similar to that in which
special conditions of sale are usually drawn. This will
facilitate the comparison of the terms of an open contract
(k) See Tamplin v. James, 15 (;k) Above, p. 37 ; Re Har-
Ch.D. 215, 22'2, 223 ; Van Praagh greaves and Thompson's Contract,
V. Ereridf/c, 1902, 2 Ch. 266, 272, 32 Ch. D. 454.
273, revervse'i on a different point, («) See the cases cited in
1903, 1 Ch. 434; below, Chap. note (i), above; below, Chap.
XIII., §1. XIX., §4-
(/) JStat. 37 & 38 Vict. c. 78.
40
or THE parties' rights,
with those of a formal agreement containing the usual
conditions. It will be remembered that the Statute of
Frauds requires a written and signed memorandum
describing (at least) the parties, the property sold and
the price (o). This may take the following form : —
Fonnal
memorandum
of an open
contract.
Memorandum of an agreement made this
first day of May, 1898, between A. B., of &c.
\_Inserf descriptioii~\ and C. D., of &c. [Insert de-
scription'] whereby the said A. B. agrees to sell and
the said 0. D. to buy at the price of 4,000/.,
the freehold in fee simple free from incumbrances
of All that &c. \ Insert description of the pro-
pert>/~\. In witness whereof the said parties have
hereunto set their hands the day and year above
named.
(Signed) A. B.
CD.
Contract
formed by
letters.
Open contracts, however, are very rarely made
by the signature of a formal memorandum. They
usually result fi'om the acceptance of a written offer,
as thus : —
The White House,
Geeenfield, Sussex.
1 June, 1898.
Dear Sir,
I would take 4,500/. for this house with the
garden and two fields adjoining.
Yoiu-s faithfully,
A. B.
C. D., Esq.
(o) Above, pp. 4, 17.
OBLIGATIONS AND REMEDIES, GENERALLY. ^1
10, Blank Street, W.
2 June, 1898.
Dear Sir,
I accept the offer made in youi' letter of
yesterday.
Yours faithfully,
CD.
A. B.,Esq. (oo).
In such cases it is understood that the interest sold J^J'j^^p^^^"fgg
is the fi-eehold in fee simple free from iucumbrances, simple con-
unless it appear from the memorandum that some lesser ^^{ll^ ^^l'
interest is the suhiect of the contract, or that the pui-- contrary
-, , . , , i • • appear,
chaser is to take the property subject to certain incum-
brances («). Whether the memorandum of an open Terms of an
" \jrj 'i open con-
contract be formal or informal, the agreement comprises tract.
the following terms : —
1.— (1.) The vendor shall show a good title to the Vendor to
^ ' show a good
property sold. title.
(2.) In order to discharge this obligation, he shall Delivery and
,,.,,. 1 J_^ \ verification of
deliver at his own expense to the pm-chaser a proper abstract,
abstract of title to the property, showing the dealings
therewith and devolution thereof for the forty years
next before the contract, and shall verify the abstract
by producing proper evidence of all the deeds, wills and
other documents appearing on the abstract and of all
material facts stated therein, and shall prove the proof of
identity of the property described in the contract with "^entity,
that to which the muniments of title relate (j).
{6.) The vendor shaU prove forty years' seisin in fee Necessity of
of the property sold. If therefore an instrument of of "title,
disposition be offered in unsupported proof of the
(oo) See above, pp. 9, 18. v. Caldcleugh, L. R. 4 Q. B. 159.
{p) Buffhexv. Parker, 8 M. & [q) Above, pp. 32, 33; Re
W. 244 ; Boucr v. Cuopcr, 1 Hare, IfalHs and Grout^s Contract , 1906,
408 ; Sug. v. & P. 298 ; rhillips 2 Ch. 206.
42
OF THE parties' RIGHTS,
Proper
evidence of
title.
Recitals, &o.
in instru-
ments twenty-
years old to
be prima facie
evidence.
Production of
and inquiries
as to the title
earlier than
for the last
forty years
not to be
required or
made.
commencement of the vendor's title, it must be a good
root of title ; that is to say, it must deal with or prove
on the face of it, without the aid of extrinsic evidence,
the ownership of the whole legal and equitable estate
in the property sold, contain a description by which the
property can be identified, and show nothing to cast
any doubt on the title of the disposing parties. Other-
wise, any deficiency in any of the above respects must
be made good by further evidence (r).
(4.) Proper evidence of title means such evidence as
a court of equity will force a purchaser to accept on a
sale, whether admissible in litigation or not (s).
(5.) Kecitals, statements and descriptions of facts,
matters and parties contained in deeds, instruments,
Acts of Parliament or statutory declarations twenty
years old at the date of the contract shall, unless and
except so far as they shall be proved to be inaccurate,
be taken to be sufiicient evidence of the truth of such
facts, matters and description (;*).
(6.) The purchaser shall not require the production,
or any abstract or copy, of any deed, will, or other
document dated or made before the time prescribed by
law or stipulated for commencement of the title, even
though the same creates a power subsequently exercised
by an instrument abstracted in the abstract furnished
to the purchaser ; nor shall he require any information,
or make any requisition, objection, or inquiry, with
respect to any such deed, will, or document, or the title
prior to that time, notwithstanding that any such deed,
will or other document, or that prior title, is recited,
covenanted to be produced, or noticed ; and he shall
assume, unless the contrary appears, that the recitals
(r) Parr v. Lovcqrove, 4 Drew.
170 ; 1 Dart, V. & P. 295, 296,
5th ed.; 337, 6th ed.; 331, 7th ed.;
Re Cox ^ Neve's Contract, 1891,
2 Ch. 109, 118.
(a) See below, Chap. IV.,
sect. 3.
{t) V. & P. Act, 1874, Stat.
37 & 38 Vict. c. 78, s. 2 (rule 2).
OBLIGATIONS AND REMEDIES, GENERALLY. 43
contained in the abstracted instruments of any deed,
will, or other document forming part of that prior title
are correct and give all the material contents of the
deed, will, or other document so recited, and that every
document so recited was duly executed by all necessary
parties, and perfected, if aud as required, by fine,
recovery, acknowledgmeut, inrolment, or otherwise (u).
2. — {i.) The vendor shall also produce, as available Vendor must
to be transferred to the purchaser in fulfilment of tlie propertv*
contract, a piece or pieces of land substantially identical identical with
. ,, • , ■ th'it described
as respects tenure, mcjidents oi tenure, estate, situation, iu the con-
quantity and otherwise, with the property described in *^^*^'^'t-
the contract {Xj.
(2.) If the property, which the vendor is able to Substantial
convey m fulfilment of the contract for sale, sJiall not be ^^"riiDtion
substantially identical with the property described in tothepur-
the contract, the vendor shall not enforce the contract at detriment,
law or in equity, and the purchaser may treat the con-
tract as broken (.//) ; but if iu such case there be a
mere deficiency (whether of estate, area or otherwise)
capable of assessment at a money value, the purchaser
may in equity exact the specific performance of the
contract with compensation for the deficiency, provided
this will not prejudice third parties (s), or involve great
hardship on the vendor (a) .
(»«) Conv. Act, 1881, stat. 44 & 1072—1078, .)th ed. ; 151, 152,
46 Virt. c. 41, s. 3 (3). 1198 — 1205, 6th ed. ; 147, 1086—
(z) Above, p. 33. 1092, 7th ed. : Fry, Sp. Perfce.
■ (y) Fliart, V. & P. 407, 408, 5tli ed. ;
rs\T .;'/ ,, n V n -170, 471, Cth cd. ; 481, 482, 7th
(i) Ncapv. Abbott, (j. F. Ooop. a r< < ^ ic^i \ ^ .. i
„„V ,,^ 1, I r -a Pd. ; Conv. Act, ISM, stat. 44 \-
333; Manxer v. Buck, 6 Hare, .- -xt- l. ii o w,
..„ A, I r' J . 40 Viot. c. 41, 8. 3 (0 .
443 ; Alvanlei/ v. Atmiaird, 2 > \ /
Mac. & G. 1 ; irood v. Scavlh, (/) This is the effect of Conv.
2 K. k J. 33 ; Scott v. LittMale, Act, 1881, stat. 44 & 45 Vict.
8 E. & B. 815 ; Webster v. Cecil, c. 41, s. 3 (6); see Re Willett and
30 Beav. 62 ; Dmham v. Lnjard, Argenii, h Times L. R. 4 76 ; Ji>r
34 Beav. 611 ; Jiiu/d v. Lascelloi, Stttart, Oliraut and Seadon''s Con-
1900, 1 Ch. 815, 820 ; see below, tract, 1896, 2 Ch. 328.
Chap. XII. § 4 ; Chap. XIII. J 1.
46 OF THE parties' RIOHTS,
stamped but are nnstaraped or insuffiniently stamped, to
be properly stamped (m).
Purchaser to 4. The purchaser shall at his own expense examine
accept the j^^ie abstract of title and the evidence offered in support
title, it shown ^ ^ _ ' "^
to be good. of it ; and if and so soon as a good title shall be shown,
he shall accept the title {n).
Completion 5. — (1.) The purchase shall be completed so soon as
°h*^^ P"^' the vendor shall have shown a good title, that is to say,
when the title contracted for shall have been proved
upon the abstract and by all the evidence necessary to
verify the same (o). The purchaser shall thereupon
prepare at his own expense a proper conveyance of the
property to the purchaser or as he shall direct {j)), and
shall tender the same to the vendor for execution, at the
same time tendering the whole amount due in payment
of the purchase-money (q) ; and the vendor shall there-
upon accept such payment and execute the conveyance
at his own expense and shall give possession of the
property to the purchaser (r), and the purchaser shall
take such conveyance accordingly («).
(2.) A proper conveyance of the property means an
assurance effectual to vest the whole estate contracted
for, both legal and equitable, in the purchaser or his
nominee, and containing the usual covenants for title by
the vendor. These are covenants for right to convey,
quiet enjoyment, freedom from incumbrances and
further assurance, extending to indemnity against any-
thing done, omitted or knowingly suffered by the
vendor and his predecessors in title back to and including
the last person who became entitled to the propertj^ on
{m) Whiting to Loemes, 14 Ch. [p) Ef/monty. Smit/i, 6 Ch. D.
D. 8-2, 17 Ch. D. 10; i?c Lovell 469, 474.
and Canard's Contract, 1907, 1 Ch. [q] Above, p. 35.
249. (»'/ Above, p. 34.
(«) Above, p. 35. (s) Re Gary Elwes^ Contract,
(o) Above, p. 33. 1906, 2 Ch. 143.
OBLIGATIONS AND REMEDIES, GENERALLY. 4/
a sale or another occasion on whieli proper covenants for
title were given {t) .
(3.) If the state of the vendor's title be such that, in
order to convey to the purchaser the whole estate con-
tracted for, other parties than the vendor must join in
the conveyance, the vendor shall at his own expense
procure all such other necessary parties to join in and
execute the conveyance {u).
6. — (1.) Tlie vendor shall deliver to the purchaser on Vendor to
completion all muniments of title relating- solelv to the ^ehveroyer
'■ D ./ the muni-
property purchased (.r) , but he sliall retain any docu- ments of title
ments of title which are in his own possession and tion.""^^ ^'
relate to any part of an estate retained by him as well
as to the property sold (//) : and he shall not be required
to obtain and hand over to the pui*chaser any documents
of title, which relate to other property as well as to the
property sold, and of which any person other than the
vendor is entitled to retain possession (s) .
(2.) The vendor shall give or procure to be given to Or give
the purchaser proper statutory acknowledgments of gjl^^uto
right to production and delivery of copies, and proper acknowledg-
statutory undertakings for safe custody, and also (if re- undertakino-s
quired by the purchaser, but at his expense) attested ^^ ^° ^^J
• fii 11 I'-i ITT aocumeuts of
copies 01 all such documents or title as are not handed title rightfully
over to the purchaser on completion and are necessary '*^*^™^"-
to make a good title according to the contract ; except
documents in public or official custody and other docu-
{l) Church V. Broun, I'l Ves. 4th ed. ; lie Sander and Wat forWs
258; Williams, Real Prop. 447— Contract, 1900, W. N. 183, 83
419, 13th ed. ; 607-610, 2l8t L. T. 316.
ed. ; Williams, Conv. Stat. 74— (.c) Above, p. 34 : below
86. Chap. XII. $ 3.
(«) Esdaile v. Oxcnhnm, 3 B. & (v) V. & P. Act, 1874, stat.
C. 22o, 228. 229 ; Siig. V. & P. 37 & 38 Vict. c. 78. s. 2 (rule 5) •
557, 558, 561 ; 2 Dart, V. & P. see below, Chap. XII. ^ 3.
707, 721, 1'1>. -ith ed. ; 79.S, 814. (;) Suir. V. .»c P. 446 -4iO. 4.J3 ;
6th ed. ; 714, 723, -th ed. ; 1 1 Dart. V. & P. o26, 6th ed. ;
Davidson, Prec. Conv. 572, 612, 578, 7th ed.
48
ments, not being in the vendor's possession or power,
of which the purchaser can always obtain good evidence
himself : but the purchaser shall not require any fresh
acknowledgment, undertaking or covenant to be given
to him as regards any documents lawfully retained by
some other person than the vendor, for the production
and safe custody whereof the pui-chaser will on comple-
tion have the right to enforce at law a proper statutory
acknowledgment and undertaking or a covenant given
to the vendor or his predecessor in title (a).
(3.) A proper statutory acknowledgment or under-
taking can only be given by the person who retains
possession of the documents [h).
(4.) Such statutory acknowledgments and under-
takings as the purchaser can and shall require shall be
furnished at his expense ; but the vendor shall bear the
expense of the perusal and execution thereof on behalf
and by himself and all necessary parties other than the
vendor (c).
(5.) The inability of the vendor to furnish the pur-
chaser with proper statutory acknowledgments and
undertakings with regard to any documents of title
shall not be an objection to title in case the purchaser
will on completion of the contract have an equitable
right to the production of such documents (d).
Time for 7. — ( 1 .) Any act necessary to be done by either party
carrying out ^^^ order to carry out the contract, such as the delivery
of j the abstract, the statement of the objections to or
(«) Cooper V. Emery, 1 Ph. 388 : as modified by Conv. Act, 1881,
Sug. V. & P. 446 — 400, 453, and stat. 44 & 45 Vict. c. 41, s. 9
n. ; Conv. Act, 1881, stat. 44 & (8, 11).
45 Vict. 0. 41, ss. 3 (6), 9(8, 11) ; {cl) V. & P. Act, 1874, stat.
see below. Chap. XII. § 3. 37 & 38 Vict. c. 78, s. 2 (rule 3),
{b) See Conv. Act, 1881, stat. as modified by Conv. Act, 1881,
44 & 45 Vict. c. 41, s. 9 (1, 9). stat. 44 & 45 Vict. c. 41, s, 9
(c) V. & P. Act, 1874, stat. (8, 11),
37 & 38 Vict. 0. 78, s. 2 (rule 4),
OBLIGATIONS AND REMEDIES, GENERALLY. 49
the acceptance of the title, or the preparation of the
conveyance, shall he done within a reasonable time (e).
(2.) In the ease of imreasonahlo delay by either party
in the performance of any act necessary to caiTy out
the contract, the other party may serve a notice on the '
party in default requiring him to do the act, which he
delays to perform, within some time (which must be a
reasonable space of time as from the date of the notice)
specified in the notice, and intimating the other party's
intention to put an end to the contract, if the notice be
not complied with ; and if such a notice be served and
be not complied with, the party in default shall not
enforce the specific performance of the contract in
equity ( /), and shall be liable at law for a breach of the
contract (g).
8. — (1.) As from the date of the contract for sale the Rights of
-ill i ii 1 'J.!, property and
property shall in equity belong to the purchaser, witn possession
this exception, that the vendor shall until the proper ^^^^^fj^j^
time for completion take the rents, crops and other
ordinary profits for his own use : but with this exception
the vendor shall in equity have no other beneficial
interest in the j)roperty than a lien for the price {h).
(2.) The vendor shall be entitled to an apportioned
part of all rents accrued due at but not payable until
after the proper time for completion (/) .
{e) Romilly, M.R., Jiaker v. 599—601.
Metropolitan Ittj. Co., 81 Beav. (17) Compton v. Bagleij, 1892,
504, 509, 510 : Fry, J., Green 1 Ch. 313.
V. Sevin, 13 Ch. D. 589, 599; (A) Paine \. ^[eller,&\es. M9,
.ffow V. •) ; but if the delay in
completion shall be attributable to the purchaser, the
purchaser shall not be exonerated from his liability to
pay interest on the purchase-money by any such
appropriation of his money to the purchase (s) .
We have already briefly described the contracting
parties' remedies by application to the Court (f) . It Has the
remains to inquire whether, in the absence of express riJht°of re-
stipulation, a vendor of land has the right to re-sell, in sale without
ease the purchaser make default in performing the stipulation?
contract. This appears exceedingly doubtful. It
was incidentally held by Bacon, V.-C, in Noble v.
EdwardeK (u), that, if the purchaser unjustly repudiate
(q) Sherwin v. SJiakspear, 5 De this point was really necessary.
G. M. & G. 517, 18 Jut. 843; The acition was brought by a
Metropolitan It;/. Co. v. Defrie.s, vendor, who had re-sold at a
2 Q. B. D. 189, ;)87. See Le(/ffott loss, to enforce his claim at ooin-
V. Metropolitan lit/. Co., L. R. 5 mon law for damages for breach
Ch. 716. of contract. All that the V.-C.
(>•) Roberts v. Maxsey, 13 Ves. decided was that the vendor was
56i ; RegenCs Canal Co. v. Ware, entitled to sue for the dift'erence
23 Beav. 575, 587 ; 1 Davidson, between the original contract
Prec. Conv. 573, 574, 4tli ed. ; price and the price on the re-sale :
480, 481, 5th ed. see 5 Ch. D. 392. But it seems
(.i) Sug. V. & P. 628 ; 1 Dart, that the vendor was clearly en-
V. & P. 627, 628, 034-636, 5th titled to make this claim at law,
ed. ; 708, 709,716-18, 6th ed. ; even though the re-sale were
650, 651, 657-659, 7th ed. wrongful: see Stephens v. Wil-
(<) Above, pp. 36-39. hinsou, 2 B. & Ad. 320; Page v.
(k) 5 Ch. D. 378, 388. It does Cowasjee, L. R. 1 P. C. 127 ; Ben-
not appear that the decision of jamin on Sale, 648, 654. 2nd ed.
4(2)
•52 OF THE parties' RIGHTS,
the contract, as by refusing to accept a good title, the
vendor may re-sell, after notice to the purchaser of his
intention to do so, and sue the purchaser for the amount
of any deficiency in price occurring on the re-sale. The
V.-C.'s judgment was reversed for other reasons by the
Court of Appeal, which made no pronouncement as to
the correctness of his decision on the point in question.
And his decision has been accepted by the editors of
f Dart's Vendors and Purchasers (v), and Davidson's
Precedents in Conveyancing (?r), as an authority for
the proposition that the vendor of land has the right
i of re-sale, on breach of contract by the purchaser,
without any express stipulation to that effect. But
the correctness of this opinion seems questionable. The
Y.-C. held (x) that the common law gives to the vendor
of land the same right of re-sale, in case of the pur-
chaser's default, as it gives to a vendor of chattels. It
is to be observed, however, that the assertion of a right
I at common law for the vendor of goods to re-sell them
upon the buyer's default rests upon very slender autho-
rity (?/) . And the utmost extent of the common law
(v) P. 185, 6th ed. (w) P. 476, .5th ed. [x] b Ch. D. 388.
(y/) In Benjamin on Sale, 2nd ed. 1873, pp. 649, 6o5. it is laid down
that the ca.ses decide expressly that the vendor has no right to re-sell,
for they determine that he is responsible for nominal damages for
non-delivery of the goods where there is no difference between the
contract and the market price thereof ; and in support of this pro-
position Valpij V. OakeJet/, 16 Q. B. 941, and Griffiths v. Ferrn, 1 E. &
E. 680, are cited. But see the view now maintained by the editors
of Benjamin on Sale, 934 sq., .5th ed. In Ex parte Stnpleton, Re Nathan,
1879, 10 Ch. D. 586, it was decided that an unpaid vendor of goods,
who had re-sold (after notice of his intention to do so) upon the pur-
chaser's bankruptcy, was entitled to prove for a deficiency in price on
the re-sale. But it appears that he would have had this right even
though the re-sale were wi-ongful; Stephens v. Wilkinson, 2 B. & Ad.
320; FagcY. Cowasjee, L. R. 1 P. C. 127; Benj. Sale, 654, 2nd ed.
Mr. M. D. Chalmers, however, in his Digest of the Law of Sale of
Goods (1890), sect. 50 (3), evolved out of certain obiter dicta in Page v.
Cotvasjee, L. R. 1 P. C. 145 ; Lord v. Frice, L. R. 9 Ex. 55, and Ex
parte Stapleton, ubi sup., the rule afterwards adopted in the Sale of
Goods Act, 1893, stat. 56 & 57 Vict. c. 71, s. 48 (3), viz., "Where
the goods are of a perishable natui-e, or where the unpaid seller gives
notice to the buyer of his intention to re-sell, and the buyer does not
within a reasonable time pay or tender the price, the unpaid seller
may re-sell the goods and recover from the original buyer damages for
any loss occasioned by his breach of contract."
OBLIGATIONS AND REMEDIES, GENERALLY. 53
authorities appears to be to allow to an unpaid vendor
of goods a right of sale, after notice, on the buyer's
default, to realize his lien for the price, similar to the
right of sale, after due demand and notice, given to a
pledgee of goods where a day is fixed for payment (s). [
But the lien, which a vendor of land has for the price
pending completion, is a purely equitable charge {a),
quite different from the common law right of a pledgee
or an unpaid vendor of chattels. It does not appear to
follow therefore that a vendor of land can enforce his
equitable lien by sale, because an unpaid vendor of
goods may, in certain circumstances, realize his common
law lien by sale. And the proper remedy to enforce
an unpaid vendor's lien on lands sold appears to be to
apply to a Court of Equity for an order for sale {b). It
is submitted, therefore, that the better opinion is still
that expressed, before the case of Noble v. Sdwardes,
by the authors of Davidson's Precedents in Convey-
ancing (c) ; namely, that are-sale to enforce the vendor's
lien for the price in case of the purchaser's default, can
only be lawfully made with the authority of a Court of
Equity or Bankruptcy. It appears, however, that, as in
the case of goods {d), a re-sale made on the purchaser's
default by a vendor of lands, without any express
power to re-sell, does not rescind the original contract ;
that, even if re-sale in such circumstances be unlawful,
the vendor may sue the original purchaser or prove in
his bankruptcy for any deficiency in price occurring on
the re-sale {e) ; and that, if the re-sale result in an
(z) See preceding note ; and 95, n. ; Seton on Judgments,
Johnson v. Stear, 15 C. B. N. S. 2290—2294, 6th ed. ; see below,
330 : I'if/ot V. C'ub/ei/, ib. 701 ; Chap. XL § 1, XVIII. § 2, XIX.
Blackhum, J., Donald V. Sucklitii/, § 1.
L. R. 1 Q. B. 585. C16 ; Black- (c) Vol. i., pp. 568-70, 4th ed.
burn on Sale, 325, cited Benj. (c?) See Benj. Sale, 648, 654, 2nd
Sale, 644, 2nd ed. ed. ; Maclean v. Dunn, 4 Bing.
(a) See Jessel, M.R., Lymqht 722; Stephens v. Wilkinson, 2 B.
V. Edwards, 2 Ch. D. 499, 506, & Ad. 320 ; Page v. Coivasjee,
507 ; above, p. 49. L. R. 1 P. C. 127.
(i) Bowles V. Rogers, 6 Ves. [e) Ex parte Seaforth, 19 Ves.
54
OF THE PARTIES RIGHTS,
Re -sale as
owner after
a rescission
for the
purchaser's
default —
or after
judgment in
excess over the original price, the vendor must pay
over the amount of such excess to the original pur-
chaser (/). But if re-sale by a vendor of lands on the
purchaser's default be unlawful without the authority
of the Court, it is questionable whether the vendor
would be entitled to recoup himself the expenses of
re-sale out of the proceeds thereof [g) . And it seems
very doubtful whether a purchaser on a re-sale made
without the authority of the Court would obtain a good
title, if he had notice of the original contract for
sale [h). In this respect the case of lands differs entirely
from that of goods, in which the purchaser on a lawful
re-sale now obtains a good title under an express
enactment in the Sale of Goods Act, 1893 (/).
If the vendor rescind the contract for the purchaser's
breach of one of the main duties under the agree-
ment (/r) , he is restored to his former beneficial owner-
ship of the land, and can then as owner re-sell or
otherwise dispose of it as he j)leases (/) . If he so re-sell
for a higher price, such purchase-money is all his own ;
and if the re-sale produce less than the former contract-
price, he must bear the loss himself {w) . The vendor can
2^5; Hope v. Booth, 1 B. & Ad.
498 ; Gray v. Grai/, 1 Beav. 199 ;
Harding v. Harding, 4 My. & Cr.
514.
(/) Greaves v. Ashlin, 3 Camp.
426; Valpy v. Oakeley, 16 Q. B.
941 ; Griffiths v. Ferry, 1 E. & E.
680. The contrary appears to be
laid down in 1 Davidson, Prec.
Conv. 570, 4th ed., and 1 Dart,
V. & P. 186, 6th ed. ; 179, 180,
7th ed. ; but Ex parte Hunter,
6 Ves. 94, 97, cited as the autho-
rity for these statements, was a
case of re-sale under an express
power of re-sale, whereby the
original contract is rescinded ;
Lamond v. Davall, 9 Q. B. 1030;
Sug. V. & P. 39. And it appears
from 1 Dart, V. & P. 163, Sth ed.,
that Mr. Dart's statement was
made with respect to such a sale.
It seems too that Mr. Davidson's
statement was really intended to
apply only to such a sale.
(//) 1 Davidson, Prec. Conv.
570, 4th ed. Note that Bacon,
V.-C, decided nothing in Noble
V. Edivardes, 5 Ch. D. 378, 392,
as to the vendor's right to re-
cover the expenses of re- sale.
ih) He might, of course, ob-
tain a good title as a bond fide
purchaser ivithout notice of the
original sale.
(0 Stat. 56 & 57 Vict. c. 71,
s. 48 (2).
{k) Above, p. 34.
(/) Houe V. Smith, 27 Ch. D.
89, 104, 105.
(/») See below, Chap. XIX.
§1.
OBLIGATIONS AND REMEDIES, GENERALLY.
55
also sell or otherwise dispose of the land ffs cncner after an action for
judgment has been recovered by or against him in an ^ ^'
action for damages for breach of one of the main duties
arising under the contract in).
(n) See above, p. 36 ; below, Chap. XIX. ^ 2.
CHAPTER III.
OF THE USUAL CONDITIONS OF SALE.
Stipulations
usually made
in formal
contracts.
Having thus given an outline of the main duties im-
posed upon the pai-ties to the contract and their remedies
for its breach, and attempted to state the terms of an
open contract, we will now endeavour to complete our
general view of the effect of a sale of land by pointing
out in what particulars the rights and obligations of the
parties are usually expressed or modified, in formal con-
tracts, by special stipulation. We will first examine the
conditions generally made on sales by auction.
Reserving the
right to bid
at an auction.
1. As we have seen, on a sale of land by auction the
particulars or conditions must state whether the land
will be sold without reserve or subject to a reserved
price, or whether a right to bid is reserved ; and if the
sale be announced to be without reserve, it will not be
lawful for the vendor to bid, either in person or by
agent [a) . It is therefore the practice expressly to
reserve to the vendor the right to bid as often as he
may please (b) ; and it is usually stipulated that the
vendor and his agents may bid as often as he or they
may please (c), notwithstanding the doubt judicially
expressed as before mentioned (d) whether it be lawful
for a vendor of land to employ more than one puffer at
an auction. Where there is to be a reserve price, this
(a) Stat. 30 & 31 Vict. c. 48,
8. 5 ; above, p. 23.
{b) Above, p. 24.
(c) 1 Davidson, Prec. Conv.
607, 4th ed. ; 518, 519, 5th ed. ;
1 Key & Elphinstone, Prec. Conv.
258, 4th ed. ; 245, 8th ed.
(d) Above, p. 23.
OF THE USUAL CONDITIONS OF SALE. 57
should be stated in the conditions, and the right for the
vendor or his agents to bid should be reserved as well.
It is usually stipulated that, subject to the rights so
reserved, the highest bidder shall be the purchaser (r) .
The lowest amount by which the biddings shall
advance is generally specified, or else it is provided that
the amount of the advance of each bidding shall be regu-
lated by the auctioneer ; and the condition is also made
that no bidding shall be retracted, the latter stipulation
being inserted for whatever it may be worth, notwith-
standing that it is thought to be unenforceable. And
it is declared that, if any dispute shall arise concerning
a bidding, the property shall be put up again and
resold ( /).
2. We have seen that no deposit of any part of the Deposit;
purchase-money can be lawfully demanded after an memoran-
open contract for sale has been concluded ; as the whole dum.
price is not payable until the time for completion {g).
But on sales of land by auction it is always provided
that a deposit of a certain proportion (as ten per cent.)
of the pm-chase-money shall be paid by the purchaser
immediately on signing the contract (/»). It is also in-
variably stipulated that the purchaser shall sign a
memorandum of the contract immediately after the
sale. This stipulation is absolutely necessary on ac-
count of the Statute of Frauds (/) : but it does not
appear that it can be enforced ik).
3. A day is always fixed for the completion of the Time for
contract. In such cases it was said that at law time was '^"'"^
{e) See above, p. '24. (A) 1 Davidson, Prec. Conv.
(/) See above, p. 20 ; 1 David- GOT, 4th ed. ; 519, .5th ed. ; 1
son, Prec. Conv. T)!'), 607, 4th Key & Elphiustone, Prec. Conv.
ed. ; 432, 52r), oth ed. ; 1 Key & 258. 4th ed. ; 246, 8th ed.
Elphinstone, Prec. Conv. 257, / \ ai o oa n.t
258, 4th ed. : 245, 8th ed. ^') ^^°^''^> PP' ^' -^-^^-
iff) Above, pp. 26, 46. (k) See above, pp. 20-22.
58
OF THE USUAL CONDITIONS OF SALE.
of the essence of the contract ; that is to say, the Courts
of Common Law (not unreasonably) held the parties to
mean what they said (/), and therefore considered that
a stipulation to complete the purchase on a given day
bound the vendor to have shown and verified a good
title and to be ready to convey on that day ; in default
of which the purchaser was entitled either to rescind the
contract and to recover his expenses incurred thereunder
(such as his deposit and his costs of investigating the
title) , or to sue in affirmance of the contract for damages
for breach of the agreement (m). In equity, however,
it was well established that neither party to a contract
for sale of land should lose his right to specific perform-
ance merely through failure to comply with some stipu-
lation as to time, if time were not of the essence of the
contract. Tliat is to say, the Courts of Equity, in
administering their own peculiar remedies, held that
they were not concluded by the letter of an agreement
to do some act within a given time, but would look to
what they called " the substance of the contract," and
ascertain whether a stipulation as to time were intended
to be material or merely formal. And they granted
specific relief, if there were no unreasonable delay, not-
withstanding the want of exact compliance with a
formal stipulation as to time, upon a principle analo-
gous to that on which they decreed the redemption of
mortgages after the day fixed for redemption was
past {n). The nature of this jurisdiction is thus de-
(l) Marshall v. Fotvell, 9 Q. B. v. Napper, 2 Sch. & Lef . GS-t ;
779. Eldon, C, Seton v. Slade, 7 Ves.
(w) See above, p. 36; Berry v. 265, 273-5; Radcliffew. JFarrin(/-
ToMwy, 2 Esp. 640, n. ; Wilde v. ton, 12 Ves. S26; Hearnev. Tenant,
Fort, 4 Taunt. 334 ; Handip v. 13 Ves. 287 ; Hipwell v. Knight,
PafZM;ic/L-,o Ex.615; Sug.V.& P. 1 Y. & C. Ex. 401; Parkin v.
257-9 ; Dart, V. & P. 417, 944, Thorold, 16 Beav. 59 ; Roberts v.
945, 949, 5th ed. ; 482, 1071, Berry, 3 De G. M. & G. 284 ;
1072, 1076, 6th ed. ; 495, 984, Fry, Sp. Perf. § 1072, p. 489. In
985, 990, 7th ed. recent times, equity judges seem
{n) Pincke v. Curteis, 4 Bro. C. to have thought it necessary to
C. 329 ; Redesdale, Ir. C, Lcnnon allege that, notwithstanding the
OF THE USUAL CONDITIONS OF SALE. 59
scribed by Lord Cairns {o) : — " A Court of Equity will
relieve against and enforce specific performance, not-
withstanding a failure to keep the dates assigned by
the contract, either for completion, or for the steps
towards completion, if it can do justice between the
parties, and if (as Lord Justice Tui'ner said in RoherU
V. Ben- 1 I ( /;) ) there is nothing in the express stipulations
between the parties, the nature of the property, or the
surrounding circumstances, which would make it in-
equitable to interfere witli and modify the legal riglit.
This is what is meant, and all that is meant, when it is
said that in equity time is not of the essence of the con-
tract. Of the three grounds against interference men-
tioned by Lord Justice Turner, ' express stipulations '
requires no comment. The ' natui-e of the property ' is
illustrated by the case of reversions, mines, or trades.
Tlie ' surrounding circumstances ' must depend on the
facts of each particular case " (). Under the Judica-
ture Act, 1873 (/•), stipulations in contracts, as to time
or otherwise, which would not before the commence-
ment of the Act have been deemed to be or to become
of the essence of such contracts in a Com"t of Equity,
shall receive in all Courts the same construction and
etfect as they would have theretofore received in equity.
On an ordinary sale of land, it is not usual, in fixing tlie
exercise of this jurisdiction, the delays that have been condoned in
contract is (ionstrued in the same equity on the ground that time
manner in equity as at law ; is not of the essence of a cou-
Romilly, M.R., I'drkin w.'Thorold, tract to sell land, it appears very
IG Beav. 66; Knig-ht Bruce, L. J., questionable whether this doctrine
lluherls v. Berry, 8 De G. M. & Gr. has really conferred any benefit
29U ; Cairns, C, Tillcijw. Thomax, upon the community.
L. R. 3 Ch. 67. But there can (o) In TiUcy v. Thomas, L. R.
be no doubt that the Courts of 3 Ch. 61, 67.
Equity, in assuming a jurisdiction ( p) 3 De G. M. & G. 284, 291.
to enforce contracts which were (q) See below, Chap. XII. § 1 ;
broken at law by faihire to ob- Fry, Sp. Perf. ^ 107.)-I091,
serve a stipulation as to time, pp. 491-8.
have practically interfered with (r) Stat. 36 & 37 Vict. c. 66,
the legal effect of the contract ; s. '26 (7), amended by 38 & 39
and when one considers all the Vict. c. 77, s. 10.
60
OF THE USUAL CONDITIONS OF SALE.
Effect of
fixing a day
for comple-
tion without
further stipu-
lation.
date of completion, expressly to make time of the essence
of the contract.
When a day is fixed for the completion of the
contract, without further special stipulation, the pur-
chaser becomes entitled to the rents and profits and
liable to discharge the outgoings as from that day, the
vendor taking the profits and discharging the outgoings
up to that day (.s). And if the purchase be not com-
pleted on that day, and the delay be attributable to the
purchaser, he is bound to pay interest on the purchase-
money as from that day, whether he have entered into
possession or not. But if the delay be attributable to
the vendor, the purchaser is chargeable with interest
(and consequently entitled to the profits and liable to
the outgoings) only from the time when he either
actually took or might safely have taken possession,
the latter time being when a good title has been
shown and verified [f). The purchaser may, however,
discharge himself from the liability to pay interest,
where the delay is attributable to the vendor's and
not his own fault, by appropriating his money to the
purchase in manner before explained (if). But, as we
shall see, these matters and especially the payment
of interest are usually provided for by special stipu-
lation in formal contracts.
Fixtures or
timber to be
taken at a
valuation.
4. If it be intended that the fixtures or timber or
other trees upon the property sold shall be paid for at
a valuation in addition to the sum agreed on as the
price of the land, a special stipulation to that effect
must form part of the contract of sale : otherwise the
purchaser will be entitled to have the fixtures and trees.
(«) Suo-. V. & P. 627 ; above,
pp. 49, 50.
(t) Pincke v. Cnrteis, 4 Bro.
C. C. 329, 333, n. ; Leach, V.-C,
Esdaile v. Stephenson, 1 S. & S.
122, 123 ; Jo)ies v. Mudd, 4 Russ.
118; Sug. V. & P. 627 sq. ; 2
Dart, V. & P. 627, 628, Sth ed. ;
708, 709, 6th ed.; 650, 651, 7th ed.
(m) Above, p. 51.
OF THE USUAL CONDITIONS OF SALE. fil
as passing witli the land, without extra payment (./-).
Such a stipuUxtion is very commonly made, and the
mode of valuation is usually specified ; for instance, by
two valuers to be appointed one by either party, or an
umpii-e to be appointed by the valuers. But an agree-
ment to sell pi'operty at a price to be ascertained by
valuation made in a particular way does not result in
an enforceable contract if that way be not pursued ;
for if the parties agree that the price is to be fixed hy
A., and A. do not fix it, the price is not reduced to the
required certainty (?/) ; and the Court will not, as a
rule, provide other means of fixing the price, for that
would be holding the parties bound by a contract
different from that which they made (s). It is there-
fore proper to stipulate, after providing that fixtures or
timber shall be taken at a valuation to be made in a
particular manner, that failing such valuation they
shall be paid for at a fair valuation or at their fair
value. In such case, the Court will, it seems, direct a
reference, if necessary, to ascertain the price (^).
5. It is usiial to specify the instrument of disposition Commence-
with which the title shall commence, especially if it be ^"^° ^ * ^'
intended to confine the time, for which title is to be
shown, within a shorter limit than the period fixed by
law (h). No such stipulation is necessary if the vendor
propose to deliver an abstract commencing with a good
root of title (c) and extending over the whole period,
for which title can by law be required to be shown.
But if it be desired effectually to limit the pureliaser's
(j-) Colegrtivr v. Diax Safito.i, 2 [a) See above, p. 4, n. (in) ;
B. & C. 76. Sug. V. & P. •2S7, 288 ; 1 Dart,
(y) See above, p. 4. V. & P. 221-3, 5th ed ; 2.57-9.
[z) mines V. Genj, 14 Ves. 400 ; 6th ed. ; 242-4, 7th ed. ; 1 David-
Bluudell\. Breltnrah,\lYo».2\l\ son, Prec. Conv. 522, 523. C07,
Collins V. fol/ins/ 26 Beav. 306; 608, 4th ed. ; 435, 513, 519,
Vickers v. Vicktis, L. K. 4 Eq. 5th ed.
529; Fry. Sp. Perf. ^§ 354-367, (A) See above, p. 33.
pp. 161-7. (c) Above, pp. 41, 42.
62 OF THE USUAL CONDITIONS OF SALE.
rights, as defined by law, in the matter either of the
time for which he may require title to be shown or of
the nature of the instrument with which the title is to
commence, a fair and explicit stipulation to the effect
desired must be made (d).
Limiting time (1 It is usual to provide that the purchaser's requisi-
requisitions tions ou or objections to the title, or anything else
ou title. connected with the sale, shall be sent to the vendor's
solicitors within a limited time (as twenty-one days)
after the delivery of the abstract of title, that in this
respect time shall be of the essence of the contract (r),
and that in default of or subject only to any such
requisitions and objections so made the purchaser shall
be taken to have accepted the title (/). And it is some-
times stipulated that any replies to the vendor's answers
to the requisitions must be made within a specified
time (ff). Where such stipulations are made, it is not
desirable, in the vendor's interest, to provide that the
abstract shall be delivered within a specified time ; as if
he should fail to deliver it within the period appointed,
the condition limiting the time, within which the pur-
chaser is to make his requisitions, will fail of effect (//).
It is further held with regard to such stipulations that
the time thereby limited only begins to run from the
delivery of a perfect abstract, that is, as perfect an
abstract as the vendor is able to furnish at the time of
delivery, although it may not show a complete title (/).
Hence it is sometimes provided in conditions of sale
[d) See Be Mar.sh and Earl 6 Ch. 436; 1 Dart, V. & P. 125,
Granville, 24 Ch. D. 11. 5tli ed. ; 141, 6th ed. ; 137, 138,
[e) See above, p. 58. 7th ed.
(/) 1 Davidson, Prec. Conv. (i) Hobson v. Bell, 2 Beav. 17 ;
539, 614, 4th ed. ; 449, 5th ed. ; Morlei/ v. Cook, 2 Hare, 111;
1 Key & Elphinatone. Prec. Conv. Blackburn v. Smith, 2 Ex. 789 ;
265, 4th ed. ; 253, 8th ed. Graij v. Fowler, L. R. 8 Ex. 249,
(f/) 1 Davidson, Prec. Conv. 279; Sug. V. & P. 21 ; 1 Dart,
521-2, 5th ed.; 1 Key & Elpliin- V. & P. 126. 161, 162, 281, 5th
stone, Prec. Conv. 265, 4th ed. ; ed. ; 142, 184, 321, 6th ed. ; 138,
253, 254, 8th ed. 174, 317, 7th ed.
(A) Upperton v. NickoUon, L, R.
OF THE USUAL CONDITIONS OF SALE.
that, for the purpose of any requisition or objection,
the abstract shall be deemed perfect, if it supply the
information suggesting the same, although otherwise
defective. Such a stipulation is sanctioned by the
practice of eminent conveyancers : but it has never been
decided how far it is efficacious ; and as regards the
enforcement of specific performance its operation would
appear to be very limited (/.•) . The stipulation, that in
default of requisitions or objections made within the
time limited, the purchaser shall be taken to have
accepted the title, does not bind him to take the pro-
perty sold, if on the face of the abstract the vendor
show no title at all to convey the same, even though tliis
objection were not taken within the time appointed (/).
As we have seen {?n), in the absence of any stipulation
as to time, the vendor is bound to deliver the abstract
within a reasonable time after the contract, and tlie
purchaser is bound to make his objections, if any, to
the title within a reasonable time after the delivery of
the abstract ; and if the latter make undue delay in
examining or accepting the title, he may lose his riglit
to enforce the specific performance of the contract (ii).
And retainer of the abstract for a long time, without
making any requisitions, may amount to an acceptance
of the title (o). In case of unreasonable delay on the
purchaser's part, the vendor may send him a notice
requiring him to accept or reject the title within a
definite period (which must be a rcaKOnahlc space of
time as from the date of the notice), on pain of the
{k) See 1 Dart, V. & P. 126, laumc and Landau, 20 Ch. D. 46").
.5th ed.; 142. Gth ed.; 138, 7th ed.: 473. 474 ; see helow. Chap. V.
1 Davidson, Prec. Conv. 540, (/«) Above, p. 48.
4th ed. ; 450, 5th ed. ; 1 Key & («) Spurr'ur v. Hancock, 4 Ves.
Elphinstone, Prec. Conv. 265, 667; Fry, Sp. Perf. 4 1103, p.
4th ed. ; 254, 8th ed. ; above, 503.
p. 38. (o) Romillv. M. R.. 7Vy/ v.
(/) Want V. Sfallihra-ss, L. R. TFisdrn, 1'! Beav. 239.24 4,245;
8 Ex. 175; Jte Tanqueraij Wil- Fry, Sp. Perf. § 1351, p. 601.
63
64
OF THE USUAL CONDITIONS OF SALE.
Purchaser
should ask
for abstract.
vendor's putting an end to the contract ; and if the
purchaser fail to comply with such a notice, he will lose
his riglit to enforce specific performance of the con-
tract, and the vendor will he at liberty to rescind the
contract or to sue upon it as broken (/>). What is a
reasonable time is a question of fact to be determined
with regard to the circumstances of each particular case.
If the vendor delay in sending the abstract of title, the
purchaser should ask for it ; if he fail to do this, he will
be considered to have waived the delay, and will be
precluded from asserting the non-delivery of the abstract
within the appointed time or a reasonable time, as the
case may be, to be a breach of contract by the vendor {q).
Reservation
to vendor of
right to
rescind the
contract.
7. The vendor generally reserves the right to rescind
the contract if the purchaser shall insist on any requi-
sition or objection which he shall be unable or unwilling
to remove or comply with {>'). In the absence of such
a stipulation, neither party is at liberty to recede from
the agreement without the consent of the other ; this is
of the very essence of contract. A right so reserved to
rescind the contract must be exercised reasonably and
in good faith, and not arbitrarily or capriciously (s) : but
if this limitation be observed, the present tendency of
the Courts is not otherwise to interfere with the effect of
such a condition by enforcing specific performance
{p) Taylor v. Brown, 2 Beav.
180, 183 ; fValker v. Jrfreys, 1
Hare, 341, 348 ; Sug. V. & P.
268, 269 ; Fry, Sp. Perf. ^ 1092
sq. pp. 499 sq. ; Compton v.
Bagleij, 1892, 1 Ch. 313 ; above,
pp. 36, 49.
(r/) Sug. V. & P. 260, 261 ; 1
Dart, V. & P. 304, 305, 5th ed. ;
346, 347, 6th ed. ; 341, 342,
7t.h ed.
(»•) This has long been usual ;
Falkner v. Equitable Reversionary
Co., 4 Drew. 352 ; Juridical Socy.
Papers, ii. 590 ; 1 Davidson, Prec.
Conv. 564, 4th ed.
(»■) Re Dames and Wood, 29 Ch.
D. 626 ; Re Glcnton and Saunders to
Haden, 53 L. T. N. S. 434 ; Re
Terry and White''s Contract, 32
Ch. b. 14 ; Re Starr Bowkett Bdg.
Socy. and Sibuu''s Contract, 42 Ch.
D. 375 ; Re Deighton and Harris's
Contract, 1898, 1 Ch. 458 ; Qninion
V. Home, 1906, 1 Ch. 596 ; see
Greaves v. JFilson, '2b Beav. 290 ;
Bowman v. Hyland, 8 Ch. D. 588 ;
Smith V. Wallace, 1895. 1 iore, L. R. 8 Eq. 603 ; see below, Chap. XII. § 4.
Re T70. 612, and n., {p) Skeririn v. Shakspmr, 5 De
4th ed. ; 1 Key & Elpbinstone, G. M. & G. .517, -529 ; Baiinerman
Prec. Conv. 263, 4th ed. ; 2.51, v. Clarke, 3 Drew. 632; Vickers
8th ed. V. Hand, 26 Beav. 630 ; JFilliams
(m) See above, p. 47. v. Gkufon, L. R. 1 Ch. 200 ; Su^.
(«) See above, pp. 49, .50; 1 V. & P. 633-7: Dart, V. & P.
Davidson, Proc. Conv. 613, 4th 128, 63.5, 639, .5th ed. ; 144, 719.
ed. ; 1 Key & Elpbinstone. Prec. 723, 6th ed. ; 140, 661, 664. 7th
Conv. 2')9. 4th ed. : 247, 8th ed. ed. ; and -^ee Me Bayky-Worth-
(o) See above, p. .50 ; 1 David- higtoti if Cnhen\s Contract, 1909, I
80n, Prec. Conv. 576, 613, 4th Ch. 648, 6.54.
5(2)
68
OF THE USUAL CONDITIONS OF SALE.
Right to re-
sell.
discharge himself from his liability to pay interest by
appropriating his money to the purchase {q). Sometimes
the contract is so worded as to bind the purchaser to pay
interest in case of delay in completion arising from any
cause whatever ot//er than the uilful default of the vendor ;
and in such case the purchaser must pay interest unless
the vendor were in wilful default, and such default
were the effective cause of the delay (r). In this form
the stipulation has been fruitful of litigation, with the
result that little else has been clearly established than
the futility pointed out by Lord Bowen of attempting
a precise definition of the meaning of " wilful default "
in such contracts («), and the question, what conduct
amounts to wilful default, can only be solved by con-
sideration of the circumstances of each particular case [t).
i;3. In conditions of sale by auction the vendor
usually reserves the right to re- sell the property, if
{q) Re Riley to StreafJieM, 34
Ch. D. 386.
(r) See Re Mayor of London and
Tiibbs' Contract and Bennrtt v.
Stone, cited below.
(a) Default is said to mean not
doing what is reasonable in the
circumstances ; wilful to imply
nothing blameable, but pierely the
result of the spontaneous action
of the will ; Bowen, L. J., 31 Ch.
D. 174, 175; " moral delinquency,
inteutional delay, wilful obstruc-
tion on the part of a vendor may
be all absent, and yet there may
be wilful default""; C. A. 1893,
3 Ch. 281.
(/) See Re Yointy and Hardon^s
Contract, 31 Ch. D. 168, where it
was held wilful default for the
vendor to go abroad two days
beft)re the day fixed for com-
pletion ; Re Hetlnii/ and Merton^s
Contract, 1893, 3 Ch. 269, where
a mortgagee was abroad and
the vendor relied on a power of
attorney from him, which was
held insufficient — this was con-
sidered wilful default ; Re Mayor
of London and Tubbs' Contract,
1894, 2 Ch. 524, where the
vendors, having omitted to exa-
mine their title, misdescribed it
in the contract — this was con-
sidered by Lindley and Lopes,
L. JJ., not to be wilful default,
diss. Kay, L. J. ; Re Wilsons
and Stevens' Contract, 1894, 3
Ch. 546. where it was held wilful
default for a vendor of copyholds
not to have procured certain ad-
missions necessary to enable him
to convey the legal estate ; Re
Strafford^and Maplt-s, 1896, 1 Ch.
235, where Kekevvich, J., held it
wilful default for a vendor not to
haA'e procured the concurrence of
necessary parties to the convey-
ance ; Re Woods and Lewis's Coti-
tract, 1898, 1 Ch. 433, 2 Ch. 211 ;
North V. Pereival, 1898, 2 Ch. 128;
Bennett v. (Stone, 1902, 1 Ch. 226 ;
1903, 1 Ch. 509, where fom-
judges were exactly divided iu
opinion whether it was wilful
default for a vendor to insist in
good faith upon ati unreasonable
contention as to the form of the
conveyance,
OF THE USUAL CONDITIONS OF SALE. 69
the purchaser fail to comply with the conditions, and
to recover from the purchaser any deficiency in pi-iee
occurring on the re-sale. But such a stipulation is not
commonly inserted in contracts of private sale. A re-
sale under such a condition operates as a rescission of
the original contract. The vendor is therefore entitled
to retain for his own benefit any excess over the original
contract price which may be realised on the re-sale {ii).
It is not the practice, in settling conditions of sale, to Stipulations
stipulate expressly that the vendor shall show a good implied on
title, or verify the title by the production of the proper sales by
evidence, or produce a property identical with that
agreed to be sold, or deliver over the title deeds on com-
pletion, or that the purchaser shall accept the title
when proved (r). All these terms of the contract (y)
are left to be implied therein by law. And it is also
the present practice to leave to implication those provi-
sions which are incorporated in contracts for the sale of
land, in the absence of an expressed intention to the
contrary, by the Vendor and Purchaser Act, 1874 (z),
and the Conveyancing Act of 1881 (a), unless it be
desired to make more stringent or other stipulations
than those so implied by statute. Thus, in respect of
making recitals in instruments twenty years old prima
facie evidence (h), barring the |>roduction of and in-
quiries as to the title earlier than the date fixed for
commencement of the title (c), providing for the
expense of the production of title deeds not in the
vendor's possession, and of the procurement and pro-
duction of any evidence of title not in the \'endor's
(«) Ex parte Hunter, O Ves. 94; ((/) Above, pp. 32-35, 41-48.
Lamond v. Darall, 9 Q. B. 1030 ; (-) gtat. 37 & 38 Vict, c 78.
Sug. v. & P. 39: above, p. 54, ^g, j^ 2.
"'M^Q ir> -1 T> n (a) Stfvt. 44 & 45 Vic-l. c. 41,
(x) See 1 Davidson, Free. Conv. i. ' '
607 xq., 4th ed. : 518 f-?., 5th ed. ; ^' **•
1 Key & Elph. Prec. Conv. 257 (*) Above, p. 42.
."^y., 4th ed. ; 245 sq., 8th ed. (c) Above, pp. 42, 43.
70
OF THE USUAL CONDITIONS OF SALE.
possession (d), and stipulating for the retention by the
vendor of title deeds relating to other land of his, and
for his giving a statutory acknowledgment and under-
taking for the production and safe custody thereof {e) ,
the respective rights and duties of the parties are very
often not expressly defined in conditions of sale, but
left to be regulated by statute {/').
Conditions of
sale by auc-
tion of free-
holds in one
lot.
The following is a simple form of conditions of sale
by auction of freeholds in one lot. They are intended
to be annexed to particulars of sale containing the
description of the property offered. Great care should
always be exercised in framing the particulars of sale
in consequence of the vendor's obligation to produce, in
fulfilment of the contract, a property corresponding
exactly with that which he has described therein (g) ;
and every precaution should be taken to ascertain that
the land described in the particulars is not in point of
quantity, tenure, estate, or in any other respect more
extensive than or different from that which the vendor
is able or intends to convey in performance of the
agreement (h).
Bidding ;
right to bid
reserved.
1. No person shall advance less than /. at a
bidding, and no bidding shall be retracted (/). There
will be a reserve price ; and the vendor reserves the
right to bid in person or by his agents as often as he or
they may please (/>■). Subject to the rights so reserved
to the vendor, the highest bidder shall be the purchaser.
If any dispute shall arise respecting a bidding, the pro-
perty shall be put up again and resold.
(d) Above, p. 45.
(e) Above, pp. 47, 48.
(/) See 1 Davidson, Prec.
Conv. 518 ><(/., 5th ed. ; 1 Key &
Elph. Prec. Conv. 252 -sq., 4th
ed. ; 237 sq., 8th ed.
iff) Above, pp. 33, 43, 65.
{h) See, as to the consequences
of misdescription or misrepresen-
tation in the particulars of sale,
the cases cited above, pp. 33, 43-
45, 65, 66, and below. Chaps.
XII. § 4, XIII. § 1, XIV. §1.
(i) See above, pp. 20, 57.
(/t) See above, pp. 22, 23, 56, 57.
OF THE USUAL CONDITIONS OF SALK. 71
2. The purchaser shall immediately after the sale Deposit; con-
pay a deposit of 10/. per cent, of his pun-hase-raoney gioTied.
into the hands of [the auctioneer or the rendors no/icitors']
and sign the subjoined agreement (/).
'i. The fixtures, timber and otlier trees, tellers, pol- Fixtures and
lards, saplings and underwood upon the property, down p^id for at a
to the value of l.s. per stick, shall be paid for by the valuation.
purchaser at a valuation to be made as hereinafter pro-
vided, or failing such valuation, at their fair value (m).
The valuation shall be made by two valuers to be ap-
pointed one by the vendor and the other by the pur-
chaser, or by an umpire to be apj)ointed by the valuers,
or if either the vendor or the purchaser shall refuse or
neglect to appoint a valuer or to notify his appointment
of a valuer to the other party in writing within seven
days after being requested by the other party to do so,
or if the valuer appointed by either party shall refuse
or neglect to act for seven days after receiving notice in
writing from the other party requiring him to proceed
with the valuatiou, then by the otlier party's valuer
alone, provided that his appointment shall. have been
duly notified in writing to the opposite party (ii).
4. The title shall commence with [« deed or other Commence-
in-strinnent of atich a date, the nature of whieh must be
aeeurately set out{o). Amj special conditions as to title,
uhich may be necessari/, may be inserted here'\.
•'). The purchaser shall send his requisitions and Time limited
objections (if any) in respect of the title and all matters req^^itions
appearing on the abstract, particulars or conditions to on title, &c.
(/) See above, pp. '26, IT. party. That is a matter which
(»?) See above, p. 60. In must be expressly provided for,
many cases it would be sufficient if desired. See Bos v. Helsham,
to say " by two valuers, or their L. R. 2 Ex. 72.
umpire, to be appointed in the (w) The la-st words are inserted
usual way, or otherwise at their to remind the parties of the fact,
fair value" : but this would not that the appointment of a valuer
authorize one parly's valuer, in is not cuinplctely made until it
case of the default of the other has been notified to the opposite
party or his valuer, to make a party; yVu- v. //(orw, 11 Q. B. 7-
valuation binding on the other {o) See above, p. 62.
72
OF THE USUAL CONDITIONS OF SALE.
the office, No.
Street,
of Messrs.
Reservation
to vendor of
right to
rescind the
contract.
Identity.
the vendor's solicitors, within twenty-one days from the
day of the delivery of the abstract, and in this respect
time shall he of the essence of the contract (p). In
default of or subject only to any such requisitions and
objections so made, the purchaser shall be taken to have
accepted the title.
6. If the purchaser shall insist on any requisition or
objection as to the title, evidence of title, conveyance,
possession, receipt of rents or any other matter appearing
on the abstract, particulars or conditions or connected
with the sale, which the vendor shall be unable or un-
willing to remove or comply Avith, the vendor shall be
at liberty, notwithstanding any negotiation or litigation
in respect of such requisition or objection (q), to give to
the purchaser or his solicitor notice in writing of his in-
tention to rescind the contract for sale unless such requi-
sition or objection be withdrawn ; and if such notice be
given and the requisition or objection be not withdrawn
within ten days after the day on which the notice was
sent, the contract shall without further notice be re-
scinded (/•). The vendor shall thereupon return to the
purchaser his deposit, but without any interest, costs of
investigating the title, or other compensation or pay-
ment whatever.
7. The purchaser shall admit the identity of the pro-
perty purchased with that comprised in the muniments
offered by the vendor as the title to such property, upon
the evidence afforded by a comparison of the descrip-
tions contained in the particulars of sale and in the
muniments (s) .
{p} See above, p. 62.
{q) These words will not enable
the vendor to rescind after final
judgment has been given against
him in a proceeding for determin-
ing the validity of some objection
taken by the purchaser ; Ec Arbib
and Classes Contract, 1891, 1 Ch.
601.
(r) See above, p. 64.
[s) See above, p. 65.
OF THE USUAL CONDITIONS OF SALE. 73
8. The property is believed, and shall be taken to be No compensa-
correctly described as to quantity and otherwise. The „f descrip-
property is sold subject to all chief and other rents, tion.
rights of way and water, and other easements (if
any) charged or subsisting thereon, and to all leases,
tenancies, and Qccupations, whether mentioned in the
particulars of sale or not ; and to all rights and claims
of lessees, tenants and occupiers (t). If any error, mis-
statement, or omission be discovered in the particulars of
sale, the same shall not annul tlie sale, nor shall any com-
pensation be allowed by the vendor in respect thereof.
9. The purchaser shall pay the remainder of his pur- Completion,
chase-money, and the value of the fixtures, timber and
other trees, tellers, pollards, saplings, and underwood, on
the day of next, at the office aforesaid of
Messrs. to the vendor or as he shall in writing or
otherwise duly authorize. Upon such payment the
vendor and all other necessary parties (if any) will
execute a proper assui'ance of the property to the pur-
chaser ; but sucli assurance, and every other assurance
and act [ii any) which shall be required by the pur-
chaser for getting in, surrendering, or releasing any out-
standing estate, right, title, or interest, or for completing
or perfecting the vendor's title, or for any other purpose,
shall be prepared, made, and done, by and at tlie
expense of the purchaser {ii) ; and every such assurance
(«) General words like these. lirick iS,- Tile Co. v. liuthr, 16 Q.
which must of course be modified B. J). 7~S ; 1 Dart, V. X- T. loii,
according- to the nature of the .5th ed. ; 177. (ith od. ; 172. 7tli
property Hold, are inserted to ed.
protect the vendor against rents. («; "Words like the.se have been
easements, or tenants' claims of held to throw upon the purchaser
which he may be unavyare at the the costs of the concurrence iu
time of sale. They" would not the conveyance of the vendor's
enable him to enforce specific mortgagees : Jie lUllett and Ar-
performance of the contract sub- gcnti, o Times L. R. 476 ; but not
ject to any rents, easements, or the costs of deducing title to anj'
tenancies, which would be serious outstanding estate : lie Admus^
incumbrances and were known to Trustees and Frost'.t Contract . 190",
the vendor, but not mentioned in I Ch. 69.5. But if it be intended
the particulars : Ilei/uood v. Mai- that the puicliaser shall bc-ir the
lalieu, 2.5 Ch. D. 3.37 ; Nuttiugham expense of the concurrence in the
74
OF THE USUAL CONDITIONS OF SALE.
Rents, out-
goings, &c.
Interest.
Power of
resale.
Memoran-
dum to be
indorsed on
the condi-
tions.
shall be left at the office aforesaid not less than ten days
before the said day of next.
10. The rents will be received, possession retained
and the outgoings discharged by the vendor up to the
said day of next. As from that day the
outgoings shall be discharged, the rents received and
possession taken by the purchaser. The rents and out-
goings shall, if necessary, be apportioned between the
vendor and the purchaser for the purpose of this condi-
tion. If from any cause whatever the purchase shall
not be completed on the said day of next,
the purchaser sliall pay interest on the remainder of his
purchase-money and on the aforesaid value of the
fixtures, timber and other trees, tellers, pollards, sap-
lings and underwood, at the rate of /. per cent, per
annum, from that day until the purchase shall be com-
pleted ; and shall not be entitled to any compensation
for the vendor's delay or otherwise (x) .
11. If the purchaser shall fail to comply with the
above conditions, his deposit shall thereupon be forfeited,
and the vendor shall be at liberty to resell the property
at such time, in such manner and subject to such condi-
tions, as he shall think fit ; and any deficiency in price
which may happen on, and all expenses, which may
attend the resale, shall immediately afterwards be paid
by the defaulter to the vendor ; and, in case of non-
payment, shall be recoverable by the vendor as liqui-
dated damages {//).
I \_insert name and de-seription^ hereby acknowledge
that on the sale by auction this day of of
the property mentioned in the foregoing particulars I
conveyance of necessary parties
other than the vendor, it is better
to make an express stipulation to
that effect; see above, pp. 47, 67.
If the vendor has a clear title
in himseK it is, of course, un-
necessary, and it is simply depre-
ciatory to stipulate that the pur-
chaser shall bear the expense of
getting in any outstanding estate.
(x) See above, p. 67.
(y) See above, pp. 51-54, 68.
OP THE USUAL CONDITIONS OF SALE. 75
was the highest bidder and was declared the purchaser
thereof subject to the foregoing conditions at the price
of /., and that I have paid the sum of /. by way
of a deposit and in part payment of the said purchase-
money to [the ((uctiono(>r~\ and I hereby agree to pay the
remainder of the said purchase-money and complete
the said purchase according to the aforesaid conditions.
As witness my hand this day of .
\_Pnfclia>ii'rt ccndor^ name and (/e-sen'j)-
tioit [z)'] the vendor, I ratify this sale and acknowledge
the receipt of the said deposit of /.
[Avctioneer.l
The above conditions are in common form ; but they
are of course drawn exclusively in the vendor's interest.
It is not found, however, that purchasers are deterred
fi'om bidding by such conditions, afall events, in London
sales {a). In the provinces, lands are often sold subject
to the common form conditions of the local law society ;
and some of these conditions are far more favourable to
purchasers than those set out above {b).
(s) See above, p. 5. dical Society Papers, ii. 589 vy.
(rt) This seems to have been the Before this, the conditions of
case during the latter half of the sale by auction were usually far
lastcentury; see 1 Davidson, Pre<;. less stringent; see 2 Sug. V. &
Conv. ')05, ."ioe, 4th ed. ; Juri- P. 1076. tlth ed.
(//) Thus under the common form conditions of sale of the Birming-
ham Law Society, the purchaser expressly contracts to pay interest
at 5/. per cent, on delay in completion, but is allowed, if such delay
shall arise from any cause other than his own neglect or default, to
appropriate his money to the purchase by placing it to a deposit
account in a bank and giving notice of such deposit, and is thence-
forth chargeable only witli the interest given on the deposit ; the
expense of perfecting the vendoi''s title or of conveyance by necessarj'
parties other than the vendor is left to fall on the vendor ; the
vendor has to bear the cost of production of any documents, which
are in the possession of a mortgagee, or other incumbrancer, or of a
person obliged to produce them at the vendor's request ; the vendor
is empowered to rest^iud only if he is unable or ou the ground of
expense unwilling to coniply with some requisition ; and corapensji-
tion is to be given for errors of description if jiointed out before com-
pletioji. The conditions of the Bristol, Liverpool aud Manchester
Law Societies are nearly as favourable to purchasers.
76
OF THE USUAL CONDITIONS OF SALE.
General Besides the above conditions, it is usual, where the
on sale under vendor is selling under a trust for or power of sale (c),
:i trust for or to add the following stipulation (d) : —
power or sale. o j.
" The vendor is a trustee {e) selling under a trust
for ( /■) sale, and the purchaser shall not require the con-
currence of the persons beneficially interested in the
property sold or the purchase- money, and shall not be
entitled to any other covenant than the statutory" cove-
nant by the vendor that he has not incumbered, or to
any undertaking or covenant for safe custody of any
document which the vendor is entitled to retain."
The reason of this is that, though one who shows on
the face of the contract that he sells as a trustee,
cannot be called upon to give covenants for title, but
can only be required to covenant that he personally has
not incumbered (g), a trustee, who sells as apparent
owner under a contract in which his fiduciary capacity
is not disclosed, appears to undertake the duties regu-
larly imposed on a vendor of land {//) to give covenants
for title and an undertaking for safe custody of any
deeds retained. And where, on a sale by a trustee, the
purchase-money will belong to some person or persons
being sui Juris and absolutely entitled thereto, either
entirely or in shares, it has been the practice of con-
veyancers, unless precluded by express stipulation, to
require him or them to concur in the conveyance and
give covenants for title to the property sold or their
Sale by shares therein («') . A stipulation similar to that given
under M^ above is usuall}^ made on sales by a mortgagee under
i^ower of sale. }jig power of sale (/•) , precluding the purchaser from
(c) As to sales by trustees, see
below, Chap. VIII. § 2.
{d) 1 Davidson, Prec. Conv.612,
613, 4th ed. ; 1 Key. & Elph.
Prec. Conv. 264, 4th ed. ; 252,
8th ed.
(e) Or an executor, or an adminis-
trator, as the case may require.
(/) Or pouer of, as the case
may require.
(ff) Worley v. Frampton, 5 Hare,
560 ; Sug. V. & P. 69, 575 ;
below. Chap. XII. ^^ 3.
(/«) Above, pp. 46-48.
(j) See below. Chap. XII. ^ 3.
[k) See below, Chap. IX.
OF THE USUAL CONDITIONS OF SALE. 77
requiring the concurrence of the persons entitled to the
equity of redemption (/).
A few words may be added here with regard to what Special con-
are called special conditions of sale, which are conditions ^j^ig
requiring the purchaser to accept a title shorter or
otherwise less perfect than he would be entitled to
demand under an open contract, or to take the property
sold subject to some incumbrance, easement or right in
favour of other persons. Such conditions, in order to
be completely binding on the purchaser, must be framed
with very great care. It is true that, at law, a pur-
chaser may be bound by a contract to buy a property
subject to some defect of title or otherwise, according
to the plain meaning of the words used ; and so may
have no right to recover his deposit if he object to
comply with the condition {m). But in equity a vendor
will not be entitled to enforce the specific performance
of such a contract unless he has acted in the greatest
good faitli. If therefore the sj^ecial condition be in any
way misleading, that is, if it do not fairly and explicitly
call the purchaser's attention to the defect to which lie
is to submit, or if it contain any material misrepresen-
tation however innocently made, as to a matter of fact,
the Court will not oblige the purcliaser specifically to
perform the contract {n). And if the condition be
obscurely or ambiguously expressed, it will be construed
in favour of the purchaser (o). But if the facts of the
case be honestly and clearly stated, tlie condition will
{I) See above, p. 76, n. (d). Co. v. Butler, IG Q. B. D. 778.
(w) Best V. Hainand, 12 Ch. D. As to fraudulent inisrepresenta-
1 ; Re Davis and Caveij, 40 Ch. D. tion, soe Edwards v. M'Leai/, G.
601,607; Rf Xatiomd rrovinciaf Coop. 308, 2 S\v. 287; Hart v.
lidiik of EtK/l'iud and Marsh, \ii9b, Suainr, ~ Ch. D. 42; Joliff'e v.
i Ch. 191);' Scoll v. Alranz, ISO-i, liahr, 11 Q. B. D. 2;Jo; below,
2 Ch. 608 ; above, p. .'SS. Chap. XIV. § 1.
(m) Rr Banister, liroad v. ,Mi ;
18th ed. Chap. XII. H ; 1 Davidson, Free.
(//) As to the apportionment of Conv. 691, 4th ed. ; 5.')8, oth ed.
such rents, see below, Chap. X. (/) Stat. 38 & 39 Vict. c. 55,
§ 6. see .S8. 41, 150, 257, and stat.
(») See below. Chap. XII. § 4 ; 53 & 54 Vict. c. 59, s. 19.
1 Davidson, Free. Conv. 544, 684 {m) Stat. .')5 & 56 Vict. c. 57.
«^.,4thed. ; 4.")1, 551 sq., 5th ed. ; {n) See lielow. Chap. XI. ^ 1.
82
OF THE USUAL CONDITIONS OF SALE.
stipulation with respect to the incidence of the charge
or liahility (o) ; and, of course, the stipulation most
favourable to the vendor is to cast the burthen of pay-
ment on the purchaser, whether the notice or other
event, which gave rise to the liability, were served or
occurred before or after the sale (p).
Sale of land
by auction
in lots.
Custody of
title-deeds to
several lots.
Sale of lease-
holds in lots.
Sale in lots
of freeholds
subject to a
rent.
Where land is sold by auction in lots, stipulations
similar to those set out and discussed above ((/), are in-
variably made (where appropriate), but they are, of
course, expressed to bind the purchaser of any lot.
There are, however, certain matters for which special
provision should be made on a sale of land in lots.
Thus it is proper to provide that any documents form-
ing part of the title to several lots shall be retained by
the vendor until all those lots have been sold, whether
at the auction immediately contemplated or some future
sale, and shall then be delivered to the purchaser who
shall then have bought the largest part in value of those
lots(r). Where leasehold lands held imder one lease
at one entire rent are sold in lots, it is usual to stipulate
that the purchaser of the largest part in value of those
lots shall take an assignment of the lease and the
purchasers of the other lots shall take underleases at
specified rents from him or from the vendor (.s) . And
on the sale in lots of freehold land subject to one entire
rent (whether rent service, rent seek, or rent-charge), it
(o) As to the incidence of such
charges in the absence of special
stipulation, see cases cited above.
p. r-,0, n. {/) ; below, Chap. V. ;
Chap. XI. § 1 ; Chap. XII. § 2.
A special stipulation of this kind,
casting the liability on the vendor
or the purchaser according as the
requirement or demand creating
it is made before or after the sale,
is contained in the common form
conditions of sale of the Birming-
ham Law Society; and the Bristol,
Liverpool, and Manchester Law
Societies' conditions of sale con-
tain a stipulation throwing these
expenses on the purchaser where
the requirement is made after the
sale.
(p) See the form of stipuhition
given in Appendix A, below.
(?) Pp. 70-75.
(r) See below, Chap. XII. ^^ 3.
(s) See below. Chap. X. § 2 at
end.
OF THE USUAX, CONDITIONS OF SALE. 83
is commonly stipulated thnt all the purchasers shall buy
subject to the rent and shall have no right to require it
to be legally apportioned ; but provisions are made for
charging the rent, as between the purchasers, either
entirely on one or in specified proportions on more or
on all of the lots, and for granting new rent-charges to
issue out of the lot or lots so to be charged in order to
indemnify any purchaser against having to pay a greater
proportion (if any) of the rent than is so agreed to be
charged on the lot bought by him (f). ^ When land is Sale of land
put up for sale in lots, as to which it is proposed that /d restrictive
the purchasers shall enter into covenants restrictive of covenants.
the user thereof, then unless the vendor be willing that
any lots remaining on his hands unsold shall be subject
to the same restrictions, care should be taken to stipulate
that, as regards any lot or lots which shall not be sold,
the vendor shall not stand in the purchaser's place so as
to be bound by the covenants (//). According to the Purchaser of
present law, on a sale of any property in lots, a pur- entitled to
chaser of two or more lots held whollv or partly under "'^f fi-b^^ract
^' t- -^ only 01 the
the same title has no right to more than one abstract of common title.
the common title, except at his own expense (x) ; so it
is unnecessary to make any special stipulation to this
effect (//). A form of conditions of sale by auction of .
freehold and leasehold land in lots, giving examples of
all the stipulations discussed above (z), and containing
special conditions as to the vendor's title, is given in
the Appendix [a) .
Having thus considered the conditions usually made Stipulations
on sales by auction, it remains to inquire what stipula- contracts for
private sale.
(<) See above, p. SI, n. (i). Dart, V. & P. 126, ."ith od. ;
(m) See below. Chap. X. ^ 12. 1 Davidson, Prcc. Conv. .52(5, (MO,
(x) Convcyancinfr Act, 1S81, 4th ed.
stAt. 44 & 4.^ Vict. o. 41. s. .S (7). , , p -(,
(v) Such a stipulation was "'
usual before the year 1882: 1 (a) Apprn-lix A. l«low.
iy{2)
84 OF THE USUAL CONDITIONS OF SALE.
tions are generally inserted in formal agreements for
sale by private contract. The practice in this respect
has undergone remarkable fluctuation. We find that
down to the end of the first half of the last century
vendors were apparently content to undertake by ex-
press stipulation the obligations which the law cast
upon them in the case of an open contract ; notwith-
standing that those obligations, including the duty
of proving a good sixty years' title at the vendor's
expense, were far more onerous than they are at pre-
sent (/>). After this, a time of exceptional prosperity
brought about a brisk market for the sale of land, and
purchasers could be found who would agree, not only on
sales by auction (e), but on private sales, to stipulations
limiting the time for deducing title, giving the vendor
the right to rescind in case of a disagreeable requisition,
throwing upon the purchaser the expense of procuring
all evidence of title not in the vendor's possession and
even of the concurrence in the conveyance of all neces-
sary parties other than the vendor, and binding the
purchaser to pay interest on delay in completion " from
any cause whatever " (d). Then legislation took place,
entirely in vendors' favour ; and not only was the time
for deducing title limited to forty years on open con-
tracts (e), but the expense of procuring all evidence of
title not in the vendor's possession was thrown on the
purchaser in the absence of stipulation to the con-
trary (,/'). By this time the sale of land subject to
special stipulations drawn entirely in the vendor's in-
terest had become so much a matter of course that
conveyancers engaged in settling contracts for sale on
(i) See 1 Bythewood & J.innaii, Conv. vol. ii. pt. i. 1-20, 4th od.
Free. Conv. 3rd ed. by Sweet (1877).
(1841), pp. 490, 500 ; Sug. V. & > ^ ^ y.
P. 52, 1076, 11th c-d. (1846). ^ y ^^^^- '^' '^ '" ^^'^^^- ^- ''^'
(c) Above, p. 75, ii. («).
{d) See Juridical Society Pa- (/) Stat. 44 & 45 Vict. c. 41,
pers, ii. 589 sq.; Davidson, Prec. ,s. 3 (6).
Ot' THE USUAL CONDITIONS OF SALE. 85
the purchaser's behalf had almost abandoned even the
claim to protest (g). Recently, however, a change has
again taken place. Judicial decisions upon the construc-
tion of the enactment making the purchaser pay for all
evidence which the vendor has not, have shown that it
may work most unfairly to the purchaser, who has been
held liable to pay the expense of the production of title-
deeds in the possession of tlie vendor's mortgagees {//),
and of searching for a leading title-deed which was
absent from tlie vendor's possession (/) . It has also
been shown that the contract to pay interest on delay
in completion from any cause whatever (k) and the
stipulation requiring the purchaser to pay the costs of
getting in outstanding estates (/) may work great hard-
ship on a purchaser. Owing to these decisions, it is
thought that practitioners are again becoming sensible
of the duties incumbent on them when acting for a pui--
chaser ; and when on private sales vendors propose the
same stipulations as they would make on a sale by
auction, it is no longer a matter of course that the
purchaser's advisers shall receive the proposal with
supine acquiescence. Of coui'se bargaining about the
conditions of sale is like bargaining about the price.
The ultimate decision depends on the willingness of one
party to give in rather than lose the contract. But a
purchaser has such good reason for objecting, on a
private sale, to the conditions usual on sales by auction
that it appears foolish to agree to them without negotia-
tion. He is likely to succeed in some, if not all of liis
contentions ; and even where he finds himself reduced
to the alternative of withdrawing his objection or
abandoning the purchase, lie will often have extracted
((/) See 1 Key & Elphinstone's (i) Jte Stuart, Ulivaut and Sru-
Prec. Conv. 283, n., 2nd ed. ; dmt's Contract, 1896, 2 Ch. 328.
348, n., 4th ed. ; 316, n., 5th ed. (A) See above, p. 67.
(A) Rf WiUett and Argenti, 5 (/) Re Willctt and Argenti, 5
Times L. R. 476. Times L. R. 470.
86
OF THE USUAL CONDITIONS OF SALE.
valuable information showing why the vendor refuses
to give way, and helping him materially in exercising
his own judgment.
Vendor's
reasons for
not desiring
an open
contract.
The main reasons why a vendor does not usually
desire to sign an open contract are these : — he wants to
obtain a deposit as a guarantee for the due performance
of the contract ; he probably does not want to make out
the whole forty years' title as required by law ; he
desires above all to be able to rescind if a too onerous
requisition be made ; and he wants the time stipula-
tion as to making requisitions {m) and the express
contract to pay interest on delay from any cause what-
ever (//), in order to avoid the leisurely procedure sanc-
tioned by the rule that time is not of the essence of
the contract (o). But the purchaser has only one
reason for avoiding an open contract, namely, the un-
favourable position in which the law places him as
regards the expenses of evidence not in the vendor's
possession. In all other respects an open contract is
decidedly advantageous to him ; he pays no deposit, can
insist on a good forty years' title without fear that a
necessary but unwelcome requisition will be met by a
notice to rescind, can require the vendor to get in out-
standing estates or incumbrances at his own expense,
and need pay no interest on delay in completion caused
by the state of the title or the vendor's fault (p). On
the whole, it seems advisable for an intending purchaser
always to offer, and if he can, to procure the signature
of an open contract. If the vendor be anxious to sell
and satisfied with the price proposed, such an offer will
bring home to him the advantage of binding the pur-
chaser definitely and at once instead of disputing over
special stipulations, each of which gives the buyer an
{m) Above, p. 62.
(w) Above, p. 67.
(o) Above, p. 68.
{p) See above, pp. 26, 33, 41,
47, 50.
OF THE USUAL CONDITIONS OF SALE. 87
opportunity of retiring. And if the purchaser profess
his willingness to sign an open contract from the first,
he will occupy a favourable position for negotiating as
to any special stipulations. I am willing, he may point
out to the vendor, to buy under the conditions imposed
by law ; you wish to modify them. Be it so : but it is,
to say the least, unfair that every special stipulation
should be in your favour. If you expect to have the
great advantages of receiving a deposit and being
enabled to rescind on receiving an unwelcome requisi-
tion, advantages which you can only acquire by special
stijjulation, you must at least purchase them by reliev-
ing me from part of the expense now cast on me by
law, and you must not expect me to contract to pay
interest on delay caused by your fault.
In settling a private contract then, the object of the Points to be
draftsman actinar for the vendor will usually be to po'^sulered
. . . -^ m settling
obtain the insertion of the stipulations made on sales a private
by auction : while the duty of a conveyancer acting on ^°" ^^^ '
the purchaser's behalf is to oppose such provisions in
all points where they can be shown to be unreasonable.
We will now go through the clauses in detail.
The payment of a deposit is not an unreasonable Deposit,
requirement, and is usually demanded, unless the pur-
chaser be a person of well-known solvency {q). Nor
can such a requirement work unfairly to the purchaser,
if the contract be in other respects an open contract ;
provided he be careful to stipulate for payment of the
deposit to some responsible person as stakeholder, and
not to the vendor himself or to his solicitor as his
agent (/•). But if it be proposed that the contract shall
contain special stipulations as to title, a purchaser
(g) Davidson, Prec. Conv. vol. ii. pt. i. p. 4, 4th ed.
(r) See above, p. 28.
OF THE USUAL CONDITIONS OF SALE.
paying a deposit may find himself in this predicament,
which is by no means uncommon : — the special condition
may be considered in equity to be so unfairly drawn
that the Com-t will not enforce specific performance at
the vendor's suit without his complying with some
requirement as to title, which is prohibited by the letter
of the condition (.s). The vendor may decline to do
this ; and the purchaser cannot force him to do it,
because if the purchaser apply for specific performance,
the vendor would not be bound to prove more than a
good title according to the contract (t) ; and even if he
failed to prove this, the purchaser would be obliged
either to waive his objections to the title and pay the
costs of the inquiry into title {u), or to submit to have his
application dismissed without costs {x) . And if, in such
circumstances, the purchaser seek to recover his deposit,
he will fail, because that is a matter depending solely
on the effect of the contract at law. And the common
law, not recognising the unfairness which in equity
prevents the vendor from enforcing the contract speci-
fically, will regard the purchaser repudiating the letter
of the special condition as having broken the contract,
and will not therefore aid him to recover the deposit (?/) .
And if he complain of hardship, he will probably be told
that he was a fool to buy land on special conditions as
to title. These considerations ought to be present in the
mind of a purchaser's adviser, when it is demanded that
his client pay a deposit and yet submit to special con-
ditions as to title ; and he should endeavour, if he must
(*•) Above, p. 38. 347 ; Sug. V. & P. 646 : 2 Dart,
[t) Re Banister, Broad v.Munton, V. & P. 1129, 5th ed. ; 1263, 6th
12 Ch. D. 131, 145; Lawrie v. ^^■'> 991, 7th ed. In such case
Lees, 14 Ch. D. 249 ; 7 App. Gas. the purchaser could not recover
19
his own costs as damasfes at law :
, ^ -n J J T? 1 n -D Maiden v. Fyson, 11 Q. B. 292.
(m) Bennett v. Foivler, 2 Beav. " '
~'iQn "i A H ' ' ^y) Re National Provincial Bank
p. oyu, 6Ta ea. ^j, j^^^^j^^^^ ^„^ Marsh, 1895, 1 Ch.
{x) Lewis V. Loxhain, 3 Mer. 190 ; Ee Scott and Alvarez, 1895,
429 ; Maiden v. Fyson, 9 Beav. 2 Ch. 603 ; see above, p. 38.
OF THE USUAL CONDITIONS OP SALE. 89
give in to the demand, to yield only at the price of
some substantial concession to himself, as that the
abstract shall be verified free of all expense to the
purchaser.
It is a matter of course to fix a day for completion. Time for
A time should be allowed within which it is reasonably ^"'"^
likely that all things preliminary to completion will be
done. Too often the day for completion appears to be
fixed at hazard, or without any expectation that com-
pletion shall really then take place.
It is of course as necessary to stipulate expressly, Fixtures or
that fixtures or timber shall be taken at a valuation, on y^^uation "^
a private sale as on a sale by auction (z).
A purchaser should, as a rule, resist the insertion in Commence-
a sale by private contract of any special stipulations ™^^* *^*^*^"
limiting the vendor's obligations in respect of showing
title, and should only accept such provisions on con-
dition of concession in other matters to himself. Thus
if it be proposed that the abstract commence with a
deed less than forty years old, and that a deposit be
paid, the purchaser should require the vendor to under-
take expressly that the deed is a good root of title.
This would, it is thought, save the purchaser from
losing his deposit in circumstances such as those, which
have just been discussed (a). And further concessions
should certainly be demanded as the price of consent to
any large curtailment of the time for which title is
required to be shown by law ; as that the vendor should
bear the whole expense of verifying the abstract.
It is quite proper to provide in a private contract for Limiting
ng in the purchaser's requisitions or ob
{z) Above, p. 60. («) Above, p. 87.
sending in the purchaser's requisitions or objections ♦i^f.^or
" ^ •' making requi-
90
OF THE U81TAL CONDITIONS OF SALE.
sitioiis or
oLjectioDK.
within a limited time, to be of the essence of the con-
tract (b) . But the purchaser should take care that a
reasonable time is allowed for perusal of the abstract
by his counsel ; and he should stipulate that the abstract
be delivered within a specified time (c).
Reservation
to vendor of
right to
rescind the
coutract.
It is usual to reserve to the vendor the right to
rescind, if unable or unwilling to comply with some
requisition, on which the purchaser insists (d). This is
a stipulation which it is generall}^ essential for the
vendor to make. But as it is no part of an open con-
tract and is entirely one-sided, the purchaser ought to
make its acceptance a ground of securing some ad-
vantage for himself. And if he admit it, he should
stipulate that it be qualified by providing that the right
of rescission should only arise if the vendor have some
reasonable ground, as the expense, for declining to
comply with the requisition {e). He should also take
care tliat the terms of the stipulation give him the
alternative of withdrawing the unwelcome requisi-
tion (/).
Expense of
verification of
the abstract.
The purchaser ought to try to obtain some relaxation
of his obligation to bear the expense of procuring and
producing all evidence of title, which is not in the
vendor's possession (g). He should ask, according to
the vendor's eagerness to sell and the modifications of
the contract proposed on the vendor's behalf, that the
vendor shall bear either (1) the whole expense of verify-
ing the abstract, or (2) such expenses of the production
for verification of the abstract and the examination by
(h) Above, p. 62.
(c) See above, p. 62.
(d) Davidson, Free. Conv.
vol. ii. pt. i. p. 4, 4th ed. ; see
above, p. 64.
(e) See 1 Key & Elphinstone,
Prec. Conv. 266, n. (b), 4th ed. ;
254, n. {d), 8th ed. ; above, p. 64,
11. (s) ; and as to the construction
of a stipulation so framed, He
Weston and Thomas^n Contract,
1907, I Ch. 244, 248.
(/) See above, pp. 65, 72.
(y) Above, pp. 33, 47.
OF 'I'HE TJSTTAL CONDITIONS OF SALE. 91
the purchaser's solicitors of any documents, which the
purchaser can require to be abstracted and which are in
the possession of any other person than the vendor, as
the vendor would be bound to pay if the said docu-
ments were in his own possession, or (3) the like ex-
penses us to documents which can be required to be
abstracted and are in the possession of a mortgagee or
other iucumbnincer. The last of these stipulations
ought to be proposed on the purchaser's behalf on every
treaty for a private sale (I/).
The purchaser should object to any stipulation limit- Evideucc
ing his right to require evidence of identity (/), and " ' ^n i y.
should certainly not agree, without good reason shown,
to an}^ stipulation more stringent in this respect than
the common-form condition on sale by auction (/r).
As we have seen (/), an express stipulation, that com- Compensa-
pensation shall be paid for errors of description, is more errors of
favourable to the purchaser than the terms of an open descriptiou.
contract : whilst a condition, that no compensation shall
be made for such errors, appears more advantageous to
the vendor. The stipulation fairest to both parties
appears to be that providing for compensation to be
allowed by the vendor or the purchaser, as the case
shall require, and not restricting the right of compensa-
tion to errors discovered before the completion of the
sale (m).
A purchaser should certainly strike out of a cbaft Conveyance,
contract any provision throwing upon him the expense
(h) Such :i stipulation is con- vol. ii. pt. i. pp. 4, 13- IG, 4th ed.
tained in the common form con- (/,.) gge above, pp. 33, 65, 72.
ditions of sale by auction of the
Bristol, Liverpool, and New- W Above, p. 65.
castle-upon-Tyne Law Societies ; (iii) A condition of this kind is
and the Birmingham Law Society usually made on sales by order of
conditions are, as we have seen, the Court; 1 Davidson, Prec.
even more favourable to the pur- Conv. 653, 663, 4th ed. ; 587, 591,
chaser. Above, p. 75, n. {/> . 5th ed. ; R. S. C. 1883, App. L.
(i) See Davidson, Prec. Couv. No. 15, j 9 ; see above, p. 66.
92
OF THE UStJAL CONDITIONS OF SALfi.
of getting in any outstanding estate or perfecting the
vendor's title, or of the concurrence in the conveyance
of any necessary parties besides the vendor (>?). In
these respects he should stand out for the rights he
would have under an open contract (o). This is only
reasonable ; and we have seen that, under the common
form conditions of the Birmingham and other law
societies, purchasers on sales by auction are not deprived
of these rights ( p) .
The same provision is made on a private sale for
Apportiou-
rents and apportionment of the rents and outgoings as on a sale
outgoings. ly auction ().
Interest in
case of delay-
in completion.
It is invariably asked that the purchaser shall ex-
pressly agree to pay interest on his purchase in case of
delay in completion (r). But purchasers are ad\i8ed to
object to a stipulation binding them to pay interest on
delay in completion arising " from any cause whatever "
or " from any cause whatever other than the wilful
default of the vendor " (s) ; not to agree to an excessive
rate of interest, as 5/. per cent, under the present con-
ditions of the money market ; and to stipulate that, if
delay in completion shall arise from the state of the title
or any other cause except the purchaser's own fault, he
may discharge himself of his liability to pay interest by
duly appropriating his money to the purchase. Such a
stipulation is, as we have seen (/), contained in the
common form conditions of sale by auction of the
Birmingham, Bristol, Liverpool, and Manchester Law
Societies.
Re-sale. A stipulation reserving to the vendor the right of
re-sale on any breach of contract by the purchaser
(n) Above, pp. 67, 73.
(o) Above, p. 47.
Ip) Above, p. 7-5, n. {b).
(q) Above, pp. 67, 74.
(r) Davidson, Free. Conv. vol. ii.
pt. i. p. 4, 4th ed. ; 1 Key &
Elphiustone, Free. Conv. 259,
351, 4th ed. ; 247, 351, 8th ed.
(.s) See above, p. 68.
(t) Above, p. 75, n. (*).
OF THE USUAL CONDITIONS OF SALE. 93
appears in well-known books of conveyancing prece-
dents among the provisions usual in private sales (/^).
But there is certainly no settled practice to include such
a condition in a private contract ; and if it be inserted
on the vendor's behalf, the purchaser's advisers are
recommended to strike it out (.r).
A form of private contract for sale will be found in
the Appendix (y).
(ii) Davidson, Free. Conv. 2o6, 8th ed.
vol. ii. pt. i. p. 4. 4th cd. ; 1 Key .r) See Davidson's Conciso
& Elphinstone, Free. Conv. 268. Freoedents, 112, n. {a), 18th cd.
3il. 4th ed. ; 242, 319, oth ed. : ((/) See Appendix B, below.
94
CHAPTER IV.
OF THE vendor's OBLIGATION TO SHOW A GOOD
TITLE AND ITS DISCHARGE.
Origin of the
rule, that the
vendor must
show a good
title.
§ 1. Of the general nature of the proof required.
§ 2. Of the abstract.
§ -3. Of the verification of the abstract.
^ 1. — Of ilie vendor^ s ohligafion to s/wiv a good fitJe
and its dkcharge.
We have seen [a) that every vendor of land is bound
to show a good title to the property sold by him. This
rule would appear to be of equitable origin. The Courts
of Equity, in granting to a vendor the extraordinary
relief of enforcing specific performance of the contract,
considered that it was only fair to impose the condition,
that he on his side should prove that he could actually
convey what he professed to sell {b). And the obliga-
tion so established in equity was afterwards held to be
equally incident to the contract at law {c). What the
vendor has to prove, in order to fulfil this obligation, is
that he can convey that which he contracted to sell ;
that is to say, if he engaged to sell a freehold or copy-
hold in fee (r/) , the fee simple free from incumbrances, or
(«) Ante, p. 32.
[b) Jenkins v. Hiles, 6 Ves. 616,
6.53; White v. Fu/jambe, 11 Ves.
337 ; Deverel/ v. lioliuii, 18 Ves.
508; FiMcs v. Hooker, 2 Mer.
424 ; Purvis v. L'ai/er, 9 Price,
488, 518, h\
of equity and law, adopted from the practice of con- proof of a
veyancers, whereby proof of title for not less than sixty
years before the contract was held to be proof of a good
title, if nothing appeared to the contrary (e). It is im-
portant to bear in mind, however, that this was merely
a subordinate rule limiting the amount of evidence
which the purchaser could require. It simply bound
the purchaser to accept, as proof of a good title, evidence
of sixty years' ownership ending in the vendor or in
some person or persons whom the vendor would have
the right to direct to convey ; provided, however, that
nothing appeared to show that the ownership so proved
was not full or complete (,/'). But it was of no avail to
show sixty years' title, if the result of the evidence pro-
duced were not to discharge the vendor's main obliga-
tion, that is, to prove that he could actually convey
what he sold (r/). Thus on the sale of a freehold in fee,
if it were proved that the vendor and his predecessors
had had possession and exercised acts of ownership for
sixty years back, that would no doubt be prima facie
evidence of a seisin in fee, and the purchaser would be
bound to accept the title {It). But supposing it ap-
peared from the vendor's evidence, or the purchaser
could prove from other sources that such possession
and ownership were enjoyed under a demise for a long
to .sell a piece of laud, without F. & J. 246; Suif-V. &P.;5(i.),407.
specifying wliat e.state therein is ( /') See not*' to I'an- v Low-
to be conveyed, is construed as a f/rovr, 4 Drew. 18.3.
contract to sell the whole estate {g) See Sug. V. & P. ;{(>() ;
therein, that is, in the absence of Frond v. Bueldfij. L. H. -5 Q. B..
any limiting expressions, the uu- 2 IS.
incumbered freehold in fee; above, {/<) See Prossfr v. Jfatli, (j
p. 41. Madd. .if); Cottrel/ v. U'ntkiiis,
ie) Bamwefl V. Harris, I Tiixint. 1 Beav. :}61, 36.5, 3tit> ; Parr v.
4.30. 4.32; (Jonperv. Emeri/. I Ph. Lovrtjroro,4 Drew. 170, 177. 17S;
388; Hodidinson v.('oop''r.9 Hesiv. Mo>if'/>ti v. K'hnfnuh. I D-' G. V,
304 ; Mouliuii v. EilinuiuLi, 1 De G. & J. 2*6,
96 OF THE vendor's OBLIGATION TO SHOW
term of years, it is obvious that the evidence of sixty
years' title would not prove that the vendor could
convey the fee simple which he sold. The purchaser
therefore could require further evidence of the vendor's
title to the fee simple, and if this were not forthcoming,
would have the right to rescind the contract. It seems
worth while to insist on this apparently simple distinc-
tion between the main rule imposing the duty of show-
ing a good title, that is, a title to convey what was
sold (i), and the subordinate rule defining the manner
of proof. As a matter of fact, omission to remember
this distinction has been a fruitful source of error,
especially in cases where the time for which title can be
required to be shown has been limited by special stipu-
lation. In some such cases, the vendors, or their
advisers, would appear to have forgotten that such a
stipulation merely limits the evidence of title that can
be asked of them in the first instance, and does not
exempt them from the general duty of proving tliat
they have the right to convey what they have sold {k) .
Sixty years' A good title then is shown by proving such ownership
title^had^to ^^ ^^ promised by the contract ; and the evidence re-
a rule, in all quii'ed is evidence of the exercise of acts of ownership
for a period of time which, in the absence of special
stipulation, was fixed at not less than sixty years. The
rule requiring evidence of sixty years' ownership in
proof of title applied equally to a sale of freeholds,
whether of inheritance or for lives, copyholds and lease-
holds for years (/). In the case of leaseholds, if the
(i) Lmvric v. Lees, 7 App. Gas. and Ncve'^s Contract, 1891. 2 Ch.
19. 109.
[k) See Phillips v. Caldclni(/h, (l) Barnwell y. Harris, \Ta,\xat.
L. R. 4 Q. B. 159; Waddell 430; Cooper sr. Emery, \ 'Ph. Z9,^\
V. Wolfe, L. R. 9 Q. B. 515 ; Hodgkimou v. Cooper, 9 Beav.
Nottinqhani Patent Brick and Tile 304 ; Moiiltoii v. luhiioiids, 1 De G.
Co. V.' Butler, 15 Q. B. D. 261, F. & .T. 246; Su?. V. & P. 365,
271 ; J6 Q. B. D. 778 ; Re Cox 407.
cases.
A GOOD TITLE AND ITS DISCHARGE. 97
lease were less than sixty years old, the vendor might
be required to show the title to the freehold for such a
period as, with the time expired since the grant of the
lease, would make up sixty years (w). There were, When earlier
hi. • • t,' T, i-u 1 ij n title could be
owever, certam oases in which the purchaser could call required
for earlier title than that of the last sixty years. These
were the following : —
(1.) Not less than one hundred years' title must have i- Advowson.
been shown to an advowson («).
(2.) Upon a sale of a long term of years, the lease 2. Long term,
must have been produced, although more than
sixty years old. But after the date of the
lease the title during the sixty years next
before the date of the contract for sale was
all that could be required (o) .
(•3.) Upon a sale of tithes or other propert}^ held 3. Tithes or
under a grant from the Crown, the original by'crown''^ '
grant must have been shown, although more g^ant.
than sixty years old. After the date of the
grant, only sixty years' title prior to the con-
tract need have been shown . The intermediate
title could not be required (p).
(4.) Upon the sale of a reversionary interest, its 4. Reversion-
i • i. 1, V T- 1 i. "i ary interest.
creation must have been shown, whatever its
antiquity {q).
{m) Furvis v. liatjer, 9 Price, (o) Sug. V. & P. 370; Frend
488 ; Souterv. Drolr, .5 B. & Ad. v. Bitckki/, L. R. 5 Q. B. 213;
99-i. The rule also applied to a 1 Dart, V. & P. 294, hth ed. ; Contract to
contract to grant a lease, whether 335, 6th ed. ; 330, 7th ed. ; Wms. grant a lease,
for lives or years, such a con- Real Prop. 450, 1 3th ed. ; 592,
tract being regarded as equiva- 21st ed.
lent to a sale for the time the ( /i) Pickrritui v. Lord Sherborne,
1 Craw. & Dix, 251; 1 Prest.
Abst. 30, 2nd ed. ; 1 Jiirm. Conv.
by Sweet, 68 ; Su?. V. & P. 367 ;
1 Dart, V. & P. "^295. oth ed. ;
336, 6th ed. ; 331, 7th ed.
(7) 1 Pre.st. Abst. 19, 2nd ed. ;
1 Jann. Conv. by Sweet, 61 ;
1 Dart, V. & P. 294. 5th ed. :
Prop. 449, 13th ed. ; 592, 2l8t ed. 335, Gth ed. ; 32y, 330, 7th ed.
W. 7
lease
was to
run
;
Roper V.
Coomhes,
6 B.
& C
34 ; Sug.
V. &
1'.
367.
n.(l)
;
Strankn v.
St. John,
L. R
2 C.
p
376 ; see
below
. P-
101.
(«)
Sug. V.
& P. 367
; 1 Dart,
V. &
P.
293,
5th I
d.
: 334. 6th
ed.;
329
, 7th
ed. ;
A\
ai.H. Real
98 OF THE vendor's OBLIGATION TO SHOW
All these instances do but illustrate the point on
which we have been insisting, that the vendor's obliga-
tion is to show that he has the right to convey what he
sold, and unless the evidence offered in support of the
title prove this, it is insufficient, though it were evidence
of sixty years' ownership. The case of a sale of lease-
holds is particularly instructive. On the ground that a
purchaser of leaseholds was entitled equally with a pur-
chaser of freeholds to the assurance that he should have
the very thing he bought, it was held that the vendor
was bound to produce the freeholder's title to grant the
lease, if the lease were less than sixty years old (r).
But if the lease had been granted more than sixty years
before the sale, proof of sixty years' enjoyment under
the lease would establish the presumption that it had
been well granted, and in such case the freeholder's
title could not be called for ; although the lease itself
must have been produced, in order to prove that the
vendor could assign the very interest which he had
sold («). The other cases will be found to depend on
similar principles.
Vendor and The law being as above stated, it was enacted in the
aT m"*! Vendor and Purchaser Act, 1 874 (0 , as follows :— In the
completionof any contract of sale of land [k) made after the
31st day of December, 1874, and subject to any stipu-
Forty years' lation to the contrary in the contract, forty years shall
required. ^^ substituted as the period of commencement of title
which a purchaser may require in place of sixty years,
the present period of such commencement ; never-
theless earlier title than forty years may be requii-ed in
(>•) See cases cited ante, p. 97, s. 4), in every Act passed after
n. (w/). the year 1850 the expression
(«) Ante, p. 97. " land " shall, unless the contrary
(f) Stat. 37 & 38 Vict. c. 78, s. 1. intention appears, include mes-
[u) By the Interpretation Act, suages, tenements, hereditaments,
1889 (Stat. 52 & 53 Vict. c. 63, houses and buildings of any
B. 3, replacing 13 & 14 Vict. c. 21, tenure,
A GOOD TITLE AND ITS DISCHARGE. 99
cases similar to those in which earlier title than sixty
years may now be required. This enactment in no way
detracts from the main rule that the vendor must show
a good title ; it merely reduces the time, for which title
must, as a rule, be proved, from sixty to forty years.
By the same Act (x) , the purchaser of a term of years Title on
was deprived of the right to call for the title to the free- feaseliold8°
hold, in the absence of stipulation to the contrary ; and *'^^ years—
by the Conveyancing Act of 1881 (i/) the purchaser of a
term granted by underlease was deprived of the right
(unless expressly reserved) to call for the title to the
leasehold reversion. Thelatter Act also took away from of enfran-
the purchaser of land, once of copyhold or customary holds. ^^^^'
tenure but converted into freehold by enfranchisement,
the right (except by express agreement) to call for the
title to make the enfranchisement (s). We have seen
that a purchaser of leaseholds was entitled to call for
the production of the lessor's title on the ground that
the validity of a lease depends on the lessor's power to
grant it {a). And where enfranchisement has been
effected by the lord's conveyance of the freehold to the
tenant, it is obviously material to prove the title to
make the enfranchisement in order to establish a good
right to the land (b). But before the above-mentioned
enactments were passed purchasers frequently submitted
in practice to special stipulations of the like nature (c),
which seems to be the reason why these statutory
provisions were made.
(x) Stat. 37 & 38 Vict. c. 78, cannot be inquired into on a sale Enfranchisc-
s. 2, r. 1. of the land after such enfran- ment under
(y) Stat. 44 & 45 Vict. c. 41, chisement ; see Stat. 4 & 6 Vict, the Copyhold
8. 3 (1), (9). c. 36, 8. 64 ; Kerr v. Fousoii, lio Acts
(;) Sect. 3 (2), (9). Beav. 394 ; 1 Dart, V. & P. 166,
{a) Ante, p. 98. 290, .5th ed. ; 189, 330, 6th ed. ;
(b) Sug. V. & r. 372 ; 1 Dart, 183, 326, 7th ed. ; Stat. 57 & 58
V. & P. 289, 5th ed. Enfran- Vict. c. 46, ss. 21, 26 (3), (4),
chisement under the Copyhold 38, 61.
Acts, 1841, 1852, or IS94, makes (c) 1 Dav. Prec. Conv. 531,
the land freehold, irrespectively 623, n. (y), 4th ed. ; 1 Dart. V. &
of the validity of the lord's title ; P. 166-68, 5th ed. ; Wms. Real
which is therefore immaterial and Prop. 452, 13th ed.
7(2)
100
OF THE VENDOR S OBLIGATfON TO SHOW
The present
law.
1. Freeholds
or copyholds.
2. Enfran-
chised copy-
holds.
3. Leaseholds
for years.
The present law therefore is this : — The vendor is
bound to show a good title, that is, he must prove that
he has the right to convey what he sold. In some ex-
ceptional cases he may be able to offer summary and
complete proof of this, as where a title, good against all
the world, is vested in him by Act of Parliament {d).
But, as a rule, he will have no alternative but to give
evidence of the ownership of himself and his predeces-
sors for a certain time back. This time, in the absence
of special stipulation, must be not less than forty years,
but this general rule is modified by the considerations
and enactments already stated (f'). A purchaser under
an open contract is therefore entitled to call for the title
mentioned below in the following cases of sale : —
1. Of freeholds of inheritance or for lives, or copy-
holds, title for forty years next before the contract (/').
In the ease of freeholds for lives, the lease for the lives
must be produced, though more than forty years old.
2. Of freeholds, formerly copyhold but enfranchised
within forty years of the sale, the freehold title back to
and including the enfranchisement, and beyond that the
copyhold title back to forty years before the contract {g) ,
but not the title to make the enfranchisement (/?) .
3. Of leaseholds for years, production of the lease
under which the property is held in all eases ; and, if
the lease be more than forty years old, the title under
the lease for the forty years next before the contract,
otherwise the whole title subsequent to the lease : but
not in any case the title to the freehold, nor, in the case
[d) This might be by special
Act of Parliament, and appears
to be the case with persons regis-
tered as owners with an inde-
feasible title under the Land
Registry Act, 1862 (Stat. 25 & 26
Vict. c. 52, s. 20), or with an
absolute title under the Land
Transfer Act, 1875 (Stat. 38 & 39
Vict, c, 87, s. 7) ; see 1 Uart,
V. & P. 305, 306, 5th ed. ; 347,
6th ed. ; 342, 7th ed. ; Land
Transfer Act, 1897 (Stat. 60 & 61
Vict. c. 65, s. 16) ; below, Chap.
XX.
(e) Ante, pp. 95 — 99.
(/) Ante, pp. 95, 98.
(y) Sug. V. & P. 372 ; 1 Dart,
V. & P. 289, 6th ed.
(h) Ante, p. 99, and n. (*),
A GOOD TITLE AND ITS DISCHARGE. 101
of the sale of property held by underlease (i), the title
to any leasehold reversion (k) . Here we may remark Contract to
that the same law applies on a contract to grant a lease f^j. years.
for years (/), the intended lessee being precluded, in the
absence of stipulation to the contrary, by the Vendor
and Purchaser Act, 1874 (/w), from calling for the title
to the freehold, and by the Conveyancing Act of
1881 (n) from calling for the title to any leasehold
reversion to the intending lessor's interest. But on a Contract to
contract to grunt an underlease, the intending lessor underlease.
still remains liable to produce the lease under which he
holds, and to show the subsequent title thereunder, if it
be less than forty years old, otherwise the last forty
years' title thereunder.
4. Of an advowson, title for at least one hundred 4. Advowson.
years before the contract (o).
5. Of tithes or other property held under a grant o. Tithes, or
from the Crown, production of the original grant in all by'crown ^
cases, and title thereunder for the forty years next grant.
before the contract {p).
6. Of a reversionarj' interest, production of the 6. Reversion-
instrument which created it, in all cases ; and in ^^^ '° ^^^ '
addition proof that possession of the land has been in
accordance with the instrument so produced (^/). If
the reversionary interest were created less than forty
(t) Ante, pp. 07, 99. Here it {l) Above, p. 97, u. (tii). Property held
may be noted that, ou the wale of (w) Stat. 37 & 38 Vict. c. 78, by underlease
a term granted V)y an underlease, s. 2, r. 1 ; Jones v. Watts, 43 Ch. must be so
the property must be described as D. 574. described,
held by under/ease. For if pro- («) Stat. 44 & 45 Vict. c. 41,
perty sold be described as held s. 13.
by lease, that is intended to mean (o) 1 Dart, V. & P. 293, 5th
a lease from the freeholder, so ed. ; 334, Gth ed. ; 329, 7th ed. ;
that if the vendor be possessed "Wras. Real Prop. 451, 13th ed. ;
only of a terra granted by under- 592, 21st ed.
lease, he is not in a positicm to (jo) 1 Dart, V. & P. 295, 5th
fulfil the contract ; lie Bci/fiisatid ed. ; 336, Gth ed. ; 331, 7th ed.
Ma-stem's Contract, Z9 Ch.t). 110; {q) 1 Jarm. Conv. 3rd ed. by
see above, p. 80. Sweet, 61, 62; 1 Dart, V. & P.
[k) Goslinfi v. Woolf, 1893, 1 294, .'ith ed. ; 335,6th ed. ; 329,
Q. B. 39. ' 330, 7th ed.
102 OF THE vendor's OBLIGATION TO SHOW
years before the contract, of course the whole title
subsequeut to its creation must be shown. In other
cases it would appear to depend on the nature of the
interest sold what title ought to be shown subsequently
to its creation. If the proj)erty sold were a reversion or
remainder to which any rent is incident, then the pur-
chaser could call for production of the last forty years'
title, but not the intermediate title. For in such a case
there is a perception of tangible profits by receipt of
rent, and this affords evidence of title as against not
only the rent-payer but others as well. If however
what was sold were a bare right, the apparent devo-
lution thereof to particular persons for the last forty
years can raise no presumption of the establishment of a
right superior to the claims of others. In this case
therefore there seems to be no good reason for putting
any time-limit to the required proof that the vendor has
the right to convey what he sold ; and it is thought that
the whole title, from the creation of the reversionary
interest to the contract for sale, can be called for.
The best and At the present time then, the vendor, in order to
evidence of show a good title to the property sold, has, as a rule, to
title is pro- giye evidence of the last forty years' ownership thereof,
title-deeds. and to make out that such ownership ends either in
himself or in some person or persons whom he is en-
titled, either unconditionally or upon certain conditions
of which the performance rests with himself alone (such
as the payment off of mortgages), to direct to conve3\
Now, as some of the best evidence of ownership is proof
of the power of disposition incident to ownership, espe-
cially for valuable consideration (r), and as proof that
the vendor has the right to convey what he sold must
necessarily be made out by showing the devolution of
the ownership of the land, it usually happens that the
(r) See Burt. Comp. pi. 418-427.
A GOOD TITLE AND ITS DISCHARGE. 103
main evidence offered in support of the vendor's title is
the deeds, by which the land sold has been conveyed on
former sales or mortgages thereof, and any mil, by
which the land may have been devised. Thus the chief
evidence of title given on sales is almost entirely docu-
mentary. This results of course from the fact that ever
since the end of the mediieval period of law, the usual
method of making a conveyance of land has been by
the execution of deeds or a deed («). If then, on the
sale of a freehold in fee, the vendor produce the title-
deeds for the last forty years, and these show that the
fee simple in the land sold has been conveyed to him,
free from incumbrances, and if there be satisfactory
evidence that the deeds produced relate to the land sold,
and the vendor be in possession of the land and of the
deeds, he has shown a good title to the land. But Other evi-
although title deeds are the most common, and, owing
to the long prevailing custom of conveyance by
deed, the best evidence of title, it must not be sup-
posed that they are the only evidence which the pur-
chaser is bound to accept. This will appear clearly if
we bear in mind oui" main rule, that what the vendor
has to show is that he has the right to convey what he
sold, and our subordinate rule, that, if nothing appear
to the contrary, this shall be taken to be shown on proof
of forty years' ownership, that is, in the case of free-
holds, forty years' seisin in fee, ending in the vendor.
Now forty years' seisin in fee may be proved without
deed ; as by evidence of the seisin of some ancestor of
the vendor forty years ago, and of devolution of the title
to the vendor by descent. And if the facts of posses-
sion and kinship on which such a title must depend,
were fully proved, the purchaser would be bound to
accept it [f). But to illustrate the above rules further,
(s) See Wms. Real Prop. Ho, 361,365,366; Dorlinpy. Ciai/dot,,
200 sq., 2l8t ed. 1 H. & M. 402 ; Sug. V. & T.
(t) Cottnll V. JVatkins, 1 Beav. 410, 421 ; 2 Prest. Abst. 23, 2nd
104 OF THE vendor's OBLIGATION TO SHOW
it may be observed that the vendor of a freehold in fee
would scarcely discharge his obligation to show a good
title by simply proving that he himself had been in
possession of the land sold for forty years. For although
the rule applicable in actions for the recovery of land is
that possession is prima facie evidence of a seisin in
fee (?/), it is considered that, on sales, the purchaser is
entitled to better proof, that the vendor has the right to
convey what he sold, than is afforded by facts equally
consistent with his being entitled for life or years only
as with his having the entire fee simple (.r). In such a
case therefore it is thought that the purchaser could
require the vendor to show the origin of his possession,
and to establish that he entered as tenant in fee, for in-
stance, under a conveyance on sale to him, or as heir, or
upon a wrongful entry [y] .
Title de- Here it may be noticed that the Court will compel a
pending on purchaser to take a title depending on the Statute of
Limitations. Limitations, that is to say, depending on the ex-
tinguishment under that Statute (s) of the right and
title of some person or persons who are shown to have
been rightfully entitled {a) . But it must not be sup-
posed that this doctrine enables a vendor, who has been
in possession for twelve or even thirty years to escape
the common obligation of showing forty years' title as
proof of a good title. Possession for these periods does
not give a good title under the Statute as against all
the world ; it does not bar the rights of remaindermen
ed. ; 1 Dart, V. & P. 298, 336, 1 Dart, V. & P. 334, 5th ed. ;
6th ed. ; 340, 380, 381, 6th ed. ; 379, 6th ed. ; 372, 373, 7th ed.
334, 376, 377, 7th ed ^ . g ^^ ^^.^^ ^ ^
{h) Doc di.. HaU v. Penfold, 8 0. WJ. r i, t n m, t-» ^^
& P. 536 , Cole on Ejectment, ^- <') ^ ^'""^ ^- •^'^^' ^ ^^- ^- ^^■
■in. (2) Stat. 3 & 4 Will. IV^. c. 27,
{ic) See Hiern v. Mill, 13 Ves. s. 34.
114, 122; Eyton v. Uicken, 4 Fri. (a) Scott v. Mxon, 3 Dru. &
303 ; Cottrcl'l v. Watkins, 1 Beav. War. 388 ; Games y. Bonnor, 54
361, 365, 366 ; Sug. V. & P. 461 ; L. J. Ch. 517 ; 33 W. K. 64.
A GOOD TITLE AND ITS DISCHARGE. 105
or reversioners not entitled to possession until the deter-
mination of some particular estate (b) . It does not appear
therefore that a vendor's obligation of showing a good
title can be discharged by proof of thirty or even forty
years' possession by himself alone, without showing, if
the Statute of Limitations be relied on, who were right-
fully entitled and that the vendor's possession has
effectually barred their claims (c).
A good title then may be shown without deed. But Vendor must
the deeds are the best evidence of title ; and if the land SSe.deeds ""
sold has been conveyed by deed within the period for if he can.
which title has to be shown, it is not open to the vendor
to prove forty years' seisin in fee by other means. He
must j)roduce the deeds, or if they be lost or destroyed,
give proper secondary evidence of theii' contents (d).
§ 2. or the Ahstrad of Title.
Evidence of title on sales being for the most part Vendor bound
documentary [e), and such as can be weighed only by ^°,™**^'^ ^^^
skilled legal advisers, it became usual to facilitate the abstract of
task of judging of the effect of the title-deeds by ^^^ ^'
making an abstract of their contents for the perusal of
the pm'chaser's counsel. It appears that formerly the
deeds were handed over to the purchaser for examina-
tion, and any abstract of them which he might require
was made at his expense. But afterwards it became
established that the vendor was bound to make at his
own expense and deliver to the purchaser an abstract of
{b) Stat. 37 & .'i8 Vict. c. 57, the dictum here cited is uuexcep-
88. 1-5 ; I'eddvr v. Uitnt, 18 Q. B. tionable : but the decision in this
D. 565 ; lie Euii of Jjevon's Hcttlcd case is criticisetl by the writer iu
Estates, 1S9G, 2 Ch. 562. 51 Sol. J. 141, 155.
(c) Jacobs v. licvcll, 1900, 2 Ch. / .< j, ^ » , , t>
858 Farwell, J., £' .Visbet and .Z*^ /'"^'^''l.J- ^'J*^- •* R"««- 1 :
rotl> Cmnact, 1905, 1 Ch. 391, f 7";';/- ^'^"«>«'^. 1 ^^ «• F.
401, affirmed, 11)0(3, 1 Ch. 386. «J--*o-
It is respectfully submitted that (<) Ante, p. 103.
106
OF THE vendor's OBLIGATION TO SHOW
the title to the property sold (_/'
remains (g).
and so the law still
What the
abstract ought
to contain.
The abstract
should com-
mence with a
good root of
title.
General
devise.
Conveyance
of an equity
of redemp-
tion.
Speaking generally, the abstract of title ought to
contain a statement of the material parts of every
deed, will or other instrument, by which any dis-
position of the property was made during the time for
which title has to be shown ; it ought also to contain a
statement of every birth, death, marriage, bankruptcy
or other event material to the devolution during the
same period of the estate contracted to be sold {h). If
the earliest piece of evidence stated on the abstract be
an instrument of disposition, and this be offered in un-
supported proof of the commencement of the vendor's
title, it must be what is called a good root of title ; that
is to say, it must be an instrument of disposition deal-
ing with or proving on the face of it (without the aid
of extrinsic evidence) the ownership of the whole legal
and equitable estate in tlie property sold, containing a
description by which the property can be identified, and
showing nothing to cast any doubt on the title of the
disposing parties. If the instrument be deficient in any
of these particulars, the purchaser may require further
evidence to supply the deficiency (i). For example, if
the abstract commence with a will containing a general
devise of the testator's real estate, under which the pro-
perty sold is alleged to have passed, the purchaser will
be entitled to require evidence of the testator's seisin (k) .
And if the first abstracted deed be a conveyance of an
equity of redemption, that is, of laud subject to a
mortgage either in fee or for a term of years, it is
(/) Sug. V. & P. 406.
{(/) It has not been altered by
sect. 3 (6) of the Conveyancing
Act of 1881 ; lie Johnson and
Tustin, 30 Ch. D. 42.
(h) Sug. V. & P. 405 sq.; 1
Dart, V. & P. 279 sq., 5th ed. ;
319 sq., 6th ed. ; 315 s^., 7th ed. ;
Ee Wallis ^- Grout'' s Contract, 1906,
2 Ch. 206.
[i) 1 Dart, V. & P. 295 sq.,
5th ed. ; 337 sq., 6th ed. ; 331 sq.,
7th ed. ; Re Cox ^ Neve's Contract,
1891, 2 Ch. 109, 118.
(A) Parr v. Lovegrove, 4 Drew.
170.
A GOOD TITLE AND ITS DISCHARGE. 107
thought that the purchaser is entitled to require the
mortgage deed (however old) to be abstracted and pro-
duced (/). But a conveyance in fee on a sale or by way
of mortgage is a good root of title. So a transfer of a Transfer of
mortgage in fee appears to be a good root of title, ^^^ °^^^'
where it is made with the concurrence of all parties in-
terested in the equity of redemption, and a new equity
of redemption is reserved. But unless a new equity
of redemption be reserved, a transfer of a mortgage
appears to be no more a good root of title than a con-
veyance of the equity of redemption is.
The necessity for a good root of title is explained by Reason of the
referring to the rule that a g-nod title is shown by proof ^"^^ requiring
*-' , . " . "^ *^ a good root
of forty years' title This means forty years' title to tlie of title.
whole estate sold ; so tliat if the fee be sold, what the ven-
dor has to prove is forty years' seisin in fee. He must
therefore begin by proving a seisin in fee by himself or
his predecessor of the property sold forty years before the
contract, and end by sliowing a like seisin at the present
time in himself or some person whose conveyance of
the property he has a right to procure («?). It is
accordingly equally incumbent on him to produce good
evidence of the possession of tlie whole estate contracted
for at the time of the commencement of title as to show
that this estate is now his to convey. This is the reason
why further evidence may be required by the purchaser,
if the first document on the abstract be insufficient of Convevance
itself to prove the ownership of the whole estate. Con- "^ equity of
sidered with regard to this principle, the conveyance of
an equity of redemption {n) and a lease for years, even
though it be a demise by way of mortgage for a long
term, obviously fall short of the requirements of a good
(/) This follows from the prin- (w) Ante, p. 102 ; and consider
ciples laid down in P/ii/lipn v. the cases cited above, p. 106,
Caldvkuyh, L. R. 4 Q. B. 159 ; lie notes (A), (*)•
Cox ^Neve's Contract, 1891, 2 Ch.
109, 117, 118. («) Above, p. 106.
108
OF THE VENDOR S OBLIGATION TO SHOW
Deed exer-
cising a
power.
Disentailing
assurance.
root of title. So a deed appointing an estate under a
power of appointment is not of itself a good root of title ;
as to have a power of appointment over an estate is nol
the same as to be the owner of it, and what a vendor
has to prove is the full ownership, at the time of com-
mencement of title, of the estate he is selling. For
evidence of such ownership he must go back to the
deed, which created the power (o). On the same prin-
ciple, a disentailing assurance is not a good root of title ;
as it only shows the ownership of an estate tail at the
time of commencement of title, and this, like a power of
appointment, is merely a derivative interest and not full
ownership, which is fee simple. In such cases, the deed
creating the estate tail should be abstracted (jj) .
Whether the
abstract must
commence
with a con-
veyance for
valuable con-
sideration.
It is of course advisable for a vendor to commence
his abstract with a conveyance for valuable considera-
tion, as that affords the strongest evidence of ownership,
not only because it shows that someone was willing to
give money for the property, but also on account of the
presumption that on a sale or mortgage the prior title
was investigated in the usual way and was approved. It
does not appear however that a purchaser can object to
an instrument of disposition forty years old as a root of
(o) 1 Jarm. Conv. 3rd ed. by-
Sweet, 67 ; 1 Dart, V. & P. 297,
5th ed. : 339, 6th" ed. ; 333, 7th
ed. By the Conveyancing Act,
1881 (Stat. 44 & 45 Vict. c. 41,
s. 3 (3) ), a purchaser of any pro-
perty shall not require the pro-
duction or any abstract or copy
of any document dated or made
before the time prescribed by law
or stipulated for commencement
of the title, even though the same
creates a power subsequently
exercised by an instriiment ab-
stracted in the abstract furnished
to the purchaser. But as, by
sect. 3 (11), this provision is to
be treated, for the purpose of
the specific performance of the
contract, like an express stipu-
lation to the same effect, it
follows, according to the prin-
ciple laid down in lie Marsk and
Earl Granville, 24 Ch. D. 11,
that, unless a vendor fairly and
explicitly stipulates that the ab-
stract shall commence with a
deed exercising a power, he can-
not take advantage of this en-
actment in enforcing specific
performance against the pur-
chaser.
{p) 1 Brest. Abst. 5-7 ; Sug.
V. & P. 366 ; 1 Dart, V. & P.
297, 5th ed. ; 339, 6th ed. ; 333,
7th ed.
A GOOD TITLK AND ITS DISCHARGE.
109
title on the ground that the disposition was not made
for valuable consideration or was made on an occasion
on which it is not usual to investigate the title. Thus Voluntary
it seems that a voluntary conveyance (7), or a family
settlement would be an unob]ecti"nable root of title, if ment.
made by deed forty years old, and that a will contain- Specific
ing a specific devise would be a sufficient root of title,
if the testator died at least forty years before the sale ;
although in such cases the most prudent course for the
vendor would undoubtedly be to specify in the contract
or conditions of sale the nature of the instrumeut with
which the title was to commence. But if the vendor Root of title
make a special stipulation limiting the time for which time for
title shall be shown to a shorter period than is given by fliowing title
Tfo • T • 1 CI 1 • 1 • ^^ curtailed
law, dmerent considerations apply, ouch a stipulation by special
must be fair and explicit, or the vendor, in seeking st^P'^atioii-
specific performance, Avill not be allowed to insist on it.
If therefore a stipulation be made that the title shall
commence with a particular deed less than forty years
old, the purchaser is entitled to assume that the deed
was made on an occasion on which the title would be
investigated ; and should this not be the case, as if the
deed were voluntary, the vendor cannot force him, in an
action for specific performance, to accept the title as
limited by the condition (r). Such conditions, to be
effectual as regards the specific performance of the con-
tract, must state clearly the natui'e of the instrument,
with which the title is to commence.
After the document forming the root or commence- What docu-
ment of title, there should be abstracted every subse- h^'^abstracted
(q) Cotton, L. J., lie Marsh and sion goes no further than is .«tated
Earl Granville, 'M Ch. D. 11, 21. below, and has no application,
The contrary '\h stated by the where the purchaser's rights are
editors of Dart, 1 V. A: P. 38'J, not curtailed by special stipida-
6th ed. ; 33;i. 7th ed., rehiiifr on tion.
the decision iu tlie above case : (/•) Re Marsh and Earl Gran-
but it is submitted that this deci- villr, 24 Ch. D. 11.
110
OF THE vendor's OBLIGATION TO SHOW
after the root quent document, whether deed or will, which deals with
of title. |.|^g legal estate in the property sold, except expired
leases (s) ; and all facts whereon the title depends, such
as hirths, marriages, deaths or hankruptcies, should he
stated in their proper order. With regard to documents
affecting the equitable but not the legal estate in the
property sold, if they be documents on which the pur-
chaser's title will necessarily depend, they certainly
ought to be placed on the abstract (t). But as a
purchaser for value, who takes a conveyance of the legal
estate in any property, is not bound by any equitable
interests theiein, of which he has no notice, it is obvious
that there may be many documents creating equitable
interests only which are not necessary to the purchaser's
title, so long as he obtains the legal estate without notice
of them. For instance, the vendor may be possessed of
documents showing that some former owner who ap-
peared on the face of a conveyance to be entitled for his
own benefit, was in fact a trustee, or that persons who
had advanced money on mortgage were trustees of the
mortgage money. In such cases it would be unusual to
allow notice of the trust to appear on the abstract (k).
This, Mr. Dart points out, is no doubt a departure from
the general principle that it is for the purchaser's soli-
citor, and not the vendor's, to judge of the materiality
of the muniments of title ; but it is sanctioned by con-
venience and universal practice (rr). Again, if a charge
should have been created on the property by a docu-
ment which could only create an equitable interest
therein, and the charge should afterwards have been
paid off, it is not the practice to let these facts
(s) And except as mentioued
above, pp. 100—102; 1 Dart, V.
& P. 299, 5th ed. ; 340, 6th ed. ;
335, 7th ed. ; andcons-ider TFhit-
ing to Loonies, 14 Ch. D. 822 ; 17
Ch. D. 10 ; Re TFallis 4- Grout's
Contract, 1906, 2 Ch. 206.
{t) 1 Dart, V. & P. 299, 5th
ed. ; 341, 6th ed. ; 335, 7th ed.
(m) 1 Dart, V. & P. 299, 300.
5th ed.; 341,342, 6th ed. ; 335,
336, 7th ed.
(.r) See Ee Harman and JJxbridge,
^c. £1/. Co., 24 Ch. D. 720.
A GOOD TITLE AND ITS DISCHARGE. HI
appear on the abstract (ij) . This is contrary to the
rule laid down by Wood, V.-C, in Dnonmond v,
Tracy (s), who stated that he had no doubt that
such charges ought to be communicated to the pur-
chaser. It was observed however by Mr. Dart [a),
that the strict rule so laid Hown may be theoretically
correct : but its practical inconvenience, as much to
purchasers as vendors, is so great, that in practice it
had previously been all but universally ignored : nor
has the practice, it is believed, been materially, if at all,
affected by that decision.
'The general rule then as to what documents ought
to be abstracted is that laid down by Lord St.
Leonards {h) : — " The solicitor should abstract every
document upon which the title depends, or upon which
any difficulty has arisen. Wherever he begins the root
of title, he ought to abstract every subsequent deed."
This general rule is however qualified, as we have
seen, by the practice of not disclosing trusts such as the
trusts of money advanced by trustees on mortgage, or
of purchases where the trustee appears on the face of
the conveyance to be entitled for his own benefit ; and
by the practice of not abstracting merely equitable
charges which have been paid off. There is a difference
however between equitable charges which may and
those which cannot affect the legal estate. A mortgage
of an equity of redemption, or second mortgage, made
by deed, with a proviso for redemption in the same form
as a legal mortgage, could operate to convey the legal
estate if it should not have passed by the prior mort-
gage. Such a charge, Mr, Dart pointed out (c), should
rarely or never be suppressed. Equitable charges created
(y) 1 Dart, V. & P.
ed. ; .34 3, 6th ed. ; :^37,
301, 5th
7th ed.
{h) Sug. V. & P. 407.
{z) John. GOJS, Qll.
{a) Ibid.
(c) 1 Dart, V. & P. 300, .5th
ed. : 342, Gth ed. ; 336, 7th ed.
112 OF THE vendor's OBLIGATION TO SHOW
by a mere memorandum in writing or by deposit of title-
deeds stand on a different footing ; for without a deed
the legal estate in lands cannot be affected by such
charges. In spite of the rule to the contrary laid down
in Drummond v. Tracy (d), it is the practice to make no
mention of such charges in the abstract after they have
been paid off ; nor are they generally disclosed, even
when still subsisting [e] .
The manner Some few words should be said about the manner in
an abstract, wliich deeds or other documents should be abstracted.
At the present day, the work of making an abstract of
title is often so indifferently performed that it seems
necessary to point out that the vendor is bound to
furnish such an abstract of the contents of the deeds as
shall enable the purchaser's counsel to judge of their
effect. The purchaser cannot therefore be required to
accept as a proper abstract any mere statement of the
effect of any operative clause, which is material to the
title ; he is entitled to be informed of the exact words
used in every material part of any document abstracted.
For the w^hole object of requiring an abstract of title
is to enable the purchaser's conveyancing counsel to
examine the title in a convenient way (_/) ; the abstract
is all he sees ; and if the very words used are not placed
before him, it is impossible for him to exercise his judg-
ment on the title. And counsel should not accept a
mere statement of the effect of a material clause provi-
sionally, subject to the statement proving to be correct ;
for this is to delegate the determination of a matter, to
which he ought to apply his own judgment, to the dis-
cretion of the gentleman, who examines the abstract
with the deeds (g). The general rule then is that the
(d) John. 608. (f) Ante, p. 105.
{e) 1 Dart, V. & P. .S()0-a02,
■5th ed. ; 342-344, 6th ed. ; 336- () See 1 Prest. Abst. 116, 117,
338, 7th ed, 2nd ed.
A GOOD TITLE AND ITS DISCHARGE. 113
exact words of all material clauses should appear in the
abstract. The material clauses are those which have What are
taken effect upon the estate, to which the title is being clauses,
shown. Thus in deeds of conveyance, the names and
descriptions of the parties, the recitals, which show their
intention, the testatum with its statement of the con-
sideration and operative words, the parcels, the haben-
dum, and the declaration of uses or of trusts, if any, are
all material to the conveyance of the estate and should
be fully abstracted. Of covenants for title, however, it Covenants
is, as a rule, sufficient to know that they were entered
into in the usual way. If therefore such covenants have
been given at large in the common forms in use before
the year 1882, it is enough to state their effect. When
covenants for title have been incorporated in deeds under
the Conveyancing Act of 1881 by the use of the proper
statutory expressions, these expressions should of course
be abstracted verbatim. So all powers which are exer- Powers,
cised by any abstracted document should be fully ab-
stracted : but it is sufficient simply to refer to powers
which have not been exercised. The same considerations
apply to the abstracting of any provisoes which may
abridge or affect the estate limited. Shifting clauses. Shifting
for instance, should be fully abstracted, if they have
come into operation ; if not, they need only be men-
tioned with a statement of the events in which they
were intended to operate. Joint account clauses ought Joint account
to be fully abstracted, if they have taken effect. And a ,. . ^"
p 1 1 T 1 1 1 Provisoes for
proviso for reconveyance should always be so abstracted redemption.
as to show the charge created, the terms of redemption,
and to whom the reconveyance is to be made ; for in a
mortgage the proviso for reconveyance, being a qualifi-
cation of the conveyance to the mortgagee, is just as
much an operative part of the deed as the conveyance
itself (A) . All documents material to the title should
(A) See 1 Prest. Abst. HT-l.'iS; Sug. V. & P. 407-410; and see
Chap, v., below.
w. 8
114
OF THE VENDOR S OBLIGATION TO SHOW
Documents
incorporated
by reference.
be abstracted in chief, notwithstanding that they may
be fully recited in some subsequent instrument (/) : but
if this be done, the subsequent recital need not of course
be set out at large ; it will be sufficient to refer to the
recited document as " hereinbefore abstracted." And
all documents should be abstracted whicli are incorpo-
rated in the title by reference — as where land is assured
to the uses of some settlement — even though the docu-
ment be of an earlier date than the time of commence-
ment of title.
Execution of
deeds, &c.
should be
stated.
The abstract should always state what j)arties to any
title-deed executed the same and whether such execution
was attested ; and in the case of documents which are
invalid unless attested by some particular number of^
witnesses or executed with some other special formality,
such as wills (k), or deeds exercising powers required to
be exercised with some special formality (/), the number
of attesting witnesses or other circumstances attending
the execution of the document in question should always
be mentioned ; so that the conveyancer may be satisfied
that every requisite formality has been duly observed.
The receipts usually endorsed on purchase and mort-
gage deeds before the year 1882 (m) should be men-
tioned, as their absence was accounted an informality (>?).
And any formality necessary to give complete effect to
any abstracted document should be stated ; as probate
of a will of personal estate (o), the registration of deeds
or wills of lands in Middlesex or Yorkshire (p), the
(v) 1 Dart, V. & P. 299, 5th
ed. ; 341, 6th ed. ; 335, 7th ed. ;
Ee Stamford, ^-c. Co. and Knight'' ti
Contract, 1900, 1 Ch. 287; Rv
Wallis and Grouf s Contract, 1906,
2 Ch. 206.
(A-) See WiUiams, Real Prop.
206, 13th ed. ; 245, 2l8t ed.
(;) Ibid. 298-302, 13th ed. ;
384-387, 2l8t ed.
[m) "Williams, Real. Prop, 193-
4, 13th ed. ; 627, 628, 2l8t ed. ;
Williams, Conv. Stat. 227, 229.
(m) RomiUy, M. R., Greenalade
V. Dare, 20 Beav. 284, 292 ; 3
Prest. Abst. 15, 2nd ed.
(o) Williams, Pers. Prop. 385,
11th ed. ; 447, 16th ed.
(_?;) Williams, Real Prop. 196,
223, 13th ed. ; 212, 262, 2l8t ed.
A GOOD TITLE AND ITS DISCHARGE. 115
enrolment of a disentailing deed [q), or the acknow-
ledgment (when necessary) of a deed of conveyance by
a married woman (r).
It has been considered that a map or plan is no Tracings of
necessary part of an abstract (-s) . But the correctness ^^ns ^^
of this opinion may be doubted ; as the verification of
the parcels is part of a conveyancing counsel's duty {t),
and he cannot efficiently discharge it without seeing the
]ilans referred to in the various title-deeds. And when,
as is now very frequently the case, a conveyance is
made identifying the parcels by reference to a plan,
without any separate and independent description of
them, it is obvious that the plan is really a material
part of the deed, and ought as such to be included in
the abstract. It is thought therefore that tracings of
any plans referred to in the title-deeds should in all
cases be inserted at their places in the abstract ; and
that, at least wherever a plan is a material part of a
title-deed, the purchaser can require to be furnished
with a copy thereof as part of the abstract {n).
§ 3. Of the verification of the abstract.
Besides delivering an abstract of title, the vendor is Vendor bomul
further bound, in order to discharge his obligation of abstoct^ ^
showing a good title, to verify the abstract by producing
all the evidence which is necessary and proper to prove
the statements made therein. The vendor must there-
fore produce, for the examination of the purchaser or
his solicitor, all the abstracted deeds, both those which
he has in his own possession and those of which lie has
(q) Williams' Real Prop. 49, Sug. V. & P. 408.
13th ed. ; 99, 21st ed. ,,. „ ^r r t> ^m
(r) Ibid. 233, 13th ed. : 310, (') ^"S^" ^- ^ ^- ^l"^"
311, Sl/S, 319-321, 2l8ted. (m) 1 Dart, V. & P. 303, 304,
(s) Blackburn v. fimith, 2 Ex. 5th ed. ; 34.5, 346, 6th ed. ; 339,
783, 792, 18 L. J. N. S. Ex. 187 ; 340, 7th ed.
8 (2)
116
OF THE vendor's OBLIGATION TO SHOW
Expense of
evidence not
in vendor's
possession.
Evidence
required is
(1) of docu-
ments,
(2) of facts.
Proof on sales
differs from
proof in
litioration.
Documents
thirty years
old prove
themselves.
a right to procure the production, and proper evidence
of other documents, on wliich the title depends, such as
wills, inclosure awards, Acts of Parliament or orders of
the Court ; and he must adduce proper evidence of all
facts material to the title, as births, marriages, deaths or
intestacies {.r) . At common law all such proof had to
be made at the vendor's expense (^) : but now under
the Conveyancing Act of 1881, the purchaser, in the
absence of stipulation to the contrary, has to bear the
expense of obtaining and producing all evidence of
title, which is not in the vendor's possession {z).
The proof, which a vendor may be required to fur-
nish of his title, is of two kinds; (1) proof of the
abstracted documents, and (2) proof of the facts stated
in the abstract. In both of these respects the evidence
accepted on sales is not quite the same as what would
be required to be given in a court of justice. Thus
where it is sought to prove in Court that any person
has altered his legal position by some writing, it must
be shown, fii'st, that there is or was such a writing as
alleged ; this is proved primarily by production of the
original ; and secondly, that the writing is his writing ;
that is to say, if the writing be a deed, that it is his
deed, that is, executed by him, or, if the writing be
unsealed, that it was signed or written by him or by his
authority so as to bind him (a) . At common law, the
second requisite was only dispensed with in the case of
documents thirty years old coming from the proper
custody ; these, whether deeds, wills, letters or similar
writings, were and are presumed to have been executed
or signed as they purport to be (/>). In other cases, the
{x) Sng. V. &P. 414, 415, 417,
420, 429, 431 ; 1 Dart, V. & P.
310 sq., 5th ed. ; 350 .sq., 6th ed. ;
345 sq., 7th ed. ; Southhij v. Hutt,
1 My. fcCr. 207,212, 213.
{y) Sug. V. & P. 417,420,431.
(-) Stat. 44 k 45 Vict. c. 41,
s. 3(6), (9).
{a I Zet/ifield's Case, 10 Rep. 88a,
92b, 93a.
(J) Taylor, Evidence, §§ 74,
75, 593-601, oth ed. ; Stephen,
Evidence, Art. 88.
A GOOU TITLE AND ITS DISCflARGi!. 117
execution of any document produced must as a rule have
been proved, if the document were attested, by the evi-
dence of an attesting witness, and otherwise by the best
evidence, such as the testimony, given in Court at the
trial, of the party who executed the document, or some
other person present at its execution, or an admission
by or on behalf of such party of the fact of execution (c).
The common law rule as to proving the execution of Proof of
. . attested
attested documents was so stringent that such execution documents.
could not be proved by the admission of the executing
party, unless made for the purposes of the cause {d) .
This rule was abolished by the Common Law Pro-
cediu-e Act, 1854, with regard to any instrument, to
the validity of which attestation is not requisite ; and
such instruments may be proved by admission or other-
wise, as if there had been no attesting witness thereto {e).
Under the present practice, the execution of any deed
or writing adduced in evidence in an action is generally
established by admission made pursuant to a notice in
that behalf, which either party may serve on the
other (/) : but of course where there is any contest as
to the fact of execution, it must be proved by the best
evidence according to the ordinary rule {jj). And on
unopposed applications and in non-contentious cases the
rule still is that the execution of a deed must be proved
by an attesting witness (//). Upon sales of land, how- No evidence
ever, it is not the practice to require evidence of the tjon of any
execution of any of the documents of title, however document
'' required on
recent, if found in the proper custody (/) ; unless there sales.
(c) Taylor, Evidence, §^ 1637 455, 457, 458.
Av/., 16G0, oth ed. ; Stephen, Evi- (A) Re Reay^ Estate, 1 Jur.
dence, Arts. 15.sry., 63-b!). N. S. 222 ; lie Rice, 32 Ch. D.
{d) Callv. Dioinhiff, i Edat, 53; 35; 1 Seton on Judgments, 156,
Doe V. Buniford, 2 M. & S. 62. 6th ed.
(c) Stats. 17 & 18 Vict. c. 125, (t) That is, the custody in
8. 26; 28 & 29 Vict. c. 18, which they may reasonably be
88. 1, 7. expected to be found ; Croicihtoii-
(/) R.S.C. 1883, Ord. XXXII. v. lilake, 12 M. & \V. 205, "208 ;
rr. 2, 3, and Appendix B. No. 11. Ihv d. Jiuobf: v. rhiUips, .s Q. B,
(g) Leigh v. Lloyd, 35 Beav. 158.
118 OF THE VENDOR^ S OBLIGATION TO SHOW
be reason to suspect that some particular document was
not in fact executed as it purports to be. In the
absence of any cause for suspicion, it is presumed by
conveyancers that every deed, will or other document of
title was executed or signed as appears on the face of
the document (/•). Conveyancers act, in this respect,
on the presumption that everything is rightly done,
until the contrary be shown (/) ; a presumption which
is of course greatly strengthened by the fact of the title-
deeds being in the custody of the possessors of the land,
to which the deeds relate.
What is the The strict right of a purchaser of land in the matter
a purchaser °as ^^ requiring proof of the execution of the title-deeds
to proof of has never been exactly defined. Under the old common
title-deeds? law practice requiring strict proof of attested docu-
ments (m), there were conflicting decisions at Nisi Prius
upon the question Avhether a vendor suing the purchaser
at law for damages for breach of contract must prove
the execution of the title-deeds as part of his title (n) .
It was pointed out, however, that such actions are
usually brought in consequence of a dispute raised as to
the vendor's title — that is, as to the efi'ecf of the deeds —
after the delivery of an abstract and communications
thereon, in the coiu'se of which the autJicntiviii/ of the
deeds has been admitted ; and that in such circum-
stances the purchaser would not be permitted to turn
round at the trial and require proof of the genuineness
(/.) Coventry, Conveyancers' Trustees, 1904, A. C. 64, 69 ;
Evidence, 13-16; 1 Sug. V. & P. Heath v. Bcane, 1905, 2 Ch.
418, 438; 1 Dart, V. & P. 312, 86, 93.
5th ed.; 353, 6th ed. ; 348,7th , , .i
ed. See Jaredy. Clements, 1902, ^'"^ ^^°^'^' P" ^^'•
2 Ch. 399, 402 ; 1903, 1 Ch. 428, («) That he need not, Thoimon
431. v. Miles, Kenyon, C. J., 1 Esp.
[l) Litt. sect. 377; Co. Litt. 184; that he must, Crosby v.
232 b; Clarke v. Imperial Gas Percy, Mansfield, C. J., 1 Camp.
Liyht and Coke Co., 4 B. & Ad. 303. Lord St. Leonards evi-
315 ; B'Arcy v. Tamar, ^-c. Ry. dently thought the former the
Co., L. R. 2 Ex. 158, 162 ; Clip- right decision ; Sug. V. & P.
pois Oil Co. v. Edinburgh, ^-c. 439.
A GOOD TITLE AND ITS DISCHARGE. 119
of the deeds themselves (o) . Under the present prac-
tice — first introduced by the Common Law Procedm'e
Act, 1852 — any litigant may call upon his adversary to
admit any document, saving all just exceptions, on pain,
in case of unreasonable refusal, of being ordered to pay
the costs of proof (^:)). It is thought, considering the
long-established practice of conveyancers not to require
proof of the execution of title-deeds and the above-
mentioned alterations in the law {q) and practice as to
the proof of documents in an action, that the Court
would certainly not uphold a requisition, that the
vendor must prove the execution of any document of
title less than thirty years old, if made without showing
any reason for suspecting the authenticity of the docu-
ment (/•) .
Here it should be mentioned that, whenever any title- Title-deeds
deed has been executed by attorney, the deed (s) creat- attorney. ^
ing the power of attorney so acted upon ought to be
(o) Tindal, C. J., Laythonrp v. 200, 214, 216; Powell v. London ^•
linimit, 1 Bing. N. C. 421, Provincial Bank, \^^Z, 2 Ch. aorj,
427. The decision there was, 558, 563, 565. At common law
that in the absence of any such an attorney authorised to execute
communications as might esta- a deed was bound to execute it in
blish the admission of the authen- the name of his principal, and
ticity of the deeds, a vendor not in his own name ; otherwise
suing to recover under special the execution would be void ;
stipulation in the contract the Combes^ s Cane, S Rep. 75 a, 70 b ;
amount of the loss on a re-sale Fronfin v. Small, 2 Ld. Raym.
of leasehold property rejected 141S ; White v. Ciojler, 6 T. R.
by the original purchaser, and 176; JFilks \. Back, 2 T^&^i, W'l;
alleging himself to have been Laxvrie v. Lees, 14 Ch. D. 249,
in poxsexsion of the property under 7 App. Gas. 19. But in deeds
the lease, must prove this allega- executed by attorney after the
tion by showing the execution of year 1881 the attorney might and
the leiuse in the usual way. still m.iy (whatever were the date
(p) Stat. 15 & 16 Vict. c. 76, of the instrument creating the
». 117 ; R. S. C. Ord. XXX. r. 2. power) execute the deed either in
{q) Above, p. 117. his principal's name according to
(f) See 1 Dart, V. & P. 312, the common law rule or in liis
5th ed. ; 353, 6th ed. ; 348, 7th ed. own name and with his own
(•<) A power of attorney autho- signature and seal under the
rising one to execute a deed on authority of the Conveyancing
behalf of another is required by Act of 1881, Stat. 44 & 45 Vict,
law to be given by deed ; Hibhle- c. 41, s. 46 ; 1 Davidson, Preo.
white v. McMorine, 6 M. & W. Conv. 101, 5th ed.
120 OF THE vendor's OBLIGATION TO SHOW
abstracted and produced ; and either it should be
handed over to the purchaser on completion, or (if
the vendor or any other person be entitled to retain
it) a statutory acknowledgment and undertaking should
be given for its production and safe custody {f).
Besides this, evidence should be furnished, if necessary,
that the power was not revoked by the donor's death
or otherwise before it was so acted upon (u). Such
evidence is not necessary ( I ) where the power was given
before the year 1883 for valuable consideration, and
was made exercisable in the names of the principal's
representatives after his death (,r) ; or (2) where the
power was given by an instrument executed after the
year 1882 for valuable consideration (//) ; or (3) where
the power was given by an instrument executed after
that year (whether for valuable consideration or not)
and expressing that the power should be irrevocable for
a fixed time, therein specified, not exceeding one year
from the date of the instrument (z), and the power was
acted upon within that time. But where the power
was given otherwise than for valuable consideration by
an instrument, wherein the power was not so expressed
to be irrevocable, the purchaser may, and should,
require evidence to be furnished that the power was not
revoked by the donor's death or otherwise before it was
acted upon {a).
{t) See Eaton v. Sanxter, 6 Sim. principal was alive at the time
517, 519 ; above, pp. 34, 47, 48. when the power was acted upon
[h) Sug. V. & P. 417; 1 Dart, by the attorney, in order to be
V. & P. 311, 312, 5th ed. ; 352, satisfied that no person could set
353, 6th ed. ; 348, 7th ed. up a legal estate acquired for
[x) See below, Chap. XII. ^ 5. value without notice of the power
Such a jjower, if not expressed to in opposition to the estate pur-
be exercisable in the names of the ported to be assured by the
principal's representatives after exercise of the power,
his death, was revoked at com- (y) gee Stat. 45 & 46 Vict,
mon law by the principal's death ; c. 39, s. 8 ; below, Chap. XII. 6 5.
but relief would be L>-iven in eq uity i \ a ui. i. .« p ,,? Tr- i.
. . , °,. T i.t,- (2) Seebtat. 45 &46 Vict. c. 39,
aeramst such revocation, in this ^ i i ni, vtt r -
° .■• t -i. • i,i. u s. 9 ; below, Chap. XII. 6 0.
case therefore it might be neces- ' > 1 x
sary to require evidence that the («) ^^e note {x), above.
A GOOD TITLE AND ITS DISCHARGE. 121
The documentary evidence in support of a title may Documents of
be of two kinds. First, private writings which are kept j^ pr™ate or
in the custody of the parties interested, and which the official cus-
purchaser can require to be handed over to him on
completion ; of this kind are the ordinary deeds of
conveyance. And secondly, documents which are kept
in public or official custody and to the possession of
which the purchaser can have no right. Such are Acts
of Parliament public or private, records, orders of
proceedings of the Courts of justice, the court rolls of a
manor, and wills, if proved. With regard to the latter
kind of evidence, the vendor cannot require the pm--
chaser to go and verify the abstract for himself by
inspection of the original document ; he is bound to Vendor must
produce, at the proper place for verification of the dence of
abstract, such evidence of any document in public or l^ocuments
official custody as it is the practice for conveyancers to custody.
accept; and the purchaser \vill be entitled jjiinid facie
to have this evidence delivered over to him on com-
pletion (b). At common law, the vendor had to bear all
the expense of procui'ing any such evidence (c) . But Expense of
under the Conveyancing Act, 1881 (d), the purchaser, mentTnot'hr'
in the absence of stipulation to the contrary, must bear vendor's pos-
• n 1 • 1 •(« -1 session.
the expense or procm-ing all such evidence, it not m trie
vendor's possession. The vendor, however, is not re-
leased from the obligation of procuring such evidence ;
he is merely exonerated from the expense of dis-
charging it.
Here it may be mentioned that, in litigation, the Evidence of
contents of any public document may be proved, at ment.
common law, either by production of the original
document or its equivalent, or by an examined copy,
(b) Unlketl V. Diidlnj, 1907, 6th ed. ; 482, 7th ed. ; 1 David-
1 Ch. ")90, 608, 604. son, Prec. Conv. 550, 55.'), 4th ed.
(c) Sug. V. Ac P. 431, 448; 1 {d) Stat. 44 & 45 Vict. c. 41,
Dart, V. & P. 408, 5th ed. ; 472, s. 3 (6), (9).
122
OF THE VENDOe's OBLIGATION TO SHOW
Examined
copj'.
Exemplifica-
tion.
Office copies.
Cei-tified
copies.
that is, a copy proved by oral evidence to have been
examined with the original and to correspond there-
with (e). An exemplification, which is a copy of a
record set out either under the great seal or the seal
of a Court, is equivalent to the original document
exemplified (./') ; and a copy made by an ofiicer of the
Court, who is hound by law to make it, is equivalent
to an exemplification {g). Office copies, or copies made
by an officer of the Coui-t, who is authorised by rule
of Court hut not required hy law to make them, are
not at common law equivalent to an exemplification,
save in the same Court and cause, in which the pro-
ceeding recorded occurred {h). But many documents
of a public nature are provable under particular Acts
of Parliament by copies certified as authentic under
some official seal or signature or otherwise (?') ; and in
such cases the certified copies are admissible in evidence
if they purport to be authenticated as prescribed by
law, without proof of the official stamp, seal or sig-
nature required or of the official character of the
certifier (/.•). And by the Evidence Act, 1851 (/),
whenever any book or document is of such a public
nature as to be admissible in evidence on its mere
production from the proper custody, and no Statute
(e) I)oe d. Gilbert v. Ross, 7 M.
& W. 102, 106. 124 ; Taylor,
Evidence, §§ 1333, 1368, 1389 sy.,
.jth ed. ; Stephen, Evidence, Arts.
73 aq. The rule extends to any
dt)cument or book which is of
such a public nature as to be
admissible in evidence on its mere
production from the proper cus-
tody ; It. V. Hain.s, Comb. 337 ;
Lynch v. Clerke, 3 Salk. 154 ; li.
v. Gordon, 2 Doug. 590, 593
and note ; Taylor, Evidence,
^ 1436, 1437, 5th ed.
( f) Bac. Abr. Evidence (F) ;
Taylor, Evidence, §^ 1378—1381,
5th ed. ; Stephen, Evidence,
Ai-t. 77.
(g) Appleton v. Lord Braybrook,
6 M. & S. 34, 36—39; Doe v.
Lloijd, 1 Man. & Gr. 671, 684-6;
Bac. Abr. Evidence (F) ; Taylor,
Evidence, § 1384, 5th ed. ; Ste-
phen, Evidence, Art. 77.
[h) Taylor, Evidence, ^ 1378—
1391, 5th ed. ; Stephen, Evidence,
Art. 78.
(i) Taylor, Evidence, ^^ 1440,
5th ed.
(/.■) Stat. 8 & 9 Vict. c. 113, s. 1 ;
Taylor, Evidence, §§ 7, 1441,
5th ed. ; Stephen, Evidence,
Art. 79.
{I) Stat. 14 & 15 Vict. c. 99,
■s. 14 ; Taylor, Evidence, ^ 1437,
5th ed. ; Stephen, Evidence,
Art. 79.
A GOOD TITLE AND ITS DISCHARGE.
123
exists which renders its contents provable by means of
a copy, any copy thereof or extract therefrom shall be
admissible in evidence if it purport to be signed and
certified as a true copy or extract by the ofiicer to
whose custody the original is entrusted. On sales,
however, it has always been the practice to receive
office copies and extracts in evidence, whether the
same would be admissible as evidence in litigation or
not (m).
The proper place for verification of the abstract is Prop^'i'.pla^e
either at the vendor's residence, or near the land sold, tion of the
or in London {u). If the title-deeds be produced at '^^^^t^''^^*-
any one of these places, the purchaser must, at common
law, bear the expense of his solicitor's examination of
them and of any journey for this purpose (o). The
vendor may however discharge his obligation by pro-
duction of all or some of the title-deeds at some other
place or places : but in that case he would at common
law be bound to pay any additional expense incurred Expeuso of
by the purchaser in the examination of the deeds, titie™eeds
(m) Sug. V. & P. 414, 417 ; 1
Dart, V. & P. :U8, oth ed. ; 361,
6th ed. ; 1 Davidson, Prec. Conv.
.5,)0-2, 4th ed. ; Halkettx. Dudhi/,
1907, 1 Ch. o90, 603, 604. It
should be noted that proof of a
public document by what is called
an examined copy is iKjt available
on sales, ;us the admissibility in
evidence of such a copy depends
on the statements made on oath
in Court of the person who exam-
ined the copy with the orif?inal ;
(Jraivford Feerngv, 'I H. L. C. 544-
5 ; Taylor, Evidence, ^v i:$89, ')th
ed. And an attested copy, that
is a copy endorsed with a written
and signed declarutii m that it is a
true copy, is of no more use to a
purchaser than an office copy, the
declaration not being evidence
admissible in subsetiuent litiga-
tion ; see above, p. 122.
(w) If the deeds are to be ex-
amined in London, a country
solicitor must employ a London
agent for the purpose ; and he
cannot charge his client with the
expense of a jouiney, even though
undertaken at his client's re-
quest, in order to examine the
deeds personally, unless he first
explain to his client what is the
regular practice. But a London
solicitor need not employ a
country solicitor as his agent to
examine deeds, but may send his
own clerk. See Ahop v. Oxford,
1 My.&K. .)64'; Uiighcsx. Wynne,
8 Sim. So ; Re Tn/mi, 7 Beav.
496; Sug. V. A: P. "430; 1 Dart,
V. ^ P. 407, 408, 5th ed. ; 470.
471, 6th ed. ; 481, 482, 7th ed.
(o) Sug. V. & P. 429 ; 1 Dart.
V. ic P. 407, 5th ed. ; 470, 6th
ed. ; 481, 7th ed. ; I Davidson,
Prec. Conv. 554, 4th ed.
124
OF THE vendor's OBLIGATION TO SHOW
not. iu ven-
dor's posses-
sion.
Deeds iu pos-
session of
vendor's
mortgagees —
or other per-
sons than the
vendor.
beyond what would have been incurred if the deeds
had been produced at the proper place (p). But under
the Conveyancing Act, 1881 (q), the purchaser, in the
absence of stipulation to the contrary, must bear the
expenses of the production and inspection of all docu-
ments, which are not in the vendor's possession, and of
all journeys incidental thereto. The vendor therefore
must still produce all documents of title, which are in
his own possession, at the proper place for verification
of the abstract ; or pay the extra expense incurred by
their examination elsewhere (r). But in the absence of
stipulation to the contrary, he can produce any docu-
ments of title, which are not in his possession, at what-
ever place they may happen to be, without being called
upon to bear any extra expense so caused. It has been
held that, under the last-mentioned enactment, a pur-
chaser must pay all the expense of the examination on
his behalf of title-deeds, which are in the possession
of the vendor's mortgagees, and are in consequence
produced at the office of the mortgagees' solicitors ;
including the mortgagees' solicitors' costs of such pro-
duction and examination (.s). The purchaser must
equally bear all the expense of the production and
examination of any title-deeds, which are produced at
the office of the solicitors to some person, by whom the
vendor is entitled to requii'e production of the deeds
under some statutory acknowledgment or covenant.
Here it may be mentioned that by the Conveyancing
Mortgagor's
ac'cess to Act of 1881, where a mortgage has been made after
title-deeds ^^^ ^jg^ December, 1881, the mortffas:or. as long as his
in possession o o - f
(jj) Sharp V. Page, Sug. V. & P.
430; Hughes v. Wynne, 8 Sim.
85 ; 1 Dai-t, V. & P. 408, 5th ed. ;
471, 6th ed. ; 482, 7th ed. ; 1
Davidson, Prec. Conv. 554, 4th
ed.
[q) Stat. 44 k 45 Vict. c. 41,
s. 3 (6), (9).
(/•) See 1 Davidson, Prec. Conv.
461, 5th ed.
(«) Re Willett and Argenti, 5
Times L. R. 476 ; 60 L. T. N. S.
735.
A GOOD TITLE AND ITS DISCHARGE. 125
right to redeem subsists, is entitled from time to time, of amortga-
at reasonable times, on his request, and at his own costs, ^^^r^Je ^
and on payment of the mortgagee's costs and expenses made after
in this behalf, to inspect and make copies or abstracts
of or extracts from the documents of title relating to
the mortgaged property in the custody or power of the
mortgagee ; and this enactment is to have effect, not-
withstanding any stipulation to the contrary {t). A
vendor of land, which is subject to a mortgage made
after the year 1ix calendar months' interest in advance ;
SItarpnell v. Blakf, 2 Eq. Ca. Abr. 603, pi. 34; Johnxon v. Erans,
1889, W. N. 95. 01 L. T. 18 ; Smith v. Smith, 1891, 3 Ch. 550, .562 ;
FitziivraUV s Tru.stic v. Mclltr.sh, 1892, 1 Ch. 385, 388, 389. Where the
mortgagee has demanded, or has taken tiny legal proceedings to
126
OF THE vendor's OBLIGATION TO SHOW
Deeds, of
wliich the
vendor has ;i
mere right to
production.
Right to pro-
duction under
statutory
aeknowledg'-
ment.
regard to any title-deeds, of wliicli a vendor of land
has a mere right to production (the right to posfiession
of the deeds going with other land held under the same
title {>/), or otherwise not accompanying the land sold),
the question, whether he can be prejudiced by the
possessor of the deeds depositing them with a mortgagee,
depends on the nature of his right to production of
the deeds. If the right to production arise under a
statutory acknowledgment taking effect by virtue of the
Conveyancing Act of 1881 (z), the duty of production
is incumbent on and may be enforced against not only
the giver of the acknowledgment, but also every other
person having possession or control of the deeds from
enforce repayment of the mortgage money, or has sold or taken
possession of the mortgaged property, the mortgagor is absolved from
the obligation of giving notice to pay off or paying interest in lieu of
notice: Sharpndl v. Blake, ubi sup.; Letts v. jfutchi/is, L. R. 13
Eq. 176; Uminer v. Berridge, 18 Ch. D. 254, 279; Re Alcock, 23
Ch. D. 372; Bovillv. Endle, 1896, 1 Ch. 648. Where the just in-
ference from the mortgage transaction is that it was intended to be
temporary, as in the case of a mortgage to bankers by deposit of title-
deeds, the mortgage is redeemable at any time without giving notice
to pay off or paying interest in advance instead ; FitzgcraUr s Trustee
V. Mellersh, 1892, 1 Ch. 385. A mortgage is not redeemable before
the day fixed for redemption at law has arrived, not even on tender of
the whole principal money with interest up to that date ; Brown v.
Cole, 14 Sim. 427 ; unless the mortgagee has taken steps (as by entry
into possession) to enforce repayment of the mortgage money ; Bovill
V. Endle, iibi sup. And this rule applies where a mortgage is made
with a proviso that the security shall remain for a certain term of
years of reasonable length ; Biggs v. Hoddinott, 1898, 2 Ch. 307, 311.
As to mortgages i-edeemable at law on payment by instalments, see
Cummins v. ^Fletcher, 14 Ch. D. 699, 702, 713, 714. A vendor of land
in mortgage is of course entitled, on redemption in strict accordance
with his right, to require the mortgagee to convey the mortgaged
property to the purchaser : but if he desire the mortgagee to
acquiesce in any arrangement, which he is not strictly entitled to
enforce, with respect to the sale, as if he wish the mortgagee to
release part of the mortgaged property from his security, either on
payment of part of the mortgage money or without payment, or to
waive the right (where given) to have the security to remain for a
certain term, he must come to an agreement with the mortgagee, or
he will be unable to enforce the contract of sale ; see below, Chap. V. ;
Chap. XII. § 3.
() See above, p. 47.
iz) Stat. 44 & 45 Vict. c. 41,
s. 9 ; see sub-ss. 1, 2. The statu-
tory undertaking for safe custody
is equally enforceable against the
undertaker and every person
having possession or control of
the documents from time to time ;
sub-s. 9.
A GOOD TITLE AND ITS DISCHAEGE. 127
time to time. Production of the deeds may therefore
be enforced when they are in the custody of mortgagees
or pui'chasers from the giver of tlie acknowledgment ;
and it is immaterial whether tlie mortgagee or purchaser
had notice of the acknowledgment or not. If however Where the
the vendor have only an equitable right to production ^^f^e equit-'^
of the deeds, such as appears to arise without express able right of
agreement when land held under one title or the estate
therein is severed, and the right to the custody of the
deeds goes with some particular part of the land or
estate (n), it seems that he may lose the benefit of such
right in case the land or estate, to which the possession
of the deeds is incident, be conveyed (together "vvith
the deeds) to a piux-haser or mortgagee, who had no
notice of the equitable obligation to produce the deeds (b) . "Where the
And it seems that this is equally the case, where the covenant^for
vendor has the benefit of a covenant to produce the production of
deeds, but the landowner in possession of them has
conveyed his land with the deeds to a purchaser or
mortgagee having no notice of the covenant ; for it is
now considered that the burthen of a covenant to pro-
duce title-deeds does not run at law with the land, to
the ownership of whieli the possession of the deeds is
incident. But where a mortgagee or purchaser has
taken the land with notice of an equitable right to pro-
duction of the title-deeds, it is thought that he would
be bound to give effect to it (r) .
{a) See below, Chap. XII. \ 3. the pre.seut law where a liffal
\b) See below, Chap. XII. § 3 ; right to the possfs.sion of deeds
WalUnjn v. Lvv, 9 Ves. 24 ; /,«»«- i.s sought to lx> enferced in the
hcrt V. Rogi'rx, 2 Mer. 489 ; Heath Chancery Division ; Re Cooper,
V. Crealock, L. R. 10 Ch. 22, 32, 20 Ch. D. 611 ; ]{e Iuf,hain, 1893,
33, 3.'). With respect to the rule 1 Ch. 352, .161.
affirmed in the la.st (;asc that a (c) See below, Chap. XII. ^^ 3.
Court of Equity will not interfere In any case in which the liability
to deprive a purcliascr for value to produce a title-deed is really
of the possession of title-deeds incident to the legal estate in
acquired in good faith and with- some land, a purchaser or mort-
out notice of a superior right gagee is of course affected by it.
(whether legal or equitable, Thus the a.ssignee of a lease,
thereto, note the difference under whether by way of sale, mort-
128
OF THE vendor's OBLIGATION TO SHOW
Solicitor's
lien.
Solicitor,
having a lien
on a vendor's
deeds, in-
structed to
act for him
in the sale.
When a man's title-deeds are in the custody of his
solicitor, who has the regular solicitor's lien thereon for
the general balance owing of his account (d), the solicitor
has the right to refuse inspection or production of the
deeds, as well as to keep them in his possession until
his account is paid ; and he can assert this right as
against all persons who may subsequently become pur-
chasers or mortgagees of the land to which the deeds
relate (). But where a solicitor, who has a lien on his
client's title-deeds, is instructed to act for the client in
the matter of a sale proposed or agreed upon of the
land, to which the deeds relate, it is his duty, if he
intend to assert his lien as a bar to the production or
delivery of the deeds to the purchaser, to call his client's
attention thereto (,/'); and it is thought that if he should
omit to do this, he would be taken to have waived his
right to obstruct the sale by refusing to allow the pur-
chaser to inspect the deeds (g) . But it does not appear
that the mere omission of the solicitor to call his client's
attention to his lien before undertaking the business of
the sale, would prevent him from asserting his lien as a
bar to the delivery of the title-deeds to the purchaser
on completion (g) ; and if he should hand over the
gage or otherwise, is bound to
produce the lease in aid of the
lessor suing him on some cove-
nant contained therein ; Balls v.
Musgrave, 3 Beav. 448, 4 Beav.
119.
{d) Expte. Sterling, 16 Ves. 258 ;
Stevenson v. Blachlock, 1 M. & S.
535; Re Morris, 1908, 1 K. B.
473.
{e) Lord v. JFormleightoi/, Jac.
580, 582 ; Cottenham, C, Bozon
V. Bolland, 4 My. & Cr. 354, 358 ;
Sugden, Ir. C, Blundenv. Desart,
•I Dru. & War. 405, 418, 420,
421, 425-431 ; Frlh/ v. Wathm,
1 De G. M. & G. 16, 23; Re
FaUhfiill, L. R. 6 Eq. 325 ; Re
Biggs and Roche (1897), 41 Sol. J.
277; Vaughan Williams, L. J.,
Re Hawkes, 1898, 2 Ch. 1, 24, 25 ;
Neville, J., Re Rapid Road Transit
Co., 1909, 1 Ch. 96,99 sq.
{/) Re Safety Explosives, Ltd.,
19o4, 1 Ch.' 226, 231, 234, 235,
237, 238.
{g) This appears to follow from
the principles laid down in the
cases deciding that, where a soli-
citor, who has undertaken to act
for his client in some action or
proceeding, discharges himself
before it is completed, he must
give up all documents received
from his client in the course of
the proceedings to the new soli-
citor chosen by his client to be
inspected or produced for the
purposes of the proceedings, but
to be held by the new solicitor
A GOOD TITLE AND ITS DISCHARGE. 129
deeds to the purchaser, without making any arrange-
ment with his client for satisfaction of what is due to
him out of the purchase money or otherwise, he would
lose all the benefit of his lien (/i). If a solicitor having Where the
a lien on the vendor's title-deeds agree to act for the f^^ both ^^^^
purchaser as well as for the vendor in the matter of the vendor and
sale, it is thought that, unless he expressly reserve his
lien by agreement with the purchaser, he cannot assert
it in opposition to the duty, which he has undertaken on
the purchaser's behalf, of procuring inspection of the
deeds for verification of the abstract and delivery
thereof to the purchaser on completion (/). A solicitor's Solicitor's
lien cannot be asserted against any right to production ^'gngur^""'
or delivery up of the deeds which is paramount to his with his
client's right to withhold or retain them (/.•) . Thus if to withhold
title-deeds be in the possession of a mortgagee, whose *^^ deeds,
solicitors have them in their custody and so acquire a
lien thereon, they cannot withhold the deeds fi"om the
mortgagor claiming either to have the deeds delivered
up to him on payment of all moneys due under the
mortgage (/), or to inspect the deeds by vu'tue of his
right under the Conveyancing Act of 1881 (/«). So
where a mortgagor is allowed, to keep the title-deeds for
a while and his solicitor so acquires (since the mortgage)
a lien thereon, the solicitor cannot resist the mortgagee's
subject to the old solicitor's lien and Taylor, 10 Ch. D. 729 ; Mac-
thereon; Colegravr v. Mtaiki/, T. farlanc v. Lister, ST Ch.T). H8, 94;
& 11. 400 ; Ucslop V. Metcalfe, 8 Brunton v. Electrical Eiiginrcring
Sim. (522, 3 My. & Cr. 183, "iS'J ; Corpn., 1892, 1 Ch. 434, 439; all
(irijfil/is V. Griffiths, 2 Hare, 587, ca.see of solicitors acting both for
o9(t, o92 ; Rubins v. Goldinghain, mortgagor and mortgagee.
L. R 13 Eq. 442; lie Ilawkes, n\ i^i ^ n / .i r» <>
1898, 1 Ch. 1, 18-20, 20, 26 ; Re J^^ ^S'-"""' ^ ^Z ' P,^- ^
RapU Road Transit Co., 1909, ^^i ^^'\^ ^^\^^l'^ /fJl'
1 A\ (>,• nn 1 i.-J Tt allien, 1 Do G. M. & G. 16,
1 Ch. 9l>, 99 see also the cases .,„ .,< » it ? lono .i f<\.
.. J • .V„ / „„„• ,,.^ t^^ 23, 24 ; Re Ilawkes, 1898, 2 Ch.
cited in the two previous notes. i 7 t?
(A) Re Safety Explosives, Ltd., ' ' ' '
ubi sup. (0 Wakefield v. Neubon, 6 Q. B.
(i) Sec Hicks v. Keat, 3 Jur. 276; Re Lkwellin, 1891, 3 Ch.
1024 ; Re Moscli/, 1 ') W. R. 975 ; l^S,
Rfi Snell, 6 Ch. D. 105 ; Re Mason (m) Above, p. 125.
W. 9
130 OF THE VENDOe's OBLIGATION TO SHOW
paramount right to recover possession of the deeds (n).
And the solicitor of a tenant for life in possession of
title-deeds cannot assert his lien thereon after his client's
death against the remaindernian claiming to have the
deeds delivered up to him (o). Also, if a solicitor have
a lien on his client's title-deeds, and the client subse-
quently make some sale or mortgage of the land with-
out disturbing the lien (the deeds remaining in the
solicitor's possession by virtue thereof ), the lien can only
be asserted as a security for costs incurred before the
date of the sale or mortgage, and not for any costs
afterwards incurred against the vendor or mortgagor (p).
Stamps. In connection with the production of the abstracted
documents, we may mention that the purchaser is
entitled to require that every document, on which the
proof of the title to the lands sold depends, shall be
so stamped, if necessary, as to be available as evidence
in a court of justice ; insufficiently stamped documents
not being, as a rule, receivable in e\idence except
on payment of a penalty {q). If therefore any such
document, which is required by law to be stamped, be
unstamped or insufficiently stamped, the vendor is
bound to procure it to be properly stamped at his own
expense ; and the pm-chaser should require him to do
so {r). In consequence of this liability, vendors often
specially stipulated, where necessary, that it should be
no objection to the title that any abstracted document
appeared to be unstamped or insufficiently stamped, and
that the purchaser should bear the expense of procm-ing
(«) Smith V. Chichester, 2 Dru. c. 97, ss. 15 — 17, and 17 & 18 Vict.
& War. 393 ; Felly v. TFathen, 1 c. 125, ss. 28, 29 ; Sug. V. & P.
De G. M. & G. It). 566.
(o) Jjavies V. Vernon, 6 Q. B. (/•) Whiting to Loonies, 14 Ch.
443, 447. D. 822 ; 17 Cb. D. 10 ; lie Lovell
[p) Blunden v. Lesart, 2 Dru. and Collard''s Contract, 1907, 1 Ch.
& War. 405, 420, 421, 427-431. 249 ; above, p. 45 ; for a dis-
{q) See Stat. 54 & 55 Vict. c. 39, tinction, see Expte. Birkbeck Free-
88, 14, 15, replacing 33 & 34 Vict, hold Land Society, 24 Ch. P. 119.
A GOOD TITLE AND ITS DISCHARGE. 131
any such document to be duly stamped. But it is now
enacted {s) that every condition of sale framed with the
view of precluding objection or requisition upon the
ground of absence or insufficiency of stamp upon any
instrument executed after the 16th day of May, 1888,
and every contract, an-angement, or undertaking for
assuming the liability on account of absence or insuffi-
ciency of stamp upon any such instrument or indemni-
fying against such liability, absence, or insufficiency,
shall be void. So that if any such special stipulation
be now made, it must be limited to instruments executed
before or on that day {t). Such stipulations should not
of course be made unless there be reason to suppose that
some document of title is insufficiently stamped.
With regard to tlie evidence necessary to prove the Evidence of
facts as distinct from the documents stated in an qq ^jeg
abstract, what a purchaser requires is testimony reduced
to writing so that it may be preserved as a muniment
of title. So far as the facts may be proved by written
evidence admissible in a court of justice, a purchaser is
entitled to call for such evidence, if it can be obtained.
But if none such can be procured, he must accept other
evidence such as it is the established practice to receive
on sales. For example, in the matters of pedigree, to
prove the facts of birth, marriage and death the pur-
chaser is in the first instance entitled to require certifi-
cates of baptism or birth, of marriage and of burial :
but if these cannot be found, the vendor may not only
have recourse to other evidence admissible in litigation,
as statements of deceased members of the family or
entries in a family Bible or register, but in default of
such testimony he may proffer statutory declarations of
living members of the family or even of strangers.
(») Stat. .')4 & .=>5 Viot. c. 39, (<) 1 Key & Elphinstone, Free.
8. 117, replaciug 51 & 52 Vict. Conv. 255, 263, 4th ed. ; 240,
c. 8, 8. 20. 251, Sth ed. ; see above, p. 78.
9(2)
132 OF THE vendor's OBLIGATION TO SHOW
The written declaration of a living member of the
family as to a matter of pedigree may become good
evidence after his death, but is inadmissible in court in
his lifetime ; whilst the like declaration of a stranger
can never be evidence admissible in litigation (w) : but
on sales such declarations are nevertheless received (x).
Evidence that The purchaser is entitled, pursuant to his right to
whiclTwoiad^' I'sq^iii'e proof of all facts material to the title, to call
certainly have for evidence, not only that the events stated in the
title, did not abstract took place, but also that other events, of which
happen. . ^]^g occurrence must necessarily have affected the title,
I did not happen. That an event did not happen is in
many cases a matter of inference rather than of positive
proof : but if the event be such that its occurrence must
necessarily have rendered the title different from that
stated, the purchaser is entitled to require some evidence
from which its absence may reasonably be inferred.
For example, if it were stated in the abstract that A.,
a former owner, died leaving B., his only sister, his
heiress-at-law, evidence must be given, not only that A.
died on the date specified, that his father died before
him, and that B. was the child of the same parents as
A., but also that A. died intestate, that he left no issue,
that he left no brother or any issue of any brother
surviving him and that he had no other sister. The
production of letters of administration is the evidence
usually required on sales in proof of intestacy ; facts
like the want of issue or the number of children born of
a marriage can only be inferred, after the death of the
husband and wife, from a declaration by some member
of the family or familiar friend that he never knew or
heard of there being any issue, or more than certain
specified children of the marriage ; and such declarations
(«<) See Stephen, Evidence, (.r) Sug. V. & P. 418 ; 1 Dart,
Arts. 25, 31. V. & P. 347, 5th ed. ; 393, 6th
ed. ; 388, 7th ed.
%»
A GOOD TITLE AND ITS DISCHARGE. 133
are the evidence usually obtained (//). So where title
was made under a voluntary settlement executed in 1845
on trust for the settlor for life and afterwards on trust
for sale, but with a power of revocation, and under a
conveyance after the settlor's death in execution of the
trust for sale, it was admitted that the purchaser was
entitled to proof, first, that the voluntary settlement
had not been avoided by a subsequent conveyance for
value, and secondly, that the power of revocation had
never been exercised. But it was held that, there
having been long possession in accordance with the
alleged title, sufficient evidence was afforded by a
declaration of the settlor's solicitor that he believed
that the property remained in the settlor's possession
till his death, and that he (the solicitor) had never
heard of an}' sale of the property or of any exercise of
the power of revocation (s). And it was further con-
sidered that, apart from this declaration, the necessary
evidence was afforded by a recital in the conveyance
made after the settlor's death that the property had
been sold by auction pursuant to the trust for sale ; the
truth of which the purchaser was bound to assume
under the stipulation making recitals in deeds twenty
years old prifnd facie evidence of the facts recited (rt^).
This case appears to show that, whenever a power of
appointment has been created, and title is deduced as
in default of appointment, the purchaser is entitled to
require evidence from which it may reasonably be
inferred that the power was never exercised. But
where the cesser of a power, as by the death of the
donee thereof, is clearly shown, long possession and
conveyance for value under the title in default of
{v) Sec Doe d.Bauiiiiiffv.GriJiti, (s) lie Marsh and Eurl Gran-
\h East, 293, 294, n. ; Greaves v. ville, 24 Ch. D. 11, 19.
Gremwond, 2 Ex. D. 289 ; Re (a) Re Marxh and Earl Gran-
Jackson, 1907, 2 Ch 354. rif/>, 24 Ch. D. 11, 19 : see below,
p. 136.
134
OF THE vendor's OBLIGATION TO SHOW
appointment are of themselves facts raising a presump-
tion that the power was never exercised ; and it seems
that, in such circumstances, the purchaser must allow
due weight to this presumption, and cannot require
other evidence beyond what is in the vendor's posses-
sion or power or is afforded hy his statutory declara-
tion {b) .
Rule as to
presiimption.s
of fact.
Here we may state the general rule with respect to
presumptions of matters of fact on sales ; which is, that
the purchaser is bound to presume whatever a judge
would at law direct the jury to presume, but not
matters which the judge would leave to the jury to
pronounce on the effect of the evidence (c) . For
example, a pm'chaser may be required to presume,
after long possession of lands in accordance with the
beneficial title, that some bare legal estate, which was
previously outstanding and ought to have been assured
to the beneficiaries, was duly conveyed to them, although
no such conveyance can be found {d). But the Coui't
will not oblige a purchaser, who has notice of some
equitable incumbrance affecting the property sold, to
take a title depending on the fact that the vendor
bought without notice of such incumbrance (e).
Events of
which, the
happening
may or may
not have
affected the
title.
Besides events, which would certainly affect the
title, if they occurred, there are other events, the hap-
pening of which might or might not affect the title.
[b) 1 Dart, V. & P. 328, 329,
5th ed. ; 372, 373, 6th ed. ; 366,
367, 7th od.
(c) mihtry V. Walhr, 12 Ves.
239, 254, 270; Emery v. Grocock,
6 Madd. 54, 57 ; Sug. V. & P.
399 ; 1 Dart, V. & P. 327, 333,
5th ed. ; 371, 377, 6th ed. ; 365,
371, 7th ed. ; Fry, Sp. Perf.
§§ 890, 891.
{d) See England d. Syburn v.
Slade, 4 T. R. 682 ; Boe d. Bowcr-
vian V. Sybou)-),, 7 T. R. 2 ; Wihon
\. Allen, 1 J. & W. 611, 620;
Co-'ke V. Soltau, 2 S. & S. 15i ;
Clippens Oil Co. v. Edinburgh, ^-c.
Trustees, 1904, A. C. 64 ; and
cases cited in previous note ;
Taylor on Evidence, \\ 113-121,
5th ed.
{e) Freer v. Hesse, 4 De G. M.
<&: G. 495 ; Nottingham Patent
Brick and Tile Co. v. Butler, 16
Q. B. D. 778, 787, 789, 790.
A GOOD TITLE AND ITS DISCHARGE. 135
An instance of this is the marriage of a vendor since
the convejance of the property to him or her, when a
marriage settlement may or may not have heen made,
and, if made, may or may not have affected tlie pro-
perty sold. It is conceived that the vendor is, as a
rule, bound to answer all questions relevant to the
abstracted title, that is, the title he is offering for
the purchaser's acceptance (,/') ; and he must therefore
answer the question whether a particular event, which
might or might not have affected the title, has hap-
pened. If the answer be that the event has not
happened, it does not appear that the purchaser can in
general require any further evidence : though it seems
he may call upon the vendor to make (at the pur-
chaser's expense, according to the present rule {[/) ) a
statutory declaration of the fact. If the vendor reply
that the event happened but did not affect the pro-
perty sold, the purchaser may require this statement to
be confirmed by the production of any evidence in the
vendor's possession or power, as well as to be embodied
in a statutory declaration : but he cannot, it seems,
insist on the production of other evidence (h). If the
(/) Sug-. V. & P. 415, 416; (above, pp. 110-112), it seems
1 Dart. V. & P. 328, 329, 5th ed. ; obvious that this is a coiTect
372, 373, 6th ed. ; 366, 36", 7th view. The vendor in delivering
ed. It is submitted that the case an abstract offers the abstracted
of He Ford and Hill, 10 Ch. D. title as a good title; and if it
365, contains nothing contrary to appears so to the piu'chaser's
this proposition. It was there advisers, it seeuLs not unreason-
held that a vendor is not bound able to preclude them from
to answer the requisition : Is requiring the vendor to set forth
there to the knowledge of the generally whatever else he may
vendor or his solicitor Huy settle- know about the title. But to
ment, deed, fact, oiiiissit)n or any require him to answer all ques-
immmbrance affecting the pi"o- tions relevant to the abstracted
perty not disclosed by the ab- title is an entirely different thing;
stract ? The Court considered that does not go beyond requiring
that such a requisition is in fact him to prove the title which he
an interrogatory searching into offers.
matters bovond the vendor's duty , % »i ,,,.
f n . , •• , •.. ■ •' {(i) Above, p. 116.
ot tunnshmg and verityiug an ^•" ^
abstract of title. Considering the (//) 1 Dart, V. & P. 328, 329,
established practice of not ab- 5th ed. ; 372, 373, 6th ed. ; 366,
stracting purely equitable charges 367, 7th ed.
136
OF THE vendor's OBLIGATION TO SHOW
purchaser be informed of the existence of a document,
such as a vendor's marriage settlement, which may or
may not affect the property sold, and is also told that it
did not affect the property sold, he is not fixed with
notice of any equitable interest created by the document
in the property sold («'). But as this is no protection
to the purchaser against any legal estate or interest
limited by such document in the property purchased,
he should of course require the document, if in the
vendor's possession or power, to be produced for his
solicitor's examination (k).
Expense of At common law the vendor was bound to procm'e at
facts ° ^i^ °^^ expense the evidence necessary to prove all the
facts stated in the abstract (/) : but under the Convey-
ancing Act, 1881 (m), the purchaser, in the absence of
stipulation to the contrary, has to bear the expenses of
searching for and procuring all such evidence, which is
not in the vendor's possession. As has been previously
remarked (><), this enactment does not discharge the
vendor from his obligation of procuring proper evidence
of the facts, if he have not any evidence in his possession ;
it merely exonerates him from the expense of so doing.
Recitals and There are, however, certain facts, of which a purchaser
doCTimentr^ is not entitled (except by special stipulation) to require
twenty years proof, unless he can show ground for discrediting the
statements in the abstract. Under the Vendor and
Purchaser Act, 1874 (o), it is a term of every contract
old.
(i) Jones v. Smith, 1 Ph. 244,
253 ; English and Scottish Mercan-
tile Investment Co. v. Brunton,
1892, 2 Q. B. 1, 700.
{k) 2 Dart, V. & P. 876, 6t.li
ed. ; 986, 6th ed. ; 895, 7th ed.
The purchaser cannot require an)'
abstract or copy of such document
to be made.
(0 Sug.V. A: P. 417, 420, 431.
{m) Stat. 44 & 45 Vict. c. 41,
s. 3 (6, 9).
{n) Above, p. 124.
(o) Stat. 37 & 38 Vict. c. 78, s. 2 (rule 2). It had been usual for
several years previously for vendors to make special stipulations to
the same effect: Juridical Society Papers, ii. 589 sq. ; 1 Davidson,
Prec. Couv. 556, 609, 4th ed. ; 1 Dart, V. & P. 147, 148, 5th ed. ;
A GOOD TITLE AND ITS DISCHARGE. 137
of sale of land, in the absence of stipulation to the con-
trary, that recitals, statements and descriptions of facts,
matters and parties contained in deeds, instruments,
Acts of Parliament or statutory declarations twenty
years old at the date of the contract, shall, unless and
except so far as they shall be proved to be inaccurate,
be taken to be sufficient e\'idence of the truth of such
facts, matters and descriptions (p) . And by the Cuu- Recitals of
veyancing Act of 1881 {q), the purchaser is requii-ed to for'Sg part
Williams, Real Prop. 451, 13th ed. The old practice of conveyancers,
in the absence of special stipulation, was to dispense with evidence of
facts recited iu deeds upwards of thirty years old, when there had
been uninterrupted possession in accordance with the recitals, and
under the deeds containing them, and where there were corroborative
circumstances streugtheniug the presumption that the facts agreed
with the recitals: 1 Jarm. Couv. 3rd ed. by Sweet, 121 ; Coventry,
Conv. Ev. 317 ; see Fort v. Clarke, I Russ. (501.
{p) In Bolto)i V. London School Board, 7 Ch. D. 760, Malins, V.-C,
decided that a recital that ->'. Il'alker, a former owner of land con-
tracted to be Bold, was seised thereof in fee simple, contained iu a
deed dated twenty- five years before the contract, was by the above
enactment rendered evidence that .S'. U'ullar was so seised until the
contrary were shown by the purchii.-er, and that the vendors were
therefore discharged from the obligation of showing a forty years'
title. It is submitted that this decision is clearly wrong. First, the
law, as we have seen, allows a vendor to discharge his obligation of
showing a good title by proof of forty yeai-s' title, that is, of forty
years' seinin in fee by himself and his predecessors in title ; above,
p. 107. How can this obligation be possibly discharged by proof that
one of such predecessors was seised in fee twenty-five years before the
contract? Secondly, assuuiing that the recital must be accepted as
evidence of the fact stated, it apparently alleged nothing but a seisin
in fee and made no assertion that the land was free from incumbrances
(see Nott v. liiccurd, '22 Beav. 307). Mere seisin in fee is perfectly
compatible with the existence of a long term of years granted to other
persons at a nominal rent to secure either their beneficial occupation
or money advanced : and it seems that on this ground tlie purchaser
was plainly entitled to forty years' title, the very object of allowing
the investigation of title for forty years past being to enable the
purchaser to ascertain, on an inspection of all the transactions during
that period, that no incumbrances have been created which hinder the
vendor from conveying what he contracted to sell. Besides, no one
would contend that a vendor ehows a forty years' title if he begin the
abstract with a deed of conveyance, twenty-five years old, expressly
limiting the land to one of his predecessors iu fee ; and it seems utterly
absurd, if this be so, that a mere recital, iu the same deed, of the
grantor's seisin in fee should avail to deprive the purchaser of his
right to investigate the earlier title. In Itv U'alli.s and Grout' » Contract,
190(i, 2 Ch. 20G, 210, the reasons here given (as stated in the first
edition of this book, p. 109) were approved of by Swinfen Eady, J.,
who expressed his concurrence iu the writer's conclusion.
ifj) Stat. 14 & 4j Vict. c. 41, s. 3 (3).
138
OF THE vendor's OBLIGATION TO SHOW
of the title
prior to the
time for com-
menciug the
abstract.
assume, unless the contrary appear, that the recitals
contained in the abstracted instruments of any deed,
will or other document forming part of the title prior to
the time prescribed by law or stipulated for commence-
ment of title, are correct and give all the material
contents of the deed, will or other documents so recited,
and that every document so recited was duly executed
by all necessary parties and perfected, if and as re-
quired, by fine, recovery, acknowledgment, enrolment
or otherwise.
Recitals no
evidence as a
rule.
As a rule, recitals and other statements in deeds are
no evidence at all of the facts recited (r), and are only
available as evidence in courts of justice either by way
of estoppel at law (s) or as admissions (t) of a party (u)
who executed the deed (v). They may therefore be
evidence against but not for a party to the deed (,r).
But owing to the exceptional rule regarding the admis-
sion in evidence of statements made ante litem motam
by a deceased member of a family on matters of pedi-
gree, statements on such matters so made by way of
recital in a deed executed by such a person may be
Recital in a received in evidence after his death (i/) . The only
public statute i^gtance of a recital affording good evidence for all
purposes is a recital in a public (s) Act of Parliament.
(r) Bristow v. Cormican, 3 App.
Gas. 641, 653, 662.
(,s) Baker v. Dewei/, 1 B. & G.
704 ; Hardimj v. Amh/er, 3 M. &
W. 279 : and see 8 M. & W. 212.
This kind of estoppel by deed
has become comparatively unim-
portant since law and equity have
been administered in the same
Gourts under the Judicature Acts
of 1873-5, as there was no such
estoppel in Courts of Equity ;
Coppifi V. Coppin, 2 P. W. 291 ;
Wilxon V. KeatiiKj, 28 L. J. Ch.
895.
(t) Carpenter v. Bidler, S M. &
W. 209 ; Taylor, Evidence, §§ 84,
So, 653 sq., 5th ed. ; Stephen,
Evidence, Arts. 15 sq.
(h) Fort V. Clarke, 1 Russ. 601.
(y) Tall V. Owen, 4 T. & C. 192.
[x] Doe d. Pritchard v. Dodd, 2
Nev. & Man. 838, 845 ; Ee Hol-
land, I'dQ-l, 2 Gh. 360, 379, 380.
[y) Welcome v. Upton, 6 M. &
W. 536, 539 ; Doe d. Jenkins v.
navies, 10 Q. B. 314.
[z) A recital in a private Act
of Parliament is not, as a rule,
evidence of the fact recited : Brett
V. Beales, M. & M. 421 ; Beaufort
V. Smith, 4 Ex. 450 ; The Shrews-
bury Peerage, 7 H. L. G. 1 ; Cowell
V. Chambers, 21 Beav. 619.
A GOOD TITLE AND ITS DISCHARGE. 139
This is held to be admissible, though not conclusive (a)
proof of the facts recited, on the ground that it is not
to be supposed that a statute, which is made by the
sovereign authority of the realm, would coutain an
untrue statement {b) . Statements of fact contained in Statements of
what are called public documents are admissible as documents,
evidence of the facts so stated ; and for this purpose
public documents are those made by some public officer
in pursuance of a judicial or (/«rt.s/- judicial duty to
inquire as to the facts and either for the purpose of the
public {(■) making use of and having access to the docu-
ments, or for the information of the Crown in some
matter which affects the property or revenues of the
Crown, and is thus a matter of public interest (d).
(a) jU. v. Greene, 6 A. & E, 548. not be made for the infurmation
(*) Co. Litt. \^ h, R. \. De of all the King's hubjccts, but
Berenger, 3 M. & S. 67, 69 ; It. v. may be public if made for the
Sutton, 4 M. A: S. -I'i'l, 542. use of some class of them ; see
(c) It appears that the officer Blackburn, L. A., 6Vm»7« v. F/we/rt,
need not be au officer of the 5 App. Cas. 623, 643, 644: Taylor,
Crown, and the ducument need E\-idence, jj 1429-1433, 5th ed.
[d) Roue V. Brenton, 8 B. i: C. 732, 743, 744 (caption of seisin to
the use of the Duke of Cornwall by persons assigned by fiim to do so
admitted on the ground of the interest of the Crown and therefore of
the public in the Duchy and its revenues) ; Evans v. Taijlur, 7 A. & E.
617 (statements contained in a survey, which was made under statu-
tory authority, but relating to matters outside the scope of the duty
of inquiry, rejected) ; Irish Society v. Bishop of Lerrrj, 12 CI. & Fin.
641, 668, 66y (entry in one of the books of the First Fruits Office
received) : Shrew-hiinj ricrage Case, 7 H. L. C. 1, 20, 21, 24, 25 (books
from the Heralds' College admissible, if containing information
obtained on the Heralds' visitations, but otherwise not ; see 5 App.
Cas. 644, 645) ; Queen's Proetor v. Fry, 4 P. D. 230 (records of mar-
riages and baptisms kept by order of the Government of India
receivable) ; Manchester Coijioralion v. Lyons, 22 Ch. D. 287, 299
(inquisition as to manorial rights directed to justices of the Duke of
Lancaster at a time when he had sovereign rights in the Duchy,
admitted) ; Sturla v. I-'reccia, .') App. Cas. 623, 643, 644 (statements as
to the place of birtli and the age of one Mangini contained in the
repoit of a committee of a public department ot a foreign state,
directed to inquire as to his fitness for a diplomatic post, rejected,
and a general rule laid down by Lord Blackbui-n) ; ^V>)
Above, p
136.
(0)
Above, p
11.3.
{P)
1 Jarm.
Couv.
3rd ed. by
142 OF THE vendor's OBLIGATION TO SHOW
natural endeavour is to obtain satisfactory proof at the
least cost to himself. Hence it frequently happens in
practice that a purchaser accepts irregular evidence —
evidence which he could not be required to accept — to
save himself the expense of the regular mode of proof.
Grreat caution should always be observed in admitting
such proof. It is true that if any fact on which title
depends be established, the purchaser may suffer no
inconvenience from not having the regular convey-
ancing evidence in his possession. If he sell, the pur-
chaser from him will by the rule be at the cost of
procuring it. But if a fact admitted on irregular
evidence be not verifiable by regular evidence, the
purchaser may obviously find himself at serious dis-
advantage on a re-sale. As an example of the reception
of irregular evidence, where a man's death is the fact
to be proved, a purchaser may, it is conceived, usually
rest satisfied with production of the probate of his will
or of letters of administration to his effects (r), or even
of the receipts for succession duty paid as on his death.
Indirect evidence of this kind is often to be found in
the vendor's possession, and may save the expense of
getting a certificate. In this case it will be observed
that the fact of death is inferred, not only from the
presumption that things are rightly done (.s), biit also
from the fact that the survivors have done an act
against their own interest in paying death duty ; and
such payment and the granting of probate or admini-
stration are acts extraneous to the title. Again, the
presumption that things are rightly done is greatly
strengthened whenever valuable consideration has been
given on the faith of certain events having taken place.
for vendors to stipulate specially (/•) Coventry, Conveyancers'
that the purchaser should bear Evidence, 278, 279 ; Sug. V. &
this expense; Juridical Society P. 418.
Papers, ii. 589, o90 ; 1 Davidson,
Prec. Conv. o06, 555, 609, 4th ed. (*) Above, p. 118.
A GOOD TITLE AND IT.S DISCHARGE. 143
Thus if the deatli of a joint mortgagee be stated, and it
appear that, on a subsequent transfer or purchase, a
conveyance has been accejited from tlie surviving mort-
gagees as having become entitled in consequence of his
death, it is hardly a rash assumption that the death
took place as alleged. But it would not be advisable
to dispense with proof of the alleged recent death of a
trustee merely because in a subsequent deed a new
trustee is appointed as upon his death. In this case no
act extraneous to the title has been done on the faith
of the event in question having occurred.
The extreme importance of the proper verification of Great import-
the abstract is too often overlooked. The abstract being verHicatiou of
the chief document delivered and the only document the abstract,
laid before and commented on by counsel, there is
always a certain danger of losing sight of the fact, that
the most perfect abstract is no evidence at all of title. It
is only when we turn away from the abstract to the
verification of it that the real proof of title begins.
The most severe scrutiny o f the abstract may be utterly
useless if the purchaser's advisers are lax in exacting
or examining the evidence in support of it. Extreme
care should therefore be observed in dispensing with
any of the evidence regularly necessary to verify the
abstract ; and if it be proposed to accept any irregular
or indirect evidence, the conveyancer should weigh well
the reasons why the same may be regarded as affording
substantial proof.
It seems needless but is really very necessary to point importance of
out that no part of the verification of the abstract is naliou"S\"he
more important than the examination of the title-deeds, title-deeds
This is especially the case at the present day, when abstract,
abstracts are constantly delivered, which have been
di-awn in the most slovenly and unskilled manner.
This fact enhances the necessity of Lord St. Leonards'
144
OF THE VENDOE's OBLIGATION TO SHOW
emphatic warning, that the examination of the title-
deeds with the abstract should never be left to an in-
competent person (/). As Mr. Dart pointed out, it is
a duty requiring the most scrupulous care, the object
of the examination being four-fold : to ascertain, first,
that what has been abstracted is correctly abstracted ;
secondly, that what is omitted is clearly immaterial ;
thirdly, that all the documents are perfect as respects
execution, attestation, endorsed receipts, registration,
stamps, &c. ; and fourthly, that there are uo endorsed
notices, nor any circumstances attending the mode of exe-
cution or attestation, &c., which are calculated to excite
suspicion (ii). Every part of every document, especially
of a will, should be read through {.r) . And very par-
ticular attention should be given to the execution of
the documents ; for, as we have seen (//) , it is not
the practice on sales to require any other evidence of
the execution of the documents of title than is apparent
on the documents themselves.
Proof of
identity of
property.
Besides verifying the documents and facts stated in
the abstract, the vendor is bound, in the absence of
special stipulation, to prove the identity of the property
described in the contract for sale with that specified in
the title-deeds (s). The requisite evidence of iden-
tity is usually obtained from ancient plans, leases, ex-
tracts from parish and land-tax books, and statutory
declarations of old people (r^). It is, however, a com-
mon stipulation in contracts for sale of land that the
purchaser shall admit the identity of the property
purchased with that comprised in the muniments offered
by the vendor as the title to such property upon the
evidence afforded by a comparison of the descriptions
{t) Sug. V. &P. 411.
(m) 1 Dart, V. & P. 415, 5th ed. ;
480, 6th ed. ; 493, 7th ed.
{x) Ibid.; Sug. V. &P. 411.
(y) Above, p. 117.
(:) Above, p. 33.
(ffl) 1 Davidson, Prec. Conv.
557, 4th ed. ; 463, 5th ed.
A GOOD TITLE AND ITS DISCHARGE. 145
contained in the particulars of sale and in the muni-
ments (6). This condition deprives the purchaser of
his right to require independent e\idence of identity :
but it does not exonerate the vendor from proving
identity as part of liis obligation to show a good title.
If therefore a comparison of the descriptions in the
title deeds with the description in the contract afford
no evidence that the property purchased is the same as
or is part of the property to which the deeds relate, the
vendor cannot force the title on the purchaser without
giving further evidence of identity (c).
It may be convenient to consider the various matters, Evidence of
of which proof is generally required on sales, in alpha- matters.*''
betical order as follows : —
Achioidedgment of a deed by a married woman under Acknowledg-
stat. 3 & 4 Will. IV. c. 74 :— proved, if the deed °'^"*'
were executed before the 1st of January, 1883, by the
memorandum of acknowledgment in the proper form
endorsed on or written at the foot or in the margin of
the deed, and an office copy of the certificate of acknow-
ledgment {d), the filing of which was essential {e) ; if
the deed were executed on or after the 1st of January,
1883, by a memorandum only in the proper form en-
dorsed on or written at the foot of or in the margin of
the deed and purporting to bo signed by a person
authorized to take the acknowledgment ( /") .
(6)1 Davidson. Prec. Conv. (rf) Stats. 3 & 4\Vill. IV. c. 74,
610 and n., 4th ed. : 520, oth ed. ; as. 84—88 ; 4 & 5 Will. IV. c. 92.
1 Key & Elphinstone, Prec. Conv. as. 75 — 79, as to Ireland ; 45 & 46
262, 4th ed. ; 2-50. 8th ed. ; above Vict. c. 39, s. 7 (8).
^^[c) ' Flower V. Hartopp, 6 Beav. . (/) "^""i^ ^- ^^'^''dcock, 7 Ex.
476; Curlififf V. Justin, 2 Dr. & ^'^*-
Sm. 129 ; and see Sug. V. & P. (/) Stat. 45 & 46 Vict. c. 39,
26; 1 Dart, V. & P. 153, 154, s. 7, and Rules thereunder; see
5th ed. ; 174, 175, 6th ed. ; 170, Williams'.s Conveyancing' Sta-
7th ed., and Chap. VI., below. tntes, 281, 477.
w. 10
146
OF THE VENDOR S OBLIGATION TO SHOW
Act of Parlia-
ment.
Acf of Parh'nment. A public Act needs no proof,
the Court taking judicial notice of public Statutes {(j).
A private Act is proved by a copy thereof purporting
to be printed by the King's printers (//), or by a copy
thereof proved to have been examined with the Parlia-
ment Roll ii).
Award of
enfranchise-
ment.
Award of enfranchisement. If made under the Copy-
hold Act, 1858, proved by a copy thereof purporting to
be sealed or stamped with the seal of tlie Copyhold
Commissioners {h). If made under the Copyhold Act,
1887, proved in the same way or by a copy of the entry
directed to be made of the award in the court rolls of the
manor {!). The Copyhold Act, 1894 (m), repealed, with-
out re-enacting, the section of the Act of 1852 {n) which
made awards provable by such evidence in courts of
justice. But similar evidence of awards of enfranchise-
ment made under the Act of 1894 (o) would appear to
be receivable by conveyancers on a sale.
(g) R. V. Sutton, 4M.. & S. 532,
.542.
(A) Stat. 8 &9 Vict. c. 113, s. 3.
(i) Taylor on Evidence, § 1368,
vol. ii. p. 1315, 6th ed. ; and see
Coventry, Convevancers' Evi-
dence, 81 ; Burt. Comp. pi. 482 ;
above, p. 122.
(/.-) After the year 1882, the
Copyhold Commissioners were
stvled the Land Commissioners,
and on the 12th Aug-ust, 1889,
their powers and duties were
transferred to the Board of Agri-
culture ; stats. 45 & 46 Vict.
c. 38, s. 48 ; 52 & 53 Vict. c. 30,
s. 2.
(?) See stats. 15 & 16 Vict.
c. 51, s. 49 ; 21 & 22 Vict. c. 94,
s. 10 ; 50 & 51 Vict. c. 73, s. 22.
{m) Stat. 57 & 58 Vict. c. 46,
8. 100.
(w) Stat. 15 & 16 Vict. c. 51,
8. 49.
' (o) Under this Act, 57 & 58 Vict.
c. 46, 8. 10 (1), (5), enfranchise-
ment is made by an award con-
firmed by the Board of Agricul-
ture, who are to send a copy of
the confirmed award sealed or
stamped with the seal of the
Board to the lord, and the lord is
to " cause the ^ opy to be entered
in the court rolls of the manor."
Under stat. 52 & 53 Vict. c. 30,
s. 7, every document piu-port-
ing to be an order, licence, or
other instrument issued by the
Board of Agriculture, and to be
sealed with the seal of the Board,
authenticated by the signature of
the president or some member of
the Board, or tlie secretary or
some person authorized by the
president to act on behalf of the
secretary, or purporting to be
signed by a secretary, or any
person authorized by the presi-
dent to act on behalf of the
secretary, shall be received in
evidence and be deemed to be
such order, licence or instru-
ment, vrithout further proof un-
less the contrary is shown.
A GOOD TI'l'LE AND ITS DISCHARGE. 1*7
Award as to the inclosure of common lands made Awaxd of
under an Act incorporating the Inclosure Consolidation
Act, 1801, or other special Inclosure Act. Proved by a
copy or extract signed by the proper officer of the Court,
if the Award were enrolled in one of the Courts of
"Westminster, or, if the Award were enrolled with the
clerk of the peace for the county in which the lands lie,
by the clerk or his deputy, and purporting to be a true
copy(;j).
Award as to inclosure of common lands made under Award under
the General Inclosure Act, 1845. Proved by a copy inclosure Act.
purjDorting to be sealed with the seal of the Board of i'**'^-
Commissioners under the Act {q), or by a copy or extract
signed by the clerk of the peace of the county in which
the lands lie, or his deputy, purporting the same to be a
true copy (r).
Bankruptcy, proceedings in. Provable in litigation in Bankruptcy,
the same manner as other proceedings in Courts (q.r.),
and also by copies certified as required by the various
Bankruptcy Acts {s). Under the present Bankruptcy Act,
a receiving order or an adjudication of bankruptcy is
also conclusively proved by production of a copy of the
Loudon Gazette containing a notice thereof (/) ; the ap-
pointment of a trustee is proved by the certificate of
appointment {u) ; and the proceedings at a statutory
meeting of creditors are proved by a minute signed at
(p) Stata. 41 Geo. III. c. 109, note {k) to p. 146, above.
s. 35; 3 & 4 "Will. IV. c. 87, s. 2. (>) Stat. S & 9 Vict. c. 118.
[q) These Commissioners were ss. 2, 146.
first styled the Inclosure Com- (.«) Stats. 46 & 47 Vict. c. 52,
rais-sioners for England and ss. 134, 137 ; 32 & 33 Vict. c. 71,
Wales; after 1882 they were ss. 107—109; 24 & 25 Vict,
styled the Lund Commissioners; c. 134, ss. 203 sq. ; 12 & 13 Vict.
and on the 12th Aujfust, 1889, c. 106, ss. 232 sq.; 1 &- 2 Will,
their powers and duties were IV. c. 56, s. 29 ; 6 Geo. IV. c. 16,
transferred to the Board of Agri- a. 97.
culture; stats. 8 & 9 Vict. c. 118, [t) Stat. 46 & 47 Vict. c. 52.
8. 2 ; 45 & 46 Vict. c. 38, s. 48 ; s. 132.
52 & 53 Vict. c. 30, s. 2. See (m) Sect. 54 (4).
10(2)
148 OF THE vendor's OBLIGATION TO SHOW
the same or the next meeting by a person describing
himself as or appearing to be the chairman of the meet-
ing at which the minute is signed (^). On sales, office
copies are accepted as evidence, whether receivable as
evidence in Coui't, or not {y).
Copyholds. Copi/hoMs, assurances of. The law regards the coui't
rolls of a manor as a public document (s), and so permits
entries therein to be proved either by production of the
rolls {a), by examined copies {h) or by copies signed by
the steward (c) , such as are always delivered to the
tenants on the completion of a transaction acknow-
ledging their title {d) . According to the strict rule of
the common law, the last-mentioned mode of proof was
incomplete without evidence of the steward's hand-
• writing, unless the copy were thirty years old at
least {e) and came fi-om the proper custody (_/'). But
entries in court rolls are provable under the Evidence
Act, 1851 {g), by copies purporting to be signed and
certified as true copies by the officer to whose custody
the originals are entrusted, that is, as a rule, the
steward. On sales of copyholds, the assurances entered
on the court rolls are usually proved by copies thereof
signed by the steward, and it is not the practice to
require any proof of the steward's handwriting {//),
copies purporting to be signed by the steward being
accepted as genuine, unless there be some reason for
(x) Stat. 46 & 47 Vict. c. 52, (d) WilHams, Real Prop. 375,
8. 133. 13th ed. ; 484, 21st ed.
{y) Sug. V. & P. 417 ; 1 Dart, (e) Above, p. 116.
V. & P. 318, 5th ed. ; 361, 6th (/) 1 Scriv. Cop. 591, 3rd ed. ;
ed. 2 Wat. Cop. 39, n., 4th ed. ;
(z) Taylor, Evidence, §§ 1433, TFi/nm' v. Tyrwhitt, 4 B. & Aid.
1438, 5th ed. 376.
{a) Doed. Bennington v. Hall, [g) Stat. 14 & 15 Vict. c. 99,
16 East, 208. s. 14 ; Taylor, Evidence, ^ 1437,
{b) Doe d. Caivthorn v. Mee, 4 1438, 5th ed. ; above, p. 122.
B. & Ad. 617 ; Doe d. Burrows v. [h) Su?. V. & P. 417 ; 1 Dart,
Freeman, 12M. &W. 844; Breeze V. & P. 310, 311, 5th ed. ; 351,
V. Hawker, 14 Sim. 350. 6th ed. ; 346, 347, 7th ed.
(c) 1 Scriv. Cop. 590, 3rd ed.
A GOOD TITLE AND ITS DISCHAKGH. 149
suspecting their authenticity (/). A vendor of copy-
holds is as a rule bound to procure proper copies of
court roll signed by the steward for verification of the
abstract ; he cannot require the vendor to go and com-
pare the abstract with the original rolls (/r) : but, under
the Conveyancing Act, 1881 (/), the purchaser will be
obliged to pay the expense of obtaining such copies, if
not in the vendor's possession.
Coiiru of jHsticp, records and procpedinr/s of. As a Courts, pro-
rule, these are provable in litigation (1) by production ^^^ ^gso .
of the original, which is usually inconvenient ; or (2)
by an exemplification, or its equivalent ; or (3) by an
examined copy (m). As we have seen (m), a copy made
by an officer of the Court bound hy law to mahe it is
equivalent to an exemplification : whilst office copies, or Office copies,
copies made by an officer of the Court who is autho-
rised by rule of Court hut not required hy law to make
them, are not at common law equivalent to an exem-
plification, save in the same Court and cause, in which
the proceeding occm-red («). But office copies of all
writs, records, pleadings and documents filed in the
High Court of Justice are admissible in evidence to the
same extent as the original (o). Besides the above
modes of proof, there are various particular cases in
which the proceedings of Courts are by Statute provable
in litigation by copies certified as required by the
Act (p). For example, proceedings in bankruptcy (q)
(»■) See above, p. 118. (/) Stat. 44 & 45 Vict. c. 41,
8. 3 (6).
(^•j Sug. V. & P. 431 ; 1 Dart, (w) Above, p. 122.
V. & P. 311, oth ed. ; 3.52, 6th (n) Taylor, Evidence, ^i 1378—
ed. ; 347, 7th ed., where it is sub- 1391, othed.; Stephen, Evidence,
mitted that the vendor will dis- Art. 78
charge his oblifjation, if he can (o) R. S. C. 1883, Order 37,
pntduce the original rolls at the rule 4.
proper place for verification of [p, Taylor, Evidence, §5 1391
the abstract, and satisfactorily sq , 1440, oth ed. ; Stephen, Evi-
account for the absence of the dence, Art. 79 ; above, p. 122.
copies of court roll from time to {q) Stat. 46 & 47 Vict. c. 52,
time delivered to the tenants. s. 134.
150 OF THE VENDOe's OBLIGATION TO SHOW
and orders in lunacy (r) are now provable in this
way. And under the Evidence Act, 1851 (.s), the pro-
ceedings of courts of justice not provable by copies
under any other Statute appear to be provable by certi-
fied copies (f). The records of the Courts deposited in
the Record Office are also provable as records under the
charge of the Master of the Rolls {u) . On sales, how-
ever, the practice is to accept office copies as evidence,
whether the same would be receivable in evidence on
litigation or not (x) .
Crown grauts. Croicti grants are proved by production of the original
under the great seal, the privy seal or the roj^al feign
manual ; but as they are matters of public record, they
are also provable by exemplifications or examined
copies {i/), or under the Evidence Act, 1851, by certified
copies (z). But on sales, if the original be not forth-
coming, it seems that the purchaser cannot require the
vendor to furnish him with a copy in accordance with
the general rule {a), but must examine the enrolment at
his own expense {b).
Deeds. Deeds and private writings are, as we have seen {c),
primarily proved on sales by production of the originals,
and proof of execution or signature is not usually re-
Missing quired. If any such document, which ought to be
produced, be missing, its destruction or loss must be
proved, either by evidence of actual destruction, or by
{r) Stat. .53 Vict. c. 5, s. 144. lor, Evideuce, § 1371, p. 1316,
(s) Stat. 14 & lo Vict. c. 99, 5th ed. ; above, p. 122.
s. 14 ; above, p. 122. (;) i Dart, V. & P. 315, 5th ed. ;
{t) Reeve v. Hodson, 10 Hare, 361,6th ed. ; 357, 7th ed.; above,
App. xix. p. 122.
(u) See below; Taylor, Evi- , \ \u di
deuce, §§ 1337, 1338, 1377, 5th ed. (") ^^^"'^^ P" ^-^■
{x) Sug. V. & P. 417 ; 1 Dart, (*) Sug. V. .Sc P. 431 ; 1 Dart,
V. & P. 318, 5th ed. ; 361, 6th ^- & P. 316, 5th ed. ; 359, 6th
ed. ; 1 Davidson, Prec. Con v. ed. ; 354, 7th ed. ; 1 Davidson,
652, 4th ed. ; 459, 5th ed. Prec. Conv. 531, 4th ed.
(y) 2 Black. Comm. 346 ; Tay- [c) Above, p. 116.
A GOOD TITLE AND ITS DISCHARGE. 161
showing that search has heen made for it without result
in all places where it is reasonably likely to have been
deposited. If its destruction or loss be so established,
secondary evidence may be given of its contents (d),
such as a counterpart, draft, copy or abstract thereof
proved to be correct (e), or a recital thereof in a subse-
quent instrument (_/') : but in such case the execution of
the missing document must be duly proved (g). A
missing document will be presumed to have been duly
stamped, in the absence of anything to show the con-
trary (h) .
Enrobnp)it. The proper evidence of the enrolment of Enrolment,
any document required by Statute to be enrolled, as
deeds of bargain and sale of any estate of inheritance
in lands (/), conveyances to charitable uses {!:) and
disentailing assurances (/), depends generally on the
terms of the particular Act. But where it is the
practice to deliver back the original deed to the parties
from the enrolment office with a memorandum of the
enrolment endorsed thereon, and purporting to be made
by the proper officer, and it is his duty to make the
memorandum, such memorandum is at common law
{d) Hart v. Hart, 1 Hare. 1 ; Ross, 7 M. & W. 102 ; Taylor,
Fitzwalter Peerage, 10 CI. & Fin. Evidence, § 495, 5th ed. ; Stephen,
94f>, 952-3 ; Green v. Bailey, 15 Evidence, Art. 70.
Sim. 542; Iticfiardti v. Lewis, 11 (J) Above, p. 141; Alexander
C. B. 1035 ; R. v. Safron Hi!/, 1 v. Crosby, 1 J. & L. 066.
E. & B. 93 ; Moiilton v. Eflnioiids, {g) Bryant v. Busk, 4 Russ. 1 ;
1 De G. F. & J. 24G, 251 ; Tay- see also the authorities cited in
lor. Evidence, §§ 398, 399, 5th ed. ; note (rf), above. Execution may
Sujr. V. & P. 437, 438 ; 1 Dart, be presumed after along lapse of
V. & P. 142. 312, 5th ed. ; 159, time ; MohHoh v. Edmonds, 1 De
353, 6th ed. ; 155, 349, 7th ed. ; G. F. & J. 246.
I Davidson, Prec. Conv. 551, (/,) ji^rt v. Hart, 1 Hare, 1 ;
4th ed. Taylor, Evidence, \ 127, 5th ed.
(r) In litigation, when secondary i\ a*, t. .>7 xj xryrr ic
•J e .\ i i. r J («) Stat. 27 Hen. VIII. c. 16.
evidence of the contents of a docu- ^'
mentis admitted, there is no qucs- (^'O Stat. 51 & 52 Vict. c. 42,
tion whether any particular kind s- 4, replaciDg: 9 Geo. II. c. 36,
of secondarj' evidence is better an) I Dart, V. & P. 328, 5th
Evidence. Art. 31 ; 1 Dart, V. & ed. ; 372, 6th ed. ; 368, 7th ed.
P. 336-351, 5th ed. ; 381-397,
156
OF THE vendor's OBLIGATION TO SHOW
No presump-
tion of death
as between
vendor and
purchaser.
the vendor from proving the point at issue affirmatively.
Besides, the rule of equity is that the vendor cannot en-
force specific performance of the contract where the title
shown is too doubtful in respect of some fact on which
its validity depends (.s). And even by the rule of law,
where the title depends on some fact, the fact must be
proved with reasonable certainty {f). No doubt it is
true that in some cases a purchaser is obliged to accept
what are called presumptions of fact : but these pre-
sumptions are really inferences or conclusions to be
drawn from certain evidence produced (?/), and not such
presumptions as absolve one party to an action from
giving any proof at all. And it is thought that the
only rule which binds a purchaser as to these so-called
presumptions of fact is that already stated, namely,
that he must presume whatever a judge would at law
direct a jury to presume, but cannot be required to
presume any matter which the judge would leave to the
jury to pronounce on the effect of the evidence (.r). As
regards death especially, where the title to land sold
depends upon the fact of a death having occurred, and
no evidence of the death can be procured, no legal pre-
sumption arises, in favour of the vendor and as against
the purchaser, from the fact that the person, whose
death is required to be established, has not been heard
of for the last seven years or longer by those with whom
he would naturally have communicated if alive {//).
(.«) See below, Chap. XIX. § 3. L. R. 7 Ex. 313 ; Sug. V. & P.
(/) See Jeakes v. TFhitc, 6 Ex. 400, 405.
873 ; Simmons V. Heseltine, 5 C. B. («) See note {y), at end.
N. S. 554, 571 ; Olarkev. Willott, [x) Above, p. 134.
((/) Coventry, Conveyancers' Evidence, 286; Sug. V. & P. 418;
1 i)art, V. & P. 340, 5th ed. ; 385, 6th ed. ; 380, 7th ed. As
between adverse litigants for the possession of property or in respect
of other matters, there is a presumption of law that a person is dead
when he has not been heard of for seven 3'^ears by those with whom
he would naturally have communicated, if alive, unless the circum-
stances be such as to account for the absence of communication
without presuming death : but no presumption of law arises with
respect to the time of such death [i.e., that he died at any particular
A GOOD TITLE AND ITS DISCHARGE. 157
As between adverse litigants, the presumptions as to Presumption
marriage and legitimacy are these : —When a man and ° ™arnage.
a woman have lived together as and with the reputation
of being man and wife, it is presumed (unless the con-
trary be shown) that they were lawfully married and
not living in a state of concubinage {z) . And where it
is established that a marriage ceremony took place, the
like presumption arises in favour of the existence of
every circumstance necessary to its validity {//). There Presumption
is also a presumption that every child born in wedlock — or patemity.
that is, at any time during the continuance of the
marriage between its parents, no matter how soon after
the marriage ceremony (h) — is the child of the husband:
moment of time during those years) ; and where a person has disap-
peared and has not been heard of for less than seven years, no
presumption of law arises that he has since continued to live : Nepean v.
Doe, 2 M. & W. 894 : R. v. Lumley. L. R. 1 C. C. R. 196 ; Rr PhenPs
Trmt, L. R. 5 Ch. 139 ; Re Lewes' Trusts, L. R. 6 Ch. 356 ; Rr Rhodes,
36 Ch. D. 586 ; Re Aldersey, 1905, 2 Ch. 181 ; Stephen, Evidence,
Art. 99 : see also Prudential Assurance Co. v. Edmonds, 2 App. Cas. 487.
Also, when two or more persons meet their death in some common
calamity (such as a shipwreck or a massacre) , there is no presumption
of law arising from age or sex that any one of them survived the other
or others, neither is there any presiunptiou of law that they died at the
same time : Underwood v. Wing, 4 De G. M. & G. 633 ; Wing v.
Angrave, 8 H. L. C. 183 ; Re Alston, 1892, P. 142 ; Re Beynon, 1901,
P. 141. And there is no presumption of law that a person, who is
dead, left no issue : Re Jackmn, 1907. 2 Ch. 354. XSS. the above-
mentioned matters, as to which no presumption of law arises, must be
proved positively : but the jury or other proper tribunal, to determine
questions of fact, may draw an inference (often stN'led a presumption)
of fact in respect thereof, if evidence sufficient to warrant such
inference be submitted ; see the cases above cited. So also where a
man has disappeared in circumstances which make it likely that he
has met his death, an inference of fact may be drawn that he is dead,
notwithstanding that a far shorter .space of time than seven years has
elapsed since his disappearance : Sillick v. Booth, 1 Y. & C. C. C. 117;
Re Beiisney's Trusts, L. R. 7 Eq. 498 ; Hickman v. Upsall, L. R. 20 Eq.
136 ; Re Alston, ubi sup. ; lii Matthews, 1898, P. 17 ; cf. Ommaney v.
Stilwell, 23 Beav. 328. As to the difference between presiimptions of
law and of fact, see Taylor. Evidence. §§61, 62, 94-97, 169-171,
oth ed. ; Stephen, Evidence, Art. 1 and note 1.
(z) Piers v. Piers, 2 H. L. C. note : Harrison v. Southampton
331, 362-364, 370, 371, 379, 380; Corim., 4 De G. M. & G. 137;
Brcadalbane Case, L. R. 1 Sc. Wastry Vthiidcr Aroncgary v.
App. 182, 199, 200 ; Lyle v. Setnbecntty Vaigalie, 6 App. Ca**.
EUwood, L. R. 19 Eq. 98, 107 ; 364.
Re Shephard, 1904, 1 Ch. 466. (A) Co. Litt. 244 a ; PouUtt
(a) See cases cited in previous Peerage, 1903, A. C. 395, 398.
158 OF THE vendor's OBLIGATION TO SHOW
but this presumption may be rebutted by evidence that
the husband and wife have not had sexual intercourse
within such period previous to the child's birth as would
be necessar}^ to produce the gestation in question {c).
(c) Morris v. Davicx, T) CI. & Fin. 163, 21o, 229, n., 251, 252, 260,
262, 265 ; H. v. Mansfield, 1 Q. B. 444 ; Saije ^- Srh- Bnrony, 1 H. L. C.
507, 511, 512; Maives v. Draeger, 23 Gh. D. 173, 178; Aylesford Peerage,
11 App. Gas. 3, 17 ; Bo-svUc v.A.-G., 12 P. D. 177 (appeal abandoned,
1887, W. N. 181) ; Burnabg v. Baillie, 42 Ch. D. 282, 297, 298. The
question, whether such intercourse did take place, is one of fact to be
proved in the ordinary way and to be decided by the jury or other
proper tribunal for pronouncing on questions of fact : but clear
evidence is required to rebut the presumption of legitimacy ; the
matter is not to be decided on a mere balance of probalailities. And
after evidence tending to establish such intercourse (as that the
husband aud wife occupied the same bedroom) has been given, then
no other evidence is admissible than such as tends to disprove the
inference of the intercourse having taken place ; see the cases above
cited The fact of non-intercourse may be inferred from the conduct
of the husband or wife, and their statements made at the time or
afterwards are admissible in evidence as part of the res gestce and in
proof of their conduct ; Aylesford Peerage, 11 App. Gas. 3 ; Btirnahy v.
Baillie, 42 Ch. D. 282, 291. But neither of them is admissible as a
witness, at the trial of the issue of the legitimacy of the child, to state
whether the required intercourse took place or not ; nor is any state-
ment or declaration of either of them with regard to this matter
admissible as direct evidence thereof; R. v. Sourton, 5 A. & E. 180;
Nottingham Gaardiatis v. Tomkinson, 4 C. P. D. 343 ; Hatres v. Draeger,
23 Gh. D. 173, 178 ; Burnabg v. Baillie, 42 Ch. D. 282, 293. In 'the
second and fourth of these cases the Court declined to follow a con-
trary decision in Re Yearwood\s Trusts, 5 Ch. D. 545. This rule
however relates only to the proof or disproof of sexual intercourse
between husband and wife during their marriage ; it does not prevent
either of them, on the trial of the legitimacy of a child born so soon
after marriage that it must necessarily have been begotten before the
marriage, from being admitted to give evidence whether such inter-
course took place between them before their marriage ; Poulctt Peerage,
1903, A. G. 395, overruhng Ano)i. v. Anon., 22 Beav. 481, 23 Beav.
273. Evidence of the husband or wife is also admissible in any pro-
ceeding instituted in consequence of adultery with regard to the issue,
whether adviltery has taken place or not ; but not, it appears, on the
issue of the legitimacy of any child of the wife's ; Stat. 32 & 33 Vict.
c. 68, s. 3 ; Hetherington v. Hetherington, 12 P. D. 112, 114 ; Evans v.
Evans, 1904, P. 378. Questions of the legitimacy of any natural-bom
British subject domiciled in England or Ireland or claiming any real
or personal estate situate in England or of the validity of his marriage
or that of his parents or grandparents may be detemuned in proceed-
ings instituted in the Probate Division under the Legitimacy Declara-
tion Act, 1858 (stat. 21 & 22 Vict. c. 93) : but any decree so obtained
does not prejudice any person unless he has been cited or made a
party to the proceedings, or is the heir-at-law or next of kin, or other
real or personal representative of or derives title under or through a
person so cited or made a party, and such decree will not prejudice
any person if subsequently proved to have been obtained by fraud or
A GOOD TITLE AND ITS DISCHARGE. 159
This presumption arises, although the husband and wife
be separated by mutual consent, and even when the
wife is living in adultery with another man {(/) ; and it
extends to all children born within due time after the
liusband's death {e) or the dissolution of the marriage (/).
But when the husband and wife have been separated by
a decree of divorce a nienm ct thoro, a sentence of judicial
separation or a separation order (^), the presumption
ceases with respect to children born after the expiration
of such time subsequent to the decree, sentence or order
as is equal to the usual period of gestation [h).
Record under the charge and superintendence of the Record in
Master of the Rolls for tlie time being (/). Proved by ^^"""'^ ^*^^-
a copy certified as true and authentic by the deputy
keeper of the records, or one of the assistant record
oollusion : s. 8. The Court lias uo jurisdiction to determine in such
proceeding's any question of the heirship of real estate ; Manuel v.
A.-G., 2 P. D. 26o. It may be noted here that uo child born out of
wedlock can in any circumstances inherit any real estate in England
as heir to and upon the death and intestacy of any person ; Doe d.
liirtivhistle v. Vurdill, o B. & C. 438 ; 2 CI. & Fin. 571 ; liirtwhisllc
V. Vardtll, 7 CI. & Fin. 895 ; F.scallier v. E^callier, 10 App. Cas.
312, 317. But where a gift is made by will, or (as it .seems) by an
instrument operating inter viro", of any real or personal estiite situate
in Etigland to the child or children of any person domiciled in some
country where the law admits of legitimation per subseqiu-iin matrimonimn,
a child so legitimated may take thereunder as a lawfxil child of such
per-son ; Skoftoirc v. Yoxiif/, L. R. 11 Eq. 474 ; AV Andron, 24 Ch. D.
(537 ; Re Gren's Trusts, 1892, 3 Ch. 88. It has also been held tliat
children so legitimated may as children or next of kin succeed on
intestacy to personal chattels under the Statute of Distributions
(stat. 22" & 23 Car. II. c. 10) ; Re Goodman's Trusts, 17 Ch. D. 266,
James & Cotton, L. •!., diss. Lush, L. J., reversing Jessel, M. R. 14
Ch. D. 619. Qitrrr, whether this decision applies in the case of
chattels real situate in England ; .see hancnti v. Lawso)/. 41 Ch. D.
394 ; Pepin v. Jlnn/hr, 1902, 1 Ch. 24.
(rf) See cases cited in previous dence. Art. 98.
note and in n. {//), below ; Jfar- () Under Stat. 58 & 59 Vict.
(/rave v. Hargrnie, 9 Beav. 552. o. 39, s. 5, replacing 41 & 42 Vict.
[e) See Co. Litt. 123 b and c. 19, s. 4.
n. (1, 2); Bac. Abr. Bastardy (A) ; (A) St. George's Parish v. St.
1 Black. Comm. 456, 457. Margaret's, 1 Salk. 123; Uether-
(/) See cases cited in note (/<), ington v. Hetherington, 12 P. D.
below; Bac. Abr. Ba.stardy (A), 112, 114.
ed. 1832; Evans v. Evans, 1904, (i) See Taylor, Evidence,
P. 274, 378, 381 ; Stephen, Evi- \\ 1337, 1338, 5th ed.
160
OF THE vendor's OBLIGATION TO SHOW
keepers, and purporting to be sealed or stamped with
the seal of the Record Office (k).
Recovery. Recovery, conrmo)) : — proved by an exemplification or
an examined copy (/) or as a record under the charge
of the Master of the Rolls {m). Conveyancers accepted
office extracts (w) .
Registration. Regidration of assurances in Middlesex or Yorkshire :
— proved by the certificate of registration which it is
the registrar's duty to indorse and sign on the regis-
tered assurance (o). Under the Yorkshire Registries
Act, 1884, the registrar is also required to seal the
certificate with the seal of the registry ( p) .
Seisin. Seisin : — provable on sales by extracts from the land
tax or poor rate assessments showing who were the
landlords and tenants of the property assessed, or by
evidence of acts of ownership, as the grant of a lease
under which possession was had, or any letting followed
by payment of rent and a fortiori a sale or mort-
[k) Stat. 1 & 2 Vict. c. 94,
ss. 1, 12, 13.
(?) Coventry, Conveyancers'
Evidence, 77 ; Biirt. Comp. pi.
490 ; 1 Dart, V. & P. 315, 5th
ed. ; 356, 6th ed. ; 352, 7th ed.
{in) See above.
(w) Sug. V. & P. 414. By
Stat. 14 Geo. II. c. 20, ss. 4, 5,
repealed with extensive savings
(see 28 Ch. D. 107) by 30 & 31
Vict. c. 59, where an estate had
been purchased and held for
twenty years under a title which
a recovery was necessary to com-
plete, the purchaser and all
claiming under him might prove
a recovery, of which no record
could be found or which appeared
not to be regularly entered on
record, by production of a deed
making a tenant to the Praecipe
and declaring the uses of the re-
covery and executed by a person
having a sufficient estate for the
purpose ; and every recovery
twenty years old, to which the
persons having power to bar the
entail were parties, was made
valid, if it appeared on the face
thereof that there was a tenant
to the writ, notwithstanding that
the deed for making such tenant
were lost or did not appear ; see
Burt. Comp. pi. 682-694.
(o) Stats. 7 Anne, c. 20, s. 6
as to Middlesex ; 47 & 48 Vict
c 54, s. 9, as to Yorkshire, re-
placing 2 &• 3 Anne, c. 4, s.
•), are admissible as evidence of that
other's seisin (.s) ; and on this ground receipts for rent
paid by a deceased person as tenant are evidence of the
landlord's seisin, when produced from the proper cus-
tody (t). Proof of personal occupation only, though
prima facie evidence in ejectment of a seisin in fee, is
not acceptable as sufficient evidence of seisin on a
sale (u).
Will : — proved on a sale by production of the pro- Will,
bate or an office copy, whether the will relate to per-
sonal estate only or to real and personal estate, or, where
the testator died on or after the 1st of January, 1898,
to real estate only (.r) . If the will should not have
been proved — and a will of real estate, as such, does
not require to be proved {p) — the original must of
[q) Burt. Comp. pi. 418-436 :
Coventry, Conveyancers' Evi-
dence, 27o, 276; Wehomex. Upton,
6 M. & W. 0.36. .^40, 542 ; Mo>ilto,i
v. Edmonds, 1 De G. F. & J. 246,
248 ; Brintow v. Cormican, 3 App.
Cas. 641, 653, 668-670; Van
Dieman's Zand Cu. v. Tahle Cape
Marinr Board, 1906, A. C. 92, 99.
The production from the proper
custody, that is, the landlord's, of
a lease expired at a time beyond
living memory is sufficient evi-
dence of seisin, witliout proof of
enjoyment thereunder ; Clarksnu
V. Woodhoiise, .5 T. R. 412. n.
(r) Above, p. 140.
(«) Doe d. Ihtniel v. Coullhred,
7 A. & E. 23.i. 239 ; Ihe d. W^hh
V. Langfield, 16 M. & W. 497,
.')14 ; tavl(»r. Evidence, \ 618,
.')th ed.
(/) Burt. Coinp. pi. 429.
(m) Hubbark, Evidence, 131 ;
1 Dart, V. & P. 334, 5th ed. ;
379, 6th ed. ; 383. 7th ed. ; above,
p. 104.
{x) Coventry, Convevancers'
Evidence, 91, 93; Sug. V. & P.
W.
414; 1 Dart,V. &P. 319,5thed.;
362, 6th ed. ; 358, 7th ed. At
common law, the probate copy of
a will of personalty was conclu-
sive evidence of the contents of
the will ; Allen v. Ditndas, 3 T. R.
125 ; but to prove a devise of real
estate, production of the original
will (whether proved or not) was
required. The probate of a will
is now admissible as eWdence of
a devise of real estate under the
conditions specified in stat. 20 &
21 Vict. c. 77, ss. 62, 64, 65;
Taylor, Evidence, §§ 1565a, b,
and C, 5th ed. ; Barroclongh v.
Greenhough, L. R. 2 Q. B. 612.
(v) Originally there was no
jurisdiction to grant probate of a
will dealing only with real estate;
1 Wms. Exors. pt. i. bk. iv. ch. ii.
\ 9, p. 389, 7th ed. ; In the Goods
of Tomlinmn, 6 P. D. 209 ; In the
ijoodsof Hunihuckle, 15 P. D. 149.
But by the Land Transfer Act,
1897, stat. 60 & 61 Vict. c. 65,
8. 1, probate may be grants in
respect of real estate only where
the testator has died on or after
the 1st January, 1898.
11
162 VENDOR TO SHOW GOOD TITLE AND DISCHARGE.
course be produced (;:). As in the case of deeds (a), it
was not the practice on sales to require proof of the
due signature and attestation of any will of real estate
forming part of the title : but wills purporting to have
been signed and attested as required by law (b) were
presumed to have been made with the proper for-
malities (c). Since the Wills Act required all wills,
whether of real or personal estate, to be executed in the
same manner (d) , the fact that a will has been proved
strengthens the presumption that it was duly signed
and attested (e).
(s) Sug. V. & P. 414. (d) Stat. 7 Will. IV. & 1 Vict.
(a) Above, pp. 116 — 119. c. 26, s. 9 ; see Wins. Pers. Prop.
{b) See Wms. Real Prop. 245, 438, IGth ed.
2l8t ed. {e) As to th« evidence required
(c) Coventry, Conveyancers' on probate, see 1 Wms. Exors.
Evidence, 91, 93-95. pt. i. bk. iv. ch. ii. § 3; Wms.
Pers. Prop. 449, 450, 16th ed.
163
CHAPTER V.
OF ADVISING ON TITLE GENERALLY.
In the preceding chapter we endeavoui'ed to give a
general view of the vendor's obligation to show a good
titlp and its discharge. We will now consider the same
subject from the point of view of a conveyancer in-
structed to advise the purchaser whether the title shown
by the vendor can be accepted.
The first duty of a conveyancer so instructed is of Duty of con-
course to read the contract for sale, and then to peruse adv^sin^^the
the abstract of title with reference to the contract. And purchaser
his task is to ascertain whether the vendor has shown a
good title according to tlie contract, that is, such a title
as the contract binds the purchaser to accept, taking into
account in the case of a contract other than an open
contract the limitations or restrictions thereby imposed
on the purchaser's riglits as defined by law. He has to
satisfy himself that on all points, save those on which
tlie right to call for proof is precluded by the contract,
the vendor has shown that he has the right to convey
what he contracted to sell (a) . If a freehold in fee were
sold, the conveyancer must see that the purchaser will
get both the legal and equitable estate in fee simple,
free from all incumbrances, save those, if any, subject to
winch he contracted to take the land. If copyholds
were bought, the purchaser's adviser must ascertain that
his client will be duly admitted tenant on the rolls of
such an estate as was sold. If the land sold were lease-
(fl) Above, p. 94.
11(2)
164
OF ADVISING ON TITLE GENERALLY.
hold, the conveyancer must take care that the lease or
term offered by the abstract corresponds at all points
with that promised by the contract ; the purchaser, as
we have seen (b), being entitled to require a lease from
the freeholder unless the contract distinctly specified an
underlease as the subject of the sale, and not being
obliged to accept a lease at covenants more stringent
than those usually inserted in the kind of lease pur-
chased, unless the existence of such covenants were
brought to his notice by the contract (c) .
What should
be the general
scope and
result of the
abstract.
Vendor need
not show the
whole estate
to be vested
in himself, if
he have the
right to pro-
cure its con-
veyance.
Before discussing any of the details of an abstract
examined on behalf of a purchaser, let us consider what
should be its general scope and result. It should show
title for the time prescribed by law or settled by special
stipulation as sufficient to prove a good title, according
to the nature of the property sold [d] ; it should com-
mence with a good root of title and continue to deal
with the whole legal and equitable estate in the land
purchased (e) ; and it should end in showing that the
vendor can convey or cause to be conveyed to the pur-
chaser the whole estate contracted for in the land sold.
But it is important to observe that it is not necessary
for the vendor to show upon the abstract that the whole
estate sold is vested in himself. It is sufficient if it
appear that he has, or may obtain by acts of which the
performance rests with himself alone ( /"), the right to
convey or cause others to convey to the purchaser
the estate sold ; and if such a right be established,
the abstract is complete, and it is considered a matter
to be dealt with on the preparation of the convey-
ance rather than on the investigation of title for the
vendor to obtain the concurrence of all other persons
(b) Above, p. 101, n. (i).
(c) Reeve v. Berridge, 20 Q. B.
D. 523 ; Re TFJiite ami Smith's
Contract, 1896, 1 Ch. 637.
[cI) Above, pp. 100 sq.
(e) Above, pp. 106 sq.
(/) Bretver v. Brondwood, 22
Ch. D. 105, 109.
OP ADVISING ON TITLE GENERALLY. 165
necessary to vest in the purchaser the whole legal and
equitable estate which lie contracted to buy {g) . Thus
it is of course sufficient if the abstract show that the
vendor has a power of appointment or other power which
will enable him to convey the estate sold. So if the
land sold be vested in trustees holding on trust for the
vendor absolutely, a good title is shown on the abstract ;
for the vendor is entitled in equity to dii-ect them to
convey as he will (h). And if the land sold be subject
to mortgages, the vendor has none the less shown a good
title on the abstract, provided that the mortgages be
immediately redeemable by him. And this is the case
even though the amount secured by the mortgages
exceed that of the purchase money, or the mortgages
affect other lands than those purchased ; as it appears to
be considered that, so long as the vendor has the right of
redemption, it merely rests with him to exercise it, the
mortgagees being bound to take the money secured, if
all that is due be tendered, and to re-convey on such
payment (/) . Here we may notice that the general rule
of equity, that a mortgagor must give six months'
notice of his intention to pay off the mortgage {k), is no
bar to the immediate exercise of the right of redemption ;
for the mortgagor is entitled to pay to the mortgagee
six months' interest in advance in lieu of such notice (/) .
Any mortgage redeemable in accordance Avith this
general rule may therefore be considered as immediately
redeemable for the purposes of a sale of the mortgaged
land. But it is of course quite a different thing if the
((/) See 8 Ves. 436 ; Towiixeiid (i) Townscnd v. Champernoivn,
V. C/itiiiiperiioicn, 1 Y. ic J. 449 ; 1 Y. & J. 449 ; Savory v. Und/'r-
Sug. V. & P. 217, 218, 349, 423- wood, 23 L. T. O. S. 141 ; Sug.
425; Dart, V. & P. 281-286, 5th V. & P. 425 ; 1 Dart, V. & P.
ed. ; 321-326, 1177 sq., 6th ed. ; 283, 284, 5th ed. ; 323, 324, 6th
317-322, 7th ed. cd. ; 319, 320, 7th ed.
(X) Wms. Real Prop. 561,
(A) "Wma. Real Prop. 181. 2l8t 2l8t ed.
ed. ; Kitchen v. Pfi/nur, 46 L. J. (l) Johnson v. Evans, W. N.
Ch. 611. 1889, p. 95.
166
OF ADVISING ON TITLE GENERALLY.
Distinction
between
showing a
good title on
the abstract
and pi'oving
it.
land sold be subject to a mortgage, which is not to be
called in or paid off during a certain term. In such
case the discharge of the incumbrance is not a matter
resting with the mortgagor alone ; as the mortgagee
cannot be obliged to receive back his money during the
term (w).
The reader must bear in mind the distinction between
showing a good title on the abstract and showing a
good title in the sense of completely discharging the
vendor's obligati6nto show or make a good title. That
is a matter depending on proof, not mere statement of
title, and is not accomplished until an abstract showing
a good title has been duly verified by production of the
proper evidence («) . Thus, although a good title is
shown on the abstract, notwithstanding the existence
of mortgages exceeding the amount of the purchase-
money, the vendor cannot of course make a good title
if he be unable to pay off such mortgages or procure
the mortgagees to release their charges.
A good title then is shown on the abstract, if it
appear that the vendor has an equitable right in the
land sold, by virtue of which he is, or may by doing
acts which are independent of others' consent, imme-
diately become entitled to direct the conveyance to the
(m) See Esdaile v. Stephenson,
6 Madd. 366 ; Leicin v. Guest,
1 Russ. 325 ; Sug. V. & P. 425 ;
1 Dart, V. & P. '284, 5th ed. ;
324, 6th ed. ; 320, 7th ed.
(h) See Southby v. mut, 1 My.
& Cr. 207, 212, 213 ; above,
pp. 115 sq. In actions for specific
performance of contracts for sale
of land the usual inquiry directed
us to title is whether a good title
can be made to the property sold,
and if so, when it was fii'st shown
that such good title could be
made ; Seton on Judgments,
2226, 6th ed. The inquiry when
a good title was hrst shown re-
lates to the time when it was
first shown upon the face of the
abstract ; but the inquiry, whe-
ther a good title can be made,
means whether the vendor can
prove a good title by the usual
evidence ; Parr v. Lovcqruve, 4
Drew. 170; 4 Jui-. N. S. 600;
Sug. V. & P. 424, 426 ; see how-
ever Hdlkett V. Dudley, 1907,
1 Ch. 590, 606, where Farr v.
Loveyrove was not cited, and
Parker, J., appears to have over-
looked this distinction.
OF ADVISING ON TITLE GENERALLY. 167
purchaser of all the estate sold {u) . And where a
future day is fixed for completion of the contract, a
good title is sufficiently shown on the abstract if it
appear that the vendor will certainly have such an
equitable right as above mentioned before the time
fixed for completion, although he have not and can-
not immediately procure such right (js). But it is Good title not
otherwise if any part of the estate contracted for estate out^°^
be outstanding in some person, whom the vendor has sttrndingin
, . , , , one, whom
no right to direct to convey, and the vendor cannot the vendor
procure such right without the other's consent. In ^0^°^"!^*
such case a good title in the vendor is not shown, convey.
This may be illustrated, not only by the example
already given of land subject to a mortgage not to
be paid off during a certain term, but also by the
instances of lands subject to dower, or a jointure rent-
charge [q) or restrictive covenants (r), or of lands, under
which the mines and minerals are not the vendor's (-s),
or of land sold as held for a term of a certain number
of years, which is in fact determinable earlier at the
lessor's option (t). A fortiori, the purchaser can object
to the title, where it appears that the whole title is in
some third person whose conveyance the vendor has no
ri(jht, legal or equitable, to dii-ect. Nor is the case
altered by the fact that the vendor offers to procure the
concun-ence of such third person, and the latter is
willing to give it ; so long as the latter is under no
obligation enforceable in a coui't of justice to convey
(o) See note {y} to p. 16o, perty sold was subject to a re-
above, strict! ve stipulation sis to light,
(jo) Dart, V. k, P. 284, 5th ed. ; and a drain, which was a sewer
324, 6th ed. ; 320, 7th ed. ; see vested in the local authority, ran
Xoble v. Eduardc.i, 6 Ch. D. 378 ; under the land.
Betlamu v. Drbeii/iiini, 1891, 1 Ch. , \ u n i. i i ,or.,
..,-*' (s) liellamy v. Debenhnm, 1891,
i\ ... ■, ... , [. I Ch. il2 ; lie Jackson and Ifddfn'x
Madd. 366. Co,itraci, 1906, 1 Ch. 412, 424,
(>•) rhillips V. Caldcleiigh, L. R.
4 Q. B. lo'J ; Pemsrl v. Tucker, {() Weston v. 'Savage, 10 Ch. D.
1907, 2 Ch. 191, where the pro- 736.
168
OF ADVISING ON TITLE GENERALLY.
according to the vendor s direction (?/). On this point a
Re Bryant and recent casc {x) is very instructive. Two persons sold
Barniiiffham'.s t j , , n ^ t^
Contract. land as trustees lor sale. It appeared from the abstract
that the trust for sale did not arise until after the death
of a tenant for life, who was still living : but the vendors,
on this objection being pointed out, offered to procure a
conveyance from the tenant for life under the Settled
Land Acts. This the purchaser declined ; and the ven-
dors endeavouring to oblige him to take this title in a
vendor and purchaser summons, it was held that he was
justified in his objection thereto. The court pointed
out that the vendors themselves could make no title,
having no immediate right to convey, and that the
proposed conveyance could only be effectually secured
by a new contract made with the tenant for life ; an
arrangement, into which the vendors had no right to
require the purchaser to enter.
Purchaser It appears however that if the purchaser propose to
repudiate the object to the title shown on the ground that the whole
contract if he qj. gome part of the estate contracted for in the land
wish to insist . ^
on the objec- sold is Outstanding in some person, whom the vendor
^^'^' has no right to direct to convey, he must insist on such
objection at once, and must immediately repudiate the
contract (y). If he require the vendor to remove the
objection by obtaining the concurrence of the other person
or persons entitled, or if he entertain (except without
(«) Lewin v. Guest, 1 Russ. 325 ;
Forrerv. Nash, 35 Beav. 167, 171 ;
Brewer v. Broaduood, '2'2 Ch. D.
105; Lee v. Soames, 36 W. R.
884 ; cf . Re Baker and Schiio)i''s
Contract, 1907, 1 Ch. 238, where
a trustee sold as the authorised
agent of the beneficiaries.
{x) Re Bryant and Barmnghani\
Contract, 44 Ch. D. 218 ; see also
Me Sead^s Trustees and Macdonald,
45 Ch. D. 310.
(y) Halkett v. Dudley, 1907,
1 Ch. 590, 597. The purchaser
is entitled, in such circumstances,
to repudiate the contract at once,
and need not wait till the day
fixed for completion ; Hoqgart v.
^cott, 1 Russ. & My. 293, 295;
Forrer v. Nash, 35 Beav. 167,
171 ; Weston v. Savage, 10 Ch. D.
736 ; Brewer v. Broadwood, 22
Ch. D. 105, 109: Lee v. Soames,
36 W. R. S84 ; Ualkctt v. Dudley,
1907, 1 Ch. 590, 596; and see
below, p. 185, n. [l).
OP ADVISING ON TITLE GENERALLY. 1<59
prejudice to his right to repudiate the contract) (2) any
proposal made by the vendor so to remove the objec-
tion, he may lose his right to insist on the objection
and may find himself obliged to perform the contract.
For if the pui'chaser show himself willing to go on with
the contract, the vendor may get in the outstanding
interests, though they should amount to the whole
title, and he will then be in a position to enforce the
specific performance of the contract. And if in such
case the vendor bring an action for that purpose, it will
be no defence to allege that he could make no title by
the time fixed for completion. For if the purchaser
has continued to recognise the contract as binding,
it will be sufficient to enable the vendor to enforce
specific performance, if he can make a good title at the
hearing {a) or even when the result of the usual in-
quiry as to title is certified (b). Besides this, if the
contract contain the usual stipulation enabling the
vendor to rescind in case of insistence on an un-
welcome requisition, and the piu'chaser negotiate with
the view of obtaining the removal of an objection,
which would have justified him in repudiating the
contract at once, the purchaser runs the risk of the
vendor's exercising his power to rescind and so escaping
the liability of paying the purchaser's expenses as
damages ((*)•
We have already considered what documents of title RtHiuisitious
the abstract should contain and the manner in which eontents^and
they oiight to be abstracted ((/) . Any defects in these nianner of
making the
(z) See Morlei/ v. Cook, 2 Hare, 580, 581, 4th ed. ; 2 Dart, V. & abstract.
106, 115; 7 Jm-. 79, 80; Sout/i- P. 1058-1060, 5th cd. ; 1178-llSO,
coiiil) V. Bp. of Kxetcr, 6 Hare, 6th od. ; 1065- 1068, 7th ed. ; and
213, 216, 219,"220. .see Miinr/l v. Goodi/cn; 1 De G.
(ff) Hogtjiut V. Scott, 1 Ru8s. & F. & J. 432 ; Hallrtt v. Dudley,
My. 298 ; Salisbur!/ v. Hatcher, 1907, 1 Ch. 590, 597-600.
2 Y. & C. C. C. 54. I \ ^ 1, n ■ K, ^ u ■
(A) E,,ston V. Simond., 1 Y. & .J^l S^'oJleBeiffhtonandHarn.,
C. C. C. 608 ; Fry, 8p. Perf. ^^^^' ^ ^^- ^^^ ' ^^1°^' P" ^^'^■
^ 1366-9, pp. 607, 608, 3rd ed. ; (rf) Above, pp. 106-113.
i^O OF ADVISING ON TITLE GENERALLY.
respects should of course be the subject of requisition.
The purchaser's adviser must insist on being furnislied
with an abstract showing a complete chain of the
conveyances or other documents dealing with the legal
estate in the property purchased from the time of
commencement of title down to that of the contract for
sale. And whenever the abstract gives him notice of
any equitable estate or interest in the premises, he
must requii'e the title to such estate or interest to be
abstracted ((^), and must see that the same has been
ultimately got in or released or will be conveyed to the
purchaser : unless, of course, the circumstances are such
that the concurrence of the beneficiaries is unnecessary,
as upon an ordinary trust for sale. It is his further
duty to ascertain that each of the abstracted conveyances
is at all points complete, so that it really has in law the
effect which it purports to have. Thus he must consider
whether the conveying parties have due capacity to
convey the estate assured ; if so, whether they have used
an instrument proper and words apt to carry out their
intention ; and then whether the instrument is duly
executed or perfected as required by law. And if he
observe any deficiency, he should call for its rectification.
If a document be abstracted in an improper manner (as
constantly happens) conveyancing counsel ought to
require the vendor to furnish a proper abstract sufficient
to enable him to exercise his own judgment as to the
effect of the words actually used. He ought not to
rest satisfied with a mere statement of the effect of any
material clause or document ; for the very purpose of
laying the abstract before him is that he should give his
opinion on the effect of the deeds. And if he accept
statements of the effect of clauses where he ought to be
informed of the exact words used and judge of their
effect himself, he is really laying a duty, which he ought
(tf) See above, pp. 110-112.
OF ADVISING ON TITLE GENERALLY. 171
to perform in person, on the gentleman wlio examines
the abstract with the deeds. Owing to the unskilled
and slovenly way in which abstracts are now too often
prepared, counsel have to bear this constantly in mind.
What clauses ought to be abstracted in full and what
may be proj^erly passed over with a mere statement has
been considered above (,/'). We will merely give one
constantly recurring example of the duty we have been
pointing out. A proviso for reconveyance in a mortgage
deed is now often abstracted in these words — proviso
for redemption. And such abstracting is constantly
allowed to pass either without comment or with the
remark that it is presumed that this proviso is in the
usual form. That however is exactly the point on
which counsel's opinion is desired. A proviso for
reconveyance is the only clause in a mortgage deed
which effectively shows what charge on the property is
thereby created, and on what terms that charge is
redeemable, and it is also a limitation of the equitable
estate in the property subject to the charge. All these
matters are material to the title, even though a sub-
sequent reconveyance from mortgagee to mortgagor
appear on the abstract (g) . The proviso therefore
(/) Pp. 112-114. to A. ill fee on payment by A. to
((/) Of course mortgages are B., a purchaser acquiriug title
usually redeemable ou pnymeut under these deeds would take
of principal and interest by tlie with notice of the equities both
original mortgagor to the original of C. and D. This example is of
mortgagee, when reconveyance course an extreme case ; and the
is to bf made to the mortgagor rule no doubt is that a mort-
according to his former estate. gagor's equitable estate in the
But, since jiersons Tiot named as mortgaged lands shall not be
parties to indentures liave been altered by the tenns of a proviso
allowed to take benefits there- for redemption without a clear
under (see Wms. Real I'rop. loG, expression of an intention in that
"ilst ed.), there is nothmg to behalf [Iiiiie.s v. Juck.wn, Ki Vcs.
prevent :i pioviso in a deed of l{.5() ; Co. Litt. 208 a, n. (1);
mortgage between A. borrower stdnsfield v. HoUion, ii Jur. N. S.
and B. lender that ou iwyment 1334; Jlastiiiyisy: Ast/ti/ZMBnAV.
of principal and interest by A. to 260; Jte Betton's Trust Estates^
C, B. shall reconvey to D. in L. R. 12 Eq. 553; Re ]ii/ion\i
fee. In such case, if there were SettU'inoit, 1891, 3 Ch. 474) : but
a subsequent reconveyance by B. such an intention may be clearly
172
OF ADVISING ON TITLE GENERALLY.
should always be so abstracted as to enable the pur-
chaser's counsel to judge for himself, from the exact
words used, of its effect in these respects (/^). And
unless counsel insist on being furnished with such an
abstract, he does not discharge his duty to his client.
Estate of
grantee to
uses.
Here the reader may be warned of a pitfall, which
the writer has several times encountered in practice ;
namely, the omission, since the Conveyancing Act of
1881 took effect (/), to limit an estate in fee simple to a
grantee to uses in deeds intended to take effect under
the Statute of Uses. The consequence of this omission
is that such grantee takes an estate for life only (/.•),
and the uses declared are executed by the statute or
turned into legal estates (/) only during the life of the
grantee to uses and no longer (iii) . Uses declared of
the inheritance in such circumstances are of course,
generally speaking, valid in equity and enforceable as
trusts : but the legal fee remains in the grantor ; and
expressed in the proviso (see 16
Ves. 370, 371), and any variation
in the limitation thereby made
from the mortgagor's former
estate raises a //ucstion, whether
any alteration was intended ;
Davidson, Prec. Conv. vol. ii.
pt. ii. pp. 38-43, 4th ed. An
unusual proviso for redemption
occurred in Williams v. Moryan,
1906, 1 Ch. 804.
{h) See 1 Prest. Abst. 149,
'2nd ed., where note that the
author appears to be speaking of
a proviso for redemption in the
old form making void the con-
veyance to the mortgagee on
repayment (see Davidson, Prec.
Conv. vol. ii. pt. ii. p. 31, 4th ed. ;
5 Bythewood & Jarm. Prec. Conv.
3rd ed. by Sweet, 544, 555), and
that, according to the principles
there laid down, it should always
be shown, in abstracting a pro-
viso for reconveyance, to whom
the reconveyance is limited to be
made.
(i) Such an omission was not
previously common, as it was the
regular practice to limit estates
to all grantees and their fieira.
The mistake has generally arisen
where use has been made of the
statutory limitation to a grantee
in fee simple ; and the draftsman
has forgotten that it is equally
necessary to limit the lands to
the grantee to uses in fee simple
as to assure by apt words an
estate of inheritance to cestui que
use intended to take the benefit
of the conveyance.
(A) Wms. Real Prop. 112,
21st ed.
[1) Ibid. 173-176, 21st ed.
{m) Dyer, 186 a ; Jenkins v.
Young, Cro. Car. 230 ; Meredith
V. Joans, ibid. 244 ; Sug. Pow.
149, 8th ed. : Williams on Settle-
ments, 7 ; Re Hunter and Hew-
lett's Contract, 1907, 1 Ch. 46.
OF ADVISING ON TITLE GENERALLY. 173
on a subsequent sale of the land by persons entitled
under the uses, the purchaser must require the legal
estate of inheritance to be conveyed to him by the
original grantor, his heirs, executors, administrators or
assigns.
It is the duty of a conveyancer perusing an abstract I'V'ntitv.
on the purchaser's belialf to see that the vendor
discharges his obligation of proving the identity of
the property sold with that described in the various
documents abstracted {a). The conveyancer must
therefore carefully compare the abstracted parcels as he
proceeds, and ascertain that the descriptions in the title
deeds agree with each other and with the description in
the contract. Where the abstracted descriptions wholly
or partially fail to show the identity of the property
comprised in the title deeds with that sold, further
e\'idence of identity should be required, notwithstanding
that the purchaser may have bought subject to the
usual condition as to such evidence (o). The identity
of the property sold with that comprised in the title
deeds is the most important link in the Avhole chain of
proof of the vendor's title ; without evidence of such
identity, the most perfect title shown by the deeds
proves nothing. Purchasers cannot therefore be advised
to dispense with such evidence (where they are entitled
to require it), on the ground that they must bear the
expense of it, if not in the vendor's possession ( p) .
It is the duty of the purchaser's counsel or solicitor, Calling for
besides seeing that the documents which ought to be facts,
abstracted are abstracted and are properly abstracted, to
note all facts material to the title stated on or apjiear-
ing from the abstract, and to require them to be proved
(»/) Ahovp, pp. 33, fi5 : Sns:. («) See above, pp. f).5, 72.
V. & P. 413. ^ [p] See ab«ve, pp. 45, 136.
174 OF ADVISING ON TITLE GENERALLY.
by tlie usual conveyancing evidence. What this is has
been already sufficiently considered (5^) . But we may
remark that, owing to the rule which now throws upon
the purchaser the expense of procuring all evidence of
title not in the vendor's possession (r) , it is a convenient
plan to frame requisitions calling for evidence of facts
in the following form : — " Has the vendor any evidence
of any kind in his possession of {the death, mart'iage, or
other fact required to he proved) ? If so, he is required
to produce such evidence. If not, purchaser reserves
his right to call for the usual formal evidence of such
( fact) at his own expense." As we have ak-eady
pointed out («), it is often material to a title to prove
that some event has not happened. This should not be
forgotten upon the perusal of the abstract ; and the
conveyancer should, in these eases, call for such evi-
dence as he can require.
Death duties. Another matter to be attended to on the perusal of
the abstract is the incidence of the death duties. When-
ever the death is stated of a person interested in the
lands sold, it must be considered whether this death
gave rise to a claim for legacy, succession, estate or
settlement estate duty in such a manner that the duty
will, if unpaid, remain a charge on the land ; and if so,
the receipts for duty payable must be required to be
produced or the claim discharged. The subject of the
death duties is more fully considered below (/).
stamps. It is not the practice for vendors to mark on the
abstract what stamps are impressed on the various title
deeds : but the purchaser's solicitor must ascertain this
on the examination of the abstract with the deeds (?«),
and he should note in tlie margin of the abstract what
{q) Above, pp. V-M v/. [t) See the chapter on the Death
(r) Above, pp. 45, 136. Duties in the second volume.
[s) Above, p. 132. (m) Above, p. 143.
OF ADVISING ON TITLE GENERALLY. 175
stamps each abstracted document bears, or their absence,
where a document required by law to be stamped is
unstamped. If the abstract come to counsel after it
has been compared with the deeds, lie must of course
consider whether all the abstracted documents appear
to be rightly stamped. If he receive the abstract before
the examination of the deeds, he should remind his
client, in advising on the title, that it must be ascer-
tained whether the abstracted documents are duly
stamped. If any document, which ought to be stamped,
be unstamped or insufficiently stamped, the vendor
should be requii'ed to procure it to be properly stamped ;
which, as we have seen, he is bound to do at his own
expense (.r) .
Besides the requisitions, properly so called, demanding Inquiries
the production of some particular piece of evidence to propTrtv^ol/
complete the title, it is generally desii'able for the pur-
chaser's advisers to make certain inquiries of the vendor
respecting the property sold (//) . Thus if an estate be sold
under the usual condition that it is sold subject to all
subsisting chief rents, easements, tenancies and tenants'
claims, whether mentioned in the particulars of sale or
not (2), inquiry should be made of the vendor whether
there are any such rents, easements, tenancies or claims.
Tliis is a very pertinent question ; for if it be omitted,
the purchaser will have notice of any rights which he
might have discovered by the inquiry (a) ; and, as we
have seen, it is held that this general condition does not
enable the vendor to enforce the contract specifically,
if the property be subject to any rents, easements,
tenancies or claims, which are serious incumbrances and
were known to the vendor but omitted from the par-
{z) Above, p. 130. mental to the requisitions on titlo.
(y) See Appendix (C), below, (z) Above, p. 73.
for 11 fonii of the inquiries wliicli (a) Re Alms Corn C/iariti/, I'.IOl,
may usefully be made as supple- 2 Ch. 7''>0.
176 OF ADVISING ON TITLE GENERALLY.
ticulars(^). And in every case it should be asked
whether the property sold is subject to any easement or
other right (e), or to any rentcharge, or to any quit-
rent or other incident of tenure {(/) , and what outgoings
there are in respect of the property sold. Land tax and
tithe rentcharge, being general liabilities to which all
lands are regularly subject, need not be expressly
mentioned on a contract to sell land ; it is understood
that the purchaser will take subject to these liabilities,
which are not regarded as incumbrances (e) . And it is
of course unnecessary to mention that the purchaser will
have to pay the usual local rates, or property tax. If
there be no other outgoings than these, the purchaser
has no cause for objection : but the existence of rents
or rentcharges (other than tithe rentcharge) not disclosed
by the contract is a different matter. Quit rents, being
incidents of tenure, are regarded in equity as a proper
subject for compensation, not as a ground for resisting
specific performance ; and so are rentcharges of trifling
amount (./'). But the existence of a rentcharge of
substantial amount is an objection to the title (r/) ; as
is the existence of a considerable ground rent not
mentioned in the particulars on the sale of houses held
for a long term of years {//). Another inquiry useful
to be made is whether the property sold is subject to
{b) Ifei/wood V. Mallalicu, 'lb tithe rentcharge, the case is of
Ch. D. 357 ; Nottingham Patrnt course different ; as the vendor
Brick and Tile Co. v. Butler, 16 must then prove that the land is,
Q. B. D. 778 ; above, p. 73, n. (if). as alleged, free from such lia-
(f) See Fcmne/ v. Tucker, 1907, bility ; see ibid.
2 Ch. 191 ; above, p. 167, n. (/). (/) Esdailr v. Stephenson, 1 S.
[d) Onerous incidents, such as & S. 122; Sug. V. & P. 312; 2
heriots, are sometimes attached Dart, V. & P. 1078, 5th ed. ;
to the tenure of fieeholds; see 1205, 6th ed. ; 1093, 7th ed. ; see
Copeniake v. Hoper, 1907, 1 Ch. above, p. 43.
366, reversed, 1908, 2 Ch. 10; {(/) I'ortnmn v. Mill, 1 Russ. &
Wms. Real Prop. 58, and n. {/>), My. C96 ; Be Great Northern Bail.
478, n. (i), 21st ed. Co. and Sanderson, 25 Ch. D.
(e) Sug. V. &P. 322; 1 Dart, 788; Sug. V. & P. 313; above,
V. & P. 352, 5th ed. ; 398, 399. p. 167.
6th ed. : 393, 394, 7th ed. If (h) Jones v. Biinmer, 14 Ch. D.
land be sold tree of l^nd tax or 588,
OF ADVISING ON TITLE GENERALLY. 177
any drainage or land improvement or other statutory
charge. Drainage and land improvement charges of
course principally affect agricultural land : but it must
be remembered that land once occupied for cultivation
is often built over, and that such charges may subsist
after the agricultural aspect of the property has quite
disappeared. And rentcharges may now be created
under the Improvement of Land Act, 1864, and its
amending Acts (/) for a ver}' wide range of improve-
ments, not exclusively affecting agricultural land.
Agricultural land may also be liable to charges created
under the Agricultural Holdings Act, 1x8-3 or 190S (A-).
In the case of tovsm property or building land, charges
may arise under Local Management or Improvement
Acts, the Public Health Act, 1875 (/), or the Private
Street Works Act, 1892 {m), for the expenses of paving,
sewering, or lighting the adjoining streets or for other
works ordered to be done by the proper authority (y?).
House property in London may be affected by a party
wall notice under the London Building Act, 1894 (o) ;
or the owner thereof may incur liability owing to a
" dangerous structure " notice and an order consequent
thereon under the same Act and the London Building
Act, 1898 {])), or through being required to abate a
nuisance under the Public Health (London) Act,
1891 {q). And similar liability may be incurred else-
where under the Public Health Act, 1875 (r). In all
(t) See Chap. XII. § 2, below. 1910, 1 K. B. 424.
(k) Stat. 4(5 & 47 Vict. c. 61, (o) Carlhh v. Sa!(, 1906, 1 Oh.
88. 29-32, repealed and replaced 335, a.s to which sen the writer's
by 8 Edw. VII. c. 28, sx. lo-19, criticiism iu 50 Sol. J. 611.
49. (p) lie Highett and Bird's Con-
(l) Stat. 38 & 39 Vict. c. 55, tract, 1902, 2 Ch. 214: C. A.,
866 88.150,257. 1903, 1 Ch. 287; explaibed in
(m) Stat. 55 & 56 Vict. c. 57. Re Alien and DriscolVs Contract,
(m) Midgley v. Coppock, 4 Ex. D. 1904, 2 Ch. 231.
309; Re liettesHinth ami Richrr, [q) Bars/it v. Tagg, 1900, 1 Ch.
37 Ch. D. 535; Stock v. Meakin, 231.
1900, 1 Ch. 683 ; Re Allen and [r) Stat. 38 & 39 Vict. c. 55,
Driscoir.s Contract, 1904, 2 Ch. s.s. 94-104, IfiO, incorporating 10 &
226 ; Camberucll Corpn. v. Dixon, 11 Vict. c. 34, ss. 75-78.
w. 12
178 OF ADVISING ON TITLE GENERALLY.
these cases, therefore, inquiry should be made whether
any demand has been made, notice given, resolution
passed, or order made, which may subject the property
sold or its owner to any such charge or liability (s) .
Such charges or liabilities, if attaching on the property
sold or becoming payable before the time for completion,
come under the head of outgoings which the vendor
ought to discharge (;^) . And with regard .to charges,
generally, the rule of course applies that the purchaser
is entitled to have the property sold free from all
incumbrances, except those, if any, subject to which he
agreed to buy («) . It is also useful to ask, on buying a
house not detached, if the walls are party walls, and as
to any suburban property, if any adjoining street or
road has been taken over by the local authority.
Vendor bound The general rule applicable to inquiries of the above
relevant^^ ^ nature is that the vendor is bound to answer all relevant
questions. questions with respect to the property sold {x) : but the
Re Ford mid limits of inquiry are shown in the case of Re Ford and
lli/l{'//) already mentioned. It was there held that a
vendor need not answer the inquiry, Is there, to the
knowledge of the vendor or his solicitor, any settlement,
deed, fact, omission, or any incumbrance affecting the
property not disclosed by the abstract ? This question
the Court of Appeal held to be not so much a requisi-
tion as a searching interrogatory. As we have already
pointed out (z), there is a clear distinction between
putting questions to ascertain that the title shown on
the abstract is fully proved and at all points complete,
and interrogating the vendor whether he knows of any
matter of title besides those stated on the abstract.
(s) See He Zealand and Taylor'' s Ch. XI. Sect. 1.
Contract, 1900, 2 Ch. 625; below, {u) Above, pp. 41, 94.
Ch. XII. Sect. 2. {x) Above, p. 135.
(t) See cases cited in notes [l), [y) 10 Ch. D. 365.
p. 50, («), p; 177, above; below, (z) Above, p. 135, n. (/).
OF ADVISINQ ON TITLE GENERALLY. 179
Having regard to the practice already stated (a) of not
disclosing purely equitable charges or interests on the
abstract, where the purchaser may acquire a good title
without notice of them, it seems obvious that such an
interrogatory is objectionable. But it is thought that
the decision in Up Ford mid Hill does not go further
than this, and does not e.xonerate the vendor from the
obligation of- answering questions relevant to the issue
between tlie parties, which is, has the vendor proved the
title, which he has s/ioini on the ahsfracf ?{b).
Wlien the abstract is laid before counsel to advise Counsel
thereon, he settles the necessary requisitions, and writes on title
his opinion on the title according to the circumstances
of the ease ; as that, if the requisitions be satisfactorily
answered, a good title according to the contract will
liave been shown, or that some irremovable objection to
the title appears. At the same time he usually advises
what searches ought to be made. The subject of Searches,
searches is reserved for subsequent consideration (p).
As we have seen [d) , it is usually stipulated that the Time for
makino:
reqiusition.-i
purchaser's requisitions on or objections to the title ™^''"
shall be sent in within a specified time after the delivery
of the abstract, that in this respect time shall be of the
essence of the contract, and that in default of any
requisitions or objections so made, the purchaser shall be
taken to have accepted the title. The time so limited
only begins to run from the delivery of a perfect
abstract (f) . But if the abstract delivered be in
accordance with the contract, the purchaser must be
careful to send in his requisitions or objections within
the time appointed, or he will lose his right to insist
(n) Above, p. 110. (li) Above, p. 62.
(A) See above, p. 16G.
(c) See below, Ch. XII. Sect. 2. (e) Above, p. 63.
12(2)
180 OF ADVISING ON TITLE GENERALLY.
upon tliem(/). If, however, the abstract delivered
show no title at all on the face of it, the purchaser
may take this objection at any time, notwithstanding
any such stipulation as the above, and although the day
Wa»t\. fixed for sending in requisition she past. Thus in Want
V. Stallihrassig), two persons entered into a contract to
sell land, stipulating that all objections and requisitions
not sent in within fourteen days after the delivery of
the abstract should be considered as waived. The}^
then delivered an abstract from which it appeared that
they were trustees of the property sold for a third
person for life and after his death for sale ; and they
offered the concurrence of the tenant for life, apparently
supposing that this would enable them to make a good
title. The purchaser, after the fourteen days had
expired, took the objection that, as the trust for sale
did not arise until the death of the tenant for life, it
was not presently exercisable, even with the tenant-for-
life's concurrence (A). And it was held by the Court
of Exchequer that the purchaser was entitled to recover
his deposit, as the above-mentioned stipulation did not
exonerate the vendors from their obligation of showing
a good title, and it was apparent on the face of tlie
abstract delivered by them that they liad failed to
Ite Tanqneray- perform tliis obligation. So in Re Tanqneran-WiUaumv
^L^ZT"''^ and Landau («), two persons sold land under the usual
condition limiting the time for sending in requisitions
or objections, and offered to make title as executors and
trustees of a will selling under the power of sale
implied by the testator's debts being charged on liis
real estate (/>) . After the time so limited had expired
the purchaser took the objection that the words of the
(/) See Oakden v. Fihe, 34 L. J. (/;) Above, p. 168.
S-^'z ^^C?\ ^\ko Jiosenherff v. ,.^ 20 Ch. D. 465.
Cook, 8 Q. B. D. 162 ; Fryce- Jones ^ '
V. Willuuns, 1902, 2 Ch. 517. (/>■) Wm.s. Real Prop. 2G0, 21st
[g) L. R. 8 Ex. 175. ed.
OF ADVISING ON TITLE GENERALLY. 181
will did not create such a charge of debts. And it was
lield both by Kay, J., and the Court of Appeal that it
was not too late to raise this objection, because (as they
said) it "went to the root of the title." In other words,
it was an objection that the vendors had failed on the
face of their own abstract to show any title at all. It also
appears that objection to anything, which is a matter
of conveyance rather than of title (/), may well be
made after the time limited for sending in requisitions
on title has expirnd. Thus where the abstract shows a
title in the vendor, subject to mortgages, the piu-chaser
can of course require the mortgagees to concur in the
conveyance, although he may not have sent in any
requisition to that effect within the appointed time.
For, as we have seen {/>i), a vendor is considered to have
shown an acceptable title, if it appear from the abstract
that on doing certain acts, which he can perform
immediately and independently of others' consent, he
will have the right to direct the conveyance of the
whole estate contracted for. But by his own showing
he has no good title except he do such acts. It is
therefore a matter of com^se that he shall perform
them ; and it is unnecessary for the purchaser to
address any requisition to this point (^/). But it is of
course the better plan to take any objection to the
title in the manner and within the time prescribed by
the contract, even though the objection be an absolute
failure to show title on the face of the abstract (o).
And it is also desirable to include in the requisitions to
be sent in within the time limited a demand for the
concim-ence in the conveyance of any mortgagees or
other incumbrancers whose charges are redeemable {p).
J) See above, p. 164 ; Deuut/ tract, 23 Ch. D. 320, 327.
V. Hancock, L. R. 6 Ch. 1, 8, 9, (o) See above, p. 168, as to the
13 ; 1 Dart, V. & P. 429, .'ith ed. ; danger of waiting before taking
494, 6th ed. ; 508, 7th ed. objection to the title.
(m) Above, pp. 164-1()G. \p) 1 Dart, V. & P. 429. 5th
(h) Re Gloag and Miller's Von- ed. ; 494, 6th ed. ; 50S, 7th ed.
182
OF ADVISING ON TITLE GENERALLY.
If the abstract show a good holding title, the purchaser
cannot insist, after the time limited for sending in
requisitions is gone by, on any objection thereto, which
he might otherwise have taken (q).
What requi-
sitions should
be made and
insisted on.
"Where the
vendor may
rescind.
The conveyancer should, as a rule, be guided, in
making requisitions on title, by the countenance he
would expect his contention to receive from the Court in
proceedings either to enforce specific performance or to
recover the deposit (/•). He should therefore make no
frivolous or unnecessary requisitions (.s) , and he should
be chary of asking for anything which he considers the
other party not bound to concede. There are, of course,
occasions when such requests may be properly made,
and will be answered out of courtesy ; and on making
requisitions in the first instance it is legitimate to ask
for what it is desirable that the purchaser should have
(unless the requisition be plainly prohibited by the con- •
tract), although the vendor be not in strictness bound
to comply. But if any requisition be met with a
refusal, then the purchaser should not insist upon it, if
he does not expect that his contention will be upheld
by the Court.
If the contract contain the common stipulation allow-
ing the vendor to rescind the contract incase the purchaser
insists on any requisition which the former is unwilling
to remove or comply with (t), extra care must be
exercised in selecting the requisitions which are to be
pressed ; and a conveyancer acting on behalf of a
willing purchaser should only maintain his objections
on points essential to the title. This is especially the
See above, p. 168, as to requiring
the concurrence of any person,
whose interest is not redeemable
without his consent.
(q) rryce-Jones v. Willinmx,
1902, 2 Ch. 517. As to the limits
of the rule in JFant v. Stallibrass,
see L. Q. R. xix. 161.
(r) Above, p. 36.
(,v) 1 Dart, V. & P. 428, 5th
ed. ; 493, 6th ed. ; 506, 7th ed.
[l] Above, p. 64.
OF ADVISING ON TITLE GENERALLY. 183
case, where the stipulation is in the old common form
giving the vendor the right to rescind, when the
purchaser has insisted on an unwelcome requisition,
without allowing to the latter any opportunity of with-
drawing the requisition («). For,, as we have seen (x),
the Courts are now inclined to allow a vendor to
exercise a right of rescission according to the letter of
the stipulation reserving it, provided only that he do so
reasonably and in good faith and not arbitrarily or
caprieiousl}'^ ; and so long as the vendor has a good reason
for rescinding (//), he is not obliged to inform the
purchaser, in the notice to rescind, what that reason
is (s). And if the condition do not give the purchaser
the option of withdrawing the objection, on which
he has insisted, the vendor may rescind without
ofPering the purchaser any opportunity of retracting,
and the latter cannot recover his rights under the con-
tract by abandoning the objection after he has received
the notice to rescind {((). Where the condition gives
the right of rescission on an unwelcome requisition being
made (not i mis fed on), the purchaser is in an even worse
plight, as this gives the vendor the opportunity of
rescinding on the first delivery of such a requisition (b) ;
which he would not have if the condition of rescinding
were that the purchaser should insist on the requisi-
tion {('). As we have seen {d), such conditions are now
frequently drawn so as to allow the piu'chaser to with-
draw the requisition within a limited time after he has
received notice of intention to rescind ; and when this
(m) 1 Davidsim, Prec. Couv. (a) Duddell v. Simpson, L. R.
564. 614, 4th ed. ; 469. 522, oth 2 Ch. 102, 107, 108 ; Re Dames ^■
ed. : I Ke)' & Elphinstone, Prcc. Wood, 29 Ch. D. 626.
Couv. 233, 234, 2iid ed. (j,^ j^^, Sf„,.,. j^owkeft Bdg. Socy.
(a:) See above, p. 64, aud cases „„a Sibun\s Contract, 42 Ch. D.
cited in note (■«) thereto. 375
(y) See lie Jackson and Hadeti's / , /-, n^i .,,: t.
Contract, 1906, 1 Ch. 412, 420. .,ol''\,?'"""'''7- ^'''"•I'J -"^T-
(.-) Re Starr lioukett Bdr,. Soc„. f «' 29o, and cases cited in the
and Sibun\. Contract, 42 Ch. 6. two previous notes.
375. {d) Above, pp. 64, 72.
184
OF ADVISING ON TITLE GENERALLY.
is the case, there is no reason why requisitions, which
are thought needful, should not be pressed, so long
as notice to rescind is not given. Where the stipulation
is that the vendor may rescind, if the purchaser shall
insist on any requisition, which the vendor is, on the
ground of expense or any other reasonable ground, un-
willing to comply with, the vendor is not entitled to
rescind unless there is some such ground for his refusal'
to comply with the requisition [e). In any case, a
notice to rescind expressed to be given " without preju-
dice " is null and void ( /).
Where the
vendor has
no title.
It has been held that a vendor, who has no title
at all, cannot take advantage of a stipulation in the
usual form enabling him to rescind, so as to escape
the liability of paying the purchaser's expenses as
damages (g). But this doctrine was not applied where
a vendor having a beneficial interest, but not the entire
legal title, sold in good faith, and a troublesome requisi-
tion to get in the outstanding legal estate was insisted
on ; notwithstanding that the defect of title appears to
have been such as would have justified the purchaser in
repudiating the contract at once on the ground that the
vendor had failed to show a good title on the face of
his own abstract {//). And where a purchaser claimed
to repudiate the contract unless the vendor removed an
objection, which the Court afterwards held to be un-
{e) lie Weston and Thomas's Con-
tract, 1897, 1 Ch. 244 ; see above,
p. 90.
(/) S. C.
() Boivman v. Hyland, 8 Ch.
D. 588, commented upon in Re
Deiffhton and Man-is'x Contract,
1898, 1 Ch. 458, and Me Jackson
and H.aden'' s Contract, 1905, 1 Ch.
603,607; 1906, 1 Ch. 412,419,
423, 425 ; see above, p. 169.
(li) Re Beicjhton and Harris's
Contract, 1898, 1 Ch. 458. The
vendor had sold a lease, and the
abstract only showed title to an
equitable interest in an underlease
(see above, pp. 101, n. (i), 164).
It should be noted that the pur-
chaser did not at once repudiate
the contract on this ground ; he
negotiated, requiring the objec-
tion to be removed and so treated
the contract as still subsisting ;
see above, pp. 168, 169. The
Court moreover treated the objec-
tion as relating to a matter of
conveyance, not of title. See also
HcppemtaU v. Hose, 33 W. R. 30.
OF ADVISING ON TITLE GENERALLY.
tenable, it • was considered that the vendor was en-
titled to rescind the contract on the objection being
pressed (/) . But if the vendor fail to show a good
title on the face of his own abstract and the piu--
chaser at once repudiate the contract on this ground,
it is thought that the vendor cannot then take
advantage of a clause in the contract reserving the
right to rescind, and so save his liability to pay the
purchaser's expenses as damages. For when the vendor
has so failed to perform his contract, and the purchaser
has at once elected to treat the contract as broken, how
can the former au}' longer claim to exercise a right given
by the contract itself ? It is held that, where a vendor
of land fails to show a good title thereto, he commits
such a breach of contract as discharges the purchaser
from the duty of performing his part of the agreement
and precludes the vendor himself from enforcing any
stipulation in his own favour therein contained. The
purchaser, on such a breach, is entitled to rescind the
whole contract, and every part of it is annulled as
against him (/«•). The proper time, moreover, for the
vendor to perform his obligation of showing a good
title is upon the delivery of the abstract ; and it is sub-
mitted that when the vendor has definitely assumed to
perform this obligation by sending in the abstract, then
if a good title be not shown on the face of it, the pur-
chaser is entitled both at law and in equity at once to
rescind the contract, and need not wait for the day fixed
for completion (/). Besides, it may be doubted whether
((■) haacK V. Towell, 1898, 2 CL. see above, pp. 32, n. {b), 180, 181 ;
285. L. Q. R. xix. 168-171 : HoUhnl/
[k) Dnke uf St. Albans \. Shore, v. Seacombr, 1906, 1 Ch. 426,
1 H. Bl. 270, 278 ; Seaward v. 434 ; below. Chap. XVIII. § 2 ;
Willock, h East, 198, 202; SonU^ XIX. § 1.
V. Drake, b B. & Ad. 992 ; and
(/) Westmi V. Sarage, 10 Ch. D. 736, which wa.s an action by a
purcha.ser as plaintiff to enforce actively his right of reseinsion and to
recover his deposit, and was expressly decided from a common law
point of view (see 10 Ch. D. 741) ; Brewery. Broad tvood, 22 Ch. D.
105, 109, where the purchaser's right of roscissiou was allowed as a
185
186 OF ADVISING ON TITLE GENERALLY.
a case like this, in which the purchaser does not insist
that the vendor shall remove any objection or comply
good defence to the vendor's aotion for damages for breach of the
contract, and it was laid down that the purchaser's right of immediate
repudiation is not confined to cases where the time fixed for completion
is of the essence of the contract ; Lee v. Huaincs, 156 W. R. 884, where
the purchaser sought, as plaintiff, to enforce his right to rescind and
recover his deposit and expenses. The vendor's obligation to show a
good title at the time of the delivery of tlie abstract is also illustrated
by the case of Want v. StalUbrasx, L. R. 8 Ex. 175, above, p. 180,
where the vendor's utter failure to show any title at all upon the face
of the abstract was held to be such a breach of contract as discharged
the purchaser from the whole agreement, including a stipulation that
he must send in his requisitions or objections within a specified time ;
see L. Q. R. xix. 172. It is respectfully submitted that the theory
put forward by Parker, J., in Ealkett v. 'jJiidky, 1907, 1 Ch. ofiQ, 596
(in which none of the above cases was cited), is erroneous. The learned
judge there maintained that the purchaser's right to repudiate the
contract at once upon the vendor's failure to show a good title, without
waiting for the day fixed for completion, is merely an equitable right
affecting the equitable remedy by way of specific performance and is
solely attributable to the doctrine of want of mutuality. If that were
so, the purchaser could not plead his right so to rescind the contract
as a defence to the vendor's action for damages for breach of the
contract ; for the doctrine of want of mutuality has no place in
English law, except as a defence to an action for specific performance ;
see below, Ciiap. XIX. \^ 3. Besides, to take active proceedings as
plaintiff in su(^h a case, a purchaser must have a leyal right of rescis-
sion, though the proceedings in which he can so assert this right owe
their origin to the Court of Chancery's concurrent equitable jurisdic-
tion ; see below. Chap. XIX. ^ 1. Parker, J., also said (1907, 1 Ch.
596) that he did not see why, in principle, a vendor, who has sold
land, which does not belong to him, but to which he acquires a title
before the day fixed for completion, should not be able to recover
damages from the purchaser then refusing to complete. But it is
respectfully submitted that the learned judge altogether failed to
appreciate the true nature of the vendor's obligation to show a good
title. We have seen that in the same case he overlooked the difference
between ahoivuiy title upon the face of the abstract delivered and
proving title by production of the proper evidence; above, p. 166, n. («).
Both of these obligations ought properly to be perf oi jued by the vendor
well before the day fixed for completion ; as it is not until the title is
proved that the purchaser can safely accept it, and before such accept-
ance he cannot safely prepare the draft conveyance ; see below,
Chap. XII. § 1 ; XIX. § 2. At common laAv too time was of the essence
of the contract in all respects ; so that it cannot be correct that at law
the vendor performs the contract, though he shows no title on delivery
of the abstract, if he can get it in just before the day fixed for com-
pletion. On the contrary, at common law the vendor was bound to
have shown and verified a good title and to be ready to convey on that
day ; above, pp. 58, 59. It is submitted that the authorities above
cited prove that the vendor's failure to show a good title on the face
of his own abstract at the time of its delivery is at law such a breach
of contract as discharges the purchaser from the duty of performing
his part of the agreement for sale. It is not of course suggested that
a purchaser claiming to rescind the contract at once for a breach of
OF ADVISING ON TITLE GENERALLY. 187
with any requisition, but merely claims to repudiate
the contract at once without further discussion, falls
within the terms of the usual stipidation allowing the
vendor to rescind (/«). It has been definitely decided WTiere the
that, where the vendor has knowingly or recklessly knowino-w
(though without intention to defraud) made some "^' recklessly
. 1 . I • • ^ made a
material misrepresentation with respect to the property material
sold, so that he is unable to convey a property answer- "'"^i*'?'"®-
' _ J I r J sentation.
ing to that which he contracted to sell, he is not entitled
to rescind the contract, under the common stipulation
allowing him to rescind in case of his unwillingness to
comply with some requisition, so as to deprive the pur-
chaser of /lis rights either to rescind the contract for
misrepresentation or to enforce its specific performance
with compensation (w).
If the stipulation gives the right to rescind in case of Objection
insistence on a requisition or objection as to title only,
the vendor mil not be enabled to rescind if the pur-
to matter of
conveyance.
this kind uaimot plead want uf mutuality as a defence to the vendor's
action for specific performance. All that is maintained is that the
purchaser's right to rescind in such a case really rests on the common
law principle that the vendor's obligation to show a good title at the
time of the delivery of the abstract is a stipulation of which the
performance is a condition precedent to the purchaser's liability under
, the contract ; see below, Chap. XIV. § 1 ; XVIII. j 2. The vendor
cannot successfully sue on the contract at law because of his default
in performing this condition ; and he will not be relieved in equity by
being idlowed to pursue the equitable remedy of specific performance,
except where the vendor's breach is so trifling that the case is con-
sidered in equity to be a proper subject for specific performance with
compensation at the vendor's suit (see above, p. 4;J, and below,
Chap. XII. \ 4), or unlrs.i the purchaser by his conduct in continuing
negotiations for removing the objection he ha.s taken elects to treat
the contract as still subsisting ; above, pp. 16 My. 9, agreement to complete tlie sule,
184 — 187. the purchaser cauuot of coui-ae
(ju) See below, Chap. XIX. § 2. recover his exjjonses of sucli .sub-
It" after thi.s date the parties .sequent uegotiiition.
iiesfotiate but fail to arrive at au
192 OF STIPULATIONS LIMITING THE OBLIGATION
limitations.
CHAPTER VI.
OF STIPULATIONS LIMITING THE OBLIGATION TO
SHOW A GOOD TITLE.
We will now turn oiu' attention to various particular
points, which constantly arise in advising on title. And
first, as to the effect of stipulations limiting the vendor's
The statiitory obligation to sliow a good title. We will begin by
remarking that the enactment substituting forty years
for sixty, in the absence of stipulation to the contrary,
as the time of commencement of title {a) appears to
alter the rule of law on this point rather than to intro-
duce into open contracts a new term depending for its
efficacy on the contracting parties' consent. So that
where a vendor shows forty years' title, he is considered
to show title for the full period required by law, and
the purchaser's rights are not regarded as being limited
by special stipulation (A). But the other statutory
limitations of the purchaser's right to require a good
title do not appear to have the like effect. Thus the
enactment in the Vendor and Purchaser Act, 1874 (r),
removing the necessity of showing the freeholder's title
on the grant or assignment of a lease, has been held to
have no greater force than a special stipulation in the
contract to the same effect, and so not to exempt the
grantee or assignee of the lease from receiving construc-
tive notice of the lessor's title (''/). And, as we shall see,
(a) Stat. 37 & 38 Vict. c. 78, tract, 1891, 2 Ch. 109, 117, 118.
s. 1 ; above, pp. 100. 101. (r) Stat. 37 Sc 38 Vict. c. 78,
{b) See lie Marsh and Earl s. 2 (rule 1) ; above, pp. 100— 102^
Granville, 24 Ch. D. 11 ; above, (rf) Tatman v. Harland, 17 Ch.
p. 101 ; Re Cox and Neve's Con- D. 353, 359.
TO SHOW A GOOD TITLE. 193
the provisions of the Conveyancing Act of 1881 {e),
exonerating the vendor of hinds hekl by underlease less
than forty years old from the obligation of showing the
title to any leasehold reversion, and relieving a vendor
of enfranchised coi\yholds of the necessity of showing
the title to make the enfranchisement, receive the same
construction as special stipulations in similar terms.
The rule fixing forty years before the date of the con-
tract as the time of commencement of title is, as we
liave seen (/), very frequently superseded in practice by
a special stipulation that the title shall commence with
some instrument of more recent date. But whether the
period for which title has to be shown be defined by the
general rule or by special stipulation, the vendor's obli-
gation is subject to the further limitation introduced
into contracts for sale by sect. 3, sub-sect. 3 of the Con-
veyancing Act, 1881 {(/). This enactment, the exact
effect of which it is of the first importance to under-
stand, runs as follows : —
" A purchaser of any property shall not require the Sect. 3 (3) of
production, or any abstract, or coj)y, of any deed, will, Act^i88i!'^°^
or other document dated or made before the time pre-
scribed by law, or stipulated, for commencement of the
title, even though the same creates a power subsequently
exercised by an instrument abstracted in the abstract
furnished to the purchaser ; nor shall he require any
information, or make any requisition, objection, or
inquiry, with respect to any such deed, will, or docu-
ment, or the title prior to that time, notwithstanding
that any such deed, mil, or other document, or that
prior title, is recited, covenanted to be produced, or
noticed ; and lie shall assume, unless the contrary
a]ipears, that the recitals, contained in tlio abstracted
instruments, of any deed, will, or other document,
(e) Stat. 44 & 45 Vict. c. 41, (/) Above, pp. 17, 84.
8. 3 (1, 2) ; abovp, pp. 100, 101. (y) Stat. 44 A: 45 Vict. c. 41.
w. 13
1^4 OF STIPULATIONS LIMITING THE OBLIGATION
forming part of tliat prior title, are correct, and give
all the material contents of the deed, will, or other
document so recited, and that every document so recited
was duly executed hy all necessary parties, and per-
fected, if and as required, hy fine, recovery, acknow-
ledgment, inrolment or otherwise."
The incorporation or exclusion of these provisions in
or from the contract is, however, a matter depending
on the expression of the intention of the parties (h) .
And it is enacted (/) that nothing in this section shall
be construed as binding a purchaser to complete his
purchase in any case where, on a contract made inde-
pendently of this section, and containing stipulations
similar to the provisions of this section or any of them,
specific performance of the contract would not be
enforced against him by the 'Court. The statutory
provisions therefore have no greater force than express
stipulations to the same effect, and will receive the same
construction as such stipulations (_/). We have already
noticed the manner in which special conditions of sale
are construed in actions for specific performance (/>•).
We will now show particularly in what manner the
effect of the above provisions is practically limited,
notwithstanding the sweeping character of the expres-
sions used therein.
The effect of The first observation to be made is that this enactment
the above -g j^q qualification of the main rule that the vendor
enactment. ^ _ _
must show a good title, that is, that he must prove his
right to convey what he sold. It refers entirely to the
subordinate rule that the title for the last forty years,
or whatever less period may be agreed upon, shall piu'/j/d
facie be evidence of a good title (/). If therefore the
(/() Sect. 3, sub-s. 9. 261, 272 ; 16 Q. B. D. 778.
(i) Sect. 3, sub-s. 11. ,,, ., „„ „„
Ij) NoifAngham Patent Brick and ^ ' ' PP* »
Tile Co. V. Butler, 15 Q,. B. D. (/) Above, pp. 95, 96.
TO SHOW A GOOD TITLE. 195
title shown in accordance with the agreement be defec-
tive, as where it discloses incumbrances irremovable
without otlier persons' consent (in), the purchaser is not
precluded by the above enactment from objecting to the
title, notwithstanding that the incitmbrances were created
before the time fixed for the commencement of title.
The leading authority for this is PhillipH v. Cald- l^inUips v.
cleugh (n). In that case, the plaintiff contracted to
pm-chase of the defendants a house described as a
freehold residence, subject to certain conditions of sale,
and paid a deposit. The 5th condition provided that
the abstract of title to the property should commence
with a conveyance dated the 17th of April, 18H0, and
no purchaser should investigate or take objection in
respect of the title prior to the commencement of the
abstract. By the deed of the 17th of April, 1860,
as abstracted, the premises were conveyed to Matthews
and Beckett in fee subject to the covenants and con-
ditions contained in an indenture of the 2nd of March,
1850, recited therein. The plaintiff made this requi-
sition — " The vendors must show, notwithstanding any
of the conditions of sale, that the covenants and con-
ditions contained in the indenture of the 2nd of March,
1850, referred to in the first abstracted deed, do not in
any manner affect the property, and that the purchaser
incurs no liability in respect of them." To which the
defendants made answer, " The purchaser's solicitors are
referred to the 5tli condition of sale." After some
fruitless negotiations the purchaser brouglit an action
to recover his deposit. And it was held that he was
entitled to recover it. For the plaintiff had contracted
to pm-chase a freehold house, which must mean a free-
hold free from all incumbrances ; and the abstract
delivered only showed a title to a freehold house
incumbered by certain covenants. And it was held
(w) Above, p. le.i. (w) L. R. 4 Q. B. I;i9.
13 (2)
196
\
OF STIPULATIONS LIMITING THE OBLIGATION
tliat the 5tli condition of sale did not prevent the
purchaser from taking this objection : for it merely
restricted the length of time for which the purchaser
could require a title to be shown ; and did not absolve
the vendor from the obligation of showing a good title
to the freehold of the property sold, free from incum-
brances, from the time at which it had been agreed that
the title should commence. It should be noted that
this case was an action at law brought before the Judi-
cature Acts, and in no way depended upon any of the
equitable doctrines peculiar to the granting or refusing
Nottingham the specific performance of a contract (o). Again, in
and Tile Co. NottingJtam Patent Brick and Tile Co. v. Butter {p),
7. Butler. land was bought under a contract providing that the
title should commence with an indenture dated the 20th
of May, 1868, and incorporating the above enactment,
and further providing that the property was sold subject
to any matter or thing affecting the same, whether
disclosed at the time of sale or not. The vendor's
solicitor represented to the purchaser, before the contract
was signed, that the property was not subject to re-
strictive covenants : but the purchaser, after having
signed the contract, discovered from other sources than
the vendor that there were restrictive covenants affecting
the property and created by a title deed of earlier date
than the 20th of May, 1868. He thereupon refused to
complete, and brought an action to recover his deposit.
The vendor counterclaimed the specific performance of
the contract, and alleged in the Court of Appeal that
he himself had bought without notice of the restrictive
covenants, and so could give the purchaser an unincum-
bered title. The vendor was, however, aware of the
existence of the covenants, having discovered them, as
he said, by looking, after his purchase, at the deed
creating them. It was held both by Wills, J. and the
[o) Above, pp. 37, 38. {j)) 15 Q. B. D. 261 ; 16 Q. B. D. 778.
TO SHOW A GOOD TITLE. 197
Coui't of Appeal that the purchaser was not prechided
by the above provisions of the Conveyancing Act from
insisting on his right to an unincumbered freehold title.
The vendor's claim for specific performance was rejected,
not only on the ground of his solicitor's misrepresenta-
tion, but also because the vendor, knowing of the defect
in the title, did not call the purchaser's attention thereto
in the contract, and so could not avail himself of tlie
special condition that the property was sold subject to
anything affecting the same (q). His claim to oblige
the purchaser to take a title from him as a bond fide
purchaser for value without notice of the covenants was
dismissed for the reason that the fact, that he was such
a purchaser, was disputable, and Courts of Equity
regard titles depending on proof of facts, which may
be immediately disputed and so land the purchaser in
litigation, as too doubtful to force upon an unwilling
purchaser. The return of the deposit was also ordered
in both Courts : but the Court of Appeal rested the
purchaser's right to this relief entirely upon the mis-
representation by whicli he was induced to enter into
the contract ; without which the Court considered that
he would have been bound at law by the contract.
Another case illustrating the effect of the above enact-
ment and depending on the same principle as the case
last cited is Re Marsh and Earl Granvilh' [r). It was Re Marsh and
there stipulated tliat the title to a certain freehold estate ^?r^ ^''''"'
should commence with a deed less than forty years old.
This deed turned out to be a voluntary conveyance :
but no mention of this fact had appeared in the con-
ditions of sale. It was lield in a vendor and purchaser
summons taken out by the vendor that thd piu-chaser
was justified in refusing to complete the contract, unless
title were shown for the fidl period of forty years ;
notwithstanding that the conditions of sale provided
{q) See above, pp. 73, n. {t), IT-'i, 170. (») 24 Ch. D. 11.
198 OF STIPULATIONS LIMITING THE OBLIGATION
that the title earlier than the date of the voluntary
conveyance should not be investigated or objected to.
This was so decided on the ground that conditions
curtailing a purchaser's right to require a good title as
defined by law must be fair and explicit, or the vendor
shall not enforce the specific performance of the contract
according to the limiting conditions. And the Court
further considered that, on a stipulation for the com-
mencement of title with a deed lesH than forty years
old, the purchaser is entitled to assume that the agreed
root of title is a conveyance for valuable consideration.
As we have seen (s), this judgment does not appear to
oblige a vendor to put forward such a conveyance as
the root of title when he agrees to show title for the
full period required by law. In all other respects,
however, the principles of Phillips v. Caldclengh and
Re Marsh and Earl Granville are constantly applicable
whenever it is stipulated that title shall commence with
an instrument of a particular date, whether that date
be or be not less than forty years before the contract.
And whenever such a deed fails in any of the requisites
of a good root of title {t), the purchaser is entitled to
call for further evidence to supply the defect ; and he
is not precluded by the above enactment from insisting
on this right to further evidence, even though proof
can only be supplied by tlie investigation of the earlier
title. For as we have seen [a), the vendor's obligation
is to show title to the whole estate contracted to be
conveyed in the lands sold throughout the entire period
of forty years or such less time as may be agreed on.
He must therefore prove title to the whole of such
estate at the beginning and thenceforward until the end
of such period. Thus on the sale of freeholds he must
prove a seisin in fee free from incumbrances at the
commencement of and thi'oughout the number of years
(.v) Above, p. 109. [t) Above, p. 106. [x) Above, p. 107.
TO SHOW A GOOD TITLE. 199
for which he has bound himself to show title ; and he
incurs a similar obligation on the sale of copyholds (r)
or leaseholds (?<').
If a vendor of his own accord allow the purchaser to Vendor dis-
inspect title deeds of earlier date than the time agreed de^fg^fof title,
on for commencement of title, and the purchaser so
discover a defect in the title, the latter may insist on
such defect as a bar to specific performance, notwith-
standing the provisions of the above enactment (a?).
Any misrepresentation as to facts, however innocently Misrepresen-
made, will preclude the vendor from enforcing the * '°°'
specific perf(jrmauee of the contract with the limitations
imposed by the above enactment. On this point the lead-
ing case is now Re Banister, Brotid v. Miinfou (.y), where, Re Banister,
upon the sale of a farm by order of the Court, a condition ^'*"f ^'
was made requiring the purchaser to assume that E. B.
was seised of and entitled to the entire property sold in
fee simple in possession, free from incumbrances, in
1835 and up to and at her death, stating that it was
not known and could not be explained how E. B.
acquired the property, and expressly stipulating that no
other title than as above should be required or inquired
into. It was shown that it was within the knowledge
of the vendor that E. B. was not seised of the property
free fi'om incumbrances in 1835, and how E. B.
acquired the property. The vendor was held to have
acted in perfect good faith, inasmuch as he had
furnished a statement of the facts known to him, upon
which the condition had been drawn by one of the con-
veyancing counsel of the Court. But it was held that,
the statement which the piu'chaser was required to
(t) Sellick V. Trevor. 11 M. & \-^) Smith v. Robuison, 13 Ch.
W. 722. D. 148.
(y) 12 Ch. D. 131 ; see also
{«•) WndiUn V. Jlolft; L. R. 9 Earmtt v. Baker. L. R. 20 Eq.
Q. B. 515. 50. ^
200
OF STIPULATIONS LIMITING THE OBLIGATION
assume as correct being untrue to the knowledge of the
vendor, the former had been induced to make the con-
tract by a misrepresentation ; for he was entitled to
presume that what was so stated was true. It was con-
sidered therefore that the vendor could not oblige the
purchaser to take a title as limited by the condition,
and the purchaser might decline specific performance
unless the vendor would show a good title irrespective
of the condition. But it was declared that the purchaser,
having bought under such a condition, was entitled to
require a good holding title only and not a good
marketable title.
Construction
of express
stipulations
before the
Conveyancing
Act, 1881.
The reader will observe that, as the above enactment
has no greater force in binding either party than an
express stipulation to the same effect, it is construed
with the aid of decisions given before the Act upon
the construction of contracts containing similar express
provisions. In arriving at such decisions, the question
generally considered was whether the terms of the con-
tract simply exonerated the vendor from the obligation
of showing or answering any requisition as to the title
prior to some specified time(s), or whether they bound
the purchaser to refrain altogether from investigating
such prior title and so obliged him to accept the title
shown without objection, even though a ground of
objection were ascertained from other sources than the
vendor (r/). It appears from the above-mentioned case
of Noitingliam Patent Brick and Tile Co. v. Butler {b)
that the stipulation made by sect. 3, sub-sect 3, of the
Conveyancing Act (c) does not bind the j)urchaser to
refrain from investigating the earlier title in other
(s) Shepherd v. Keatky, 1 C.
M. & R. 117 ; iJarliuriton v.
Hamilton, Kay, 550 : Waddell v.
Wolfe, L. R. 9 Q. B. 515.
(«) Hume V. Bentley, 5 De G.
& Sm. 520; Waddell v. Wolfe,
L. R. 9 Q. B. 515, 519 ; Jones v.
Clifford, 3 Ch. D. 779, 790.
{h) It) Q. B. D. 778; above,
p. 196.
(c) Above, p. 193.
TO SHOW A GOOD TITLE. 201
sources than the vendor ; and special stipulation must
be made, if such inquiry by the purchaser is intended
to be prechided. The reader will have noticed, how-
ever, that this enactment expressly precludes objection
as well as inquiry by the purchaser with regard to the
earKer title ; and it may be asked whether these expres-
sions are absolutely without effect. They certainly do
not preclude the purchaser from resisting specific per-
formance on account of any objection to the title, which
was known to the vendor when he made the contract,
but not disclosed thereby {d). And, as we have seen (r),
they do not, even at law, preclude a purchaser from
objecting to a title subject to a present defect, which is
apparent on the face of the abstract, though arising out
of the earlier title. But if a good title were shown by
the abstract for the time for which title was agreed to
be shown, and there were no active misrepresentation
on the vendor's part (./"), it appears that a purchaser
would not be allowed to rely upon an objection barred
by the letter of the above enactment in proceedings to
recover his deposit (). And if the objection arising
out of the earlier title were unknown to the vendor
when he sold, the case is altogetlier different and is
not covered by any of the autliorities cited ; and it
must not be assumed, without argument, that in such
circumstances the purchaser would not be precluded
by the above enactment from resisting specific per-
formance, if he discovered the objection elsewhere (//).
(rf) Nottinghiiiii Patent Brick and Xottingliam. S;c. Co. v. liutlty. The
Tilr (Jo. \. Butler, 16 Q. B. D. positiou there taken by the writer
778, 786, 789. with regard to defects known to
ie) Above i). I'.io. *^^ vendor (p. i)8o, last sentence)
in Spo ahoJe r> l')7 '" J"«tifi) Above, p. 166, n. («).
TO snow A GOOD TITLE. 203
to title, the purchaser took the objection that the lease,
which had been granted by a canal company, was \oid,
as it appeared from the Acts of Parliament incorporating
the company that the company had no power to acquire
land or grant leases. It was held however that a vendor
may lawfully stipulate that the purchaser shall accept
the title shown without objection or inquiry ; and that
the words used amounted to such a stipulation and
precluded the purchaser from looking into the lessor's
title for any purpose. And the purchaser's objection
was disallowed. As we have already noted () , when it is
intended that the purchaser shall take lands sold subject
to some particular defect of title known to the vendor,
such as an easement, restrictive covenants, a mortgage
or a rentcharge, the stipulation obliging him to do so
must clearly call his attention to the incumbrance, to
which he is to submit : otherwise he will not be bound
to specific performance according to tlie letter of the
contract. The cases to which we have referred upon
considering the effect of sect. 8 (-i) of the Conveyancing
Act of LS81 (/•) also illustrate the effect given at law and
in equity to special stipulations as to title.
Here we ma}^ notice a case in which a purchaser may a purchaser
be obliged to take lands subject to some defect of title ^?*^ notice
^ _ _•• _ ^ that a good
or particular incumbrance, without any written stipula- title cannot
tion to that effect. Wliere the vendor's obligation to '' "^''
show a good title is not an express term of the contract,
but is merely implied, as in the case of an open con-
tract (.s), it is open to him to prove tliat the purchaser
bought with notice (though given by word of mouth
only) that a good title could not be made, either wholly
or partially ; and the vendor will then be exonerated
from showing title to the extent indicated by such
(q) Above, pp. 73. u. (/), 176, (r) Above, pp. 196 .«(/.
197. (.-i) Above, p. 3'J.
204
OF STIPULATIONS LIMITING THE OBLIGATION
notice (f). But where the vendor has expressly con-
tracted to show a good title, he is not permitted to
modify the terms of his written agreement by giving
oral evidence of any such notice {u).
Difference in
purchaser's
position when
resisting
specific per-
formanoe, and
when seeking
to recover
deposit.
Sest V.
Hamand.
We will now consider the authorities establishing the
difference, to which we have before referred (.r), in the
position of a purchaser under a special contract as to
title when he is resisting specific performance in equity
and when he is seeking to recover his deposit at law. In
Bed v. Hamand {}/), a railway company sold land as
superfluous land under conditions that the purchasers
should assume (without proof) that everything had
been done by the company to enable them to sell the
land as surplus land, and that the deposit should be
forfeited if the purchasers failed to comply with the
terms of the agreement. The purchaser discovered
from other sources that some of the adjoining owners
had not waived their right of pre-emption ; and insisted
on this objection to the title (s). The vendors thereupon
claimed the deposit as forfeited ; and it was held by the
Court of Appeal, reversing the decision of Hall, V.-C,
that the purchasers were not entitled to recover it, as
they had in effect contracted to take the vendor's title
without objection on this point, and had not therefore
abided by the terms of the contract. But if in this
case the vendors had sued for specific performance, it
{t) Ogilvie v. Foljdinbe, 3 Mer.
53, 64 ; Me Glomj and Miller'' s
Contract, 23 Ch. D. 320, 327 ;
ElllH V. Rogers, 29 Ch. D. 661,
666, 671, 672; Fry, Sp. Perf.
§ 377, p. 172, 3rd ed. ; pp. 161,
162, 4th ed. It appears that the
case of Re Highett and JSird's (!on-
travt, 1903, 1 Ch. 287 (as to which
see below, Chap. X. ^S 2), is not
to he taken as conflicting with
this rule ; see Romer, L. J., Re
Allen and DriscoW s Contract, 1904,
2 Oh. 226, 231.
(It) Caio V. Thuiiipnun, 9 Q. B.
D. 616.
[x) Above, pp. 38, 88.
(y) 12 Ch. D. 1.
{z) Under sect. 128 of the Lands
Clauses Act, 1845 (Stat. 8 & 9
Vict. c. 18), before superfluous
land can be sold by a railway
company, it must be offered to
the ortnerof the lands from which
it was originally severed, and in
default of this, to the owners of
the adjoining lands.
TO SHOW A GOOD TITLE. 205
appears that the pm-chasers might have resisted their
claim, except on condition of the vendors showing tliat
they could give at least a good holding title ; for the
vendors, having required the purchasers to assume the
truth of a statement which the vendors knew to be false,
had made a misrepresentation sufficient to preclude
them from enforcing specific performance according
to the letter of the contract {a). So in Nottingham
Pafriif Uriel; and Tile Co. v. Bidler {li), we have seen
that land was bouglit subject to the condition that it
was sold subject to any matter or thing affecting the
same, whether disclosed at the time of sale or not, and
it was held that, the land being subject to restrictive
covenants known to the vendor but not disclosed at the
time of sale, the vendor could not enforce specific per-
formance : but it was intimated that the purchaser
would not have been able to recover his deposit, if he
had not bought on the faith of the vendor's solicitor's
representation that the land was free from such cove-
nants. Again, in Re Dan's to Caret/ (c) property was Re Davis to
sold as " leasehold business premises " under conditions "'^'^'
that the title should commence with the conveyance to
the vendors, and that no objection should be made in
respect of anything contained in tlie lease. No in-
formation as to the contents of the lease was given
and no opportunity of inspecting it. The purchaser
discovered after the sale that the lease contained
covenants prohibiting the tenant from carrying on
any trade or business on the premises. Stirling, J.,
in a vendor and purchaser summons taken out by
the purchaser, held that, regard being had to the
sale of the property as business premises, the pur-
chaser was entitled to have an assignment of property
where he could carry on any business (d), and so the
(a) Be Banister, Broad v. Midi- p. 196.
ton, 12 Ch. D. 131 ; above, p. 199. (c) 40 Ch. D. GOl.
(A) 16 Q. B. D. 778; above, (rf) See above, p. 43.
206
OF STIPULATIONS LIMITING THE OBLIGATION
Re National
Prorinciaf
Bank of Eve/ ■
land and
Marf?). Thus if the deed mentioned in
the condition should turn out to be merely a lease for
years, or the conveyance of an equity of redemption,
the purchaser would be entitled to call for further
evidence of title (o). And it is submitted that in re-
quiring such evidence he would not commit any breach
either of the express condition or of the stipulation incor-
porated in the contract by the Conveyancing Act. For
(fc) Above, p. 61.
(?) Stat. 44 & 45 Vict. c. 41,
s. 3 (3) ; above, p. 193.
(m) See above, pp. 95 — 98.
(«) See above, pp. 108, 109.
(o) Above, pp. 198, 199.
TO SHOW A GOOD TITLE. 209
he would not be asking for production of evidence of
the title prior to the time stipulated for commencement
of title ; which the statutory stipulation precludes him
from demanding {p). What he would really be requir-
ing is proof of the title at the date of the specified deed to
such part of the estate contracted to be sold as was not
dealt with by that deed. It is submitted that a more
stringent stipulation than the supposed condition would
be necessary to exonerate the vendor from the obliga-
tion of producing such proof ; and further that the
vendor cannot be discharged from this obligation merely
because the only available evidence happened to be the
production of the earlier title {q). If this view be
correct, the vendor would not be entitled to retain the
deposit if he refused to furnish the evidence required.
A distinction however must be drawn between the in-
stance given above and a case where the nature of the
instrument, with which the title is to commence, is plainly
described. Thus if it were agreed that the title should
commence with an Indenture of such a date, "beins' a
settlement on marriage of the property sold, subject to
certain mortgages therein recited," there would be good
ground to contend tliat the purchaser agreed to accept
that deed as the root of title. Again, a difference is to
be observed in cases like Re Marsh and Earl GranviUe (r),
where it is agreed tliat the title shall commence with a
specified deed, and that deed does show title to the
whole estate contracted for, but it is objected to for
some other reason, as because it is a voluntary convey-
ance. In that case the purchaser did not abide by the
contract in requiring evidence of the earlier title ; and
it does not appear that he could have recovered his
deposit. The proceedings were throughout treated as a
vendor's action for .specific performance. And the
{p) Above, p. 193. above, p. 19.5.
[q) See Phi/lipt v. Caldcleugh, (r) 24Ch.D. 11 ; above, p. 197.
w. 14
210
OF STIPULATIONS LIMITING THE OBLIGATION
doctrine there laid down, that a purchaser agreeing that
the title shall commence with a deed less than forty
years old is entitled to assume that the deed is a convey-
ance for valuable consideration (.s), is applicable only in
proceedings for specific performance and not in an
action on the contract at law. As previously recom-
mended (t), purchasers buying by private contract
should avoid raising any question as to the retainer of
the deposit by requiring the vendor to guarantee the
instrument, with which the contract is to commence, to
be a good root of title.
Purchaser
under usual
condition as
to identity
requiring
further evi-
dence.
Again, it may be asked whether a purchaser will be
entitled to recover his deposit, if, having bought under
the usual condition as to evidence of identity (?/\ he
require further evidence of identity on the ground that
the descriptions in the title deeds fail, either wholly or
partially, to prove the identity of the property bought
with that to which the deeds relate. It appears how-
ever that the usual condition (n) as to evidence of
identity does not altogether discharge the vendor from
the obligation of proving identity ; it merely saves him
from the necessity of giving evidence of identity in-
dependent of the title-deeds. And if the deeds them-
selves fail to show identity, it does not appear that the
vendor performs his contract at law (r). If so, he
cannot claim to retain the deposit.
Course to
adopt in
making
requisitions.
The proper course for the purchaser's counsel to
adopt in matters of this kind appears to be to require
the vendor, in the first instance, to show such a title
and furnish all such evidence as he would be obliged to
show or produce in an action for specific performance
at his own suit. And the pm-chaser's advisers should
(*) See above, pp. 109, 198.
{() Above, p. S9.
(«) Above, pp. 65, 72.
{v) See the authorities cited in
note (b) to -p. 66, above.
TO SHOW A GOOD TITLE. 211
endeavour to secure compliance with such requisitions
by their diplomatic conduct of the negotiations. If
this fails to attain its object, the purchaser should be
careful to insist only on such requisitions as the vendor
is obliged to comply with at law. And he should with-
draw all requisitions for any evidence of title, which
the vendor would have to produce to obtain specific
performance at his own suit, but need not show in order
to discharge his contract at law. As we have seen (r) ,
unless the vendor seek actively to enforce the specific
performance of the contract, the purchaser has no means
of obliging him to furnish such evidence.
It has been shown (//) that a condition of sale, re- Conditions
quiring the purchaser to assume without proof tlie truth assum^^t^
of some fact or facts stated, is not binding, as regards of fact.
the specific performance of the contract, if the vendor
know the statement made to be untrue. But if the
vendor believe the statement made to be true and have
no reason to suppose that it is incon-ect, the condition
is fully binding on the purchaser, although it do not
appear from the contract what defect of title the
assumption required is intended to cover (s) .
If a purchaser buy under conditions limiting his Position of
right to inquire into the vendor's title, he will of course buyinff'^imd
have no protection against any lecjal estates or rights, special con-
adverse to the vendor's interest, which might have been against
discovered by a complete investigation of the title. Persons
. . ^ claiming'
But this liability arises from the fact that h-yal estates adversely to
or interests in land are rights directly enforceable vendor,
against the land into whosesoever hands it may come («) ;
and it is no defence against persons seeking to enforce
[x) Above, p. 88. 175.
(y) Above, pp. 199, 200. [a) See Wms. Real Prop. 2, 3,
iz) Re Snndbach nnd Edmnnd- 65, 181, .'571, 2l8t ed. ; below,
Mw'jt Contract, 1891, 1 Ch. 99; Chap. XI. ^ 2 (Assignment by
Blaiberg v. Keevm, IPOfi, 2 Ch. Party to the Contract).
14(2)
212 OF STIPULATIONS TO SHOW A GOOD TITLE.
such rights that the purchaser made the fullest investi-
gation of the vendor's title. With regard to equifahJo
estates or interests adverse to the vendor's title, the case
is different ; and if the purchaser obtain the legal estate
from the vendor without notice of such estates or
Purchaser not interests he will not he hound thereby [a). But a
title has con^ purchaser, who buys under conditions limiting his right
structive ^^ investigate the title, has constructive notice of all
notice 01 _ f
equities which equitable incumbrances, which he would have discovered
dLTvSd b7 if te had inquired into the vendor's title for ihe period
inquiry. during which the title is required to be shown by law {h) .
For it is considered that a purchaser is bound to inquire
into his vendor's title ; and he is not allowed to escape
the consequences of such inquiry, as regards notice of
equities apparent on the face of the title, by contracting
not to investigate the title. The reason of this is
obvious. If a purchaser under restrictive conditions
were able to plead purchase of the legal estate without
notice against a prior equitable incumbrancer, it would
always be in the power of any one who held land
subject to an equitable incumbrance, to deprive the
incumbrancer of his right by a sale under conditions
prohibiting inquiry into title ; and a purchaser under
special conditions is supposed to take all risks and to
pay a diminished price in consequence (c).
(a) See last note. 104 ; below, Chap. VIII. ^ 1.
(i) Worthington v. iforgan, 16 (c) See the cases cited in the
Sim. 547; Pi'to \. Hammond, 30 previous note. Fry, J., appears
Beav. 495 ; Wihon v. Hart, L. R. to have lost sight of these priu-
1 Ch. 463 ; Carter v. Williams, ciples in holding in Kcttleivell v.
L. R. 9 Eq. 678; Patman v. JVatson, 21 Gh. D. 685, 708, that
Harland, 17 Ch. D. 353; Ee Cox persons who purchased very small
and Neve^s Contract, 1891, 2 Ch. pieces of land without investi-
109, 117, 118; C. A., Re Nishet gating the title, were not aifected
and Potts' Contract, 1906, 1 Ch. with constructive notice of an
386, 404, 408, 410 (but as to the equitable incumbrance, which the
decision in this case, see the usual investigation of title would
writer's criticism in 51 Sol. J. have disclosed. There was no
141, 155); Perham v. Kempster, appeal from his decision on this
1907, 1 Ch. 373, 379 ; see also point : but his views do not
Oliver v. Hinton, 1899, 2 Ch. 264 ; appear to have been accepted by
Berwick Y. Price, l^(}b,\ Ch. 632 ; the C. A. See 26 Ch. D. 501,
Walker v. Linom, 1907, 2 Ch. 508.
213
CHAPTER VII.
OF DEVOLUTION ON DEATH.
Devolution of lands on death is a fact of title which Devolution
is constantly brought before the conveyancer. As before 1898.
the law on this subject has lately been altered it is
deserving of special consideration. We will begin by
giving a short summary of the law in force before the
1st of January, 1898, when the Land Transfer Act,
1897 (a), took effect.
The first thing to be remembered in considering who Dower and
were rightly entitled to succeed to lands on a former ° ^^^"
owner's death is the law of dower and curtesy. For
the purpose of the investigation of title, it may still be
necessary to have regard to the old law of dower, which Dower,
continued to regulate the dower of all widows who were
married before or on the 1st of January, 1834 (b). It
will be remembered that, at common law, the wife's
dower was paramount to every alienation by the husband,
whether in his lifetime or by will, of any lands on which
the claim had attached : but that in modern times the
wife's claim was generally prevented from attaching by
the assurance of lands on a purchase to uses to bar
dower {c). The dower of women married after the
(a) Stat. 60 & 61 Vict. c. 65; s. 14.
see sect. 25. {c) See Wms. Real Prop. 322
(*) Stat. 3 & 4 Will. rV. c. 105. nq., 390, 2l8t ed.
214
OP DEVOLUTION ON DEATH.
1st of January, 1884, is governed by the Dower Act (d).
This statute deprives the widow of dower out of any
land, of which her husband has absolutely disposed in
his lifetime or by will (e) ; and postpones her right to
dower to all partial estates and interests and all charges
created by any disposition or will of the husband, and
all debts, incumbrances, contracts and engagements to
which his land shall be subject or liable (./"). It enables
the husband to bar his wife's right to dower out of any
land by declaration to that effect contained in any deed
of his or by will (g), or to restrict her right to dower by
his will (A) ; and it also deprives the widow of dower
out of any land, in which her husband has devised any
estate or interest for her benefit, unless a contrary
intention be declared by his will (/). The general
effect of these provisions is that a widow can only claim
dower out of lands, which her husband has suffered to
descend ; and even out of such lands her right to dower
may be barred, restricted or postponed (A-) . But it
must not be forgotten, in advising on title, that on
the death of a tenant of freeholds in fee intestate or on
the death of a tenant in tail, his widow may still be
entitled to dower.
{d) Stat. 3 & 4 Will. IV. c. 105.
[c) Sect. 4.
(/) Sect. 5. The opinion has
been expressed that, not-with-
standing the above words, the
widow's dower is paramount to
the claims of her late husband's
creditors, who have not in his
lifetime obtained a charge on his
lauds; Romilly, M.R., Spi/er v.
I£>/att, 20 Beav. 621 ; Wood,
V.-C, Jones V. Jones, 4 K. & J.
361. In neither of these cases,
however, was the expression of
this opinion necessary to the de-
cision. Spyer v. Hyatt was a
case of freebench ; and it had
been previously decided that the
Dowsr Act has no application
to freebench ; Smith v. Adams,
18 Beav. 499 ; 5 De G. M. & G.
712 ; so Lord Romilly's dictum
was peculiarly gratuitous. Jones
V. Jones was the ease of a mort-
gage by the husband. It is sub-
mitted that, according to the
ordinary meaning of the words
used in the Act, a man's lands
are by stat. 3 & 4 Will. IV. c. 104,
made " subject or liable " to his
debts after his death, notwith-
standing that his creditors have
no charge thereon.
{g) Sects G, 7.
(A) Sect. 8.
{i) Sect. 9.
(/.•) See Wms. Real Prop. 326,
327, 21st ed.
OF DEVOLUTION ON DEATH. 215
Curtesy at common law was of course an estate com- Curtesy,
mencing in the wife's lifetime on the birth of issue that
might inherit (/). But as regards estates of inheritance
held on trust for the wife's separate use or held by her
as her separate property under the Married Women's
Property Act, 1882, the husband has no right to posses-
sion or receipt of the rents and profits during his wife's
lifetime, and he can only claim an estate by the curtesy,
if entitled by the birth of issue, on the wife's death and
intestacy ; and not in case she has disposed of the estate
in her lifetime or by will {m).
Subject to the law of dower and curtesy, on the death Succession to
before the year 1898 of a tenant of freeholds who was after death
also the beneficial owner, his estate devolved as follows before 1898.
according to its nature : — An estate in fee simple passed
directly to the devisee, if it should have been disposed
of by will {n), or in case of intestacy, to the heir of the
last purchaser (o). In case of a total failure of the heirs
of the last purchaser, the estate descended to the heir of
the person last entitled thereto (p) : but if there were no
such heir, it escheated to the lord of the fee, and usually
to the Crown, in default of any mesne lord being able
to prove his title (q) . It does not fall within the scope
of the present work to set out all the rules for the
descent of a fee to the heir of the last purchaser or
person last entitled (r) : but the conveyancer may be
reminded of the interest given by the Intestates' Estates
(/) See Wms. Real Prop. 307, descended according to the com-
2l8t ed. mon law niles to the heir of the
(/«) Ibid. 316, 318; Cooper v. person last seised; Wms. Real
Macdonald, 7 Ch. D. 288; Hoi)e Prop. 86, 227, 228, 2l8t od.
V. Hope, 1892, 2 Ch. 336. / n mu- u • . i; . .
, ^\xT T, , r. -, -. (^) This waa by ^'U■tue of Stat.
(«) Wms. Iteal Prop. /4-/b. 22 .*.- 23 Vict. c. 35, ss. 19. 20,
244, 245, 2uO, 21st ed. passed 13th August, 1859 ; Wms.
(o) That is, of cgiu-se, under Real Prop. 236, 2Ist od.
the Inht'ritance Act, 1833, rogu- , > j,., ,, ro i n
lating the succession on deaths ^^> ^^^'^- ^^—^^^ '^'^^■
occurring after the year 1833. (;•) Sec for these Wms. Real
On deaths before 1834, lands Prop. 227 .vi/., 2l8t ed.
216
OF DEVOLUTION ON DEATH.
Estates tail.
Gavelkind ;
borougli-
English.
Estates pur
autre vie.
Copyholds.
Act, 1890 (.s), to the widow in the real estate of any
man dying intestate after the 1st of September, 1890,
and leaving a widow but no issue. Estates tail, if not
barred in the tenant's lifetime {t), descended to the heir
in tail ^^e/' formam doiii (u). And where lands are
subject to the custom of gavelkind or borough-English,
it must not be forgotten that the descent of estates tail,
as well as estates in fee simple, is regulated by the
custom {x) . Life estates of course cease on death : but
estates pur autre fie pa&sed, if devised, to the devisee,
and otherwise either to the heir as special occupant, or
if there were no special occupant to the deceased tenant's
executors or administrators ; and in the last- mentioned
event they became distributable in the same manner as
personalty (//).
Copyholds held beneficially in customary fee simple
or tail may by special custom be subject to the widow's
freebench or the husband's curtesy (s). Subject to
these rights, copyholds held in fee are devisable without
any surrender to the use of the tenant's will {a) : but
the devise only gives the devisee a right to be admitted,
similar to the right of a surrenderee, and he does not
become completely tenant until admittance, a ceremony
usually involving the payment of a fine to the lord (h).
In default of being devised, copyholds in fee descend to
the customary heir, that is, to the person entitled by
the custom of the manor in which the lands lie, to
(s) Stat. 53 & 64 Vict. c. 29 ;
see Re Twigg's Estate, 1892, 1 Ch.
579 ; Re Charrietr, 1896, 1 Ch.
912; Re Heath, 19U7, 2 Ch. 270;
Wms. Real Prop. 233, 328,
2 let ed.
(0 See Wms. Real Prop. 110,
21st ed.
(m) Ibid. 232.
(x) Ibid. 59, 60.
(y) That is, of course, under
the provisions of the Wills Act,
replacing those of stat. 14 Geo. II.
c. 20, and the Statute of Frauds ;
see Wms. Real Prop. 132, 133,
21st ed. ; Re Inman, 1903, I Ch.
241.
{z) Wms. Real Prop. 495, 496,
2l8t ed.
[a] That is, since stat. 55
Geo. III. c. 192, passed 12th July,
1815 ; see Wms. Real Prop. 486,
487, 21st ed.
{b) See Garland v. Mead, L. R.
6 Q. B. 441 ; Wms. Real Prop.
407, 468, 486, 487, 21st ed.
OF DEVOLUTION ON DEATH.
succeed to them as heir ; and he acquires the estate
directly on the ancestor's death, though he is not com-
pletely tenant as regards the lord until admittance (c).
And it appears that, even when copyholds are devised
by will, the estate descends to the customary heir,
pending the devisee's admittance {d). Copyholds given
to the tenant and the heirs of his body in a manor,
where there is no custom to entail, being held for an
estate similar to a fee simple conditional at common
law, are alienable and therefore devisable on the birth
of issue : but if not devised, they descend to the
customary heirs of the donee's body only(('). Copy-
holds held to the tenant and the heirs of his body of a
manor, where there is a custom to entail, appear not to
be devisable by will, if the entail be not duly barred in
the tenant's lifetime (./') ; and unless the entail be so
barred, they will descend to the customary heir in
tail {). Copyholds held for au estate ^j'^y autre vie are
devisable ; if not devised, they descend to tlie heir of
the grantee, if the estate were given to him and liis
heirs : otherwise they pass to the executors or adminis-
trators and are distributable as personalty (h).
Leaseholds for years were always devisable as chattels. Leaseholds.
As chattels too, they devolved upon the deceased
tenant's executors or administrators and were applicable
in payment of his debts (/). And the executors or
administrators, or any one of them (,/), always had the
(c) Wms. Real Prop. 451), 476, surrender, they might be barred
2l8t ed. by a surrender to the use of the
(d) Garlaml v. Mead, L. R. (i tenant's will ; Carr d. Duffwrl/ v.
Q. B. 441 ; but see Davidson's Singer, 2 Ves. sen. 603; Moore v.
Concise Precedents, 576, n., 18th Moore, ib. 596, 602 ; I Scriy. Cop.
ed. 71.3rded.
(e) I Scriv. Cop. (J'J, 3rd ed. ; (^) See Wms. Real Prop. 471-
Kowden v. Maltxter, Cro. Car. 42 ; 473^ 21st ed.
Wms. Real Prop. 471, 21st cd. ,,' ,,., ,_..
(/) See Stat. 3 & 4 Will. IV. ^''^ /^'f" •*"^-
c. 74. ss. 40, r)0 Bef..rc this (0 Ihid. 20, 21, 521.
Act, it was held that xw manors [j) Simpaon v. Gutteridge,
where entails were barrable by Madd. 609.
217
218 OF DEVOLUTION ON DKATH.
same powers of disposition over the deceased person's
leaseliolds as over his other chattels {k) ; and so might
sell or mortgage the same to raise money for payment
of funeral or testamentary expenses or debts, or, if
necessaiy, legacies. By such a sale or mortgage the
leaseholds are conveyed free from all claims of the
deceased person's creditors, legatees or next of kin ; and
the purchaser or mortgagee is in no way concerned to
see to the application of the purchase money, or to
inquire for what purpose the sale or mortgage is made (/).
Leaseholds, if specifically bequeathed, devolve never-
theless upon the executor in the first instance, and do
not pass to the specific legatee until the executor has
assented to the bequest : but when this assent is given,
they vest in the legatee at once, without the necessity
of any formal conveyance to him (w). Leaseholds are
also distributable as other chattels upon intestacy
according to the Statutes of Distribution {n). There is,
however, this difference between leaseholds and other
goods : — Personal chattels devolve on death according
to the law of the country in which their owner was
domiciled, whilst the succession to lands held under a
lease for years is determined by the law of the place
where they are situate (o) .
Equitable The devolution on death of an equitable estate in
land corresponded in general with that of the legal
estate, which was the subject of the equity. Thus the
succession after death to the estate of a cfufKi que trud
under a simple trust or of a mortgagor of freeholds,
[k) Brazier v. Hudson, 8 Sim. 2 Ch. 251.
67.' («) Wms. Real Prop. 21, 21st
(/) 2 Wins. Exors. 932-943, ed. ; Wins. Pers. Prop. 479 sq.,
946 sq., 7th ed. ; Re Whistler, 35 16th ed.
Ch. D. 561 : Re Venn and Furze's (o) Wins. Pers. Prop. 439-441.
Contract, 1894, 2 Ch. 101. 479, IGth ed. : Freke v. Lord Car-
(;h) Wms. Exors. 679, 1372, iery, L. R. 16 Eq. 461; Duncan
7th ed. ; Wms. Pers. Prop. 443, v. Lawson, 41 Ch. D. 394 ; Pepin
16th ed. ; Re Culrerliomc, 1896, v. Brui/erc, 1902, 1 Ch. 24.
OF DEVOLUTION ON DEATH. ^1^
coj^yliolds or leaseholds, was governed by the same rules
as determined the course of the legal interest therein ( />).
The exception was that under the old law a widow
could claim no dower out of her husband's equitable
estate {q). This exception was removed by the Dower
Act in the case of wives married after the 1st of January,
1834 (r) : but such dower was placed under the control
of the husband equally with dower out of legal
estates (s) .
Formerly, when lands were held upon any trust or by Estateb held
way of mortgage, the legal estate therein devolved upon i^n nioAo-aKo
the tenant's death in the same manner as if he were the
beneficial owner of them, but subject to the trust or the
equity of redemption. Estates in fee simple so held
passed therefore to the devisee or heir, according as
they were devised or suffered to descend (f). In all
well-di'awn wills a specific devise used to be inserted of
all estates held by the testator upon an}' trust or by
way of mortgage ; and this devise was usually made to
the persons who were appointed executors (?(). When
a will contained no specific devise of estates subject to
a trust or mortgage, the question frequently arose,
whether such estates passed under a general debase of
all the testator's real estate. The rule was, that such
estates did pass imder a general devise, unless a con-
trary intention could be collected from the expressions
used in the will, or from the objects of the devise (r).
The old rule as to the devolution of estates held on
trust was first invaded by the Vendor and Purchaser
{p) Lewiu on Truflts, 670, 6th (a) Above, p. 215.
ed. ; lOOf), 10th cd. ; Wms. Real {t) Wms. Real Prop. 192, 548,
Prop. 181. 191, 490, 552, 2l8t. ed. ; 551, 2l8t ed.
Jte Uuilsoii, 1908, 1 Ch. 655. («) 4 Davidson, Prec. Conv. 9,
(q) Win.s. Real Prop. 32:j. 58, 4th ed
{>■) Stat. 8 & I Will. IV. c. 105, (j) Lord liraubroke v. Inskip,
8. 2; "Wms. Real Prop. 327, 8 Ves. 417 ; 1 "Janii. Wills, 693
2l8t ed. sq., 4th ed. ; 647 sq., 5th ed.
220 OF DEVOLUTION ON DEATH.
Act, 1874 {y), enacting that upon the death of a bare
trustee (s) , any corporeal or incorporeal hereditament,
of which he was seised in fee simple, should vest in his
legal personal representative. This enactment was
repealed, except as to anything duly done thereunder,
by the Land Transfer Act, 1875 {a), after having been
in force from the 7th of August, 1874, until the 31st of
December, 1875. The same Act provided {a) that,
upon the death of a bare trustee intestate, any corporeal
or incorporeal hereditament, of which he was seised in
fee simple, should vest in his legal personal represen-
tative.
Mortgaged When real estate held in mortgage passed on the
es a es. mortgagee's death to his devisee or heir, it was
necessary, on any transfer or reconveyance after such
death, that his devisee or heir should convey the legal
estate in the mortgaged land, and that his legal
personal representatives should join in the conveyance
to acknowledge the receipt of the money paid and
assign or release the mortgage debt (/>). By the Vendor
and Purchaser Act, 1874 (r), the legal personal repre-
sentative of a mortgagee of a freehold estate, or of a
copyhold estate to which the mortgagee should have
[ij) Stat. 37 & 38 Vict. c. 78, Re Uucwra, 29 Ch. D. 693 ; He
!s. ,'). Cunninghaiu and Frayling, 1891,
(z) Different opinions liave '2 Ch. 5fi7 ; Wms. Real Prop,
been expressed by eminent judges 181, 21st ed.
as to the meaning of the expres- [n) Stat. 38 & 39 Vict. c. 87,
sion "bare trustee" : but the s. 48, repealed by 44 & 4o Vict,
better opinion is that it is not c. 41, s. 30 (2, 3), as to cases of
applicable to a trustee under a death after the 31st December,
special trust who has an active 1881.
duty to perform with regard to {h) Davidson, Prec. Conv.,
the trust property, as in the case vol. ii. pt. ii. pp. 793, 796, n., 816,
of a trustee for sale, but rather 818, 4th ed.
denotes a trustee having no other [c) Stat. 37 & 38 Vict. c. 78,
duty than to convey the tmst s. 4, passed 7th August, 1874,
estate at the cestui que trusfs and repealed by 44 & 45 Vict,
direction; seeCfn-istiev. Ovinf/fon, c. 41, s. 30(2, 3), as to cases of
1 Ch. D. 279 ; Morgan v Swansea death after the 3l8t December,
Urban Authority, 9 Ch. D. 582 ; 1881.
OF DEVOLUTION ON DEATH. 221
been admitted, might, on payment of all sums secured
by the mortgage, convey or surrender the mortgaged
estate, whether the mortgage were in form an assurance
subject to redemption, or an assurance upon trust. But
it was held that this enactment did not give the legal
personal representative of a mortgagee power to convey
the estate upon a transfer of the mortgage (r/).
So the law continued until the end of the year 1881. Devolution of
On the death after that year of any sole trustee or held iu trust
mortgagee of real estate, the succession is regulated by aftpr^mi^^
the 30th section of the Conveyancing Act of 1881 [e),
providing as follows : — " Where an estate or interest of
inheritance or limited to the heir as special occupant,
in any tenements or hereditaments, corporeal or incor-
poreal, is vested on any trust or by way of mortgage in
any person solely, the same shall on his death, notwith-
standing any testamentary disposition, devolve to and
become vested in his legal personal representatives or
representative from time to time (/), in like manner as
if tlie same were a chattel real vesting in them or him ;
and accordingly all the like powers, for one only of
several joint persoual representatives, as well as for a
single personal representative, and for all the personal
representatives together, to dispose of and otherwise
deal with the same, shall belong to the deceased's
personal representatives or representative from time to
time, with all the like incidents, but subject to all the
like rights, equities and obligations, as if the same were
a chattel real vesting in them or him ; and for the
purposes of this section, the personal rejn'esentatives for
the time being of the deceased shall be deemed in law
his heirs and assigns witliin the meaning of all trusts
(rf) Re Spradheri/ s Martgngi', {/) These appear to be his
14 Ch. D. 514. fjenoral, and not his special, ex-
[c] Stat. 44 & 4.') Vict. c. U, oeutor..* ; lir P„r;:rr's Tnisfs, \H94,
8. 30. I Ch. 707 ; cf. below, p. 232.
222
OF DEVOLUTION ON DEATH.
and powers." This enactment was held to apply to
Copyholds. copjholds as well as freeholds (g) : but the Copyhold
Act, 1887 {h), now replaced in this respect by the Copy-
hold Act, 1894 (/), provided that it should not apply to
land of copyhold or customary tenure vested in the
tenant on the Court EoUs of any manor upon any trust
or by way of mortgage. As is well known, trustees of
copyhold lands are usually admitted tenants thereof,
but mortgagees are not(./). On the death of a
mortgagee of copyholds, who has not been admitted
tenant on the rolls, it appears that his estate will still
devolve on his executors or administrators.
Liability of Before 1898, freeholds in fee were liable to be applied
deceased ^ " iu payment of the tenant's debts after his death either
owner's debts. ))ecause, in the case of specialty debts, he had bound his
heir to their payment, or because he had by will devised
his real estate in trust for or charged with payment of
his debts, or under Statute 3 & 4 Will. IV. c. 104 making
real estate equitable assets for the payment of the
deceased owner's debts generally (k). Copyholds in fee
were liable to their deceased owner's debts either by
virtue of an express charge of debts thereon or under
the same statute (/). Estates tail in freehold or copy-
hold were not liable to the tenant's debts after his death
(excepting certain Crown debts), unless during his life-
time a judgment had affected the lands, or he had been
adjudged bankrupt (;;?). Life estates are of course not
liable to the tenant's debts after they have determined
by his death or otherwise (>/). Estates jij?/r aufre vie
were subject to the deceased tenant's debts, if devised,
iff) Re Hughes, W. N. 1884,
p. 53 ; H(dl V. Bromley, 35 Ch. D.
G42.
(A) Stat. 50 & 51 Vict. c. 73,
s. 4G, passed 16tb September,
1887 ; see Re Milh' Trmh, 37
Ch. D. 312; 40 Ch. D. 14.
(J) Stat. 57 & 58 Vict. c. 46,
s. 88.
[j] Wms. Real Prop. 565,
21st ed.
{k) Ibid. 280—284.
[I) Ibid. 474.
[ni] Ibid. 289, 290, 475.
(«) Ibid. 290, 475.
I
OF DEVOLUTION ON DEATH. 223
either by virtue of an express charge or under the last-
mentioned statute ; and if not devised, under the Wills
Act, replacing with regard to freeholds the Statute of
Frauds in this respect (o). And equitable estates were
subject to the like liability as estates at law (p). When
the heir was specially bound to pay his ancestor's debt,
the creditor had the remedy of suing the debtor's heir
or devisee personally in an action of debt or covenant :
but in order to have the debtor's lands applied in pay-
ment of debts after his death the creditor was obliged
to take proceedings in equity for the administration of
the debtor's estate, when a sale or mortgage of the lands
would be decreed, if necessary, to raise money to pay
the debt {q). And the same proceedings were necessary
to secure the benefit of an express charge of debts on
real estate or of the statute of o & 4 Will. IV.
c. 104 (/■). Where the heir was specially bound or the
lands were made assets by the statute, the debts were
not a specific lien on the lands (v) ; so that if the lands
were aliened for valuable consideration by the heir or
devisee before any creditors' proceedings were insti-
tuted, the creditor could not follow the lands in the
hands of the alienee {f), who was not bound, even if he
had notice of the deceased owner's debts, to see to the
application of the purchase money {n). And where lands
were devised on trust for or charged with payment of
debts, the devisee was also enabled to dispose of them,
before the institution of any creditors' proceedings, dis-
charged from all liability to the testator's debts ; as it
was considered that the testator, both in the case of a
(o) Stat. 7 Will. IV. & 1 Vi.t. Sim. 2.')3 ; Richardson v. Horton,
c. 26, S8. 3, G ; Wms. Real Prop. 7 Beav. 112 ; Kiudcrleij v. Jeriix,
132, 133, 473, 474, 2l8t 6(1. 22 Beav. 1, 2> ; Sug. V. \- P.
(p) Ibid. 2:13. (;.i5— 6.i7 ; Frice v. Price, 3;') Ch.
{q) Wms. Real Prop. 284, 21st D. 297; lie Atkinson, 1908, 2
pd. ; Wms. Real Assets, 16. Ch. 307 ; Worlhinf/ton 4- Co., Ltd.
(r) Wms. Real Prop. 284, 21st v. Abbott, 1910, 1 Ch. 58S, .591
cd. rjOQ.
(») Re Moon, 1907, 2 Ch. ;i04. (m) Jones v. Xoi/cs, 4 .Tiir. N. S.
(t) .Spach-miin v. Timbrel/, 8 1033.
224 OF DEVOLUTION ON DEATH.
trust to pay debts and of a charge of debts, had made
his devisee a trustee for the payment of his debts, and
from the nature of such a trust a purchaser from the
devisee was exonerated from the duty of seeing to the
application of the purchase money (r) . And a mort-
gagee from a devisee or heir, before creditors' proceed-
ings, was in the same position as a purchaser (.r). But
after an order had been made for the general adminis-
tration of the deceased debtor's estate, in creditor's
proceedings duly registered as /is pendens (//), the heir
or devisee could not dispose of the lands descended or
devised to him free from the creditors' claim (s).
Whether he could so dispose of such lands after
creditors' proceedings had been instituted and duly
registered as a lis pendens, but before an order for
administration had been made therein, depended on the
nature of the proceedings. If they sufficiently indicated
an intention to enforce payment of the debts out of the
lands descended or devised, and the heir or devisee
were made a party thereto, a purchaser or mortgagee
from him would be bound thereby ; unless the circum-
stances were such that the purchaser or mortgagee was
entitled to suppose that the sale or mortgage was made
to raise money to pay the debts, as where the lands
were devised charged with debts to one who was also
appointed executor {a) . The case of a trust or power
to sell for payment of debts would appear to be similar ;
although after an order for administration, the trustees
must exercise their powers under the direction of the
Court {b). So an executor, in exercise of his general
{v) Sug. V. & P. 658, 660 ; (y) See Wms. Real Prop. 293,
Wms. Real Assets. 50, 51, 6-2. 294, 2 let ed.
(s) See Price v. Price, 35 Ch. D.
(z) Ball V. Harris, 4 My. & Cr. 297-
264 ; Eland v. Eland, ib. 420 ; (a) Ibid. ; and see Corser v.
British Mutual Investment Co. v. Cartwright, L. R. 7 H. L. 731.
Smart, L. R. 10 Ch. 567 ; Price v. (*) Lewin on Trusts, 391, 392,
Trxce,'ibGh..T).1'd1\ReAthinson, 515. 6th ed. ; 515, 733, 734,
1908, 2 Ch. 307. lOthed.
OF DEVOLUTION ON DEATH. 225
power to alien his testator's assets, may well dispose of
the testator's leaseholds, notwithstanding that creditors'
proceedings are pending, at any time hefore an order
for administration is made (c).
Before 1898, the rule was that an executor took no Executors
estate or interest by virtue of his office in any of his □o'^^terest^
testator's real estate ; any de\dse of such real estate was in their^
entirely independent of the executor's assent or inter- estate.
ference {d) ; and, as we have seen (e), a will of real
estate, as such, did not require probate. We have
noticed (/) the exceptions created by statute in the case
of estates pur autre vie undevised, where there was no
special occupant, and of estates held on trust or by way
of mortgage. But of course a man might expressly
devise his lands to his executors on trust for sale or
otherwise, or so that his executors should have a power
of disposing of his lands ; and such devises were
commonly made whenever a testator desired that any of
his real estate should be sold or applied in payment of
his debts. And in certain cases a power for a man's Power for
executors to sell his real estate would be implied. Thus sell'relTe.state
if by will lands were directed to be sold, without saying might be
by what persons the sale was to be made, it would be ""^ ^^
implied that the executors should have the power of
selling the lands, if the proceeds of sale would be dis-
tributable b}^ the executors, as where the sale was
directed to be made for the purpose of paying debts or
legacies or the testator had created a mixed fund com-
posed of the proceeds of sale of such lands and of
personalty (r/). And about the middle of the last
century it was decided in equity (//) that a mere testa-
(c) Neevesv. Bitrragc, 14 Q. B. ig) Sug. Pow. 118, 8th ed. ; 1
504. Wms. Exors. 655, 7th ed. ; Wms.
(rf) See 1 Wms. Exors. pt. ii. Real Assets, 53-0.5, 77 sq.
bk. ii. ; Wms. Real Prop. 260,
2l8t ed. (A) The contrary was decided
(e) Above, p. 161. at law; Doe d. Jones v. Uiighes,
If) Above, pp. 216, 217, 221. 6 Ex. 223.
w. 15
226 OF DEVOLUTION ON DEATH.
mentary charge of debts on real estate implied a power
for the executors to sell the real estate so charged (i).
This doctrine met with severe criticism from eminent
lawyers [J) ; it was not only thought to be unwarranted
by reason or authority, but it threw doubt on the pre-
viously received opinion that a devisee of lands charged
with debts could so dispose of the same as to exonerate
the purchaser from seeing that the testator's debts were
paid (k). In 1859, statutory provision was made to re-
move the difficulties then attendant on the sale of lands
Statutory charged by will with the payment of debts. Lord St.
powers. o ./ i ^
Leonards' Act (/) provides {/ii) that where, by any will
that shall come into operation after the passing of the
Act, the testator shall have charged his real estate or
any specific portion thereof with the payment of his
debts or of any legacy, or other specific sum of money,
and shall have devised the estate so charged to any
trustee or trustees for the whole of his estate or interest
therein, and shall not have made any express provision
for the raising of such debt, legacy or sum of money
out of such estate, such trustee or trustees may, notwith-
standing any trusts actually declared by the testator,
raise such debts, legacy or money by sale or mortgage
of the lands devised to them. But if any testator, who
shall have created such a charge, shall not have devised
the hereditaments charged in such terms as that his
whole estate and interest therein shall become vested in
any trustee or trustees, the executor or executors for the
time being named in his will (if any) shall have the
(i) Wrigley v. Sykea, 21 Beav. {m) Sect. 14. The powers thus
337 ; Sabin v. Heape, 27 Beav. conferred extend to all persons in
653. whom the estate devised shall
(/) Sug. Pow. 120-122 ; Sug. for the time being be vested by
V. & P. 662, n. ; "Wms. Real survivorship, descent, or devise,
Assets, 81 sq.; Lewin on Trusts, and to any persons appointed to
402 sq., 6th ed. ; 526 sq., 10th ed. succeed to the trusteeship, either
{k) Above, p. 223. under any power in the will, or
{I) Stat. 22 & 23 Vict. c. 35, by the Court; sect. 15.
passed 13th August, 1859.
OF DEVOLUTION ON DEATH. 227
same power of raising the same moneys as is before
vested in the trustees (>?). And purchasers or mort-
gagees are not to be bound to inquire whether the
powers thus conferred shall have been duly exercised
by the persons acting in exercise thereof (o) . But these
provisions are not to prejudice or affect any sale or
mortgage made or to be made in pursuance of any will
coming into operation before the passing of the Act ;
nor are they to extend to a devise to any person in fee
or in tail or for the testator's whole estate and interest
charged with debts or legacies ; nor are they to affect
the power of any such devisee to sell or mortgage as he
or they may by law now do (p). It will be observed
that this last enactment does not expressly settle the
question whether a devisee of lands charged with debts
could dispose of them freed from the charge, according
to the old conveyancing opinion {q). And in a sub-
sequent case in the House of Lords, where it was held
that a devisee of lands charged with debts, who was
also an executor, could certainly dispose of the lands
fi'eed from the charge, Lord Caii-ns observed that diffe-
rent considerations might arise whore such a devisee was
not executor (/■) . Mr. Joshua Williams, however, appears
to have had no hesitation in pronouncing for the old
conveyancing opinion (s) in this case, namely, that the
charge of debts enabled the devisee to give a receijjt for
the purchase-money exonerating the buyer from seeing
to its application {t). And Mr. Dart approved of this
conclusion on principle : although he advised that a
prudent purchaser could scarcely disregard Lord Cairns'
(w) Sect. 16. Sucli power shall {) Above, pp. 223, 224.
from time to time devolve to the / \ /-, ^ , • . i t t>
„ re \ ■ \ ('■) Corser v. Cartwnqht, Li. K.
personorper.sonsfif ixiiv) in wliom - tr t toi tot rril j • •
ik„„„ i \- 1 11 *■ .1 i- ' W. L. 731, 737. The decision
the executorship shall i•). The Act makes it equally
necessaiy for executors to assent to a devise of laud,
whether specific or residuary (s), as to a specific bequest
of personalty. And the executors' assent is sufficient to
vest in the devisee the legal estate in the devised lands,
without any formal conveyance, as in the case of asseut
to the specific bequest of a chattel real (;■). But where
lands are not devised but suffered to descend, the legal
personal representatives must convey the same to the
heir (u). Having regard to the provisions of the Act
with regard to the powers of several executors to sell or
transfer real estate and the right of the heir or devisee
to require a transfer oi the same (v), and the above-men-
tioned decision {/(•), the question is raised whether all
those a[)pointed executors (save such as have renounced
probate) must not join in assenting to a specific devise (u;).
It seems clear that they must all join in a conveyance
of the real estate to the devisee or heir. Where the
personal representatives convey the real estate to the
heir or devisee, subject to a charge for the payment
of any money which they are liable to pay (//), and
have previously issued the usual statutory advertise-
ments for creditors, the charge does not extend to debts
of which they had no notice at the time of conveyance {z) .
(r) Ee Cohen's Executors and (w) Above, p. 232, n. (q).
London County Council, 1902, 1 (x) In the case of a chattel,
Ch. 187. real or personal, asseut may be
(«) The law regards every de- eithei* express or implied, and the
vise of lands as being in effect assent of one of several executors
specific, though iu terms it may is sufficient, even though he be
be residuary; JTenxman v. Fri/cr, himself the legatee; Toinison v.
L. R. 3 Ch. 420; Lunccjicld \. r(cAr//, 3 B. & A. 31, 40; Cole x.
Igguldcn, L. R. 10 Ch. 136; 2 Miles, 10 Hare, 179; 2 Wms.
Jarm. Wills, 1431, n., .5th ed. Exors. 948, 1374-1378, 7th ed.
{t) Me Fix, 1901, W. N. 165 ; In the absence of any decision,
Kemp V. Inland Revenue Commrs., it cannot safely be assumed that
1905, 1 K. B. 591, deciding that this is now the law with regard
no stamp is necessary where the to realty,
assent is given in writing not (y) See above, p. 230.
\xnder seal ; above, p. 218. (;) lie Can/ and Pott's Contract,
u) See sect. 3(1), above, p. 230. 1901, 2 Ch. 463. See Wms. Pers.
y) Above, p. 229. Prop. 458, 16th ed.
234
OF DEVOLUTION ON DEATH.
The devolution of the beneficial interest in lands is not
altered by the Act. Such interest may therefore be
devised to the same extent as before, remains subject to
the law of dower and curtesy, and upon intestacy
descends to the heir or escheats according to the law
previously in force (a). It is obvious that the term real
estate [b) as used in the Act must receive a restricted
interpretation. Life estates are real estate : but as they
cease on death, of course they do not pass to the per-
sonal representatives, nor are they made liable to the
deceased owners' debts. It is submitted that the key to
the construction of the Act is in the provision that real
estate shall vest in the personal representatives, notivith-
standing any testamentary disposition (c). This seems to
show that the Act is intended to apply to such real
Estates tail, estate as may be effectually devised by will. If this be
so, the descent of estates tail, whether legal or equitable,
remains unaffected by the Act. But pending the deci-
sion of the Court on this point, a real difiiculty is raised
by the imskilled wording of the Act in the case of
estates tail. They are not only real estate, but real
estate of inheritance in the hands of the donee ; as such,
they are subject to the law of dower and curtesy [d) ;
and they are charged by statute, in the hands of the
heir in tail after his ancestor's death, with debts due
from the ancestor to the Crown by judgment, recogni-
zance, obligation or other specialty, although the heir
shall not have been comprised therein {e), and also with
all arrears and debts, if any, due to the Crown from the
ancestor as an accountant to the Crown whose yearly or
total receipts exceeded three hundred pounds (/'). Why
(«) Above, pp. 213—216. {e) Stat. 38 Hen. VIII. c. 39,
{b) As to the origin and mean- s. 52 (s. 73 in RuiShead) ; Chitty
ing of the term "real estate," on the Prerogative of the Crown,
see Wms. Real Prop. 8, 25-29, 299.
184, 548, 21st ed. (/) Stat. 13 Eliz. c. 4 ; see
(c) Sect. 1 (1) ; above, p. 228. 25 Geo. III. c. 35 ; Chitty, Pre-
\d) Above, pp. 214, 216. rogative, 294, 295.- ^ ;
OF DEVOLUTION OX dp:ath. 235
then, It may be urged, shall not estates tail vest in the
deceased owner's personal representatives and he charged
with the payment of all his debts, according to the
letter of the Land Transfer Act ? It is probable, how-
ever, that the Court will consider that no sutHcient
intention is expressed in the Act to subject estates tail
to all their deceased owner's debts, and that the Act
only applies to de\isable real estate. But the point is
one on which it would be scarcely safe to act uijon a
. , . . mi A i Equitable
text- writer s opinion, ihe Act seems to apply to all estates,
real estate, to which the deceased person was entitled
for his own benefit in equity, and which he might
devise by his will [g) . As regards copyholds, it is clear Copyholds,
that legal estates of inheritance in copyholds vested in
one, wlio has been didy admitted tenant on the rolls
for his own benefit, are left to pass to the devisee or
heir according to the previous law [h). But it has been Equitable
decided that an eqidtable estate in fee in copyholds eopy^yids
passes to the legal personal representatives under the
Act (<) ; and the opinion has been judicially expressed
that the provisions of the Land Transfer Act, 1897,
excepting copyholds and customary freeholds from being
included in " real estate " in cases where an admission
or any act by the lord is necessary to perfect the title of
a purchaser from the i'i(dom. ^ ^'f"- Jiaii. ( 0., 24 Ch. D. 720. a
the appomtment ot a new trustee ^ . . ' ^ ., ■' ,
it would not ro'J ^^^ '^«'^^* compelled the
Vict. c. 89, s. 62, and First Scho- Purchaser to accept was not made
dule. tit. Mortcrajre : 10 Kdw. VII. ^'v°"';''t\ f ""^TT :x appeared
c. 8, s. 74 (6); Davidson. *'. be absolutely entitled but was
Prec. Conv. vol. iv. pp. 609. 610. I '••^"/'^l V an executnx to whom
3rd ed. If the mort^aife monev ^"r' ^^'^^'V^'" ^ ,^^^^]? ^ad been
should exceed 2.000// and the f^on on trust for others, that A.,-
stamp be 10... only, the vendor f^''"f"- held the property in ques-
sho,.ld be required to have the *",'" «" trustee for other persons,
deed duly stamped with the "''u were jointly entitled thereto,
proper ad valonm stamp. If in {f) Ante, p. 118; Re Cousins,
8uch case the deed be stamped 31 Ch. D. 671, 675.
239
240 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
such circumstances in accepting a conveyance of the
land or a transfer of the mortgage from A. and B.,
with the concurrence of C, without making any further
investigation of C.'s title or as to the nature of the
alleged trust. Where the legal title is correct on the
face of the abstract, the purchaser is not entitled to
object to it on the mere suspicion of some equity adverse
to the title {g) . It is, of course, quite a different matter
if some document be disclosed to the purchaser, showing
that A. and B. are trustees of the land or money on
certain particular trusts, as for C. for his life and after
his death for his children. In that case the purchaser
has notice of the trusts declared by the document, and
must have regard to them ; he is no longer entitled or
bound to accept as correct any statement by A. and B.
that they are jointly entitled in equity as well as at
law or are trustees for C. On the contrary, the pur-
chaser is entitled to require and should ask for all such
information respecting matters connected with the trusts
so disclosed as he could have demanded if no such state-
ment had been made {li). For example, where a mort-
gage has been made to several persons jointly, and it is
disclosed to a purchaser that they hold upon the trusts
declared by a particular deed of settlement, it should be
ascertained that these persons are or were the duly
appointed trustees of the settlement and were empowered
to invest their trust funds on mortgage and can give
receipts for the mortgage money when repaid (/ ) . And
where land has been conveyed to several persons jointly
in fee, and it is disclosed that they are trustees of some
settlement, a purchaser from them must find out whether
they are duly appointed trustees and were empowered
to invest their trust funds in the purchase of land and
{g) McQueen v. Farquhar, 11 (/;) Be Bkdberq and Abrahams,
Ves. 467 ; Green t. Puhford, 2 1899, 2 Ch. 340.'
Beav. 70 ; below, Chap. XIX.
§ 3. (0 See S. C.
OF NOTICE OF TRUSTS AND .SALES BY TRUSTEES. 241
are empowered to sell the land and can give good
receipts for the purchase money ; and if it appear that
such powers have not been conferred upon them, he
must require the concurrence of all persons beneficially
entitled, and should not accept the title if this cannot
be obtained or some beneficiary be under an insurmount-
able disability.
Where lands have been assured to several persons as Circumstances
joint tenants without disclosing the fact that they are disclosure^
trustees, circumstances may occur which will place the oi a trust
,..,.. ,, ,.,, 1. V IP unavoidable,
conveyancer engaged in investigating the title on behali
of a purchaser in an awkward dilemma. Thus, if it
appear on the face of the abstract that several persons
were seised of lands in fee (not by way of mortgage),
and one of them has died, the purchaser mav of course -
require the usual proof of the discharge of the succes-
sion and estate duty which would be payable on the
death if they were beneficially entitled (k). But if this
be done, and the joint tenants were in fact trustees, the
only answer that can be given will be that no duty
became payable, because the deceased person was not
beneficially entitled (/). This, however, is tantamount
to notice tliat he was a trustee ; and after such an
answer the purchaser cannot safely accept the title
without the concurrence of the persons beneficially
interested {ni). On the other hand, if no requisition as
to succession or estate duty should be made, and the
joint tenants should happen not to be trustees, and the
duty had not been satisfied, the purchaser would take
the property subject to the charge of duty (n). And
the same difficulty may arise, as regards estate duty,
(A) See stats. IG & 17 Vict. (w) See 2 Dart, V. & P. 594,
c. .51, 8. :J ; .)7 & JS Viot. c .30, ,5th ed. ; 660, 6th ed. ; Vim, 7th
SH. 1, 2 (1). ed. : above, p. 238. n. lb).
{I) See Stat.«. 1<> A: 17 Vict (w) See Stats. 16 & 17 Vict,
c. 51, 8. 2 ; 57 & .58 Vict. c. 30, c. ol, s. 42 ; 57 & 58 Vict. c. .30,
s. 2 (3). a. 9 (1).
W.
16
242 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
in consequence of the death of one of several joint
mortgagees : although with respect to succession duty
the law is different. Thus, in such a case succession
duty would be payable, if the mortgagees were bene-
ficially entitled, by the survivors as on a succession to
personal property ; but the duty would not be a charge
on the successors' interest, except while the property
should remain in their ownership or control ; and it
does not appear that persons in whom the property
(that is, the mortgage debt and the charge on the
mortgaged lands) might become vested by alienation
after the succession had become an interest in posses-
sion would be accountable for the duty (o) . It appears,
therefore, to be unnecessary for any person proposing
to take from the survivors a transfer or release of the
mortgage to inquire respecting the payment of such
succession duty {p). But in the case of the estate duty
which would be payable if the mortgagees were benefi-
cially entitled, it is at least a question whether persons in
whom the mortgage should become vested by the aliena-
tion of the surviving mortgagees would not be account-
able for the duty, and whether the property (which
would not have passed to the deceased person's executor)
would not be charged therewith (§'). And if a person
taking a transfer from such surviving mortgagees would
be so accountable, or the duty be a charge on the mort-
gage debt, it seems that he ought to ascertain whether
the duty has been discharged before he pays them the
money owing on the security ; and it is easy to put a
case in which omission to make this inquiry might lead
(o) See Stat. 16 «& 1 7 Vict. c. .51, cordiug- to the strict grammatical
8S. 42, 44, construction of the words used,
{p) Davidson, Prec. Conv. makes a person accountable in
vol. ii. pt. ii. pp. 52, 53, 4th ed. ; whom the property shall become
but see 2 Dart, V. & P. 594, 5th vested by alienation made after
ed. ; 669, 6th ed. ; 1230, 7th ed. the death, which gives rise to the
[q) See Stat. 57 & 58 Vict. liability to duty : but in Hanson's
c. 30, ss. 8 (4), 9 (1). It may be Death Duties, 174, 4th ed. (197,
doubted whether sect. 8 (4), ac- 5th ed.), it is asserted that it does.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
to a serious liability. Thus, suppose that a fatlier and
a son were joint mortgagees, who had made the invest-
ment with the view of the survivor becoming solely
entitlf^d, and the father died first : could any person
safely take a transfer of the mortgage from the son
without inquiring as to the payment of the estate duty ?
For if in this case the duty be indeed a charge on the
property which passed on the father's death, then the
mortgage debt and the mortgagee's estate in the
mortgaged lands would appear to be as effectually
charged therewitli as if the two moi'tgagees liad made
a sub-mortgage of wliioh the debtor had notice. And
a similar difficulty arises where it is proposed to take
a release or reconveyance by the survivor of two
joint mortgagees appearing to be beneficially entitled.
For if the estate duty which became payable on the
death of one of the mortgagees be a charge on the
proper! 1/ (that is, the mortgage debt and the mortgagees'
estate in the lands) , and the mortgagor or his successors
in title have notice of the charge of dut}', it does not
appear that a release or reconve3^ance to him or them
by the surviving mortgagee alone would vest in them
the mortgagee's interest free from the charge of duty
(if unpaid) ; and it seems that he or they might be
held to be accountable for the duty as being a person
or persons in whom the property had become vested by
alienation (/•). There seems to be no doubt that where
a title is deduced through joint tenants appearing on
(r) See Stat. 57 A: 58 Vict. c. 30, duty which m:ij' have hecome
8. 8 (4) ; above, p. 242, n. (7). payable on the death of one of
Where lands have been mort- the mortqragees ; they are in the
ffag'ed to two persons joi-itly, the po*f notice of a chai-fre created on the
"tnisfees or otf-er persons in debt due from him, how can he
whom any interest in the pro- safely pay the whole amount of
perty is vested."' for any estate the debt to the orijjinal creditor?
243
16(2)
244 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
the face of tlie deeds to be entitled for tlieir own benefit,
the only course which is perfectly safe is to treat them
as being so entitled for all purposes, and consequently
to require proof of the discharge of all death duties
which if they were so entitled would be a charge on
the property in the purchaser's hands. At the same
time the writer believes that hitherto it has not been
the practice to inquire respecting the payment of estate
duty on the death of one of several joint mortgagees,
unless there is good reason (as there would be in the
case above put of a joint investment by father and
son) to suppose that the parties are not or may not
be trustees. The only justification for this course seems
to be that joint mortgagees are so generally trustees
that the risk run in omitting the inquiry is really very
small, and the inconvenience consequent upon asking is
exceedingly great. Whenever it is proposed to sell
land under a title comprising a conveyance by the
survivor of joint mortgagees, and the deceased mortgagee
died after the 1st of August, 1894 (.s), it is advisable to
make a special stipulation in the conditions or contract
of sale that no inquiry shall be made or objection taken
as to any estate duty that may have become payable on
such death {t). Where several persons appear to have
been entitled to lands as joint tenants, but not by way
of mortgage, it has not been the practice to refrain from
inquiry as to the discharge of any death duties which
may have become payable on the death of one of them
on the ground that they are likely to have been trustees :
on the contrary, regard is had to the fact that omission
to inquire as to the payment of estate or succession duty
on the death of one of them would leave the purchaser
with an unsatisfied charge on the face of his title,
(«) The date of the commence- duty ; Stat. 57 & 58 Vict. c. 30,
ment of that part of the Finance s. 24.
Act, 1894, which imposes estate (t) For a form of such a con-
dition, see Appendix A., below.
OF NOTICE OF TRUSTS AND SALES I'.V TRUSTEES. 245
and so prevent him from getting a good marketable
title (u).
It is said, speaking generally, that notice of any Notice of a
document is notice of its contents: but this statement is how far notice
only applicable as a rule subject to the following quali- of its contents,
fications : — If a purchaser of any land haAC notice of
some document, which must necessarily affect, or is
stated to affect, the title to the land, then he ought to
inquire as to its contents ; and if he omit to prosecute
this inquiry, he will be affected with notice of its
contents and of any equitable interest disclosed by its
contents. And if the document must necessarily affect
the title, he will have notice of its contents (if he have
notice of the document), notwithstanding that he were
told that the document did not affect the title. But if
the document be such as may or may not affect the
title, and the purchaser ask, on receiving notice thereof,
whether it does affect the title, and be told that it does
not, he is justified, in the absence of any reason for
suspecting the vendor's veracity or good faith, in accept-
ing this statement as correct ; and if he omit to peruse
the document, he will not be fixed with notice of its
contents or of any equity thereby disclosed (.r). As
(«) Theoretically, omission to of redemption under the Statute
make the like inquiry with re- of Limitatious, have become
spect to estate duty pnyable on the owners of the whole estate in the
death of a joint mortgagee leaves lauds and uot merely of a char're
the title equally open to objec- thereon ; aud on the subsequent
tion : but. as we have seen (above, death of one of them any succes-
pp. 'J41, 242;, before the Finance siou duty which might become
Act, 1894, when succession duty payable woulil be a charge on the
only was payable, there was no survivors' estate in the lands, ho
necessity to make the inquiry, that inquirj' as to the payment
and the ditfereuce arising under thereof could no longer be safely
that Act with respect to estate dispensed with ; see Kf Loveridgc,
duty has hardly yet been appre- 1904, 1 Ch. 518.
ciated by the profession generally. (j-) Jotien v. Smith, 1 Ph. 244,
It should not be forgotten that 253, 254 ; Potman v. Hnrlatid,
joint mortgagees, who have been 17 Oh. D. 353, 356, 357 ; Lloyd's
obliged to foreclo.se, or who have Bmikiny Co. v. Jones, 29 Ch. D.
had to take pussession and h;ivc 221, 230; Eiujlish and Scolfisli
acquired a title barring the equity Mercantile Invvstment Co. v. Brun-
246 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
already pointed out (//), however, it is imprudent not to
require the production of a document, of which the
purchaser has notice and which may or may not affect
the title, because the document may disclose some Jognl
estate or interest adverse to the vendor's title, and the
purchaser would take subject to this, whether he had
notice of the contents of the document or not.
Notice, actual Notice of trusts, equities or similar matters, may be
tive. ' either actual or constructive. Actual notice to the
person principally concerned himself, as to a purchaser
personally, calls for no remark ; but it may be observed
that the term " constructive notice " is applied to two
kinds of notice, namely, the notice which is imputed to
a person principally concerned where he acts through a
solicitor or other agent, and the notice which is imputed
to a person where he or his agent has not made such
inquiry or investigation as ought to have been made.
The law with respect to notice is now contained in the
following section of the Conveyancing Act, 1882 (2) : —
notice.
Restriction on Sect. 3, sub-sect. 1. — A piu-chaser («) shall nut be prejudicially
constructive affected by notice of any instrument, fact or thing, unless —
(i) It is within his own knowledge, or would have come to his
knowledge, if such inquiries and inspections had been made
as ought reasonably to have been made by him ; or
(ii) In the same transaction with respect to which a question of
notice to the purchaser arises, it has come to the knowledge
of his counsel, as such, or of his solicitor, or other agent, as
such, or would have come to the knowledge of his solicitor,
or other agent, as such, if such inquiries and inspections had
been made as ought reasonably to have been made by the
solicitor or other agent.
Suh-sect. 2. — This section shall not exempt a purchaser from any
ton, 1892, 2 Q. B. 1, 700 ; lie mortgagee, or an intending pur-
Valletort, ^-c. Co., Ltd., 1903, 2 chaser, lessee or mortgagee, or
Ch. 654. other person, who, for valuable
[y) Above, p. 135. consideration, takes or deals for
(s) Stat. 45 & 46 Vict. c. 39, property, and "purchase" has a
s. 3. meaning corresponding with that
(«) By sect. 1 (2) (ii) in this Act, of "purchaser."
"purchaser" includes a lessee or
OF NOTICE OF TKUSTIS AND «ALE« BY TlilJ«TKES. 247
liability under, or any obligation to perform or observe, any coveuaut,
condition, provision, or restriction contained in any instrument under
which his title is derived, mediately or immediately ; and such
liability or obligation may be enforced in the same manner and to the
same extent as if this section had not been enacted.
Sub-sect. 3. — A i>urchaser shall not by reason of anything in this
section be affected by notice in any case where he would not have
been so affected if this section had not been enacted.
Sub-sect. 4. — This section applies to purchases made either before
or after the commencement of this Act ; save that, where an action is
pending at the commencement of this Act {b), the rights of the
parties shall not be .-.ffected by this section .
Sub-sect. 1 (i) of the above enactment appears to be
no more than a statement of the previously existing
law(^). But sub-sect. 1 (ii) of the above section has
made a substantial alteration of the law. Before this
Act came into operation, it was necessary, as a general
rule, in order that a purchaser might be affected by
notice to his counsel, solicitor, or other agent, that the
agent should be affected with notice in the same trans-
action in which the question of notice to the principal
arose (r/). But where one trausaction was closely
followed by and conuected with another, or where it
was clear that a previous transaction was present to the
mind of the agent when engaged in another transac-
tion, the principal was affected by notice to the agent,
altliough received in the previous transaction (6^). This
exception to the general ride has been removed by the
above section. Thus, where A. first mortgaged his
share under the trusts of a will to B., who was his
solicitor and was also the solicitor of the trustees of the
will, and this mortgage was afterwards transferred to C.
and then to L)., B. acting as C.'s and D.'s solicitor ; and
{h} Immediately after the Slst (> Ch. 652 ; Agm Jiank v. Barry,
Dec. 18S2; sect. 1 (2). L. R. 7 H. L. i:r> : ratmau v.
(f) liailtyw.linnies, 1894, 1 Ch. Harhiml, 17 Ch. D. :i.')3 ; Krttle-
2/J, 3o ; li'rrwu'lc ^- Co. v. Prior, uril v. Wittnoii, 21 Ch. D. 08.').
1905, 1 Ch. 632, (33!) ; see Jvvm v. {d) Sug. V. & P. 757.
Smith, 1 Hare, 43, I Ph. 244 ; (r) Harqreaves v. Rothurll, 1
Wihon V. Unrt, L. R. 1 Ch. 4«3 : Keen. 154. 159 : Sug. V. & P.
Carter v. U'i/liiims, L. R. 9 Eq. 757 : see the cases stated below,
b78 ; Ratdiffv v. Barnard, L. R. pp. 250—253.
248 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
within a year after the transfer to D., A. mortgaged the
same property to E., when B. acted as A.'s and E.'s
solicitor ; and E. was the first to give actual notice of
his charge to the trustees, who had no personal know-
ledge of the previous mortgage: it was held that E.
was not aifected with notice of the previous mortgage
by reason of B. having acted as his solicitor, and E.'s
charge had accordingly priority over D.'s (./).
Reason for ^he rule that a purchaser is afPected by notice to his
the rule that , , . . , " / j.i •
notice to the counsel, solicitor or other agent [g), seems to rest on this
tif th* ^^ ""^^^'^ ground : — When a man employs such agents to transact
cipal. his business he holds them out to the world as standing
in his own place and representing himself, in fact, as
being identical, for the purposes of the business which
he has authorised them to transact, with his own person.
He must therefore accept this rejDresentation of himself
by another, which is the consequence of his own act in
employing an agent, as complete for all the purposes of
such business, and cannot justly be permitted to sever
the identity of person created by him so as to repudiate
notice or knowledge given to or acquired by the agent,
but not in fact communicated to the principal (It). It is
therefore said that, when the relation of principal and
agent and the duty of the agent to communicate any
matter to the principal have been established, an irre-
buttable presumption arises that the agent communicated
the matter to the principal — evidence is not admissible
to prove that the agent did not in fact communicate his
The exception knowledge to the principal (/). The rule is, however,
fraiTd^ ° subject to the exception that, if the matter, of which it
(/) lif Comim,;i\ Ch. D. 671 ; L. R. 2 Eq. 134 ; cf. Blackburn
and see below, p. 252 ; Re Valle- v. Viyors, 17 Q. B. D. 553, 12
tort, ^-c. Co., Ltd., 1903, 2 Ch. App. Cas. o3l ; Blackburn v.
654, 663. Haslam, 21 Q. B. D. 144.
, \ c TT f -n irn (*) Fry, J., Kctthwell v. Wat
{,,) Sng. V. & P. 756. ^J^^ 21 Ch. D. 685, 704-707
[h) See Kennedy V. Green, 'S My. Berwick 4- Co. v. Price, 1905
& K. 699, 719 ; Boursot v. Savuye, 1 Ch. 032, 639, 640.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES. 249
is sought to affect the principal with notice, be the
agent's own fraud or fraudulent dealing or some equity
arising thereout (/.), or if the agent during the time of
his employment as such, and when he acquired the
information in question, was a party to a scheme of
fraud (/), tlien the principal is permitted to give
evidence to rebut the above presumption and to prove
his ignorance of the matter ; for the supposition that
the agent communicated his own fraud to the principal
is too improbable to be entertained even by a Court of
Equity.
Some very line distinctions were taken with regard to The law pre-
the above rule and its exception, before the passing of Couveyanchi.'
the Conveyancing Act, 1882 {in). Thus it was decided A-ct, 1882.
that, where a solicitor has been or is acting fraudulently,
but the circumstances are such that if the purchaser
were represented by another solicitor innocent of the
fraud, that solicitor would be put upon inquiry and so
affected with notice of some equity other than that
arising out of the fraud, the client will be affected witli
notice of this equity, notwithstanding the solicitor's
fraud (»). And it was even held, that where in the
same transaction a solicitor is engaged in committing a
fraud, but has notice of some equity independent of that
arising out of his fraud — as where he is a trustee en-
gaged in wrongfully disposing of the trust property for
his owu benefit — any person who is his client in that
transaction will be affected with notice of such indepen-
dent equity, notwithstanding that, if tlie client were
represented by another solicitor, that solicitor would
not be put upon inquiry (o). And it was considered
(k) Ki'Hiiedy y. Green, i My. & well v. JFatnon, 21 Cli. I). tiSo,
K. 699, 720 ; Cave v. Cave, 16 707.
Oh. D. G;59, 64."); Berwick ^ Co. (m) Above, p. 216.
V. Price, 1905, 1 Oh. (i;j2-OlO. («) See Kennedy v. Green, 3
(/i ^hnrpr V. Foij, L. R. 4 Oh. My. & K. 699.
35 ; lie iSuut/i(imjjlon\s Extuti , 16 [o) See Bourxol v. StuKgc, L. l\.
Ch. D. 178, 184 ; Fry, .J., KcttU- 2 Eq. 134.
250 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
that, where the matter of which notice is sought to be
imputed is not the solicitor's own fraud or unjust
dealing, the mere fact that it was fraudulent or wrongful
of the solicitor to conceal the matter from the client is
not sufficient to exempt the client from the consequences
Kennedy v. of the rule (y^). For example, where a solicitor fraudu-
lently induced a client, who was a mortgagee of lease-
holds, to execute (without receiving any money) a deed
conveying the legal estate to him as upon a transfer of
the mortgage, and having suhsequentlj'^ acquired the
equity of redemption mortgaged the whole property to
another, for whom he acted as solicitor in the transaction,
it was held that the latter mortgagee was not affected
with constructive notice of the solicitor's fraud on the
original mortgagee. But, it appearing that the peculiar
form of the deed of transfer of the mortgage and of the
receipt endorsed thereon were sufficient to put a solicitor
innocent of the fraud upon inquiry whether any money
had been paid on the execution of the transfer, it was
considered that the latter mortgagee was affected
through the solicitor with notice of the equity arising
from the fact that no money had been paid, notwith-
Boursot V. standing the solicitor's fraud {q). So, where a solicitor,
aiage. being one of three trustees entitled to certain leasehold
land, the trust not being disclosed on the face of the
title deeds, sold and assigned the land to a purchaser,
for whom he acted as solicitor, by forging the signatures
of his co-trustees to a letter of authority to sell and to
the deed of assignment, and it was considered that the
deed was a nullity on their part, but passed the legal
estate in one-third of the land, the Court held that the
purchaser was affected, through the solicitor, with notice
of the trusts ; for it was said that if the client would be
affected with constructive notice of a trust, the existence
(//) Atterhury v. Wallis, 8 De (q) Keiuiedyv. Green, 3 My. &
G. M. & G. 454, 466 ; Holland v. K. 699 : see also Me Soutkiiinpton\s
Hart, L. R. 6 Ch. 678, 682, 683. Estate, 16 Ch. D. 178, 184.
OF NOTir-F, OF TRTTSTS AND SALES BY TRTTSTEES. 251
of which is known to his solicitor, in the case where
there was no frand, the fact that the solicitor was com-
mitting a fraud in relation to the trust could not afford
any reason why the client should not be affected with
constructive notice of theexistpnee of the trust {>•). The
application of the rule, where the solicitor had notice of
some equity not arising out of his own fraud and the
only fraud was in his concealment thereof from his
client, is illustrated by the followins: cases : — A solicitor Aiterimnj v.
took a mortgage oi an equity of redemption and sub-
mortgaged it. Soon afterwards he and the first mort-
gagee and the mortgagor joined in a new mortgage of
part of the property, he acting as solicitor of all the
parties to the transaction and suppressing all mention of
the sub-mortgage. It was held that the new mortgagee
was affected, through the solicitor, with notice of the
sub-mortgage ; notwithstanding that it was fraudulent
or wrongful of the solicitor to conceal the sub-mortgage
from him (.s). A solicitor entitled to an equitable Zf>-w/^// v.
interest in land in Middlesex mortgaged the same to A. "^"^ "^*'
by deposit of title deeds and letters of charge, which
were not registered. He afterwards mortgaged the
same interest by registered deed to B., for whom he
acted as solicitor in tlie transaction. It was held that
B. must be taken to have had notice of A.'s mortgage,
the Court refusing to find a ground of exception from
the general rule in the fact that it was to the solicitor's
interest to conceal the prior mortgage from A., and
declining to presume that in this conflict of interest and
duty the solicitor consulted his own interest in preference
to performing his duty to his client (/). The exception simrpc v. Foy.
to the rule was allowed to prevail in Sharpe v. Foy (u),
where a liusV)and and wife mortgaged land, to which the
(>•) BoHinut V. Saviiyr, L. K. 2 v. Hart, L. R. G Cli. G7S.
Eq. 134. {t) lirndUy v. Riches, 9 Cli. D.
(s) Attetbury v. irallix, » Do 189.
G. M. & G. 4o4 : see also ItoUuud (m) L. R. 4 Ch. 3;").
252
OF NOTICE OF TRUSTS AND SALES BV TRUSTEES.
wife was entitled at common law, but which was subject
to a covenant for settlement. The same solicitor acted
for the mortgagors and the mortgagee. The mortgagors
informed the solicitor of the existence of the covenant,
but it was agreed between them that the matter should
not be mentioned to the mortgagee. It was decided
that the mortgagee was not affected, through the
solicitor, with notice of the covenant, as the solicitor
Cave V. Cure, was party to a scheme of fraud. Again, in Cave v.
Cave (.r), a solicitor, who was the sole trustee of a
marriage settlement, wrongfully applied part of the
trust funds in the purchase of certain land, which was
conveyed to his brother. A. advanced to the brother
4,500/. on a first mortgage of this land. The solicitor
acted for A. in this transaction, but represented to A.
that his brother was the owner of the land, and that the
mortgage contained absolute covenants for title by the
brother. The solicitor also raised loans for his brother
from other persons on mortgage of the same land. In
these circumstances the Court found that the trust
funds were applied in purchase of the land in jDursuance
of a scheme of fraud to which the solicitor was a party,
his design from the first being to enable his brother to
raise money on mortgage of the laud ; and it was held
that A. was not affected, through the solicitor, with
notice of the equities in favour of the ceHtai-qiie-trKufii
under the settlement.
Etfeot of the
Conveyancing
Act, 1882, 8. 3.
Taylor v.
London and
County Bank.
Section 3 of the Conveyancing Act, 1882 (//), preserves
to principals the benefit of the exception established as
above mentioned (z) in the case of the agent's fraud.
But the distinctions drawn with regard to this exception
have been greatly modified by the ojieration of sub-
section (1) (ii) of the same enactment. Thus, in Taylor v.
London and Comity Banking Co. (a), one Tasker had
(a;) 15 Ch. D. 639.
(y) Above, p. 246.
{z) Above, p. 248.
(«) 1901, 2 Ch. 231.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES. 253
appropriated part of certain mortgages to which he was
entitled in satisfaction of a breach of trust committed
by him as trustee of the Brockman settlement. After-
wards, on the appointment of Nixon as a new trustee
of the Tasker settlement, whereof Tasker had been
previously sole trustee, and had apparently converted
part of the trust funds to his own use, Tasker trans-
ferred these mortgages to Nixon and himself, repre-
senting that they were part of the funds subject to the
trusts of the Tasker settlement ; and in this business
Tasker acted as Nixon's solicitor. It was argued for
the persons entitled under the Brockman settlement (6),
on the authority of Boursof v. Sarof/c (c), that notice of
the equity in their favour must be imputed to Nixon in
consequence of Tasker having so acted as his solicitor.
But it was held [d) that the doctrine laid down in
Boiir-sof V. Savac/e is now subject to the modifications
introduced by the '3rd section of the Conveyancing Act,
1882 (e) ; and that, as knowledge of the appropriation
to the Brockman settlement did not come to Tasker as
Nixon's solicitor or in the same transaction in which
the question of notice arose, Nixon could not be affected
thereby. The principle of this decision appears to
affect not only the case of Bonr.sof v. Sarafjr, but those
of Atterhnt'!/ v. WoIUh and Bradleij v. Riche^i [/) as well.
For in neither of these cases was the kiiowledge sought
to be imputed to the client acquired b}' the solicitor in
his capacity of solicitor for that client or in the trans-
action in which the question of notice arose.
As a general rule, a piux'haser is affected by notice Vendor or
to his counsel, solicitor, or other agent, notwithstanding ,'^.'tTn^'*^°pur-
that the agent be also employed as the agent of the 'hjisor's or
mortgageo's
solicitor.
(A) 1901, -2 Ch. 24-2. (rf) 1901, 2 Ch. 257-2.59.
{c) L. R. 2 Kq. 1.34: ;ilK)ve. W Above, p. 246.
p. 250. (/) Above, p. 251.
254
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
What
inquiries
ought a pur-
chaser to
make ?
vendor ((/) or be himself the vendor (/^). But when
the vendor is a solicitor or other agent, it must appear
clearly that he acted generally as the solicitor or agent
of the purchaser in the transaction, in order that the
knowledge of the agent may be imputed to the pur-
chaser. The purchaser will not be affected with notice
if the vendor be merely employed to prepare the con-
veyance (i). The rule is the same between mortgagor
and mortgagee (k).
It will be observed that, imder the Conveyancing
Act, 1882 (/), a purchaser will not be afFected with
notice of anything which would not have come to the
knowledge of himself or his agent if such inquiries and
inspections had been made by the one or the other as
ought reasonably to have been made. The question
then arises, what inquiries and inspections ought
reasonably to be made ? The answer to this appears
to be : such inquiries and inspections as are usually
made by a prudent purchaser buying under an
open contract (m) ; for, as we have seen (ii), a pur-
chaser buying under special conditions limiting his
right to investigate the vendor's title is fixed with con-
structive notice of all equitable incumbrances which he
would have discovered if he had made such inquiries.
And it should be noted that a purchaser or mortgagee
taking the legal estate, but omitting to make reasonable
and proper inquiries and inspections, will be affected
((/) Lc JVerc V. Le Neve, Amb.
436 ; Dryden v. Frost, 3 My. &
Cr. 670 ; Rolhnd v. Hart, L. R.
6 Ch. 678.
(/() Ketthwell v. Watnon,
Ch. D. 6So.
(j) Eapin V. I'emherton, 3
G. & J. 547, 554; Kettlewell \ .
Watson, 21 Ch. D. 6.t5.
iji) See the cases cited in the
three preceding notes and above,
pp. 250—253.
{I] Above, p. 246.
21
De
(in) Wilson v. Kart, L. R. 1 Ch.
463, 467 ; Patman \. Ear land, 17
Ch. D. 353, 355-358 ; Oliver v.
Hinton, 1899,2 Ch. 264 ; Berwick
% Co. V. Price, 19o5, 1 Ch. 632,
638 ; Perham v. lumpster, 1907,
1 Ch. 373, 379 ; see also Molyneiix
V. Hawtrey, 1903, 2 K. B. 487.
(w) Above, p. 212; see also
Taylor v. London and County
Bankmy Co., 1901, 2 Ch. 231,
258.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES. 205
with notice of such prior equities as he would have
discovered if he had made such inquiries, although the
omission to make the inquiries did not arise from any
fraudulent motive, but was simply owing to gross
negligence. Thus, where a purchaser bought land in Olirer v.
good faith through an agent, who was not a solicitor,
and required no abstract of title nor production of the
title deeds, and the deeds were in the possession of an
equitable mortgagee, it was lield that the purchaser, to
whom the legal estate had been conveyed, took the
same with coustructive notice of and subject to the
charge created by the deposit of the deeds {o) . Where,
however, a purchaser makes due inquiry for the title
deeds and a reasonable excuse is given for their non-
production, he will not be alfected with notice of any
equity arising out of their absence, and may, if he
obtain the legal estate, avail himself of it and of the
defence of purchaser for value in good faith witli-
out notice as against all persons asserting any such
equity (;j).
Where a purchaser has notice that the property Notice that
bought is subject to charges or incumbrances, he must gui^^ect^to'*
inquire what these are, or he will be taken to have had charges or
notice of them all. Thus, where one took a le^'al
mortgage from two partners of property formerly
belonging to them and a third partner since retired as
tenants in common, and the retiring partner had by
deed conveyed his share in the property to the con-
tinuing partners " subject to all charges and mortgages
affecting the same," and this deed was recited in the
(o) Ulher v. Hinlon, 1S99. J liariiard, L. R. G Ch. (152; A(irii
Ch. 264 ; aud «ee liirwick ■\ Co. Jiank v. Barry, L. R. 7 H. L.
V. /Vitr, IflO.i, 1 Ch. G.32; WalLn- \Zh, 1,57; Northern Count' fs of
V. Llnom, 1907, 2 Ch. 104. England Fire Insurance Co. v.
Ifiii/j/j. 2<) Ch. D. 4«2 ; He Ing-
{p) Hewittv.Loosemorey^'RaxG, /mm, 1.S93, 1 Ch. 3o2. Se<^ also
449,4,58; a,nd nee Hunt v. IJlinen, Jfoli/neux v. Uawtrey, 190.3, 2
2 Df G. F. & J. ;57.S ; Maidife v. K. B. 487.
256 OF NOTICE OF TRUSTS AND SALi:S BY TRUSTEES.
mortgage without the words iu inverted commas, and
the mortgagee, knowing of two equitable charges on
the property and believing that these were all the
incumbrances, made no inquiry whether this was the
ease or whether there were any other mortgages or
charges, it was held that the mortgagee was affected
with notice of a third equitable charge which existed on
the property (q) . So, where lands were mortgaged
subject to land tax and tithe rentcharge and " to all
other payments and outgoings, ecclesiastical or civil,
charged upon or payable out of the said lands," and
the mortgagee made no inquiry what other payments
and outgoings there were to which the lands were
subject, it was decided that he had constructive notice
of an annual rent of a certain quantity of corn charged
thereon in equity (r).
§ 2.— Of Srf/cH h// Trufifee^.
Sales by The first observation to be made with regard to sales
rus eea. ^^^ trustees is that trustees holding the legal estate in
lands under a simple trust for the benefit of some other
person or persons have no power to sell without the
consent of all the persons who are in equity beneficially
entitled to the lands («) . In such cases the trustee is but
an instrument to execute the will of f.estui-que-frnst.
The latter may sell as he will, and the trustee is bound
to convey at his bidding (?'). But the trustee cannot
bind any beneficiary by contract with or conveyance to
any purchaser who has notice of the trust : although
conveyance of the trust property by the trustee to a
{q) Jonex v. Williams, 24 Beav. que-trusts had in writing autho-
47. rised the trustee to sell, and were
(r) Re Alms Corn Charity, 1901, bound at law by the contract as
2 Ch. '■'iO. undisclosed principals ; see above,
(.v) Leev. Soames, 36 W. R. 884; p. 160, and u. [u] ; below, Chap,
cf . Re Raker and Selmon's Contract, XIX. § 2.
1907, 1 Ch. 238, where the cestui- (t) See above, p. 167.
OP NOTICE OF TRUSTS AND SALES BY TRUSTEES. ^'-'^
bond fide purchaser for value without notice of the
trust maj deprive cedui-que-tnid of his equitable rights
in the laud {u). To enable trustees to sell lands without
the concurrence of their catui-que-trusts an express
power to that effect must be inserted in the instrument
creating the trust, or the lauds must be vested in them
upon a special trust for sale. When such powers of or Trusts for or
trusts for sale are created they must be carried out in ^^jg
all respects according to the intention of theii' creator ;
they must not, for example, be exercised before the
time at which it has been declared that they shall
arise (.r). Thus, when lands are vested in trustees on
trusts for one for life, and after his death on trust for
sale or on trust for others with power of sale, the trust
for or power of sale cannot be validly exercised in the
lifetime of the tenant for life — not even with his consent
and concurrence (//), nor by order of the Court (s). But
the intention of the author of a trust or power will be
collected from the whole of the instrument creating the
same, and may in some case be ascertained at the
sacrifice of the literal interpretation of every expression
therein contained. Thus, where lands were devised to Mills v.
one for life, and after her death to trustees to seU as ^"9>nore.
soon as conveniently might be after the testator's
death, it was held that the will in effect created a trust
for sale immediately exercisable with the consent of
the tenant for life («). So a devise on trust to sell with
(m) Wins. Real Prop. 186, 187, cases with the concurrence of all
21st eil. the bonefi•) — namely, that if the sale be made
within twenty years after the testator's death, the
purchaser is not bound to inquire whether any of the
testator's debts remain unpaid. After the expiration of
that period, the purchaser should inquire whether any
debts remain unpaid, if the only object of the trust for
sale be to raise money to pay debts ; but of course if
the trusts of the purchase-money be not only to pay
debts, but to hold the surplus on trust for certain
persons in succession, the question of the propriety of
selling a long time after the testator's death depends on
the same considerations as occur in other cases of settle-
ments. Here it may be noted that the powers given to Executors'
executors by the Land Transfer Act, 1897 (.s),of selling ^^rthV^^
their testator's real estate to satisf \' his debts appear to Land
y T 1 i 1 1 " • 1 Transfer Act,
be governed by the same rules as were previously 1397.
applicable to sales by executors of theii" testator's lease-
holds {t) ; so that if real estate be sold by executors
under such powers more than twenty years after the
testator's death, the purchaser will be entitled to pre-
sume that the sale is rightly made, and need not inquire
whether any of the testator's debts remain unpaid. In
regard to tlie general question of the time for exercising
trusts for sale, Lord St. Leonards observed that " people
"who deal with trustees raising moue}' at a considerable
distance of time, and without an apparent reason for so
doing, must be considered as under some obligation to
inquire and look fairly at what they are about" (m).
But it appears tliat an out-and-out trust for sale of
{q) Above, p. 'i-iS, n. (x). {t) Above, pp. 217, 218, 228,
(»■) Above, p. 228. n. {x).
(«) Stat. 60 & 61 Vict. c. Go, (m) StroughiU v. Amtey, 1 De
8. 2 ; above, pp. 228, 232. G. M. & G. 635, 654.
262
OF NOTICE OF TRUSTS AND SALES 1?Y TRUSTEES.
lands, if not determined by the beneficiaries' election,
may be exercised after any lapse of time {x).
Rule a"-ainst ^ trust for or power of sale of lands to arise at a
perpetuities in future time is invalid, unless so limited that it must
connection -i i • ^ ^ • i • i •in
with trusts uecessarily become exercisable within the period allowed
for and by the rule against perpetuities (y). But a trust for
powers 01 -^ ....
sale. sale arising immediately, and at once effecting a con-
version into personalty of the beneficial interest in the
lands to be sold, is not obnoxious to the rule against
perpetuities, although no limit of time be mentioned
within which the trust must be exercised (z). And it is
established that powers of sale immediately conferred
on trustees over property comprised in settlements are
not invalid for want of an express declaration that they
must be exercised within the time given by the rule
against perpetuities (a) . Such powers are therefore
exercisable within the period so allowed, though not, as
a rule, after the settlement has come to an end by the
vesting in possession of the estate in fee simple in
remainder or reversion or other the absolute interest in
the property settled (b). But such powers may remain
exercisable after absolute interests have vested in pos-
session, if such were the intention of the donor of the
power, so long as the rule against perpetuities is not
infringed. Thus, where the absolute interest in any
(z) See above, pp. 259, n. (l),
260, n. {m).
(«/) He Daveron, 1893, 3 Ch.
421 ; GoodivvY. Edmunds, ib. 455 ;
Re Appleby, 1903, 1 Ch. .565 ; cf.
Re Bavieii and Kent's Contrctcf,
1910, W. N. 104.
[z) Biggs v. Peacock, 22 Ch. D.
284 ; Re Twcedie mid Miles, 27
Ch. D. 315 ; Re Douglas and
FowelPs Contract, 1902, 2 Ch.
296, 313.
(ff) Biddle v. Perkins, 4 Sim.
135 ; Boyce v. Hanning, 2 Cr. & J.
334 ; Waring \. Coventry, I My. &
K. 249 ; IVood v. White, 4 My. &
Cr. 460, 482 ; Lantsbery v. Collier,
2 K. & J. 709 ; Peters v. Leives,
<^c. Ri/., 18 Ch. D. 429, 433, 434 ;
Sug. 'Pow. 848-851, 8th ed. ; 1
Jarm. Wills, 291, 4th ed. ; 261,
5th ed. ; 1 Dart, V. & P. 68. 69,
6th ed. ; 69, 7th ed. ; Farwell on
Powers, 111, 2nd ed.
(b) Wolley V. Jenkins, 23 Beav.
53 ; 3 Jur. N. S. 321; Taite v.
Sirinstead, 26 Beav. 525 ; Re
Brown^s Settlement, L. R. 10 Eq.
349; Sug. Pow. 859-862, 8th ed. ;
3 Davidson, Prec. Conv. 570-577,
3rd ed. ; Farwell on Powers, 32,
33, 2nd ed.
263
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
settled property is ultimately limited to several persons
as tenants in common, and a power of sale is given
with the intention that it shall be exercised for the pur-
pose of facilitating the division of the property after
their interests have vested in possession, the power is
exercisable within a reasonable time after such interests
have so vested, provided that the limits allowed by the
rule against perpetuities be not exceeded (c). If pro-
perty be given to trustees in trust for persons entitled, not
successively, but for immediate absolute interests therein,
it seems that a power of sale given to the trustees, and not
limited as to the time of its exercise, would be void (c/) ;
but if some of the beneficiaries were infants, the power
might perhaps be exercisable during their minority.
Where trustees hold lands under a trust for or with Order of the
power of sale, and an order of the Court has been made administra-
for the administration of the trust, they cannot properly *^"^ ^^ ^^^
exercise the trust or power without the direction of the
Court ((?) .
The duties of trustees for sale, whether acting under Duties of
a trust for or power of sale, are to sell the trust pro- gaie*^^*^^ ^°^
perty to tlie best advantage : that is, in the manner most
beneficial to all the ('cufiii-que-t rusts ; to receive the pur-
chase money and dispose of it in due accordance with
the trusts ; to obtain proper advice as to the value of
the trust property, and the best mode of sale ( /), and
generally to take all other precautions which a prudent
man of business would take in conducting liis own
(c) Re Cotton''s Trustees and the (e) Lewin on Trusts, 374, 391,
School Hoard for London, 19 Ch.B. 6th ed. ; 493, 526. 11th ed. ;
624; Rf Sitdchy and lUiws S; Co., Price v. Price, 3.5 Ch. D. 297;
1894, 1 Ch. 33t ; Re Jump, 1903, see above, p. 224.
1 Ch. 129; Re HorsnaiU, 1909, (/) Jessel, M. R., Re Cooper
1 Ch. 631. 635. and Alien to Harkch, 4 Ch. D.
(rf) Taitcv. Suinstead, 26 Beav. 802, 815.
525, 629.
264 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
affairs (g) . Trustees for sale should be especially careful
to avoid any misdescription in the particulars or contract
of the property, which they are entrusted to sell (^\ for
• if by their negligence in this respect the trust estate
should suffer any loss, it appears that they would be liable
to make it good (/). Under the Trustee Act, 1893 (k),
where a trust for sale or a power of sale of property is
vested in a trustee by any instrument coming into opera-
tion after the year IbSl, and in the absence of any ex-
pression of a contrary intentioD, he may sell or concur with
any other person in selling all or any part of the property,
either subject to prior charges or not, and either together
or in lots, by public auction or by private contract, sub-
ject to any such conditions respecting title or evidence
of title or other matter as the trustee thinks fit, with
power to vary any contract for sale, and to buy in at
any auction or to rescind any contract for sale and to
re-sell, without being answerable for any loss. These
powers are similar to those which were generally in-
serted in instruments made before the year 1882 and
creating trusts for or powers of sale {/) ; but neither the
express nor the statutory powers appear to confer on
trustees much greater authority or discretion than they
{ff) Speight V. Gaunt, 22 Ch. D. v. Flood, 28 Ch. D. 586, 591 sq.;
121, 9 App. Cas. 1 ; see also 1 Key & Elph. Prec. Conv. 267,
Falkner v. Equitable Reversionary n. [c), 4th ed. ; 255, n. [g), 8th.
Society, 4 Drew. 352. ed. ; above, pp. 65, 66 ; below,
{h) See above, p. 70. Chap. XII., § 4.
(i) See White v. Cuddon, 8 CI. (A) Stat. 56 & 57 Vict. c. 53,
& Fin. 766, 788, 789, 793. 798. s. 13, replacing 44 & 45 Vict.
It is thought that trustees for c. 41, s. 35.
sale are justified in stipulating {I) Like powers were given by
either that no compensation shall Lord Cranworth's Act to tnistees
be allowed for errors of descrip- having an express power of sale
tion (which seems best for them) over any hereditaments by virtue
or that compensation shall be of an instrument executed on or
allowed, and that on either side, after the 28th Aug. 1860 ; Stat,
for such errors, as it does not 23 & 24 Vict. c. 145, ss. 1, 2, 34 ;
appear that either of these con- but these powers were not usually
ditious is depreciatory ; see Hill relied on in practice ; Davidson,
V, i?'«'/.'^(v/, 17 Ves. 395; Croiiipton Prec. Conv. vol. iii. 557, 565,
V. Melbourne, 5 Sim. 353; Ilobson n. {/<), 858, 1013-1018, 3rd ed. ;
V. Bell, 2 Beav. 17, 19, 23 ; Dunn vol. iv. 33, n. (A), 4th ed.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
265
possess independently of them under the rules of
equity (m). And in exercising either the statutory or
similar express powers, trustees are bound to apply the
same principles which should regulate their action in
the absence of express aiithority. In both cases Courts
of Equity exact a strict adherence to the duties of
trustees for sale (»). Thus it was hpld that trustees,
pxpres<5ly empowered to make such special conditions of
sale as they might think fit, were no more at liberty to
make deprc-iatory conditions of sale, unless strictly
necessary in the state of their title, than were trustees
who had no such express anthority. And if deprecia-
tory conditions were unnecessarily made on a sale by
trustees, the Court would restrain the sale at the
(in) Thus, iu the abseuce of any
restriction as to the mode of sale,
trustees for sale mig-ht sell the
trust property either all together
or in lots, and I'ither by public
auction or private contract ; Sug'.
V. & P. GO, 01 ; Le win on Trusts,
383, 384, 6th ed., o07-511, Uth
ed. They might make such
special conditions of sale as might
be reasonable and necessary iu
the state of their title ; Hobson v.
Belt, 2 Beav. 17 ; Falkuer v.
Equitable licversiotiary Society, 4
Drew. 352 ; Lewin on Trusts,
384, 6th ed. ; but they might not
depreciate the trust property by
unnecessary conditions of sale ;
Dance V. Goldiiiy/iuiii, L. R. 8 Ch.
9()2. They might conciu- with
other persons iu selling the trust
property together with other pro-
pi rty, if such a mode of sale were
clearly advantageous tothecestui-
que-tniyts, and the trustees took
due precautions t'> ascertain that
they would receive a proper pro-
portion of the purchase money,
and were careful to receive the
money themselves ; but otlierwise
not ; Rede v. Oakcs, 4 De G. J. &
S. 505 ; Itc (Joopcr and Alien to
Harlech, 4 Ch. D. 802, 814-821.
They might consequently join
with the owners of prior charges
in selling the whole property free
from incumbrances, or they might
sell the particular interest only,
which had been vested iu them
on trust for sale, whicliever course
would be likely to be most advan-
tageous to their cestui-que-trnnts ;
see 4 Ch. D. 817. Trustees were
justified in fixing a reserved price
on a sale by auction, and they
might buy in at that price ; Re
Peyton'' s Settlement, 30 Beav. 252 ;
Sug. V. & P. 62 ; but if, after
buying iu . they made undue delay
in effecting a sale, they were
answerable for any loss occasioned
therein' ; Taylor v. Tabrum, 6
Sim. 281. It appears also that
trustees might vary or rescind
any contract for sale, if such a
course clearly appeared to be for
the advantage of their cestni-qnc-
trnsts ; Falkner v. Equitable Rever-
sionary Society, 4 Drew. 352 ;
Lewin on Trusts, 384, 6th ed.,
510, 11th ed.
(w) Dance v. Goldingham, L. R.
8 Ch 902. 907, n., 909, 910;
Ihnin V. Flood, 25 Ch. D. 629,
634, 28 Ch. D. 586. 591, 592.
266 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
instance of any cesfni-que-frKnf (o), or the purchaser
might resist the specific performance of the contract (p).
In this particular instance, however, the legislature has
interposed ; and with regard to sales made after the 24th
of December, 1888, it is now enacted as follows (q) : —
(1.) No .sale made by a trustee shall be impeached by any bene-
ficiary upon the ground that any of the conditions subject to which
the sale was made may have been unnecessarily depreciatory, unless
it also appears that the consideration for the sale was thereby ren-
dered inadequate.
(2.) No sale made by a trustee shall, after the execution of the
conveyance, be impeached as against the purchaser iipon the ground
that any of the conditions subject to which the sale was made may
have been unnecessarily depreciatory, unless it appears that the pur-
chaser was acting in collusion with the trustee at the time when the
contract for sale was made.
(3.) No purchaser, upon any sale made by a trustee, shall be at
liberty to make any objection against the title upon the ground
aforesaid.
Trustees are, moreover, expressly empowered to sell
subject to any of the stipulations implied in contracts
by virtue of the Vendor and Purchaser Act, 1874 (r), or
the Conveyancing Act, 1881 {s). Subject to these
enactments, however, trustees for sale must still exercise
the discretions conferred upon them by the above-
mentioned statutory powers (t) in a reasonable manner,
and with an eye to obtaining the best advantage they
can for their cestiti-que-tnids {u).
Trustees for It is important to note, with regard to the exercise of
sale must sell ^ ^ ^ ^^, power of sale, that the term " sale " is, as
tor money. ^ .
a rule, taken in the strict sense of conveyance m con-
(o) Dance v. Goldivfjham, L. R. (r) Stat. 56 & 57 Vict. c. 53,
8 Ch. 902. s. 15, replacing 37 & 38 Vict.
[p) Rede v. Oakes, 4 De G. J. c. 78, s. 3.
& S. 505 ; Dunn v. Flood, 25 Ch. (s) Stat. 44 & 45 Vict. c. 41,
D. 629, 28 Ch. D. 586. s. 66.
{q) Stat. 56 & 67 Vict. c. 53, (t) Above, p. 264.
s. 14, replacing 51 & 52 Vict. (m) Above, p. 265, n. (;«).
c. 59, 8. 3.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES. 267
sideration of a price paid in nionej [x). Trustees acting
under a trust for or power of sale are not, therefore, at
liberty to accept any other consideration for their
conveyance than the payment of money. They must
not, for example, sell in consideration of receiving
stock, shares, bonds, debentures or similar securities (x),
or in consideration of the grant of a rentcharge (//),
unless the terms of the trust or power specially autho-
rize them to convey for such considerations (s). For
trustees are bound strictly to pursue the powers or
authorities, with which the creator of the trust has
invested them ; and they cannot, as a rule, obtain any
enlargement of their authority by an application to the
Court (a). So, also, a conveyance by way of exchange
or partition is not a valid execution of a trust for or
power of sale (h). But trustees for sale, who are autho-
rized to invest the purchase money on real securities,
may well agree to leave a proper proportion of the
purchase money on mortgage of the lands sold {c). A
{x) Above, p. 1; Stirling, J., trust there arises some emergency
Payne v. Cork Co., Ltd., 1900, 1 which can only be met by taking
Oh. 308, 314 ; see also Re A. B., some coiu-se of action not ex-
1899, W. N. 233; and cf. Re pressly authorised ; and in such
Ware, 1892, i Ch. 344. cases, but in such oases only, the
(y) Read v. Shaw, Sug. Pow. Court may and, if it thinks fit,
9.t3, 8th ed. ; ibid. 864 ; cf . lie will sanction the performance by
Ware, 1892, 1 Ch. 344; Farwell the trustees of acts of this kind ;
on Powers, 5.59, 2ud ed. see the two last cases cited ; and
(s) See Re Morgan, 24 Ch. D. Re Wells, 1903, 1 Ch. 848.
114,115. In Re Jackson, U %o\. {b) M' Queen v. Farqiihar, 11
J. 573, it was held that trustees Ves. 467 ; Sug. Pow. 857, 858,
empowered to sell a testator's 8th ed. But where there is a
real estate, " upon such terms and power of sale and investment of
conditions and generally in such the proceeds in the purchase of
manner as they could du if abso- other hereditaments, it appears
lute owners thereof," were at that an exchange or a partition
liberty to sell either wholly or may be effected circuitously by
partly in consideration of a fee .sale and investment of the pur-
farm rent. chase money iu the lands desired
(ff) See i?r J/ocmow, 1901, 1 Ch. to be taken in exchange or held
701; Re Nctr, 1901, 2 Ch. 534, in severalty; Sug. Pow. 858,
644. 545; AV ToKemachc, 1903, 8th ed. As to effecting a parti-
1 Ch. 457, 955. This rule is, tion under a power of sale and
however, subject to an exception, exchange, see Re Frith and Osborne,
where owing to circumstances 3 Ch. D. 618.
unforeseen by the author of the ;<•) Observe the terms of the
268
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
Whether a
trubt for or
power of sale
authorizes a
mortsfaure.
Whether a
trust or power
to mortgage
authorizes a
sale, or a
mortgage
with power
of sale.
trust for or power of sale created for the purpose of
effecting an out-and-out conversion of lands into money
does not authorize a mortgage of the lands (d) . But if
the intention of the author of the trust or power were
simply to facilitate the raising of a sura of money
charged on the lands, and not to disturb the ownership
of the lands further than should he necessary in order
to satisfy the charge, a mortgage made under the trust
or power may be supported as a conditional sale (e).
A trust or power to mortgage lands does not authorize
a sale of them (/). Upon this ground it has been held
that a power to mortgage lands does not authorize a
mortgage of them with power of sale (g) ; but in later
cases this rule has been abandoned in favour of the
doctrine that a power of sale is an usual and a necessary
incident of a mortgage, and may therefore properly be
inserted in a mortgage made under a trust or power to
mortgage (h). A trust for sale of lands does not autho-
rize a lease of them, so that a trustee for sale of lease-
holds is not justified in disposing of them by way of
underlease at an improved rent («"). But where lease-
coutract for sale under the Settled
Laud Acts sanctioned by the
House of Lords iu Bruce v. Alli-s-
burj. 1892, A. C. 356, 357 ; and
see Thurlow v. Mackeson, L. R. 4
Q. B. 97 ; Bettyes v. Maynard, 31
W. R. 461 ; Re Hothain, 1902,
2 Ch. 575. Such a contract may
be enforced specifically ; Slarkey
V. Barton, 1909, 1 Ch. 284.
{(i) Haldoihi/ V. Spofforth. 1
Beav. 390 ; Sirouc/hill v. Anntey,
1 De G. M. & G. 635 ; Page v.
Cooper. 16 Beav. 396; Bevaynes v.
liohinsou, 24 Beav. 86.
{e) See Stroughill v. Anntey, 1
De G. M. & G. 465 ; Page v.
Cooper, 16 Beav. 400; Sug. Pow.
425, 8th ed. ; Lewin on Trusts,
377, 6th ed. ; 497, 11th ed.
(/j Drake v. Whit more, 5 De
G. & S. 619 ; Cook v. Dawson, 29
Beav. 123.
[g) Clarke v. Royal Pano^Jticon,
4 Drew. 26.
(A) Bridges v. Longman, 24
Beav. 27, 29 ; Cook v. Dawson, 29
Beav. 123, 128 ; Re Chaicner''s
Will, L. R. 8 Eq. 569 ; Farwell
on Powers, 447-450, 2nd ed.
(*) Evans v. Jackson, 8 Sim.
217. An executor or administra-
tor, however, where the assets
include leaseholds, miay grant an
underlease if such a mode of
disposition be beneficial to the
estate, but not otherwise, and the
title of the underlessee is depen-
dent on the underlease being
beneficial ; Wms. Exors. 939,
940, 7th ed. ; Keating v. Keating,
LI. & G. ;;. Sug. 133 ; Havkett v.
M'Na.mara, LI. & G. t. Plunk.
283 ; Oceanic Steam Navigation Co.
V. Sutherberry, 16 Ch. D. 236,
243.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
269
holds are vested in trustees for sale they are j ustified in Sale of lease-
making- a sale of thfra bv way of underlease — that is, of* underlease,
in granting an underlease for the whole term less a day
or two at the rent at which they hold in consideration
of receiving a lump sum of money — if such a course
be advantageous to the trust osteite ; for this method of
disposition is essentially a transfer in consideration of
a price in money, that is, a sale, and the assurance
of the property by way of underlease is regarded as
mere machinery for making the conveyance to the
purchaser (/»•). Thus if such trustees propose to sell
their leaseholds in lots as they lawfully may (/), they
may well sell them under the usual conditions that the
purchaser of the largest lot in value shall take an
assignment of the lease and grant to the other purchasers
underleases at apportioned rents and that in case any of
the lots shall not be sold the vendors themselves shall
grant similar underleases (w). 80 also if such trustees
hold land let together with other land for a term of
years at one entire rent, they may well sell their land
by way of underlease at an apportioned rent {n). And
it appears that trustees for sale will be justified in
selling leaseholds by way of underlease in any circum-
stances in which such a course is expedient in the
interests of theii- cestui-quc-trusfs (0).
Trustees for sale of land, unless expressly authorized Timber and
by the instrument creating the trust, are not entitled to
sell the land apart from the timber growing thereon (/;),
(A) lie Judd and Fo/arid and («) Jir IVeblt, 1897, 1 Ch. 144,
Ske/cher\i Contract, 1906, 1 Ch. a^-proyed, Jie Jitdd and Pofand and
684, overruling He Walker and NkeMirr\s Contract, 1906, 1 Ch.
Oak.s/inft's C.ntrart, 190], 2 Ch. 684, 600. 691.
383; and see Jie Wehb, 18!t7. 1 (o) See note (/t). above.
Ch. 144, 149 ; above, pp. 1, 207. (p) Choli„elii\. I'ajlon, 3 Biug.
(/) Above, p. 264. 207, S Biug." 4S ; .S. C. nom.
(«)) Jie Judd and Poland and Cockerrll v. Cholmileu, 10 B. & C.
Skilcher'x Contract, ubi sup. ; see .564, 3 Ru9,s. .56'), 1 R. & M. 418,
above, p. 82 ; below. Chap. X. 1 CI. & Fin. 60.
§ 2, ut end ; Appendix A.
270
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
Trustees
should not
sell at a
valuation.
or to sell the surface reserving the mines and minerals
thereunder (r/). But under the Trustee Act, 1893 (r),
replacing an Act of 1862 (s), the High Court may
sanction the sale by a trustee, or other person authorized
to sell land, of the land with an exception or reservation
of any minerals, or of the minerals separately from the
rest of the land, and in each case either with or without
rights and powers of and incidental to the working,
getting or carrying away of the minerals. And when
such sanction has been once obtained, the trustee or
other person may make such sales from time to time
without any further application to the Court, unless
forbidden by the instrument creating the trust or autho-
rity to sell (f). Trustees for sale of land should not
agree to sell at a price to be fixed by valuation ; for
that would be a delegation of their discretion to decide
what price they will accept {ii). On these grounds it
appears that they ought not to enter into a contract for
sale containing the usual stipulations (x) as to taking
timber at a valuation ; but they should sell the whole
property together at one price (//). The same reason-
(q) BucliUy v. Howell, 29 Beav.
546. See 3 Davidson, Prec. Conv.
295. 3rd ed. ; Dart, V. & P. 68,
1184, 5th ed. ; 76, 1296, 6th ed. ;
77, 1117, 1134, 7th ed.
(>•) Stat. 56 & 57 Vict. c. 53, s. 44,
amended by 57 & 58 Vict. c. 10,
s. 4, and extending to dispositions
by way of exchange, partition or
enfranchigement by <'i trustee or
other person authorized so to
dispose of land.
(s) Stat. 25 & 26 Vict. c. lOS.
\t) Stat. 56 & 57 Vict. c. 53,
8. 44 (2), amended by 57 & 58
Vict. c. 10, s. 4.
[u) Fcfers v. Lewes ^- East Grin-
stead Si/. Co., 16 Ch.D. 703, 713,
18 Ch.D. 429, 437 ; Be Wilton's
Settled Estates, 1907, 1 Ch. 50, 55;
1 Dart, V. & P. 79, 5th ed. ; 90,
6th ed. ; 89, 7th ed.
{x) Above, pp. 60, 71.
[y) 1 Davidson, Prec. Conv. 522,
4th ed., 434, 5th ed. In Re
Lleivdlin, 37 Ch. D 317, a tenant
for life without impeachment of
waste selling under the Settled
Laud Acts sold the settled land
by auction with a stipulation that
the purchaser should paj' for the
timber at a valuation to be made
iu the usual way. The vendor
claimed to have the amount of
this valuation paid to him. It
was decided that he was not
entitled to this. But no suggestion
was m.ade that the sale was
invalid as an exercise of the
statutory power on the ground
th.it the price of the timber was
to be ascertained by valuation.
The remainderman was probably
content with the result of the
sale. But in Re TFiltoti's Settled
Estates, 1907, 1 Ch. 50, 55, it
271
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
ing is applicable in the case of fixtures. But a stipula-
tion on a sale by trustees that the purchaser shall
pay a fixed sum for the timber or fixtures in addition
to the price of the land does not appear to be objection-
able ; as that is, in efPect, a sale of tlie whole property
at one price settled by the trustees themselves (;:). A Option of
. -11 • i J. P'lrchase.
trustee for sale is not entitled to enter into an agreement
giving some person an option to purchase the property
at a future time (a).
It must not be forgotten, in considering a title de- What persons,
pending on the exercise by trustees of a trust for or Q^^i^al*! ^
power of sale, that the capacity to exercise the trust or tees, can
power is not necessarily co-incident with the devolution trust for
of the legal estate. It is not every person succeeding power of sale
to an estate given in trust who is competent to execute
a discretionary trust or power connected therewith ; on
the contrary, the general rule is that such a trust or
power can only be well executed by the persons whom
the author of the trust has designated for the purpose,
and in whom he has placed his confidence accord-
ingly {b). Thus in every case in which such a trust or
power is exercised by any other persons than those
originally entrusted therewith, the question arises
whether the persons who purport to act in exercise
of the trust or power are expressly or impliedly autho-
rized to execute the same. On this point the law is as
follows : —
trus-
exercise a
was laid down that a tenant for (b) Creu-e v. Dicken, 4 Ves. 97 ;
life selling under the Settled Cole v. Wade, 16 Ves. 27, 46, 47 ;
Land Acts ought not to soil at a Rr Crionhn and Meux's Contract,
price to be fixed by somebody 1909, 1 Ch. 690, 695, 696; and
else. see the cases cited below, pp. 273,
(s) See Coc/icre/l V. C/iohiirlri/, \0 274, and Er Biinnio/ n»d Smith,
B. & C. 564, 571. " 1897, 2 Ch. 351, 356, 359, 360.
(a) Claij V. Riijford, 5 De G. & It does not appear that this rule
Sm. 768, 779, 780 ; Oceanic Steam was intende•) . Thus, where
lands have been vested in A. and B. in fee in trust
that they, A. and B. (naming them, but not mentioning
their heirs or other legal representatives), shall sell the
same, it does not appear that under the old law of the
descent of trust estates (/) the heir («?), or according to
the present law (>/) the executors or administrators of
the survi^dng trustee, could well execute the trust (o).
According to the old conveyancing practice in force
before the commencement of the Conveyancing Act of
1881 {])), it was usual, where real estate was vested in
trustees in fee on trust for or with power of sale, to
provide expressly that the trust or power should be
(A) Such authority was ex- should have been expressly or
pressly conferred in the old com- impliedly extended to the trustees
nion form of power to appoint for the time being ; Fordijcf v.
new trustees: but if not expressly Bridgcx, 2 Ph. 497,510; Xewman
couferrtd, it would be implied v. jrariier, 1 Sun. N. S. 457 ;
from the very fact that the TSartlei/ v. Bnrtleii, 3 Drew. 3S4 :
creator of the trust expressly Byam v. Byam, 19 Beav. 58.
authorii-ed the appointment of (/•) Above, p. 271, and n. (i).
new trustees; Lewin on Trusts, {I) Above, p. 219.
507, 6th ed. : 734, Uth ed. (;«) Mortimer y. Ireland, 11 Jur.
(«) Stat. 5(5 iV: 57 Vict. c. 53, 721 ; Lewin on Trusts, 202, 6th
s. 37, roplacinir 44 & 45 Vict. ed. ; 251. 11th ed.
c. 41, 8. 33, and 23 & 24 Vict. (w) Above, p. 221.
c. 145, s. 27. Before the enact- (o) Be luff Mi/ niid Bonk, 6(C.,
ment last cited, new trustees 13 L. R. Ir. 326 ; Re Crunden and
appointed by the Court and not Mettx's Contract, 1909, 1 Ch. 690.
by virtue of an express power to But distingui.«h the cases men-
appoint new tiustccs ciiuld uot, tioncd iu note (r), p. 274, Ix'low.
as a general rule, exercise arbi- ( />; Stat. 44 ..i' 45 Vict. c. 41,
trary or spcriiil discretionary which came into operatinu after
powfrs confetred upon the ori- the 31st Dec. 1881 ; s. 1 (2).
giual trustees, uule.NS such powers
w. 18
274
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
Heir of sole
or surviving
trustee.
Devisee.
exercisable by the trustees originally appointed or the
survivors or survivor of them, or the heirs of such sur-
vivor (q) ; and in such cases there was no doubt that
the heir of the last surviving trustee could well execute
the trust or power if he took the legal estate (r). But
where lands were vested in trustees in fee on trust that
they or the survivors or survivor of them or the heirs of
such survivor should sell the same, and the surviving
trustee devised the trust estate, it was held that the
devisee, not being authorized by the creator of the
trust to execute the trust for sale, could not make a
good title on a sale of the lands (s). And in such a
case, it may be noted, the heir could not execute the
trust, for he had no estate in the land (f). Where
lands were vested in trustees in fee in trust that they or
the survivors or survivor of them or the heirs or assic/m
of such survivor should sell the same, it was held that
the devisee of the last surviving trustee, being one of the
persons expressly designated by the author of the trust,
could well execute the trust for sale (?^). It was held
by Jt^ssel, M. R., that where lands were devised to
trustees and their heirs on trust for sale, it must be
taken that the testator intended to annex the trust to
the estate, and that the devisee of the sur\iving trustee
could execute the trust for sale accordingly ; and he
considered that the preceding decision to the con-
trary {t) had been overruled (//). Subsequently, how-
(q) Davidson, Prec. Conv.vol. i.
p. 333, 4th ed. ; vol. iii. pp. 858,
1271, 3rd ed. ; vol. iv. p. 32, and
note, 3rd ed.
(r) See Lewin on Trusts, 202,
6th ed. So the heir of the last
surviving trustee could sell under
a limitation to trustees and their
heirs on trust ' ' for sale " or "to
sell ' ' or that the trustee for the
time beins: should sell; Ee Morton
and Halktt, 15 Ch. D. 143, 145,
149 ; Re Cunningham andFrayling,
1891, 2 Ch. 567.
(.«) Cooke V. Crawford, 13 Sim.
91 ; JFilson v. Btnnett, 5 De G. &
S. 475 ; Stevens v. Austen, 3 E. &
E. 685.
[t) Lewin on Trusts, 202, 6th
ed. ; 251, 252, 11th ed.
(u) Titley v. Wolstenhoh)ie, 7
Beav. 425 ; Sail v. Mai/, 3 K. &
J. 585.
[x) OooJce v. Crawjord, 13 Sim.
91.
(y) Osborne to Rotvlett, 13 Ch. D.
774.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES. 275
ever, Baggallay and James, L. JJ., stated that they
were not prepared to concur in this view (2), and
Stirling, J., declared that he would hesitate to force
upon a purchaser a title depending on the case of Coohe
V. Crawford not being good law (a), and Parker, J.,
has expressed his assent to these criticisms (i^^). It
appears, therefore, that the decision of Jessel, M. R.,
in Be Oxhoriip fo RoicMf (c), in so far as it conflicts
with the principle above stated {(I), can no longer be
regarded as srood law. As we have seen (e). since the Personal
° " representa-
Conveyaming Act of 1881 (/) took effect, real estate tives of sole
of inheritance vested in a sole trustee devolves, notwith- t^ustee^^^^
standing any testamentary disposition, upon his legal
personal representatives in like manner as if the same
were a chattel real vested in them, and they are to be
deemed in law his heirs and assigns within the meaning
of all trusts and powers. It appears, therefore, that the
legal personal representatives of a sole or sole surviving
trustee may now exercise such trusts or powers as we are
discussing in all cases in which under the old law the
estate would have descended to the heir, and the heir
so taking the legal estate could have well executed the
trust or power (r/). But the authority of such legal
personal representatives so to exercise the trusts or
powers will cease upon the appointment duly made of
new trustees in place of the deceased trustees, and
thenceforward the new trustees will be the ))roper
persons to execute the trust (//). Where lands have Failure of
been devised to tnistees in fee upon trust for sale, and estate to
trustee.
(z) Re Morton and llallett, lo {/) Stat. 44 & 45 Vict. c. 41,
Ch. D. 143, 149, loO; and see 8.30.
Re Inqlehxi and Bon/,; 13 L. R. Ir. {(/) See Re TFaidanis, 1908, 1
326. " Ch. 123; Re Routkdge's Trusts,
{>') Re Rnmnei/aitd Smith, 1897, 1909, 1 Ch. 280; Re I'rundcn and
2 Cli. 351. 357." Meux\i Contract, 1909, 1 Ch. 6<}0.
(A) Rr Criinden and Meu.r.s Con- 698, 699 ; above, p. 274, and
tract, 1909, 1 Ch. 690. note (r).
(c) 13 Ch. D. 774. (h) Re Routlrdqe's Trn.sts, 1909,
(). If trustees were invested with any power which Release of
it would be their duty to exercise, they could not release a"breach^of'
or contract not to exercise the same or otherwise divest ti'is*^-
themselves of their authority () ; and the above enact-
ments have not altered the law in this respect {r).
The law as to the exercise by any new trustee duly Exerei.-se of a
appointed of a bare power given to any trustee or newfrultees.^
trustees is the same as governs the exercise by a new
trustee of a power coupled with an interest (s) . With ^J ^^7 others
/ .1 , \ after the
respect to the exercise by any other person than a new death of the
trustee duly appointed of a bare power given to a '^^^^f'
power by the exercise of which («) Above, p. 279.
the douee can acquire no intere.st (o) Keates v. Burton, 14 Ves.
in the subjecit- matter of the 434; A.-G. v. Fletcher, o L. J.
power, oriven to a person who (N. S.) Ch. 75 ; see Farwell on
has not any interest therein at Powers, 95-98, 2nd ed.
the time of the creation of the [p; Crawford v. Forshaw, 1891,
power and takes no interest 2 Ch. 261, 266, 267.
therein under the instrument [q) TTeller v. Ker, L. R. 1 Sc.
conferring the power; see Sug. App. 11; Re Dunne's Trmts, 1
Pow. 47, 48. L. R. Ir. 516 ; Sunt v. Patthuioti,
{k) Sug. Pow. 50. ;54 W. R. 561.
(/) Sug. Pow. 50, 126; see (r) 7?<- ^yr<-, 49 L. T. N. S. 259.
above, pp. 278-280. (i) Above, p. 272 ; see Hall v.
(«») Stat. 21 Hen, VIII. c. 4. Bewes, Jac. 189.
282 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
trustee or trustees after the death of a sole or the last
surviving trustee, there is, of course, no succession to
any estate in the land, and the power can only be
exercised, if at all, by some person expressly designated
for the purpose by the donor of the power, as where the
executors or administrators of the last surviving trustee
are mentioned among the persons to whom the power is
given (f).
Trustees exer- In the case of a purchase fi'om trustees exercising a
confCTred°b^^a power of sale, the conveyancer advising the purchaser
settlement for must have regard to the provisions of the Settled Land
provided for Act, 1882 (w), which make the consent of the tenant for
m the Settled |^£g under a settlement necessary to the exercise by the
Land Acts. ' '^
trustees of the settlement or any other person of any
power conferred by the settlement and exercisable for
any purpose provided for in the Act. He must consider,
therefore, whether the instrument conferring the power
is, either alone or together with other instruments, a
settlement within the meaning of the Act {x) . And if
it be, he should require the limitations of the beneficial
interests under the settlement to be abstracted (if this
has not been done) sufficiently to show whether there is
a tenant for life, or a person having the powers of a
tenant for life, entitled in possession under the settle-
{t) Sec above, pp. 278-280 ; trustees of the settlement or other
Farwell on Powers, 453, 454, person of any power conferred by
2nd ed. the settlement exercisable for any
(«) Stat. 45 & 46 Vict. c. 38, purpose provided for in this Act.
s. 56, sub-s. 2, enacting that in [x) See stats. 45 & 46 Vict,
case of a conflict between the c. 38, s. 2 ; 53 & 54 Vict. c. 69,
provisions of a settlement and the s. 4 ; He Ailesburn and Iveagh,
provisions of this Act, relative to 1893, 2 Ch. 345 ; Re Mtmdij and
any matter in respect whereof the Roper^s Contract, 1899, 1 Ch. 275 ;
tenant for life exercises or con- Talbot v. Scarisbrick, 1908. 1 Ch.
tracts or intends to exercise any 812, 819, deciding that a private
power under this Act, the pro- Act of Parliament, which simply
visions of this Act shall prevail ; conferred powers upon the trus-
and accordingly, notwithstanding tees of a settled estate, but did
anything in the settlement, the not alter or afPect the limitations
consent of the tenant for life of the property, was not one of
shall, by virtue of this Act, be the instruments constituting the
necessary to the exercise by the settlement ; and see next chapter.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES. 283
ment (//) . And if the existence of any such person be
disclosed, the conveyancer should require him to consent
to the exercise of the power ; for if such consent should
not be obtained, any conveyance to him by the trustees
in supposed pursuance of the authority conferred by
the settlement would be void as an exercise of the
power (s) .
It will be observed that the only powers, to the exercise
of which the consent of the tenant for life is so required,
are those conferred by the settlement and exercisable
for any purpose provided for in the Act. It must not
be forgotten that in this context the expression " the
settlement " means the settlement as defined in the Act,
and therefore extends to any group of instruments
forming what is termed a compound settlement (//).
The piu-poses provided for in the Act are, of course,
principally the sale of settled land and the application
of the purchase-money in manner therein provided, the
exchange and partition of settled land and the leasing
thereof for the terms specified in the Act (0) ; and any
express powers conferred by the settlement for any of
these purposes, upon any person or persons other tlian
the tenant for life, are exercisable only with his consent.
If, however, the settlor should have given to trustees
larger powers over the settled land than are by the Act
conferred upon the tenant for life, as if he should have
authorized them to sell in coDsideration of the receipt of
debentures of or shares in a company, or of the grant
of a rentcharge, or to lease for longer terms than may
be granted under the Act, these powers are perfectly
vaHd {c) ; and it does not appear that they would be
(y) See stat. 45 & 46 Vict. c. 38, (a) See note (x), above.
88. 2 (5), (7), 58. (*) See stdt. 45 & 46 Vict. c. 3S,
(z) See lie Xi'uca Hill's Estates, ss. 3, 6, 21.
24 Ch. D. 129, 139 «/. .• Jte (r) Stat. 45 & 46 Vict. c. 38,
Clitheroc Entute, 28 Ch. 378; 31 88. 56(1), 57; Lo>i.sdaU'\. Lout her,
Cb. D. 135; lie Atherlon, 1891, 1900, 2 0b. 687.
W. N. 85.
^84 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
" exercisable for any purpose provided for in this
Act " (f/), so as to make the consent of the tenant for
life necessary to their exercise {e). It has been sug-
gested ( /') that to the exercise of a power given to
trustees for raising charges by mortgage or sale the
consent of the tenant for life would not be necessary,
on the ground that the trustees would have a title
paramount to that of the tenant for life, and he could
not prevent the raising of the charges. But with
regard to a power conferred by the settlement to raise
charges by sale, it must be remembered that the Settled
Land Act, 1882 {(/), authorizes the application of the
proceeds of a sale of the settled land by the tenant for
life under the power thereby conferred in the discharge
of any incumbrances affecting the inheritance of the
settled land or other the whole estate, which is the sub-
ject of the settlement. So that if the charges to be
raised should come within the definition of such incum-
brances, their raising by sale would appear to be a
purpose provided for in the Act ; and it is thought that
in such case it would not be safe to rely on an exercise
of the express power of sale without the tenant-f or- life's
consent. As regards a power for trustees to raise
charges by mortgage, prior to the Settled Land Act,
1890, a tenant for life had no general power to mort-
gage the settled land in order to raise money to dis-
{d) See sect. 56 (2), above, exceeding 120 years it were pro-
p. 282. and n. (ti). posed to grant a building lease
(f) This statement assumes that tor 99 years on the same cou-
by the exercise of the express ditions as are authorized by the
power bomething will be done statutory power, the case is dif-
which the tenant for life could ferent : and the consent of the
not do under his statutory power. tenant for life would appear to be
But if by the exercise of a larger nefessary.
power than that conferred by the (/) Wolstenholme's Convey-
Act it were proposed to do some- ancing and Settled Land Acts,
thing which could be done under 387, 8th ed.
the statutory power, as if under {ff) Stat. 45 & 46 Vict. c. 38,
a power for trustees to grant s. 21 (ii).
building leases for any term not
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES. 285
charge some incumhrance affecting the same ; so that
raising charges bj mortgage was not a purpose provided
for by the Settled Land A.,-t, 1882. The Act of
1890 (h), however, empowered the tenant for life to
mortgage the settled land for the i)urpose of raising
money to discharge an incumbrance thereon. And as
this Act and the previous Settled Land Acts are to be
read and construed together as one Act (/), it seems
that the raising of money by mortgage to discharge
incumbrances is now a purpose provided for in the Acts,
and consequently that an express power for this purpose
conferred on trustees by the settlement is no longer well
exercisable without the consent of the tenant for life.
Where the settlement contains, not a mere discretionary
power, but an imperative trust exercisable for some pur-
pose provided for in the Act, it appears that the consent
of the tenant for life to the exercise of the trust is not
required {k) .
By the Settled Land Act, 1881 (/), where two or where two or
more persons together constitute the tenant for life for more persons
tog'ether con-
the purposes of the Settled Land A<;t, 1882, then, not- stitute the
withstanding anything contained in the above-cited truant for life.
provisions (m) of that Act requiring the consent of all
those persons, the consent of only one of those persons
is to be deemed necessary to the exercise by the trustees
of the settlement, or by any other person, of any power
conferred by the settlement and exen-isalde for any
purpose provided for in that Act. By the Act of
1882 (;/), if in any cas(^ there are two or more persons
beneficially entitled t(» possession of settled land as
tenants in common, or as joint tenants, or for other
(/i) Stat, o.'? A: r)4 Vict. c. (J9, (/) Stat. 47 & 48 Vict. c. 18,
«. 11. 8. 6 (2).
(i) Sect. -2. (ill) Stat. 4o i: 46 Vict. c. 38,
{/i) See Tai/lnr v. I'oncia, Ih s. o6 (2) ; above, p. 282, n. (m).
Ch. D 646. ■ (m) Sect. 2 (5), (6).
2i^6 OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
concurrent estates or interests, they together constitute
the tenant for life for the purposes of that Act. In
any such case, therefore, one only of such persons need
now consent to the exercise by the trustees of the
settlement, or any other person, of any power conferred
by the settlement and exercisable for any purpose
provided for in that Act. Where lands were given for
the benefit of several persons in imdivided shares, and
some of the shares were given in fee and others limited
to a donee for life with remainder over, and a power
was given for trustees to sell the entirety of the
premises, it was questionable whether the consent of
the tenants for life of the settled shares was necessary
to the exercise by the trustees of their power of sale
over the entirety. For the power of sale conferred by
the Settled Land Acts would embrace the settled shares
only, and it was only as regards these shares that the
land would be the subject of a settlement within the
meaning of those Acts ; so that the power to sell the
entirety might be considered to be not a power con-
ferred by the settlement and exercisable for a purpose
provided for in the Acts, but a power altogether para-
mount to the settlement. But in a ease (o) where a
testator gave one-fifth part of his estate to each of his
four daughters for life with remainder over, and gave
the remaining fifth part to the children of a deceased
daughter absolutely, and empowered trustees to sell the
whole of his estate, Kekewich, J., held that there was a
conflict between this express power of sale and the
power of sale given by the Settled Land Acts, because
the sale of the entirety would deprive the tenants for
life of the settled shares of their statutory power to sell
them ; and that the consent of the tenants for life was
therefore necessary to the exercise by the trustees of
their express power of sale. And he further decided
(o) Re Ofibomc and Bright's, Ltd., 1902, 1 Ch. 33.5.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES. 287
that the tenants for life of the four settled shares did
not together constitute a tenant for life witliin the
meaning of the Settled Land Act, 1882 (p), so as to
enable the required consent to be given under the Act
of 1884 (q) by one only of them.
It must not be forgotten that, when land is settled Estato duty
eitlier by deed or will on trust for sale and investment laud'sottlo.l
of the purchase- money for the benefit of various persons «" trust for
in succession, and the lands are not immediately sold,
estate duty will become payable on the death of an}^
one of those persons, and will, it appears, become a
charge on the land. On a purchase, therefore, from
the trustees for sale under such a settlement, the pur-
chaser, if he have notice of the death on or after the
1st August, 1894, of any person so interested in the
purchase-money, must see that all estate dut}-, which
has become so charged on the land sold, has been or
shall be paid (>•).
If trust money be improperly invested in the purchase Sale of land
of land, it is the duty of the tru-^tee to realise the CS of '"
investment at the earliest favourable opportunity, and t^'"***-
invest the proceeds in some manner authorized by the
instrument which created the trust. The trustee is
therefore empowered to sell the land, and can make a
good title thereto and convey the same without the
concurrence of the beneficiaries, notwithstanding that
the purchaser have notice of the breach of trust ; unless
the beneficiaries, being all .sv^/./'/iy/.s, have elected to take
the land in specie (.s) .
{p) Stat,. 4.') & K; Vict. o. ;{8, (.v) Jte Patten mxi Edtmnton
M. t (6). (6). Union, -i'i L. J. Ch. 787; Power
(q) Stat. 47 & 48 Vict. c. 18, v. Banks, 1901, 2 Ch. 487, 496;
s. 6 (2). Me Jenkins and RandaWs Contract,
(r) Stat. 57 & SS Vict. c. 30, 1903. 2 Ch. 362 ; see above,
88. 1,2, 9(1), 24; see the chapter p. 200; Dart, V. & P. 610-612,
on the Death Duties in the second .ith ed. ; 687-689, 6th ed. ; 629-
Tolume. 630, 7th ed.
288
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
Trustees'
receipts.
Modern statutes have in effect abolished the old rule
of equity, that anj' person paying money or assigning
other personal estate to a trustee thereof was bound to
see that the same was duly applied pursuant to the
trust, unless exempted fi*om that obligation by the
intention of the author of the trust, either expressly
declared or implied from the nature of the trusts (f).
Under the Trustee Act, 1893 (»), the receipt in writing
of any trustee for any money, securities or other pro-
perty or effects, payable, transferable or deliverable to
him under any trust or power, shall be a sufficient dis-
charge for the same, and shall effectually exonerate the
person paying, transferring or delivering the same from
seeing to the application or being answerable for any
loss or misapplication thereof. It may be noted that
this enactment does not justify the payment of money
or delivery of securities to one onl}^ of several trustees.
In such a case the money must be paid or other pro-
perty assigned over to all the trustees, who should all
join in giving the receipt (ir).
Purchase by According to the general rule of equity, trustees
investing trust money in the purchase of lands were
(t) Lloyd V. Baldwin, 1 Ves.
sen. 173 ; Sug. V. & P. 657 sq. ;
Lewin on Trusts, 394 si/., 6th ed. ;
530 sq., nth ed.
[a) Stat. 56 & 67 Vict. c. 53,
s. 20, replacing 44 & 45 Vict.
0. 41, s. 36, and applying to
trusts created either before or
after the commencement of the
Act. Also by stat. 22 & 23 Vict,
c. 23. the receipt of a trustee for
any purchase or mortgage money
payable to him is a good dis-
charge, unless a contrary inten-
tion be expressly declared by the
instrument creating the trust.
Lord Cranworth's Act, stat. 23 &
24 Vict. c. 145, s. 29, provided
that trustees' receipts should be
good discharges for auj' vioney
payable to them : but this pro-
vision applied only in the case of
instruments executed on or after
the 2Sth Aug. 1860, and was
repealed by stat. 44 & 45 Vict,
c. 41, s. 71. After the passing of
Lord Cranworth's Act, however,
the old practice of inserting in
every instrumeut creating a trust
a receipt claiise, in terms similar
to those of the present statutory
provision, was discontinued ; 3
Davidson, Prec. Conv. 222-226,
719, n., 3rd ed.
(.r^ Hall V. Franck, 11 Beav.
519 ; Webb v. Led.sam, 1 K. & J.
385 : Margetts v. Perks, 12 W. R.
517 ; Lee v. San key, L. R. 15 Eq.
204 : 3 Davidson, Prec. Conv.
223, u., 3rd ed.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
bound to see that they obtained a good marketable
title (y). This rule, however, was not inflexible; it
might be modified iu its application according to the
circumstances of particular eases. Thus if, considering
the objects of the trust (such as the acquisition of land
advantageous or convenient to be held with land already
in settlement), the purchase were otherwise desirable, it
appears that trustees would be justified in accepting a
substantially safe holding title (s) . And the rule has
now been considerably relaxed by statute. Trustees
purchasing land are expressly authorized to buy without
excluding the application of the second section of the
Vendor and Purchaser Act, 1874 {a). This exonerates
trustees authorized to invest in the purchase of leasehold
lands, held for a term of which less than forty years
are unexpired, from the necessity of stipulating for the
production of the lessor's title (^).' Trustees are also
specially protected in buying under the conditions im-
ported into contracts for sale by the Conveyancing Act
of 1881 {(•), when the period, for which title is by law
required to be shown, is not curtailed by special stipu-
lation. And it is now provided by the Trustee Act,
189^5 (d), that a trustee shall not be chargeable with
breach of trust only upon the ground that in effecting
the pm'chase of any property he has accepted a shorter
title than the title which a purchaser is, in the absence
of a special contract, entitled to require, if in the opinion
(y) Lewin on Trusts, 437, 6th for that section altered the rule
ed. ; 579, Ilthed. ; /Jnnrrv. Gotri- of law, and made a forty years'
ingham, L. R. H Ch. 902, 911. title an equally good marketable
(;) 1 Dart. V. & P. 89, 90, otli titl(> as a sixty years' title was
ed. ; 99, 100, Gth ed. ; 97, 98, previously: see above, pp. 98,
7th ed. 192.
(a) Stat. 56 & .57 Vict. c. 53, [h) See above, pp. 96, 99.
8. 15, replacing 37 & 38 Vict. (c) Stat. 44 & 45 Vict. c. 41,
c. 78, s. 3 ; see above, pp. IJ, 99, s. 66 ; see above, pp. 4"2, 45, 99.
192. Trustees punhasinji' need () Stat. 56 & 57 Vict. e. 53,
not, of course, exclude the opera- s. 8 (3), replacing 51 & 52 Vict,
tion of the first section of the c. 59, s. 4 (3).
Vendor and Purchaser Act, 1874 ;
w. 19
289
290
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
of the Court the title accepted be such as a person acting
with prudence and caution would have accepted. The
standard so set is that to which trustees are now obliged
to conform (e) ; and they should be careful, in buying
lands with trust money, not to bind themselves by any
condition of sale which will preclude them from requiring
such a title as they ought to obtain. Trustees directed
or empowered to purchase lands are frequently authorized
by the express terms of the instrument creating the trust
to purchase any hereditaments with less than a market-
able title ; but this scarcely allows them to adopt a
lower standard than that now set by the Trustee Act,
1893 (/).
What kind of
property
should be
bought by-
trustees for
persons
entitled
successively.
Trustees authorized to purchase land to be held on
trust for persons entitled in succession, as tenant for life
and remainderman in fee, should take care that the
property they buy is of a nature to confer upon all the
persons so entitled their due share of the benefit to be
derived from the purchase. Generally speaking, they
should seek to obtain a property which will produce a
fair immediate letui-n in the way of income to the
(e) See lie Theobald, 19 Times
L. R. 536.
(/) See Davidson, Prec. Conv.
vol. iii. 250, 722, 3rd ed. ; vol. iv.
55. 3rd ed. ; 1 Dart, V. & P. 90,
5th ed. ; 100, 6th ed ; 98, 7th
ed. ; 2 Kev & Elph. Prec. Conv.
537, 4th ed. ; 528, 8th ed. It
may be mentioned here that
trustees investing- trusi, money on
a mortgage of lands were bound
equally as on a purchase to invest
on the security of prt>perty with
a good marketable title ; and
there were not the same reasons
in the case of an investment on
mortgage for relaxiug the strin-
gency of the rule. It has long-
been the regular conveyancing
practice expressly to authorize
trustees to dispense -with the in-
vestigation of the lessor's title iu
lending money on the security of
leasehold hereditaments or other-
wise to lend on any security with
less than a marketable title ; see
the authorities last cited. And
now the above-quoted enactment
(sect. 8 (3) of the Trustee Act,
1893J applies equally in tbe case
of trustees lending money on the
secm-ity of anj" property as in
that of a purchase ; and by .sect.
8 (2) of the same Act a trustee
lending money ou the security of
any leasehold property shall not
be chargeable with breach of trust
only upon the ground that in
making such loan he dispensed
wholly or partially with the pro-
duction or investigation of the
lessor's title.
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES. 291
tenant for life, and is likely to continue to yield the
same advantage to the remainderman after his death.
They should avoid alike property which is wasting, or
may he wasted, such as mines or timber, and property
yielding no present profits, as a reversion or remainder
to which no rent is incident, or an advowson (g) . Even
house property has been thought to be objectionable for
purchase by trustees on the ground of its being liable to
decay for want of repair and to destruction by fire {h) .
It has been held, however, that trustees authorized to
invest in the purchase of " lands or hereditaments of an
estate in fee simple in possession " were entitled to buy
lands subject to building leases for ninety-nine years (/).
Each case must, of course, be considered with reference
to the terms and object of the power given to purchase.
Thus, where it is intended that a large estate shall be
purchased and conveyed to the usual limitations of a
strict settlement, it is certainly allowable to buy lands
bearing a fair proportion of timber (A-) ; and at the
present time it seems equally permissible to purchase
land containing mines and minerals, so long as the
mineral wealth does not form too large a part of the
value of the property, since the mines can be worked
and the profits equitably distributed between tenant for
life and remainderman under the powers given by the
Settled Land Act, 1882 (/).
Trustees selling land under a trust for or power of Valuation ou
sale should, as a rule, obtain a valuation of the property tees selling or
from a competent professional surveyor acting for them purchasing,
independently and in nowise concerned on behalf of any
iff) Lewin on Trusts, 438, 43!), (k) Lewin ou Trusts, 4:59, 6th
6th ed. ; 582, ."iSS. 11th ed. ed. ; 582, Uth ed.
(A) Lewin on Trusts, 138, 6th (/) Stat. 4.5 & 46 Vict c. 38,
ed. ; .582, Uth ed. ss. 6, 9-11. See Jief/ot v. Littler,
(i) Re rn/f»ii'.'< Sttt/nnfiit Tnat. W.N. 1874, p. 1.56; 22 W. R.
L. R. 7 h^q. 4 63; aud see lie 8.36; 30 L. T. N. S. 861.
Theobald, 19 Times L. R. 536.
19(2)
292
OF NOTICE OF TRUSTS AND SALES BY TRUSTEES.
purchaser, in order to guide them as to the sum to be
accepted on a sale by private contract or to be fixed as
the reserve price on a sale by auction. And trustees
intending to purchase land should obtain similar advice
with regard to the value of the land thej'^ propose to
buy(m). But, of course, cases may occur in which
trustees are practically safe in acting on their own
judgment, as where obviously favourable terms are
proposed to them. If all the ccstid-que-fnisfs should
be siii juris, and not too numerous, the best plan is to
obtain their sanction as to the price to be taken,
paid or fixed. Where a title depends on the exercise
in the past of a trust for or power of sale or purchase
of land, the purchaser may assume, if nothing appear
to the contrary, that the trust or power was duly exer-
cised to the best advantage of the cestui-que-trusts as
regards price or value and otherwise ; and he need not
and should not make any inquii-y or ask for any e\idence
as to this [n). But if it appear that the property was
sold at an undervalue, or the trust or power was other-
wise improperly exercised, the case is diiferent and the
title cannot safely be accepted (o).
{m) Lewin on Trusts, 375, 37G, («) See Borcll v. Bann, 2 Hare,
436, 6th ed.; 495, 578, 11th ed. ; 440, 449-452; Wure v. Egmunt,
1 Dart, V. & P. 79, 5th ed. ; 90, 4 De G. M. & G. 460, 471-474 ;
6th ed. ; 89, 7th ed. ; above, Hurrell v. Littlejohn, 1904, 1 Ch.
p. 263. As to the valuation 689; above, p. 117.
which ought to be obtained by (o) See A.-G. v. Pargeter, 6
trustees proposing to invest trust Beav. 150 ; Ei-r v. Dunganuon,
money on a mortgage of lands, 1 Dru. & War. 509, 542 ; f^terens
see Stat. 56 & 57 Vict. c. 53, s. 8. v. Austen, 3 E. & E. 685.
293
CHAPTER IX.
OF TITLE UNDER THE EXERCISE OF POWERS.
Where the title depends on the exercise of a Title depend -
power of appointment, it is the duty of the crm- exercise of
veyancer advisinsr the purchaser to ascertain that the * power of
'' . . T appointment.
power has been or will be in all respects well executed.
The general rule is that in the exercise of a power nil
conditions prescribed in the instrument creating the
power must be strictly observed ; and in this respect no
distinction is made between matters apparently sub-
stantial, such as the nature of the instrument by which
the power is to be executed or the requirement of the
consent of any person to its execution, and formalities
like the number of witnesses by which the executing
instrument is required to be attested («). And the
rule is that any instrument showing an intention to
exercise the power, but not exactly complying with the
terms and conditions imposed by the donor of the
jiower, is void altogether as an exercise of the power (/>).
(«) JlnwkiHs V. Kemp, 3 East, in the case of powers of leasing
410, 440, Ilolmen 7. Coghill, 7 by the Leases Acts, 1849 and 1850
Ves. 499, o06; Reid v. Shcrgold, (stats. 12 A: 13 Vict. c. 26; 13 &
10 Ves. 370; Maijuribanks v. 14 Vict. c. 17), under which an
HovPtiden, 1 Dniry, 1 1 ; Siig. attempted exercise of a power of
Pow. 206 .5^., 8th ed. ; Farwell leiising, which is invalid at law
on Powers, 128 «'/., 2ud cd. ; for want of strict compliance with
Wms. Real Prop. 384 «/., 2l8ted. the terms of the power, may be
(6) See previous note ; liarrHlo considered in equity as a contract
V. Toung, 1900, 2 Ch. 339. This for the grant of a valid lease
rule is modified in equity, though under the power, and leases pre-
uot at law, by tlie »(iuit,ible doc- maturely granted in exercise of a
trines mentioned below as to power are made valid if the
Sliding the defective execution of lessor's estate endure imtil the
powers ; and is further modified time when the lease might have
294
OF TITLE UNDER THE EXERCISE OF POWERS.
Under the Wills Act (c), however, wills executing
powers muHt be executed and attested by two witnesses
in the manner therein prescribed for the execution of all
wills {d) ; but if so executed and attested, they operate as
valid executions of the power, notwithstanding that the
instrument creating the power may have required some
additional or other form of execution or solemnity.
been well granted : Wms. Real
Prop. 39'i, ;i93, 21st ed.
[c) Stat. 7 Will. IV. & 1 Vict.
c. 26, s. 10.
{d) This rule must be strictly
observed in the case of all wills
exercising powers to dispose of
land in Englnnd, leasehold as
well as freehold or copyhold,
whether the testator were domi-
ciled in England or elsewhere ;
see Hurra ti v. Champcrnowne,
1901, 2 Ir. 230 ; Pepin v. Bruylre,
1902, 1 Ch. 24 ; and also in the
case of all wills exercising an
English power to dispose of per-
sonal chattels, and made in Eng-
land by persons domiciled in
England (whether British sub-
jects or aliens). By an English
power is meant one created by an
instrument intended to be c(m-
strued according to English law
and to confer a power exercisable
accordinar to the rules of English
law. Wills exercising English
powers to dispose of personal
chattels are valid, as an exercise
of the power, if executed in ac-
cordance with the requirements
of the Wills Act, whatever be the
testator's domicile and although
(where he is domiciled out of
England) the will is invalid by
the law of the place of his domi-
cile ; Murphy v. Belclder^ 190;*,
A. C. 446. But wills made by
persons domiciled out of England
(whether aliens or British sub-
jects), exercising powers to dis-
pose of personal chattels, com-
plying mth the formalities (if
any) required by the terms of the
power, and otherwise executed iji
accordance with the law of the
place of the testator's domicile
are valid, as an exercise of the
power, althongh they do not
comply with the requirements of
the Wills Act ; I)' Huart v. Hark-
ties.s, 34 Beav. 324 ; Ee Price,
1900, 1 Ch. 442; Barrettow. Young,
1900, 2 Ch. 339; Re Walker,
1908, 1 Ch. 560. Cf. and dis-
tinguish lie B^ Este\s Settlement
Trusts, 1903, 1 Ch. 898 ; Pe
Scholejield, 1905, 1 Ch.408, settled,
1907. 1 Ch. 664. As to the wills
of British subjects exercising a
power over personal chattels and
not complying with the Wills Act
but admissible to probate as wills
solely by virtue of Lord Kings-
down's Act (stat. 24 & 25 Vict,
c. 114, s. 1), see Pe Kirwan's
Trusts, 25 Ch. D. 373 ; Hummel
v. Hummel, 1898, 1 Ch. 642; Pe
Price, 1900, 1 Ch. 442, 448-450;
Dicey, Conflict of Laws, 691-696,
821 S(f., 2nd ed. It has been
decided in Ireland that a power
to dispose of the jiroceeds of sale
of land settled on trust for sale is
for the purpo^es of the doctrine
here discussed a power to dispose
of land ; Murray v. Champernotvne,
ubi sup. But it seems question-
able whether this is correct, as an
interest in the proceeds of sale of
land settled on trust for sale is for
all other purposes treated in
English law as personalty ; see
Forbes v. Steven, L. R. 10 Eq.
178 ; A.-G. V. Hubbuck, 13 Q. B.
D. 275; A.-G. v. Johnson, 1907,
2 K. B. &85. The same remark
is applicable to a beneficial inte-
rest in a definite sum of money
directed to be raised out of land,
such as a portion.
OF TITLE UNDER THE EXERCISE OF POWERS.
295
And under Lord St. Leonards' Act (e) powers of
appointment, exercisable by deed or by any instrument
in writing not testamentary, may be well exercised, sub-
sequently to the Act, by a deed executed in the pre-
sence of and attested by two or more witnesses, in the
manner in which deeds are ordinarily executed and
attested, although the instrument creating the power
may have required some additional or other form of
execution or attestation, or solemnity. It will be ob-
served that, where a power is required to be executed by
a deed or writing attested by two witnesses, it is not
well executed by a deed attested by one witness only or
unattested (./"). Such a defect of execution is not aided
by Lord St. Leonards' Act. And it is expressly pro-
vided (r/) that this statutory provision shall not operate
to defeat any direction in the instrument creating the
power that the consent of any person shall be necessary
to a valid execution, or that any act shall be performed,
in order to give validity to any appointment having no
relation to the mode of executing and attesting the in-
strument. Nothing contained in the Act shall prevent
the donee of a power from exercising it conformably to
the power by wi-iting oi' otherwise than by an instru-
ment executed and attested as an ordinary deed (A).
Equity will aid the defective execution of a power, if Equitable
the intended appointee be a purchaser from or the wife j^f ^^i^"^^*
or a child or a creditor of the person intending to exercise execution of a
the power, or if the appointment be for a charitable P°^^^'
purpose (/) ; and this relief is granted, notwithstanding
that the person entitled in defaidt of appointment was
a purchaser, and even against a purchaser from him, of
(e) Stat. 22 & 23 Vi<;t. c. 35, (h) Stat. 22 & 23 Vict. c. 35,
8. 12, passed 13th Aug. 1S69. s. 12.
(/) Su^. Pow. 207, 8th ed. (i) Sug. Pow. .')33-')3ti, Sth ed. ;
• iff) Stat. 22 & 23 Vict. c. 35, Farwell on Power.s, 327, 2nd ed. ;
8. 12. and see Charlton v. Charlton, 1906,
2 Ch. 523.
296
OF TITLE UNDER THE EXERCISE OF POWERS.
the estate limited in default of appointment (A*) . But
such relief is only afforded to cure defects which are
not of the essence of the power, such as the want of a
seal or of the proper number of witnesses, or execution
by will of a power to appoint by deed (/). And equity
will not uphold an act which will defeat what the person
creating the power has declared, by expression or
necessary implication, to be a material part of his inten-
tion (m). No relief will therefore be given against the
exercise by deed of a power to appoint by will (n), or
against the exercise by will of a power to appoint by
deed to be executed before a specified event, which
happened in the lifetime of the person purporting to
appoint by will(o). It must not be forgotten that
where a power to appoint the legal estate in lands is
exercised defectively, but so that equity will grant
relief against the defective execution, the legal estate
remains outstanding in the person entitled in default of
appointment, and must be got in if it be desii'ed to make
title under the appointment (p) .
Title under a
special power
of appoint-
ment.
Fraudulent
execution.
Where a title depends on the valid exercise of a
special power of appointment, such as a power to
appoint amongst a limited class of persons (the ap-
pointor's children, for instance), the conveyancer must,
of course, see that the appointment is made in favour of
those persons who are objects of the power {q\ or some
or one of them (r). And he must further ascertain
that the appointment does not transgress the rules of
(A) Sug. Pow. 512, Sth ed.
{I) Sug. Pow. 548 sq., 558, 559,
560, 8th ed. ; Farwell on Powers,
330, 2nd ed.
(w) Rolt, L. J., Cooper v. Mar-
tin, L. R. 3 Ch. 47, 58; Sug.
Pow. 560, 8th ed.
(n) Jieid v. dkergtold, 10 Ves.
370.
(o) Cooper ▼. Martin, ubi sup.
ip) Sug. Pow. 532, 8th ed. ;
Farwell on Powers, 327, 2nd ed.
(q) See Sug. Pow. 498 sq., 652
xq., 664 sq., 8th ed. ; Farwell on
Powers, 298 sq., 486 sq., 2nd ed.
(r) As to exclusive appoint-
ments, see Farwell on Powers,
362 sq., 2nd ed. ; Wms. Pers.
Prop. 369, 16th ed.
OF TITLE UNDER THE EXERCISE OF POWERS.
297
equity with respect to the fraudulent execution of such
powers ; as where an appointment is made ostensibly for
the benefit of some object of the power but with the
real design of effecting some other pur[)Ose than that
contemplated by the power (.s). AVhere these rules are
transgressed, it must be remembered that the appoint-
ment, if of the legal estate in lands, may be void in
equity only, but not at law {() ; so that where a title
depends on the avoidance of such an appointment, the
legal estate may have to be got in from the appointee.
Another point to be borne in mind in considering the Remoteness
exercise of powers of appointment amongst a limited limitation,
class of persons is the question whether the appointment
infringes any of the established rules with respect to
remoteness of limitation. In such cases, the validity of
the estates limited b}' the instrument exercising the
power depends on the result of the inquiry whether
they would have been valid if inserted in tlie instru-
ment which created the power. And in investigating Exercise of
this point, the conveyancer must not forget that, as the Powers to
law now stands, powers given by a marriage settle- amongst un-
ment or any other instrument to appoint estates in land °™ ***"'^"
amongst the issue of the marriage or of some specified
living person, cannot well be exercised in such a way
that the unborn child of a child unborn when the in-
strument took effect shall take either a legal or an
equitable estate in remainder expectant on a life estate
appointed to his or her parent (?/) ; or so that a legal or
an equitable estate appointed in remainder after a life
estate appointed to some such unborn child sliall be such
as need not necessarily vest (if at all) within the period
allowed by the rule against perpetuities {x) ; or so that
(») See Sag. Pow. 606 .«/., 8th («) Jr/iitbi/ v. Mttclull, 44 Ch.
ed. ; Farwell on Power.s, 403 s^., D. 8.) : Re Nash, 1910, 1 Ch. 1.
2nd ed. [i) Re Front, 48 Ch. D. 246,
(0 See Sug. Pow. 606—608, followed in Rr Ashfurth, 1905,
8th ed. 1 Ch. 535 (as to which case, see
298
OF TITLE UNDER THE EXERCISE OP P0WER8.
any future estate or interest, whether legal or equitable,
appointed to arise in favour of any child or issue un-
born when the instrument took effect by way of shifting
use or other executory limitation (and not by way of
remainder) shall be such as contravenes the rule against
perpetuities (//).
Atfc(\station
clause to
instrument.s
exercising
powers.
Where an instrument creating a power of appoint-
ment has required that certain acts done in connection
with the exercise of the power (such as the signing,
sealing and delivery of a deed or writing) shall be
attested by witnesses, the attestation clause of the
instrument exercising the power should be examined
with special care, as the omission to express therein
that some or one of such required acts has been duly
attested may vitiate the exercise of the power. On
this subject Lord Justice Farwell (s) has laid down the
following rule as the result of the authorities : — " If a
power requires two or more formalities to be attested,
and the attestation clause expressly certifies that one of
such formalities has been performed, then the power is
not well executed {a). But if the attestation, although
a limited and special one, is of such a nature that it
must necessarily be inferred that the other requisites
Mr. Charles Sweet's criticism iii
49 Sill. J. 793, which it is respect-
fully Mubniitted is well founded) ;
fFhitby V. I OH Luedec/cc, 1906, 1
Ch. 788.
{//) See Wms. Real Prop. 361-
366, 405-417, 'ilst ed. ; and the
writer's articles on Contingent
Remainders and the Rule against
Perpetuities in tlie Encyclopaedia
of English Law, 2ud ed.
(z) Farwell on Powers, 135,
2nd ed.
(«) Vincent v. BLiIiop of tiodor
and Man, 4 De G. & Sm. 294,
307 ; 5 Ex. 683, 694. In IV right
V. Wakeford, 17 Ves. 454, 4
Taunt. 213, where a power of
consent to a sale was required to
be exercised by writing under
hand and seal attested by two or
more credible witnesses, and the
attestation clause of the deed
exercising the power only certi-
fied that it was sealed and de-
livered in the presence of two
witnesses, it was held that the
power was not well executed.
The like defect in instruments
exercising powers executed before
the 30th July, 1814, was ciu'ed
by Stat. 54 Geo. III. c. 168 : but
this Act had no prospective opera-
tion.
OF TITLE UNDER THE EXERCISE OF POWERS. 299
were complied with {/j), or if the attestation is general,
then the execution is valid, unless the contrary is
shown "(c). This rule is, of course, subject to the
above-mentioned provisions of the Wills Act and Lord
St. Leonards' Act(^/), which have greatly diminished its
importance in practice.
It may be noted here that, whenever an abstract of Inquiry
title mentions some express power of which the exercise power meu-
mijrht affect the property sold, but no exercise thereof ti^^ed in the
^ I 1 J ' abstract has
is subsequently stated in the abstract (e), the piu'chaser's been exer-
advisers should inquire whether the power has been
exercised.
cised.
When property is sold or conveyed in the exercise of Sale under
a power created by statute, there is the same necessit}" power,
for exact compliance with all the terms and conditions
of the power as exists in the case of a power (treated by
the act of parties (./) ; and in default of such compliance
any instrument purporting to exercise the power is, as a
rule, void {(j). At the present time the most important
(A) See riuceut v. liinhop of was on the ground that publica-
Sodor and Man, 4 De G. & Sm. tion of a will is equivalent to
294 ; h Ex. 683, where a pow<^r delivery thereof,
required to be exercised by (c) See Burdett v. Doe d. Spilc-
will signed and published in the bury, 10 CI. A: Fin. :U0, where a
presence of and attested by two power to be exercised by will
or laore witue.sses was held to be signed, scaled and published in
well executed by a will purporting the presence of and attested by
to be signed and sealed in the three witnesses was held to be well
presence of two wituessts, on the executed by a signed and sealed
ground that sealing in the presence will with this attestation clause,
of witnesses jnust uaturally and '• Witness. Charles Ball, Eliz.
reasonably be considered to be a Ball, Anu Ball."
publication of the will ; Smith v. (rf) Above, pp. 294, 295.
AdkinK, L. R. 14 Eq. 402. where ('■) Above, p. 113.
a power to bi; exercised by any ( /) Above, p. 293.
instrument in writing signed, {p) Darirs v. Diiviea, 38 Ch. D.
sealed and delivered in the presence 499; Mogridge v. (Uapp, 1892, 3
of two or more witnesses was Ch. 382, 398 ; Sutherland v.
held to be well executed by a will Sutherland, 1893. 3 Ch. 169;
stated ill the attestation clause to Chandler v. Bradlei/, 1897. I Ch.
be signed, sealed, published and 31.5 ; Re Ifandinan and Ifileos'-s
acknowledged to be the last will Contract, 1902, 1 Ch. 599 ; Boi/ce
of the donee of the power; this v. Edbrooke, 1902, 1 Ch. 836.
300 OF TITLE UNDER THE EXERCISE OF POWERS.
Sales under statutory power of sale is that given by the Settled
LandVcts. Lfiutl Acts, 1882 to 1890. When title is made by
means of the exercise of this power of sale, the points
to which the attention of the purchaser's counsel should
be principally directed are the following : — In the first
place he must ascertain that the property so conveyed
or to be conveyed is settled land (A), and that the
person who has exercised or is to exercise the power is
a tenant for life or a person having the powers of a
tenant for life within the meaning of the Acts (/). He
must next inquire whether such property comprises the
principal mansion-house on the settled land and the
pleasure grounds and park and lands usually occupied
therewith or any part of the same, and if so, he must see
that the assurance of that part of the property was or shall
be made with the consent of the trustees of the settlement
or under an order of the Court as required by the
Settled Land Act, 1890 (k). Thirdly, he must assure
himself that the purchase money was or shall be paid to
duly constituted trustees of the settlement for the pur-
'i'he Leases Ar;ts, 1849 and 1850, changed uuder the Acts for
apply to an intended exercise of another easement, which the
a statutory as well as to an owners of the before mentioned
express power of leasing ; see servient tenement were entitled
above, p. 293, n. (b). to exercise over the settled land.
,,s ,, . J. A- o .^ -tT- J. oo See Shep. Touch. 292, that a
(«) bee stat. 4o & 46 Vict. c. 38, • u^. e „ u ^.v. v„ <-
J ,-, ^ 1f>^ o Ti n 1- right oi way may be the object
ss. 2 (1 — 4, 10), 3. By s. 2, sub- P x. o^ t n t? ocn
in/-\ ii • » J. ^ ^■ 1 J or an exchange 24 L. (J,. K. 260,
s. 10 (i), m this Act land includes •> /on oco ock
^ " ,, T^ , , and n. (3), 262 — 266.
incorporeal hereditaments, also an ^ '
undivided share in land. In Re (») See stat. 45 & 46 Vict. c. 38,
Brulhertoii's EstaU, 1908, W. N. *^«- '^ (5—7), 58.
56, 98 L.T. 547, it was considered (k) Stat. 53 & 54 Vict. c. 69,
by the C. A. that an easement s. 10, replacing 45 k. 46 Vict,
incident to settled land, as the c. 38, s. 15 ; nee Pease v. Courtney,
dominant tenement, and exercis- 1904, 2 Ch. 503; Gilbeij v. Rush,
able over other land might well 1906, 1 Ch. 11 ; Re Wythes' Settled
be sold under the ^Settled Laud Estates, 1908, 1 Ch. 593. For the
Acts to the owners of the servient principles by which the Court is
tenement ; although the Court guided in exercising the jurisdic-
appeared to entertain a doubt tion so conferred, see Re Ailes-
(which it is respectfully submitted burifs Settled Estates, 1892, 1 Ch.
was not well founded) whether 506 ; Bruce v. Ailesbury, 1892,
such an easement could be ex- A. C. 356.
OF TITLE UNDER THE EXERCISE OF POWERS. 301
poses of the Acts'^), or into Court (/>/)• This is essen-
tial to the valid exercise of the power of sale given b}'
the Acts ; and even where the settled land is subject to
some incumbrance, which is prior to the settlement, and
of which the amount exceeds the whole price, the pur-
chase money cannot properly be paid to the incumbran-
cer on a sale under the Acts unless the trustees concur
in the conveyance to direct such payment (//). Fourthl}-,
he must be satisfied that all the estate, to which title is
alleged or required to be made under this statutory
power, has been or will be duly assured by the exercise
of the statutory povver of conveyance (o) by the tenant
for life, either alone or with the concurrence of all other
necessary parties, it' any. He must also see that there
is nothing in the whole transaction carried out b}^ exer-
cising the statutory power which is inconsistent with the
duty of the tenant for life, in exercising the statutory
power, as trustee for idl parties entitled under the settle-
ment (p). As is well known, a tenant for life intending As to giving
to exercise the statutory power is required to give one J^jpjj^gjj ^aie
month's previous notice of his intention to the trustees
of the settlement [q), but a person dealing in good faith
with the tenant for life is not concerned to inquire
respecting the giving of the notice so required (r). It
is therefore unnecessary, when title is alleged or pro-
mised under an exercise of the statutory power, to make
any inquiry whetlier notice has been duly given to the
trustees. And it is improper to make any such inquiry ;
for if the purchaser ask this question and be informed
{I) See stats. 45 & 46 Vict. s. 53; Siithcrlaiid v. iSittherlinid,
c. 38, 88. 2 (8), 38— 40; .53 & .'■)4 1893. 3 Ch. 169; ChaudUr v.
Vict. c. 69, s. 16. Bradley, 1897, 1 Ch. 315 ; R,
(»») Stat. 45 & 46 Vict. c. 38, Ilandman and JFilcox's ContraH.
8. 22(1). 1902, 1 Ch. 599.
(m) Re Norton and Lax Cnxas^ [q) Stats. 45 & 46 Vict. c. 3,S,
Cmtract, 1909, 2 Ch. 59. s. 45 ; 47 & 48 Vict. c. 18, s. 5.
(o) Stat. 45 & 46 Vict, c, 38, (r) Stat. 45 & 46 Vict. o. 38,
8. 20. 8. 45 (3).
ip) See Stat. 45 & 46 Vict. c. 38,
302 OF TITLE UNDER THE EXERCISE OF POWERS.
in answer of facts disclosing some irregularity, he may
lose the benefit of the protection undoubtpdly afforded
to those who abstain from inquiiy (.s). It has been
held that it is not a condition precedent to making a
valid contract for sale under the Settled Land Acts that
the tenant for life should give notice of his intention to
the trustees ; he can enter into a binding contract for
sale without giving any such notice {t), even though
there be no trustees of the settlement in existence {n) ;
and it will be sufficient to give the purchaser a good
title if trustees be duly appointed before the contract is
As to whether completed (?/)• But although the purchaser is not con-
trust ^^'^ f cerned to inquire whether notice of the intention to sell
the settlement were given to the trustees, he is not equally unconcerned
of sale.™*^ with the questiou, whether there are an}^ trustees of the
settlement in existence at the time when the statutory
power is completely exercised by conveyance. The Act
provides that capital money arising from a sale made
thereunder shall be paid either to the trustees of the
settlement or into Court, at the option of the tenant for
life ( w) ; and it is held that the existence of such trustees
is a condition precedent to the exercise of this option (x) .
Consequently, a vendor selling under the Settled Land
Acts cannot make a good title, where there are no trus-
tees of the settlement for the purposes of the Acts and
the purchaser has notice of this fact, by requiring the
purchase money to be paid into Court and conveying in
consideration of such payment (//) ; but trustees must
first be duly appointed, and then the sale can be com-
pleted. It appears, however, that if the purchaser,
(«) See Marlborovqh v. Snrtoris, s. 22 (1).
32 Ch. D. 616, 623: Hat tin y. [x) Hntten w Jius.sili, '38 Gh.T>.
IfuKseH, 38 Ch. D. ;vi4, 344. 334, 345; Re Fisher and Graze-
It) MarlboroKf/// v. Sarforix, 32 brook's Contract, 1898, 2 Ch. 660.
Ch D. 616. {y) He Fisher mid Grazebrook' s
[u) I/atffti V. /{Kssel/, 'SH Gh.B. Contract, 1898, 2 Ch. 660; and
334. see Hughes v. Funagaii, 30 L. R.
(w) Stat. 45 k 46 Viot. c. 38, Ir. HI.
OF TITLE UNDER THE EXERCISE OF POWERS. 303
supposing tliat there are trustees of the settlement in
existence and in ignorance that there are not, pay the
purchase money into Court in good faith at tlie vendor's
request, he will obtain a good title by a couvej^anee in
consideration of such payment (s). It seems therefore
that, if on a sale under the Settled Land Acts it appear
from the abstract that trustees of the settlement were
duly constituted or appointed, a purchaser directed to
pay his purchase money into Court need not inquire
whether such trustees still remain in existence. But if it
appear from the abstract that there are no such trustees
in existence, then the purchaser must require trustees
for the purposes of the Acts to be appointed, and cannot
safely pay the money into Court and accept a convey-
ance accordingly, without first seeing that such appoint-
ment has been duly made. Where the vendor's title
depends on a former exer«Mse of the power of sale given
by the Settled Land Acts whereon the purchase money
was paid into Court, and it appears from the abstract
that there were no trustees of the settlement in existence
at the time when the power was exercised by convey-
ance, the purchaser should, it seems, take the objection
that the power was not well exercised unless there were
such trustees in existence at that time, and should
require proof of their existence to be furnished accord-
ingly. If, however, such proof cannot be fiu-nished, it
wdl have to be considered whether a good title can be
made on the ground that the pui-chaser from the tenant
for life, supposing tliat there were such trustees, bought
in good faith in ignorance of the fact that there were
none [a). It has beeu held in the case of a building
lease made by a tenant for life under the Settled Land
Acts in the absence of any trustees, wln^re no capital
money was payable on granting the lease, that the
[z) S. C, 1898, 2 Ch. 662.
(«) Cf. lie Haiidman ami IFilcox's Contract, 1902, I Ch. 599.
304 OF TITLE UNDER THE EXERCISE OF POWERS.
existence of trustees of the settlement was not a condi-
tion precedent to tlie validity of the lease, and that a
purchaser from the lessee must presume, in the absence
of evidence to the contrary, that the lessee acted in good
faith and had no notice of the irregularity {b). But in
such a case, the only necessity for trustees is that due
notice of the intention to lease may be given to them ;
and lessees and purchasers are expressly exonerated
from the obligation of inquiring as to the giving of
such notice {c). Where, however, any capital money
has to be paid by a lessee or purchaser, the case is dif-
ferent (d) ; and there is not the same statutory absolu-
tion from the duty of inquiring into the existence of
trustees. But even on a sale of settled land, the trus-
tees have no active duty to perform, if the tenant for
life desire that the purchase money shall be paid into
Court. And as it is provided that a purchaser dealing
in good faith with a tenant for life shall, as against all
parties entitled under the settlement, be conclusively
taken to have complied with all the requisitions of the
Act (e), and it is presumed generally that everything is
rightly done until the contrary be shown (/'), it seems
that in this case also it would be presumed that the
purchaser from the tenant for life acted in good faith
without notice of the irregularity {g) ; and if nothing
appeared to rebut this presumption, the title would be
unimpeachable.
"Who are In ascertaining who are the trustees for the purposes
the'pmTSes 0* ^hc Settled Land Acts of any given settlement, it
of the Settled should be borne in mind that such trustees must be
either — (1) the persons who are for the time being
(i) Mogridge v. Olapp, 1892, 3 (*) Stat. 45 & 46 Vict. o. 38,
CSi. 382. 8- •^4-
(c) Above, p. 301. (/) Above, p. 118.
(d) Mogridge v. Clapp, 1892, 3 [g) See Mogridge \. Cfapp, 1892,
Ch. 400. ■ 3 Ch. 382.
OF TITLE UNDER THE EXERCISE OF POWERS.
trustees under the settlement with power of sale of the
settled land, or with power of consent to or approval of
the exercise of such a power of sale (A) ; or (2) if there
be no such trustees, the persons declared by the settle-
ment to be trustees thereof for the pui'poses of the
Acts (/) ; or (3) the persons appointed by the Court to
be trustees under the settlement for the pui'poses of the
Acts (k) ; or (4) if there be no trustees for the purposes
of the Acts of any of the above-mentioned tliree classes,
then the persons (if any) who are for the time being
under the settlement trustees with power of or upon
trust for sale of any other land comprised in the settle-
ment and subject to the same limitations as the land to
be sold, or with power of consent to or approval of the
exercise of such a power of sale (/) ; or (5) if there be no
such persons as are fou.rthly described, then the persons
who are for the time being under the settlement trustees
with future power of sale, or under a future trust for
sale of the land to be sold, or with power of consent to
or approval of the exercise of such a future power of
sale, whether the power or trust take effect in all events
or not {m). Each of these classes must be taken to
(A) It is important to observe {k) Sect. 38.
that trustees of a settlemeut, who (/) See lie Moore, 1906, 1 Ch.
have no such power of sale, 789.
oonsentor approval as above nieu- [»>) Stat. 53 & 54 Vict. c. 69,
tioued, are not trustees thereof for s. 16. As to cases affected by
the purposes of the Acts unless this amendment of the law, see
they come within classes (4) or (5) Ite Bronii^s If'Ul, '11 Ch. D. 179 ;
introduced by tlie amending Act Wheehcright v. fFalkcr, 23 Ch. D.
oil^^.lO\see jr/i,i/uriff/itv.jra/kei; 752, 761; lie Home's Settled
23 Ch. D. 752. 761 ; lie Morgan, Extatr, 39 Ch. D. 84. When
24 Ch. D. 114; lie Canir.s Settled lands are limited to trustees in
Estates, 1899, 1 Ch. 324 ; Re fee in trust for one of them for
Conirs Settled Estates, 1905, 1 Ch. life and after his death on tru.'^t
712. But trustees with a power for sale or for others with power
of sale exercisable with the con- of sale, it has been lield that all
sent of the tenant for life are the trustees, including the tenant
trustees for the purposes of the for life, are the trustees for the
Acts ; Constable v. Constable, 32 purposes of the Settled Land
Ch. D. 233. Acts ; Re Jackson's Settled Estate,
{%) Stat. 45 & 46 Vict. c. 38, 1902, 1 Ch. 258.
s. 2 (8).
w. 20
305
306
OF TITLE UNDER THE EXERCISE OF POWERS.
include any trustees or trustee duly appointed under an
express or statutory power to appoint new trustees as
well as the trustees originally appointed. It has been
expressly provided that the statutory power of appoint-
ing new trustees shall apply to trustees for the purposes
of the Settled Land Acts, whether appointed by the
Court or by or under the settlement (.»/).
Deposit on
sale by
auction of
settled land.
As above stated (o), it is usual on sales by auction
to stipulate for payment of a deposit to the auctioneer
or the vendor's solicitors. If the sale be made by a
tenant for life selling under the Settled Land Acts, the
purchaser must see that the deposit is duly paid to the
trustees of the settlement for the purposes of the Acts,
or into Court, as the vendor may require, before he
accepts a conveyance and pays the balance of his
purchase money. Otherwise he cannot be assured that
he is obtaining a valid conveyance ; for unless the
whole of the purchase money be paid to the trustees or
into Court, as required by the Acts, the statutory power
of sale is not well executed {p).
As to the
power of
conveyance
under the
Settled Land
Acts.
With regard to the question, wliether all the estate,
to which title is alleged or required to be made, has
been or Avill be sufficiently assured by the exercise of
the statutory power of conveyance [q) , the Settled Land
Act, 1882 (r), empowers the tenant for life to convey
by deed any land sold under the power of sale conferred
by the Act for the estate or interest which is the subject
(«) Stat. 56 & ^1 Vict. c. 53,
s. 47, replacing 53 & 54 Vict.
c. 69, s. 17, passed to amend the
law laid down in 7iV WUcock, 34
Ch. D. 508.
(o) Above, p. 57.
[p) Above, pp. 299—302.
(q) Above, p. 301.
(r) Stat. 45 & 46 Vict. c. 38,
s, 20. Exactly the same power
of conveyance is given in the
same hectiou with regard to land
exchanged, partitioned, leased .
mortgHged or charged in exercise
of the powers conferred by the.
Act, and also with regard to ease-;
ments or other rights or privileges!
sold or leased under the same'
powers.
OF TITLE UNDEl? THE EXERCISE OF POWERS. 307
of the settlement, and provides that such a deed shall
be effectual to pass the land conveyed discharged fi'om
all the limitations, powers and provisions of the settle-
ment, and from all estates, interests and charges sub-
sisting thereunder, but ■subject to and rcitli the exception
of — (i.) All estates, interests and charges having priority
to the settlement ; and (ii.) all such other (if any)
estates, interests and charges as have been conveyed or
created for securing money actually raised at the date
of the deed ; and (iii.) all leases and grants at fee-farm
rents or otherwise, and alfgrants of easements, rights of
common, or other rights or privileges granted or made
for value in money or money's worth or agreed so to
be, before the date of the deed, by the tenant for life,
or by any of his predecessors in title, or by any trustees
for him or them, under the settlement, or imder any
statutory power, or being otherwise binding on the
successors in title of the tenant for life.
The Act contains (.s) a very wide definition of the What is "the
terra settlement, extending it to any instrument or any
number of instruments under or by virtue of which any
hind, or any estate or interest in land, stands for the
time being limited to or in trust for any persons by way
of succession. And this definition has received a liberal
interpretation. Thus, in Re AilcHlmry and Tveagh{t), Re Aiksbm-y
lands had been limited by deeds dated in 1796 and "'"^ ^'-'^o''-
IH26 to such uses as Charles and George sliould jointly
appoint, and in default to the use of Charles for life
with powers of jointuring a future wife ; and Charles
appointed a jointure rentcharge to Maria. Then by a
deed of IS-'i? the lands were limited in exercise of the
joint power of appointment, subject to the rentcharge,
to the use of Charles for life, remainder to George for
(«) Stat. 45 & 46 Vict. c. 38, 8. 2 (1).
{t) 1893, 2 Ch. 345.
20 (2)
308 OF TITLE UNDER THE EXERCISE OF POWERS.
life, remainder to Ernest for life, remainder to Ernest's
first son in tail male. In 18G3, the estate tail so given
to Ernest's first son was barred and the lands were
re-settled to the use of Ernest for life, remainder to his
eldest son George John for life, remainder to uses for
securing a jointure rentcharge to Evelyn, the son's
wife, remainder to George John's first son in tail male.
George John died leaving Thomas his eldest son, and
in 1885 Thomas's estate tail was barred and the lands
were re-settled to the use of Ernest for life in restoration
of his former estate, remainder to Thomas for life.
Ernest died, and Thomas sold the lands under the
Settled Land Acts to Lord Iveagh. And it was held
by Stirling, J., that the series of instruments constituting
the settlement for the purposes of the Acts comprised
not only the deeds of settlement of 1885 and 1863
taken together, but also those of 1837, 1826 and 1796,
and consequently that Thomas was empowered to
convey the lands sold discharged from Maria's as well
as from Evelyn's rentcharge. This decision at first
met with adverse criticism («), but it has been approved
by the Court of Appeal in the case of Re Miindy and
Be Mundy Hoper's Contract {x). In that case lands were limited
Co» truer ^ in 1861 to the use of John for life, remainder to uses
for securing a jointure rentcharge to Elizabeth, re-
mainder to trustees for the term of one thousand years
fi'om John's death on trust to raise portions for his
younger children, remainder to Francis for life, with
powers of jointuring and charging portions for younger
children and limiting a term to secure such portions,
remainder to Francis's first son in tail male. In 1865
Francis appointed a jointure rentcharge to Louisa his
wife, charged the lands with portions for his younger
children, and limited a term of 1,500 years to secure
(«0 37 Sol. J. 336 ; Wolsten- Land Acts, 289, 7th ed.
holme's Conveyancing- and Settled {x) 1899, 1 Ch. 275.
OF TITLE UNDER THE EXERCISE OF POWERS.
such portions. John died, and in 1889 Francis and
his eldest son disentailed, and the lands were re-settled
with the concurrence of John's younger children, who
released their portions, to the use that Francis might
charge the lands with 5,000/., remainder to uses for
securing rentcharges to Millicent and Sophy (two of
John's younger children) and Francis's eldest son,
remainder to Francis for life without expressing that
this should be in restoration of his former estate.
Francis then sold the lands under the Settled Land
Acts, and the purchaser objected that his life estate
under the settlement of 1861 was not kept alive, and
that he could not convey the lands discharged from his
wife's jointure or his younger children's portions. It
was held, however, by the Court of Appeal, that the
deeds of 1861, 1865 and 1889 together constituted the
settlement within the meaning of the Settled Land
Acts, and that the tenant for life was accordingly em-
powered to convey the settled lands discharged from his
wife Louisa's jointure and his younger children's
portions charged in 1865 under the powers given by the
deed of 1861 ; and it was considered that this result
was effected by the intention of the Acts, and that it
was immaterial that Francis's life estate under the deed
of 1861 was not expressed to be restored to him by the
re-settlement of 1889. These cases establish that when
lands have been limited to various beneficiaries succes-
sively by a series of family settlements or re-settlements,
and there is still subsisting in the lands any estate or
interest (though it be no more than a rentcharge or a
charge of portions) limited to a beneficiary by any
deed of settlement earlier than that which conferred the
estate of the tenant for life, then these deeds of settle-
ment together constitute a settlement for the purposes
of the Settled Land Acts, and the tenant for life can
sell and convey the settled lands free from the estates
or interests limited to beneficiaries by any of the earlier
309
310
OF TITLE UNDER THE EXERCISE OF POWERS.
Assignments
of or charges
on the life
estate in
consideration
of marriage
or by way of
family
arrangement.
deeds (;/). TheteTmbeneficianpfi is here applied to persons
taking some estate or interest by way of settlement,
that is to say, in consideration of marriage or natural
affection or of effecting a family settlement or re-settle-
ment ; the rule does not extend to estates created by
way of mortgage, or, apparently, on a sale in the strict
sense of the word {z). The definition of the settlement
has been further extended by the Settled Land Act,
1H90 (n), providing that every instrument whereby a
tenant for life, in consideration of marriage or as part
or by way of any family arrangement, not being a
security for payment of money advanced, makes an
assignment of or creates a charge upon his estate or
interest under the settlement, is to be deemed one of the
instruments creating the settlement, and not an instru-
ment vesting in any person any right as . assignee for
value within the meaning or operation of sect. 50 of the
Actof 1882(^).
Thecompound When, however, a settlement for the purposes of the
settlement. Settled Land Acts was first held to be constituted by a
series of deeds of family settlement, the question arose,
who could be the trustees of such settlement ; for any
trustees appointed by any of the deeds were only trustees
Trustees of of the family settlement made by that deed. The diffi-
settleSr''^ culty was solved by the appointment by the Coiu«t of
trustees for the purposes of the Acts of the compound
settlement (as it was called) constituted by the series of
{>/) See also He Wiinborne and
Browne's Contract, 1904, 1 Ch.
537 ; Re Fhillimore'' s Estate, 1904,
2 Ch. 460 ; Re Marshall's Settle-
ment, 1905, 2 Ch. 325.
(2) Above, pp. 1, 266.
(a) Stat. 53 & 54 Vict. c. 69,
s. 4, which is to apply and have
ettect with respect to every dis-
position before as well as after
the passing of that Act, unless
inconsistent with the nature or
terms of the disposition.
(/>) See Re Ailcsburif\s iScttled
Estates, 69 L. T. N. S. 493 ; Re
Titbits' Settled Estates, 1897,' 2
Ch. 149 ; Re Dii Cane and Nettle-
fold's Contract, 1>S98, 2 Ch. 96,
108-110. Section 50 of the Act"
is stated below, p. 321.
OF TITLE UNDER THE EXERCISE OF POWERS.
family settlements (c). It is accordingly necessary,
whenever title is made through an exercise of the
statutory power of sale by a tenant for life under such
a compound settlement, for the purchaser's counsel to
satisfy himself that tlie persons who are alleged to be
the trustees of the settlement are the duly constituted
trustees of the compound settlement {d). In regard to
this question, care must be taken to distinguish the
cases where a tenant for life purports to convey the
settled land for all the estate limited by a compound
settlement from those in which he is really selling and
conveying as tenant for life under a simple deed of
family settlement, of which trustees for tlie purposes of
the Settled Land Acts have been duly appointed.
Where a deed of family settlement in the usual form
has been executed containing powers of jointuring or
charging portions and an appointment of trustees for
the purposes of the Settled Land Acts, and these powers
have been executed by some subsequent deed or deeds,
the original deed still remains the settlement for the
purposes of the Acts, and on a sale by the tenant for
life thereunder the trustees thereof are the proper persons
to receive the purchase money {e). The original deed
also remains the settlement for the purposes of tlie Acts
and the trustees thereby appointed remain the trustees
of the settlement, notwithstanding the absolute assign-
ment over (,/') or the re-settlement of any estate limited
(f) lie AUesbxrii mul lieiKjh^ 149, which at fir.st occasioned
1893, 2 Ch. 340, ';3o8, 3o9 ; ' R, great difficulty to the profession,
Mundy and Jtopcr's Contract, 1899, must now be taken as having'
1 Ch. '27"), 298. decided no more than that it is
(rf) See Jie Speiuri\i Settled within the jurisdiction of the
Estatfx, 1903, I Ch. "5 ; Jtc Co>d/\s Court to treat a deed of settle-
Scttlrd Kxtalrn, 190."), 1 Ch. 712. ment followed by deeds exercising
()') It'' Keck and lliirt^s Contract, powers contained therein as
1898, 1 Ch. 617; Re Da Caitc and together constituting a compound
Nvltlefohrx Contract, 1898, 2 Ch. settlement and to appoint trustees
96, approved Rr Mumtij and of such compound settlement
Roper\H (hntract, 18ii9, 1 Ch. 27o, accordingly.
;J96. The earlier case of Re Tih- (/) Wheelwright v. Walker, 23
bits' Settkd Estates, 1897, 2 Ch. Ch. D. 7.')2.
mi
312 OF TITLE UNDER THE EXERCISE OF POWERS.
by the original deed in remainder after the estate of the
tenant for life (r/). Where there has been a deed of
settlement creating estates for life and in tail and
appointing trustees for the purposes of the Settled Land
Acts, and afterwards a disentailing assurance has been
executed with the conciu-rence of the tenant for life and
a re-settlement made limiting the lands to the use of
the tenant for life in restoration of his former estate or
otherwise expressing the intention that the powers given
to the trustees of the original deed of settlement shall
not be destroyed (/?), the tenant for life can exercise his
statutory power of sale as tenant for life under the
settlement made by the first deed and require the pur-
chase money to be paid to the trustees for the purposes
of the Settled Land Acts appointed by or under that
deed. And he may do this, although he subsequently
part with his old life estate, and even if his old life
estate were extinguished by the re-settlement ; since the
powers conferred by the Acts are incapable of assign-
ment or release (/). It follows that, where upon such
a re-settlement the former estate of the tenant for life
is not expressed to be restored, and the powers given by
the original settlement are not expressly preserved, the
tenant for life can nevertheless, by an exercise of his
statutory power, sell under the original settlement and
convey all the estate thereby limited, including that
dealt with by the re- settlement ; and upon such a sale
the trustees of the original settlement will be enabled to
give a good discharge for the purchase money. As we
have seen (/.•), after a settlement and re-settlement of
this kind, any person who has taken a life estate under
(g) Re Kiioivles' Settled Estates, {i) Re Wimborne an^ Broivne's
27 Ch. D. 707; Re Dn Cane and Contract, 1904, 1 Ch. 537; and
NettlefoUr s Contract, 1898, 2 Ch. &ee Re Miindy and Roper'' s Contract,
96, 101. 1899, 1 Ch. 275, 296, 297; below,
(h) See Re Wright's Trustees and pp. 318, 324.
Marshall, 28 Ch. D. 93. (/,) Above, p. 309.
OF TITLE UNDER THE EXERCISE OF POWERS. ''^1''^
the re-settlement (whether he were tenant for life under
the original settlement or not) can sell as tenant for
life under the compound settlement (consisting of the
original settlement and the re-settlement taken together)
and convey all the estate limited by and still subsisting
under such compound settlement ; but in such a case
trustees of the compound settlement must be duly
appointed to receive the purchase money (/). It has
further been considered that in such eases of a settle-
ment and re-settlement, the re-settlement alone may be
treated as the settlement for the purposes of the iSettled
Land Acts, notwithstanding that the settlement and
re-settlement may together be treated as a compound
settlement ( m) . If in such cases the tenant for life
purport to sell and convey as tenant for life under the
re-settlement alone, the purchase money can be paid to
the trustees for the purposes of the Acts appointed by
the deed of re-settlement : but the assurance made by the
tenant for life will onl}- operate to convey the settled
land discharged from the limitations of the re-settle-
ment ; and if on such a sale any estate or interest
limited by the original settlement should be still sub-
sisting, the persons entitled tliereto must concur in the
conveyance to the purchaser in order to release the
same.
As above stated, the principle governing these Principle to
decisions is that in determining whether a man is under°vXit
tenant for life under a series of instruments consti- settlement
, 1 1 i one is tenant
tutiug a so-called compound settlement, or imder what for life.
settlement he is tenant for life for the purposes of the
Settled Land Acts, the true test is not whether he is
in of his old estate or whether an intention of keeping
(/) See Jie Miindy utid lio/jer'-s {in, lie Du Caiuuud Xettlefold's
Contract, 1899, 1 Uh. 275, 294, Contract, 1898, 2 Ch. 96 ; He
296, 298; He Spenccr'a Settled Miaidi/ and Hoper'n Contract, I8dd,
Extates, 1903, 1 Ch. lb. 1 Ch. rih, 295-296.
814
OF TITLE UNDER THE EXERCISE OF POWERS.
Contract.
alive the powers annexed to any former life estate of his
has been expressed, but regard is to be had solely to the
intention of the Acts and the definitions therein con-
tained ; for the powers conferred by the Acts acquire
theii* validity, not from any antecedent act or intention
of the parties to a settlement, but from the sovereign
power of the legislature alone (>?). This principle, how-
ever, appears to have been disregarded by Farwell, J.,
Re CormcaiUs in the case of Re Corntml/i.s West and Munro's Con-
West and //NPi'ii -If
3funro\s tiYfct (o), ot whicli the material facts appear to be
these : — By virtue of a settlement made by will lands
were limited to the use of A. for life, with remainder to
the use of B. in tail male, and a jointure rentcharge
was limited to issue thereout to the use of C, A.'s wife.
A. and B., by a disentailing assurance duly enrolled,
granted the lands to X. and Y. and their heirs, to such
uses as A. and B. should jointly appoint ; and by a deed
of re-settlement A. and B., in exercise of this power,
appointed the lands to such uses as they should by deed
jointly appoint, and, in default of appointment, to the
use that B. should receive thereout a yearly rentcharge,
and subject and charged as aforesaid to the use of A.
for life in restoration of his former estate under the
will, with remainder to B. in fee ; and D. and E. were
appointed to be trustees of the deed of re-settletnent for
the purposes of the Settled Land Acts. A. afterwards
contracted to sell the lands as tenant for life selling
luider these Acts, and he proposed to make title as
tenant for life under the deed of re-settlement, the
purchase money being paid to the trustees appointed
thereby, and C, the jointress, concurring in the con-
veyance to release her jointure. The purchaser ob-
jected to the title so offered on the ground that the will
n) See lie Ailesbicn/andlrcaffh, 293 — 297.
1893, 2 Ch. 345; He Mimdi/ and (o) 1903, 2 Ch. 150; 72 L. J.
lioper's Contract, 1899, 1 Ch. 276, Ch. 499.
OF TITLE UNDER THE EXERCISE OF POWERS, 315
and the re-settlement constituted a " compound settle-
ment," and that, without the appointment by the Court
of trustees of such compound settlement, a good dis-
charge for the purchase money could not he given.
Farwell, J., upheld this objection on the ground that
A.'s old life estate under the will had been restored to
him, and so the only settlement under which A. could
exercise his statutory power of sale was either the
compound settlement created by the will and the deed
of re-settlement together, or else the original settlement
created by the will {/>). In so deciding the learned
judge professed to follow the case of Re Jliuidy and
Roper^s Contract (q) ; but it is respectfully submitted
that his decision is exactly opposed to the principles
governing the judgment in that case and is manifestly
wrong {>•).
It appears, then, that in the common case of a settle- The courses
ment of lands on one for life with remainder in tail teiiant*^for
followed by a disentailing assurance and a re-settlement ^i^^ after a
again limiting a life estate in the lands to the original
(p) See the explanation given tlemeut given in Davidson, Pree.
in Be Wimhorne and fiiuwncx Cuit- Conv. iii. 1030, 10:Tj> i iir • i. 1 incident to his
tenant tor iiie are not capable ot assignment or release, ownership.
and do not pass to a person as being, by operation of law
or otherwise, an assignee of a tenant for life, and remain
exercisable by the tenant for life after and notwith-
standing any assignment, by operation of law or other-
wise, of his estate or interest under the settlement ; also
that a contract by a tenant for life not to exercise any of
his powers under the Act is void (f) . But these provisions Rights of an
are to operate without prejudice to the rights of any value of the
person being an assignee for value of the estate or ^^*® estate,
interest of the tenant for life ; and in that case the
(«) See Wheelictit/ht v. Walker, (p) Above, p. HOT.
23 Ch. D. 752: above, p. 311 ; [q) See above, p. 318.
Re Dickin and KehalVs Contract, (»•) Above, p. 318; Wms. Real
1908, I Ch. 213, 218. Prop. 118, 2Isted.
(o) Stirling, J., if*- />« Cane and («) Stat. 45 & 46 Vict. c. 38.
Nettlefold'x Contract, 1898, 2 Ch. s. 50, sub-s. 1.
96, 108; Be Mundi/ and Roper's [t) Sect. 50, sub-s. 2.
Contract, 1899, 1 Ch. 275, 290.
w. 21
322 OF TITLE UNDER THE EXERCISE OF POWERS.
assignee's rights are not to be affected without his
consent, except that, unless the assignee is actually in
possession of the i^ettlpd land or part thereof, his consent
shall not be necessary for the making of leases thereof
by the tenant for life, provided the leases are made at
the best rent that can reasonably be obtained, without
fine, and in other respects are in conformity with this
Act {21). In this enactment "assignment" includes
assignment by way of mortgage, and any partial or
qualified assignment, and any charge or incumbrance,
and " assignee '' has a meaning corresponding with that
Morto-a,?es by of assignment (.r). It is clear from this enactment that,
Mfe^of his"^ where a tenant for life has mortgaged his life estate, he
life estate. cannot make a valid title on a sale of the settled land
under the (Settled Land Acts without the consent of
every such mortgagee (//). But as we have seen, it
has been held that, if the tenant for life obtain the
consent of every mortgagee of his life estate to his sale
of the settled land under the Settled Land Acts, he can
convey the land discharged from such mortgages and
the purchaser cannot require the mortgagees to concur
in the conveyance to him iz). It is thought, however,
that the purchaser is entitled to require that the consent
of every- such mortgagee to the sale shall be absolute
and not revocable, and shall be manifested as such by
some writing signed by him or his authorised agent,
and duly stamped as an agreement {a) ; for the giving
of such consent appears to be of the nature of a contract
respecting an interest in land and so to be governed by
the fourth section of the Statute of Frauds {b). It is a
iu) Sect. 50, sub-s. 3. v. Curzon-Hoive, 40 Ch. D. 338,
{J) Sect. 50, sub-s. 4, by which 340, 341 ; S. C, 41 Ch. D. 375.
sect. 50 is also extended to as- (z) Re Dickin and KelmWs
signments made or coming into Contract, 1908, 1 Ch. 213 ; above,
operation and to acts done before p. 319.
or after the commencement of the (a) See above, p. 28, n. [e).
Act. (*) Stat. 29 Car. II. c. 3;
(?/) Re Sehfight^s Settled Eitntes, above, p. 3. The element of cou-
33 Ch. D. 429, 437, 438 ; Cardiyan sideration appears to be present
OF TITLE UNDER THE EXERCISE OF POWERS. 323
question whether a lease granted by the tenant for life Lease granted
in exercise of the right of alienation incident to his y^^ at com-"
ownership is a partial or qualified assignment within ™o° 1^^'-
the meaning of the above enactment : but until it is
decided not to be, a purchaser from the tenant for life
should require him to obtain the consent of such a lessee
to the sale. The effect of the above-quoted provisions
is exactly the same as regards absolute assignments as Absolute
in the case of mortgages of the life estate, the consent for value of
only of an absolute assignee for value of the life estate *^^ ^^^
, ° , . tenant s
(and not his concurrence in the conveyance) being estate,
necessary to enable the tenant for life to convey the
settled land discharged from the assignee's estate (d).
It must not be forgotten, however, that all assignments Assignments
of the life estate made (whether absolutely or by way of estate in con-
charge) in consideration of marriage or as part or by sideration of
iTiRmft^^G or
way of any family aiTangement are by the Settled by way of
Land Act, 1890 (e), excepted from the operation of arrangement
sect. 50 of the Act of 1882 ; and the tenant for life is
enabled, by the exercise of his power of sale and con-
veyance under this Act, to convey the settled land
discharged from the estate or interest of any person
entitled under an assignment of this kind. Thus where Settlement
there has been a settlement followed by a re-settlement g°ttlement
limiting a life estate to the same person who was tenant limiting rent-
for life under the original settlement (whether in restora- priority to
tion of his former life estate or not), and he desires tt>e original
. life estate.
to sell under the Settled Land Acts as tenant for life
under the original settlement (/*), he need not obtain
the consent of any person to whom he has by the
re-settlemeut either in consideration of marriage or by
way of some family arrangement made an assignment
in gi^ang such consent ; as it is (rf) Above, pp. 318 — 322.
accorded ou the terms of the [i-) Stat. 53 & 54 Vict. c. (ill,
mortgugoe's charge being trans- s. 4 ; above, p. 310.
ferred to the veudor's interest in (/) See above, pp. 307 — 317.
the purchase money.
21(2)
324 OF TITLE UNDER THE EXERCISE OF POWERS.
of or charged liis former life estate. For instance, if
the re-settlement provide that in consideration of the
marriage of his eldest son (being the tenant in tail) or
by way of family arrangement, the son or the son's
intended wife shall have a rentcharge or rentcharges to
take effect during the father's lifetime in priority to his
life estate, it will not be necessary for any person
entitled to such a rentcharge to consent to the sale.
And every such rentcharge will be displaced by the
life-tenant's sale and conveyance in exercise of his
statutory powers as tenant for life under the original
settlement ; the purchase money can safely be paid to
the trustees for the purposes of the Settled Land Acts
under the original settlement ; and trustees of the
G-ratuitous compound settlement need not be apj)ointed {g). It
thr^restate. appears too that, where the tenant for life has made a
gratuitous assignment of his life estate, he can never-
theless sell and convey the settled land freed from the
Release of the assignee's estate, without his consent {h). It has been
held that if a tenant for life assign or release an
undivided share of the land he holds to the remainder-
man, so as to effect a merger of the life estate therein,
he nevertheless retains his statutory power of sale over
the whole of the land {i). And the tenant for life
equally retains his powers under the Settled Land Acts
where he has released his life estate to some remainder-
man entitled for life or in tail (whether under the
original settlement or some re-settlement) so that the
land still continues to be subject to a settlement, or (as
[g) See above, p. 310, aud cases Vict. c. 38, s. 2 (5); see Re
cited in n. [b). Mundy and Roper'' s Contract, 1899,
{h) This seems to be the case, 1 Ch. 275, 296, 297 ; Re Barlow's
notwithstanding that by such an Contract, 1903, 1 Ch. 382, 384 (in
assignment the tenant for life has which case it is presumed that
parted vrith the possession or the release was made for value) ;
receipt of the rents and profits of Re TFinihorne and Browne'' s Con-
the settled land, and has so ceased tract, 190-J. 1 Ch. 537, 541, 642.
to come within the definition of a (i) Re Barlow's Contract, 1903,
tenant for life in stat. 45 & 46 1 Ch. 382.
OF TITLE UNDER THE EXERCISE OF POWERS. 325
it appears) where he has released his life estate to a
remainderman in fee simple, but some rentcharge or
charge of portions remains subsisting under the original
settlement (/«•) . But where no interest or charge remains
subsisting or exercisable under the original settlement,
it is a question whether the tenant for life would retain
his statutory powers after the release by him to a
remainderman in fee simple of his life estate in the
whole of the settled land, for then the settlement would
be brought to an end (/).
Another effect of sect. 50 of the Settled Land Act, Bankruptcy
1882 (m), is that on the bankruptcy of a tenant for life foi.*i^e.°*
his statutory powers do not pass to his trustee in bank-
ruptcy but remain exercisable by him ; and it is thought
that the trustee cannot be said to be an assignee for
value of the bankrupt's estate. It is also submitted
that a purchaser from the trustee of the bankrupt's
life estate is not " an assignee for value of the estate or
interest of the tenant for life " within the meaning of
sub-sect. 3 of this enactment (ii), which seems to be
intended to save only the rights of an assignee for
value who has obtained the life estate by the direct
assurance of the tenant for life himself (o) . Where a -^^ct of bank-
contract for the sale of the settled land has been signed tenant for
by the tenant for life, the subsequent commission by !^® ^^'.®'" ^^^®'
him of an act of bankruptcy, whether followed or not completion.
by an adjudication of bankruptcy, can be no bar to his
effectual completion of the sale under the powers of the
Settled Land Acts, and the purchaser need not require
(k) Re Wimborne and Broione's [m) Above, p. ill.
Contract, 1904, 1 Ch. 537 ; see (n) Above, p. 321.
above, p. 3J4 : llr P/iilliinore's (o) If this were not so, then
Estate, 1904, 2 Ch. 400; Jte May- the rights of a purchaser for
shalVs Settktnent, 1905, 2 Ch. value from a srratuitous assignee
325. of the life-tonant's estate could
(/) See Re Mundu and R^er's nut bo affected without his con-
Contract, 1899, 1 iCh. 275, 296, sent. But it is submitted that
297. this is not the law.
326 OF TITLE UNDER THE EXERCISE OF POWERS.
the consent or concurrence of the trustee in the bank-
ruptcy or of any assignee from him of the bankrupt's
life estate. For the trustee and any purchaser from him
of the life estate would take the vendor's property
subject to all equities affecting it, and to the right of
the purchaser from the tenant for life to have his con-
tract specifically performed, and the purchase money is
payable, not to the trustee in the bankruptcy, but to
the trustees for the purposes of the Acts or into
Sale under the Court ( p) . And if a tenant for life, who has already
Settled Land y\ , o ^ , , , i- ■,• . n
Acts by a committed an act oi bankruptcy or been adjudicated
bankrupt bankrupt, afterwards sell the settled land under the
tenant tor ^ '
life. Settled Land Acts, there appears to be no doubt that
he can well complete the sale in exercise of the power
of conveyance given by the Acts, if the life estate has
not then been sold by the trustee in the bankruptcy.
Until it is established by decision that the power of the
tenant for life to sell and convey is altogether paramount
to the rights of his trustee in bankruptcy and any
purchaser of the life estate from the trustee, it appears
advisable for a purchaser of the settled land from a
tenant for life, who has committed an act of bankruptcy
or been adjudicated bankrupt, to ascertain, before paying
his purchase money, either that no bankruptcy proceed-
ings have been taken or no adjudication made (in either of
which cases the vendor would clearly have full power to
convey), or that no sale of the life estate has been made
by the trustee. And if the trustee should have sold the
life estate, it is thought that the purchaser from the
tenant for life should require to be satisfied, before
paying his purchase money, that the purchaser of the
life estate does not claim to be entitled to keep hold
of the settled land while the life estate endm'es but will
peaceably yield up possession to him on completion (r/).
(p) See and compare below, {q) It is thought that if the
Chap. XI., § 2. trustee in banki-uptcy or the pur-
OF TITLE UNDER THE EXERCISE OF POWERS. ^'-"^
Where a debtor's life estate is vested in a trustee under Trustee
... ^ p L 1 -L takinar the
a composition or sciieme oi arrangement approved by jjfg estate
the Court in bankruptcy proceedings prior to any adju- under a
dication of bankruptcy (r) , it is thought that the trustee or scheme of
is an assignee for value taking the life estate directly ^i^^ank^^ te
from the tenant for life ; for the trustee acquires the proceedings,
life estate, not by mere operation of law, but by the
debtor's own act and agreement under a contract
sanctioned by the Court and in consideration of the
creditors relinquishing their right to proceed to an
adjudication of bankruptcy. The trustee appears in
fact to be in the same position as a trustee under a deed
of assignment of the life-tenant's estate executed for the
benefit of his creditors without any bankruptcy proceed-
ings having been taken. And it is thought that in
either of these cases the trustee's rights cannot without
his consent be afPected by a sale subsequently made by
the tenant for life of the settled land.
As the tenant for life is only empowered to convey Purchaser
the settled laud for the estate or interest which is the sub- ^^'"^",'.1®°?°*^, ,
lor life should
ject of the settlement, and with the exceptions above men- require evi-
tioned (s), and cannot displace the rights of his assignees non-existen^ce
for value without their consent (0, it is of the highest of estates, &c.
importance for a purchaser from a tenant for life selling latter cannot
under the Settled Land Acts to ascertain, first, that the ''""^^y-
estate or interest which is the subject of the settlement
is the whole fee simple or other estate contracted to be
sold; and, secondly, that there is not any subsisting
estate, interest, or cliarge, in or upon the lauds sold
which will not pass under the vendor's statutory con-
chaser of the life estate should so n. (c), 217, 2l8t ed.
yield up possession to the pur- (?•) See stat. 53 & 54 "Vict,
chaser from the tenant for life, c. 71, s. 3 (ifi, 17); see Wms.
that would bo equivalent to a Pers Prop. 252, 253, 16th ed.
surrender by operation of law of (,v) Above, pp. 307, 317—327.
the life estate in the settled land ; \t) Above, p. 322.
see Wms. Real. Prop. 100, and
3'^8 OF TITLE UNDER THE EXERCISE OF POWERS.
veyance. With regard to the first of these requirements,
the purchaser's counsel must ascertain from the abstract
whether the settlor were seised of or otherwise well
entitled to the whole estate in fee simple or other interest
sold. And if this were the case, the tenant for life under
the settlement can well convey the same estate or interest
by an exercise of his statutory power of sale, even
though the settlor did not dispose of his whole interest
by the settlement. For the Settled Land Act, 1882 {it),
provides that an estate or interest in remainder or rever-
sion not disposed of by a settlement, and reverting to
the settlor or descending to the testator's heir, is, for
the purposes of the Act, an estate or interest coming to
the settlor or heir under or by vii'tue of the settlement,
and comprised in the subject of the settlement. In
order to ascertain whether there are any estates or
interests coming within the exceptions out of a tenant-
for-life's statutory power of conveyance, a purchaser
from him should inquire, first, whether there are still
subsisting in or upon the lands sold any estates,
interests, or charges having priority to the settlement ;
secondly, whether any estates, interests, or charges in or
upon the lands sold have been conveyed or created for
securing money actuallj^ raised ; thirdly, whether any
such leases or grants as are mentioned in the third
exception (;r) have been made of the lands sold or any
part thereof or any interest therein ; and, fourthly,
whether the tenant for life has made any assignment
for value, whether absolute, partial, qualified or by way
of charge, of his life estate. As the conveyance or
creation of such an estate, interest, or charge, or the
making of such a lease or grant, or such au assignment
of the life estate, is an event which, if it took place,
must necessarily have affected the title, it appears that
(m) Stat. 45 & 46 Vict. c. 38, Contract, 1907, 1 Ch. 46.
s. 2 (2) ; Re Hunter and HewUifs {x) Above, pp. 307, 321.
OF TITLE UNDER THE EXERCISE OF POWERS. 329
the purchaser is entitled not only to insist upon an
answer to this inquiry, but also to require evidence that
no such event has occurred (//). But if the abstract be
satisfactory, sufficient evidence may be afforded as to
the subjects of this inquiry by a statutory declaration
by the vendor that he has not made and does not know
of any such estate, interest, charge, lease, or grant, and
by solicitors, who have acted for the vendor and his
predecessors, that they know of none, coupled with the
facts of possession of the lands sold having gone and
the custody of the title deeds being in accordance with
the abstracted title (s) . It is submitted tha,t the making
of these inquiries and the requisition of this evidence is
not prohibited by the rule in the case of Ro Ford and
Hill discussed above {a) . Sect. 20 of the Settled Land
Act, 1S82, does not confer on the tenant for life selling
under that Act a general or an unlimited power of con-
veyance, but only gives him a limited power, subject to
certain exceptions {b). It is thought, therefore, that
the onu>i lies on him of proving that these exceptions
have no application in his own particular case, and that
he is bound to answer the above-mentioned inquiries as
far as his knowledge is concerned. The practice, more- Practice as to
over, on sales under the Settled Laud Acts is to abstract \^ settlcmeut
the limitations of the settlement down to the estate or on sales under
interest, in virtue of which the vendor claims to have Land Acts,
the statutory power of sale, but not further ; and it is
obvious that such an abstract is by no means conclusive
of the vendor's ability to confer a good title. The pur-
chaser is entitled to be satisfied that the vendor has not
assigned, mortgaged or charged his life estate in any
way, and that no charge or power of charging given by
the settlement has been actually put in use or exercised
(y) Above, pp. 132—134. p. 178.
(z) See above, pp. 132 — 134. (A) See above, pp. 306, 3(17
(a) 10 Ch. D. 365 ; above. 317 sq.
330
OF TITLE UNDER THE EXERCISE OF POWERS.
The second
and third
exceptions
relate to
interests
created before
the date of
conveyance,
not of the
contract
for sale.
by raising money, and that no lease or grant of the
land sold has heen made under any statutory or express
power ; for if any one of these events has occurred, the
vendor cannot make title by himself alone (c) . And the
usual abstract standing by itself affords no information
on these points. For instance, a term on trust to raise
portions for younger children is generally limited in
remainder after their parent's life estate {d) ; and a
portion is sometimes raised thereunder in the father's
lifetime, and he joins in the mortgage to secure, either
by his covenant or by a charge on his life estate, the
interest on the amount advanced (e) . In such a case the
father could not sell under the Settled Land Acts without
the concurrence of the mortgagees in the conveyance to
the purchaser. Their consent alone would not suffice
to assure their legal estate under their mortgage of the
portions term. Here it should be noted that the second
and third exceptions above mentioned from the life-
tenant's power of conveyance prevent him from con-
veying the settled land, on a sale under the Settled
Land Acts, discharged from any estates or interests
falling within the terms of those exceptions and con-
veyed or created after the contract for sale but before the
date of the deed of conveyance (./'). Thus where since
the contract but before the conveyance some estate,
interest or charge has been conveyed or created under
some trust or power for the purpose contained in the
settlement (g) for securing money then actually raised,
or some lease or grant has been made, or even agreed
to be made, for value under some express or statutory
power (A), the tenant for life cannot convey the settled
land free from the estates or interests so arising, unless
(c) See above, pp. 164 — 168,
318 sq.
(d) Davidson, Prec. Conv.
vol. iii. 272, 3rd ed. ; Williams
on Settlements, 219.
(e) See Davidson, Prec. Conv.
vol. ii. part ii. 460 — 467, and
notes, 4th ed.
(/) Above, pp. 306, 307, 317.
(ff) Above, pp. 318, 320, 321.
(h) See above, pp. 307, 321.
OF TITLE UNDER THE EXERCISE OF POWERS. 331
the persons entitled thereunder concur in the conveyance
to the purchaser and assure the same to him. It follows
that the above-mentioned inquiries with respect to the
second and third exceptions (?) ought to he repeated by
the purchaser and an answer obtained immediately
before the execution of the deed of conveyance.
But it is thought that this extra precaution is not
required with regard to mortgages or other assign-
ments for value made by the tenant for life of his
own life estate under the settlement. It is now decided
that any estates or interests conveyed or created by such
mortgages do not fall within the second exception above
referred to, and the tenant for life has power to sell and
convey the settled land freed from any estate arising
under his own assignment (whether absolute or by way
of charge) of his life estate, provided only that he obtain
the consent of every assignee for value (k). Where a
tenant for life has made no assignment of his life estate,
either absolutely or by way of charge, at the time of
entering into a contract for the sale of the settled land
under the Settled Land Acts, it appears that by making
such a contract he exercises a statutory power which is
paramount, not only in equity but at law, to the rights
of any subsequent assignee of liis own life estate. And
it is thought that the purchaser's claim to have the con-
tract duly completed by conveyance has priority, not
only in equity but at law, over the rights of any subse-
quent mortgagee or assignee for value of the life
tenant's estate, even though the mortgagee or assignee
should have obtained a legal estate without notice of the
contract for sale (/).
(i) Above, p. 328. every such contract shall be eu-
(k) Above, pp. 318, 319. foreeable against every successor
(/) The Settled Land Act, in title for the time being of the
1882, gives to tenants for life tenant for life; stat. 4.') & 46
express power to sell the settled Vict. c. 38, ss. 3, 31 (1, 2). A
land, and to contract to make sale of laud is made when a bind-
any such sale, and enacts tliat ing contract for sale is entered
332
OF TITLE UNDER THE EXERCISE OF POWERS.
As to seeing Witli regard to the general necessity for a purchaser
for life selling from a tenant for life selling under the Settled Land
has not com
mitted any
breach of
his duty as
trustee.
Acts to see that the terms of the sale involve no breach
of duty on the vendor's part [m) : — The tenant for life
is bound, as a rule, to sell for money, as other persons
are on whom a power of sale has been conferred {)>) ;
and he cannot sell at a price to be fixed by arbitra-
tion (o). Sales under these Acts are also required
to be made at the best price that can be reason-
ably obtained (p) ; and the tenant for life, in exercis-
ing any power under the Acts, is required to have
regard to the interests of all parties entitled under
the settlement, and is in the position and has the
duties and liabilities of a trustee for those parties (q).
But it is enacted that, on a sale under the powers
given by the Acts, a purchaser dealing in good faith
with a tenant for life shall, as against all parties entitled
under the settlement, be conclusively taken to have
given the best price that could reasonably be obtained
itjto ; see Shaw v. Foster, L. R. 5
H. L. 321, 333, 338, 349, 356 ;
Lymght v. Edwards, 2 Ch. D. 499;
below, Chap. XI. § 1. And
rights given by statute must be
recognised and enforced by all
Courts, whether of legal or equit-
able jurisdiction, even though
they may confer or create in-
terests unknown or foreign to the
previous law ; see Lord Advocate
V. Jl/orai/, 1905, A. C. 531.
{»/) Above, p. 301.
(w) See above, p. 267. For ex-
ceptions see stats. 45 & 46 Vict.
c. 38, 8S. 10, 16 ; 53 & 54 Vict,
c. 69, s. 9 ; Housing of the Work-
ing Classes Act, 1890 (stat. 53 &
54 Vict. c. 70), s. 74.
(o) Jie Wilton'' s Settled Estates,
1907, 1 Ch. 50, 55, in which rase,
however, a private Act of Parlia-
ment had been obtained confirm-
ing a contract by a tenant for life
to sell at a valuation, and it was
held that by virtue of the private
Act the sale was made valid and
binding on all parties interested.
See above, p. 270.
{p) Stat. 45 & 46 Vict. c. 38,
s. 4 (1)^.
[q) Sect. 53. As to the duties
of trustees for sale, see above,
pp. 263 sq. As the purchase
money may, at the direction of
the tenant for life, be invested in
real securities, he niay well agree,
on exercising his statutory power
of sale, to leave a proper proportion
of the piu-chase money on mort-
gage; see above, p. 367, and n. (e):
but in such case the trustees of
the settlement are not bound to
make the investment at the direc-
tion of the tenant for life, unltss
they are satisfied that that direc-
tion has been given upon a
proper investigation of the title
and a proper report as to the
value of the proposed security :
Ee Hotham, 1902, 2 Ch. 575.
OF TITLE UNDER THE EXERCISE OF POWERS. 333
by the tenant for life, and to have complied witli all
the requisitions of the Acts {>•). And this enactment
has been held to protect the title of a purchaser, against
whom no evidence of want of good faith could be pro-
duced, but who had immediately resold at a large
increase in price (-s). This provision, however, does
not protect a purchaser who has notice of some im-
proper dealing on the part of the tenant for life. Thus,
if the terms of the proposed sale reserve any ad-
vantage to the tenant for life personally to the
detriment of the remaindermen, the statutory power
will not be well exercised, and the vendor's conveyance
will be void as an assurance under the Settled Land
Acts (t). For example, the payment of a commission
to the tenant for life would certainly invalidate the
sale (it) ; so would a stipulation that the purchaser shall
grant to the vendor a lease for years of the lands sold
or any part thereof, as the benefit of such a lease would
form part of the vendor's own estate, and would go on
his death to his executors or administrators, and not to
the persons entitled under the settlement. A stipula- stipulation
tion in a contract for sale by a tenant for life under the ^^^^ the pur-
•^ chaser shall
Settled Land Acts that the purchaser shall pay all the pay the
vendor's costs and expenses of and incident to the sale, of 'the'^sale^^ *
would not appear, as a rule, to avoid the contract ; for
the vendor's general costs of the sale are not payable
out of his own pocket, but are properly discharged out
of the purchase money or otherwise out of tlie capital
of the settled property (x) . But the case is different
if the purchaser agree to pay any costs which ought
(>•) Sect. 51, also extending, in 1893, 3 Ch. 169 ; Chandler v.
favour of a person dealiug in Bradley, 1897, 1 Ch. 315 ; Re
good faith witli the tenant for Handwun and Wilcox^s Contract,
life, to the ease of an exchange, 1902, 1 Ch. 599.
purtitiou, lease, moi'tgage or {u) Chandlery. Bradley, nh\sm^.
charge. {x) See Re Smith's Settled
(«) Uurrcll V. Littkjohn, 1904, Estates, 1891, 3 Ch. 65; Smithy.
1 Ch. 689. Lancaster, 1894, 3 Ch. 439.
{J) See Sutherland \. Sutherland,
334 OF TITLE UNDER THE EXERCISE OF POWERS.
properly to be borne by the vendor himself, such as the
costs of obtaining the concurrence of mortgagees of the
vendor's life estate {y). In this case the tenant for
life would be stipulating for an advantage to him-
self at the expense of the remainderman, as the pur-
chase money is obviously decreased by the amount of
costs payable by the vendor personally which the pur-
chaser contracts to discharge ; and the sale would
appear to be void. As we have seen (s), where the
purchaser has notice of some non-compliance with the
conditions of the Acts other tban those which forbid
the tenant for life to profit at the remainderman's
expense, it does not appear that he can rely on the
protection given by the enactment last quoted. It
should be noted that this enactment only gives relief
to a purchaser or other person dealing with the tenant
for life, and does not validate, in favour of a subsequent
purchaser, an infirm title acquired from the tenant for
life by a piu-chaser or lessee, who had notice of some
fact, which made void the attempted exercise of the
statutory power (a). And further, it appears that if,
on a purported exercise by a tenant for life of some
power given to him by the Settled Land Acts, he
do not comply in all respects with the conditions
prescribed by the Acts, any conveyance thereby made
is altogether void and not merely voidable, and does not
pass the legal estate in the land [b) ; save only when
the purchaser, lessee or other person dealing in good
[y] See Cardigan v. Curzon- question whether a lease granted
Howe, 41 Ch. I). 375 ; Re Sir under the Acts by a tenant for
Robert PeeVs Settled Estates, 1910, life to one who knew that the best
1 Ch. 389. rent was not reserved was void or
[z) Above, p. 302. voidable: but it is submitted that
(a) Re Handnian and Wilcox^s this view was mistaken, the rule
Contract, 1902, 1 Ch. 599. as to the execution of statutory
(A) See Chitty, J., Cardigan v. as well as express powers being
CMrswz-jHoMY, 30 Ch. D. 531, 540 ; that, in default of compliance
Re Norton and Las Co'^aa^ Contract, with the terms of a power, any
1'j09, 2 Ch. 69. In Re Handman purported exercise thereof is void ;
and Wilcox's Contract, 1902, 1 Ch. see above, pp. 293, 299.
599, it was treated as an open
OF TITLE UNDER THE EXERCISE OF POWERS. 335
faith with the tenant for life is assisted by the enact-
ment under discussion.
Where the title depends on the exercise by a mort- Title depend-
gagee of a power of sale contained or implied in the exercise of a
mortgage deed, the piu-chaser's counsel must satisfy mortgagee's
himself that the power of sale has become so exercisable
that a purchaser thereunder will obtain the estate
assured free from all equity of redemption or right to
set aside the sale. Under the conveyancing practice
prior to the year 1882, when powers of sale were usually
conferred by the express terms of mortgage deeds, the
common form was first to give the mortgagee a general
authority to sell at any time after the payment of the
principal money secured had become due (c), and then
to provide, particularly, that the power of sale should
not be executed unless and until default should have
been made in payment of the money secured at the
appointed time, and the mortgagee should have given
notice to pay off, and default should have been made in
payment for a specified time (d) after such notice, or
unless or until some interest should have fallen into
arrear for a given period (r). But in every well-drawn
mortgage deed an elaborate clause was inserted ex-
onerating a purchaser from the necessity of seeing or
inquiring whether any of the particular cases had arisen
in whicli a sale was authorised, and protecting him
against any impropriety or irregularity in the sale (./").
((-•) Usually six months after the particular cases has happened,
the date of the mortgage. in which a sale is authorised, 07-
(d) Usually six months. ivhclhtr defmiH hax been made in
(<■) Usually three months. payment of ami pruwipal or interest
(/) Davidson, Proc. Couv. vol. xecured />;/ tlie mortijat/e deed at the
ii. pt. ii. 6G kq., 79, ^508 — 310, time appointed for payment thereof ,
4th ed. The form there given or tvhether any money remains on
provides that, upon any cale pur- the security of the mortyaye deed, or
porting to bo made in pursuance as to the necessity or expediency
of the mortgagee's power of sale, of the stipulations subject to
the purchaser shall not bo bound which the sale shall have been
to see or inquire whether any of made, or otherwise as to the pro-
336
OF TITLE UNDER THE EXERCISE OF POWERS.
On a sale by a mortgagee under an express power of
sale containing a clause for the purchaser's protection
in the common form, the purchaser should, of course,
abstain from making requisitions as to any matter on
which he is exonerated from the duty of inquiry ; for if
through his own inquiries or otherwise he obtain notice
of some irregularity in the sale, he must have regard
thereto, and will no longer be protected {g). He must
see, however, that sufficient time has elapsed since the
date of the mortgage deed for the power of sale to
become properly exercisable (A) ; but if this appear to
be the case, he need make no further inquiry (i). If a
power of sale expressly given by a mortgage deed
priety or regularity of the sale ;
and that, notwithstanding any
impropriety or irregularity what-
soever in the sale, the same shall,
as regards the safety and protec-
tion of the purchaser, be deemed
to be within the power and be
valid and effectual accordingly,
and the remedy of the mortgagor
in respect of any breach of the
provisions of the mortgage deed
conferriug the power of sale or
any imprupiiety or irregularity
whatsoever in the sale shall be in
damages only. Where a mort-
gage deed contained a similar
clause, omitting the w^ords in
italics, it was held that a pur-
chaser buying in good faith on a
sale purporting to be made in
exercise of the mortgagee's power
of sale was not bound to inquire
whether any money remained
owing upon the security of the
mortgage deed, and would be
protected if the money secured
had been paid off at the time of
the sale ; Bicker v. Angerstein, 3
Ch. D. 600.
{g) Parkinson v. Hanbury, 1 Dr.
& Sm. 143 ; Selwtpi v. Garjit, 38
Ch. D. 273.
[h) Selwyn v. Garfit, 38 Ch. D.
273, where mortgage money was
made payable and a power of
sale given six months after the
date of the mortgage deed; but it
was provided that the mortgagee
should not execute the power of
sale unless and until default
should have been made in pay-
ment at the time appointed of
some principal money or interest
secured, and the mortgagee should
have given notice to pay off, (otd
default should have been made in
payment for three months after
such notice ; and it was held that
a purchaser from the mortgagee
purporting to exercise his power
of sale seven mouths after the
date of the mortgage deed had
notice ipso facto that the sale was
irregular ; for the power could
not possibly have become exer-
cisable until three months had
expired after the mortgage money
had become payable, that is, uutil
nine months after the date of the
mortgage deed. The sale was
therefore set aside on the mort-
gagor's application, the Court
being of opinion that the pur-
chaser was not relieved by a clause
for his protection in commonf orm,
even though it exonerated him
from the necessity of inquiring
whether default had been made
in payment of the money secured
at the time appointed.
(i) See note (/), above.
OF TITLE UNDER THE EXERCISE OF POWERS.
33;
contain no clause for the purchaser's protection, he
must ascertain not only that the event has occurred in «.
which the power was made exercisable, but also that
the mortgag-e is still subsisting: U')- The power of sale Title under
incorporated by the Conveyancing Act of 1881 in pg^gj. of saie.
mortgage deeds made after that year (/), and since
generally relied on in practice, gives to the mortgagee
a power of sale when the mortgage money has become
due, but provides (m) that he shall not exercise such
power unless and until (I) notice requiring pavment of
the mortgage money has been served on the mortgagor,
or on one of several mortgagors, and default has been
made in payment of the mortgage money or of part
thereof for three months after such service (») ; or (2) some
interest under the mortgage is in arrear and unpaid for
two months after becoming due ; or (3) there has been
a breach of some provision contained in the mortgage
deed or in this Act, and on the part of the mortgagor
or of some person concurring in making the mortgage
to be observed or performed, other than and besides a
covenant for payment of the mortgage money or interest
thereon. This follows the old conveyancing form,
except that the power is made exercisable at an earlier
period {0) ; but tlie clause for the purchaser's protection
contained in the Act ( p) is not the same as that usually
(k) lie Edtvards to Green, 58 the expiration of the three
L. T. N. S. 789. months after the date of the
{!) Stat. 44 & 45 Vict. c. 41, notice.
88. 1, 19. (o) Above, p. 335.
(;h) Sect. 20. (;;) Sect. 21 (2), providing that
(w) See Barker v. Iliuigworth, where a conveyance is made in
1908, 2 Ch. 20, deciding that, professed exercise of the power of
where a notice had been served sale conferred by this Act the
requiring payment of the prin- title of the purchaser shall not be
cipal money secured at the ex- impeachable on the ground that
piratiou of three calendar months no case had arisen to authorise
from the date of the notice and the sale, or that due notice was
warning that in default nf such not given, or that the power was
papiient the mortgaget; would otherwise improperly or irrogu-
proceed to sell, the nu)rtgagee larly exercised ; but any person
was entitle), It Sale after
appears too that a mortgagee may well exercise his absolute^^
power of sale after he has obtained an order for fore-
closure absolute (c) ; and his right to exercise this power Sale pending
is not affected by the mere commencement of proceed- redTtn'j^tion"'^
ings either by himself to obtain foreclosure, or by the proceedings.
mortgagor for redemption {d) . But when the mortgagee
has obtained an order for foreclosure ni.si, giving tlie
mortgagor the usual time within which to redeem, or
the mortgagor has obtained the common order for
redemption {e), the mortgagee may not exercise his
power of sale without leave of the Court, so long as the
(a) Bailey \. Barnes, 1894, 1 Ch. 1903, 1 Ch. 857, 862, 863.
25. (rf) AdaniH v. Scott, 7 W. R.
(b) See Locking v.I'arker, Li. "R. 213; S/treiis v. Theatres, Ltd.,
8 Ch. 30; Re Alison, 11 Ch. D. 1903, 1 Ch. 857, 861.
284, 290, 295. I'r) See 3 Seton on Judirnient»,
(c) See Stevens v.Thcutrcs, Ltd., 1895, 1926, Gth ed.
344
OF TITLE UNDER THE EXERCISE OF POWERS.
right of redemption so reserved to the mortgagor remains
open. The power is, however, not destroyed but merely
suspended during this period, and if the mortgagee do
exercise it within that time in favour of a purchaser
taking without notice of the order, it appears that the
latter will get a good title (/) . But if the purchaser
have express notice of any foreclosure or redemption
proceedings or any such proceedings be registered as a
Ik pein/oin, the purchaser will be bound by them and
must see that no order suspending in effect the exercise
of the mortgagee's power of sale has been made or is
still subsisting (g) .
Sale by the
mortgagee's
attorney.
He Doivson
and Jenkins's
Contract.
A mortgagee entitled to exercise the statutory power
of sale (//) may well do so by attorney : but any power
of attorney given for this purpose must expressly confer
either a general authority to sell all property vested in the
principal by way of mortgage or a special authority to
exercise the mortgagee's power of sale in respect of some
particular mortgaged property (?') . A power to sell any
real or personal property belonging to the principal is
not sufficient to authorise the attorney to sell property,
of which the principal is only a mortgagee entitled to
exercise the statutory power of sale (/.•). And though
such a power of attorney authorise the attorney to
receive and give receipts and discharges for all moneys
due to the principal, that does not constitute the attorney
" a person for the time being entitled to receive and
give a discharge for the mortgage money " within the
meaning of sect. 21, sub-sect. 4 of the Conveyancing Act
of 1881 (/), and so enable him to exercise a mortgagee's
(/) Stevens v. Theatres, Ltd.,
1903, 1 Ch. 857.
(g) See below. Chap. XII., § 2.
[h) Above, p. 337.
(i) C. A., Re Doivson and Jen-
kins's Contract, 1904, 2 Ch. 219,
224, 225.
(k) Re Dowson and Jenkinses
Contract, 1904, 2 Ch. 219.
{/) Stat. 44 & 45 Vict. c. 41,
authorising any person so entitled
to exercise the power of sale con-
ferred on mortgagees by that
Act.
OF TITLE UNDER THE EXERCISE OF POWERS. 345
statutory power of sale vested in his principal ; for these
words of the Act do not extend to a person entitled as
an agent only to give a receipt and discharge (m). The
like rule applies, of course, to express powers of sale
worded in terras similar to those of the statute.
When property is purchased, to which a mortgagee Purchase of
1 1 A'j.1 1 J J £ i" 1 foreclosed
has become entitled under a decree oi loreclosure property.
absolute («), care must be taken to ascertain that there
were not any circumstances, attending the making of
the order, which would induce the Court to re-open the
foreclosure (o).
(m) See note (A-), p. 344. (o) See Campbell x. Holylaiid, 7
(w) Wms. Real Prop. 557, Ch. D. 166 ; 1 Dart, V. & P. 468,
558, 21st ed. 6th ed. ; 478, 7th ed.
346
CHAPTEE X.
OF PARTICULAR TITLES.
^ 1. Sale of Copyholds.
§ 2. Sale of Leaseholds.
^ 3. Sale of lands in a Register County or
Compulsory Registration District.
^ 4. Voluntary Conveyances.
^ 5. Sale of Ground Rents, Reversions and
Remainders, Mines, Roads, Rivers, &c.
§ 6. Sale of purely Incorporeal Hereditaments.
§ 7. Sale of Charity Lands.
§ 8. Sale of Partnership Property.
^ 9. Sale by Order of the Court.
§ 10. Sale of an Equity of Redemption.
§ IL Sale of Licensed Property.
^ 12. Land subject to Restrictive Covenants.
§ 13. Investigation of Title in view of a
Mortgage.
^ 1. — 8alc of Copyholdn.
Copyliulds. On the sale of copyholds, the purchaser, in the absence
of special stipulation, is equally entitled to have the
whole legal and equitable estate vested in him as in the
case of freeholds {ii). In copyholds, however, what
comes under the head of the legal estate is the tenancy
of the lands sold on the court rolls of the manor of
which they are held, for the customary estate comprised
in the contract for sale ; and what the vendor has to
prove is that he can confer this right. He will have
[n) Above, p. 163; Re Wilson'' s avd Stevens's Contract, 1894,3 Ch.
546, 549.
OF PARTICULAR TITLES. -547
discharged his obligation if he show either that he is
himself the tenant on the rolls of such an estate, and so
can surrender the same to the purchaser's use, or tliat
he can, by the exercise of a power of appointment, give
the purchaser a direct right to be admitted of such an
estate, or that some other person is such a tenant, and
that he (the vendor) is entitled to call upon that tenant
to surrender to the use of the purchaser {0). It must be
borne in mind, however, that if there is no tenant upon
the rolls, and the vendor cannot by appointment give
the purchaser a direct right to be admitted, the vendor
must, at his own expense, procure a tenant to be ad-
mitted who shall be able to execute the necessary sur-
render to the purchaser. And for this purpose the
vendor must himself pay all fines due to the lord in
consequence of such admittance [c). For example, if
A., a tenant of copyholds in customary fee, devise them
to B. and C. on trust for sale, and these devisees after
A.'s death sell them to D., B. aud C. cannot at once
give D. the right to be admitted, but must themselves
first be admitted tenants on the rolls ; after which they
will be enabled to execute such a surrender to D.'s use
as will give him the legal right to be admitted. But
if A.'s will had contained a power (as distinct from a
trust) for B. and C. to sell his copyholds, or if A. had
devised his copyholds to such uses as B. and C. should
appoint for the piu-pose of giving effect to any sale
made by tht-m under the trust declared in that behalf,
then, if B. and (J. were to sell to D. before the lord
had seized qi(oi(sq«<- for want of a tenant, D. would be
entitled to claim admittance dii'ectly as being in fact
the person entitled uuder A.'s will ((/). It must be
{b) Above, pp. 164—166. AV Thames Tiorncl, ^c. Act, 1900,
(c) See Bradktj v. Muulou, 16 [1908] 1 Ch. 493.
Beav. 294; ruramoir v. Grtrn- () G/asuv. Iiir/iardi>on,'MIiire,
slade, 1 Sm. & GiflF. 541 ; Whifr- 69S, 2 De G. M. ic G. (i.iS ; 7,'.
Icy V. Tai/lor, 35 L. T. N. b. 187 ; v. mkan, 3 B. & S. 201 ; 6ag.
3-18 OP PARTICULAR TITLES.
remembered that the lord is entitled to exact the fine
due by the custom on every change in the tenancy of
lands held of him by copy of court roll. Thus, if A.,
tenant of copyholds in customary fee, die intestate
leaving B. his heir, and B. die intestate without having
been admitted and leaving C. his heir, and then C. sell
the land to D., C. must, as we have seen, procure him-
self to be admitted in order to give to D. the title
promised by the contract. But in order to procm-e his
admittance, C. will have to pay a double fine, namely,
that due on the devolution of the estate from A. to B.
as well as that payable on his own admission as B.'s
heir (e) . The lord is not, however, entitled to any fine
by reason of the devolution of any equitable estate or
interest in lands holden of him by copy ; he is only
concerned with the changes in the legal tenancy upon
the com-t rolls (/). So that if A., tenant of copyholds,
sell them to B. and surrender to B.'s use, and B.,
without being admitted, sell the lands to C, and C,
remaining unadmitted, sell to D., there is no need for
either B. or C. to be admitted in order to complete C.'s
contract with D., but C. can call upon A., who has
remained the tenant upon the rolls, to surrender to D.'s
use, and upon the execution of such surrender D. will
be entitled to be admitted on payment of a single fine.
If A. had died, his heir or devisee (//) would have to be
admitted at C.'s expense in order to surrender to D. ;
but the only fine payable by C. would be that incurred
by the admission of A.'s heir or devisee (h).
V. & P. 562 ; Davidson, Prec. Foster, 3 B. & S. 805 ; 1 Scriv.
Conv. vol. ii. pt. i. p. 375, n.. Cop. 383, 405, 3rd ed.
4th ed., vol. iv. p. 82, n., 3rded. ; (/) JIall v. Bromley, 35 Ch. D.
Wms. Real Prop. 494, 21st ed. 642.
{e) Morse v. Faulkner, I Anst. () See above, pp. 216, 217,
11, 13; Morris v. Clarkson, 3 221,222.
Swanst. 558, 563, 566; Watson, {h) 1 Scriv. Cop. 404, 3rd ed. ;
B., Garland v. Alston, 3 H. & N. Garland v. Alston, 3 H. & N.
390, 393, 395 ; Londesborough v. 393 ; Sail v. Bromley, ubi sup.
OF PARTICULAR TITLES.
349
If A. sell and surrender cop^^holds to the use of B. Fines on
and his heirs and B. die intestate before being admitted, after the
then under the Land Transfer Act, 1897 (i), B.'s equit- ^^^^^ ?* ^^
, , , ^ unadmitted
able estate in the land would vest in his administrator, surrenderee.
who would thus liave the right to be admitted (/.). It
is a question whether the administrator claiming to be
admitted under A.'s surrender Avould have to pay a
single or a double fine (/). But as A. remains the
lord's tenant on the rolls until some one else is
admitted {k), and would be a trustee for B. and his
heirs, it appears that B.'s administrator might call upon
A. to surrender to his use, and might well claim t ) be
admitted under this surrender on payment of a single
Rne{m). And if in the case put B.'s administrator,
before being admitted, convey his estate in the copy-
holds to B.'s heir (;/), it appears that B.'s heir will then
(i) Stat. 60 & 61 Vict. c. 65,
8. 1 (1) ; above, pp. 228, 229, 23o.
[k) See Payne v. Barker, O.
Bridjr. 18. 21—25, 33 ; Doe d.
Tofield V. Tofifhl, 11 East, 246,
250 ; 1 Wat. Cop. 307 andn. (2),
4th ed. ; Wms. Real Prop. 485,
21 St ed.
(/) In 1 Wat. Cop. 364, n. H),
and 1 Scriv. Cop. 404, 405, 3rd
ed., the opinion is expressed that
the heir of an unadmitted sur-
renderee is entitled to be ad-
mitted on payment of a sinjrle
fine ; and this opinion appears to
be fortified bv the rule laid down
in Jrall V. liromley, 35 Ch. D.
642. Mr. Elton, however, as-
serted that if the surrenderee die
before admittance his heir must
pay two fines ; Elton on Copy-
holds, 169 (182, 2nd ed.) : but
the authorities cited (in the 2nd
ed. only) contain nolhiug- to sup-
port this view. In Garland v.
Alston, 3 H. & N. 390. 395,
Watson, B., said that, if tlio heir
is entitled only on the yround that
the ancestor was entitled to be
admitted, and the lord could
have compelled the ancestor to come
in and pay his fine on admittance,
the heir must pay a double fine.
These conditions are not fulfilled
in the ease of the heir of an un-
admitted surrenderee ; since the
lord could not have compelled the
ancestor to come in and be ad-
mitted, the tenancy continuing
to be full in the person of the
surrenderor. It is thought that
the case of the heir of an un-
admitted surrenderee is distin-
guishable from that of an heir
claiming a copyhold tenement by
descent after the death and in-
testacy of an unadmitted heir of
an admitted tenant, who also died
intestate ; see above, pp. 348,
and n. [e), 349, n. [k).
[m) This appears to follow from
the decision in Hall v. Bromley,
ubi sup. But of course if
the administrator took and ob-
tained admittance upon a sur-
render to him from A. his legal
title would date from that sur-
render only and would not relate
back to the surrender from A. to
B. ; see Wms. Real Prop. 485,
2lsted.
(w) See above, pp. 230, 233.
350
OF PARTICULAR TITLES.
Devise by an
unadmitted
surrenderee.
be entitled to be admitted, and no fine will be payable
in respect of the conveyance from the administrator to
the heir (o). But if B. had devised his estate in the
copyholds or appointed executors by his will, it appears
that his executors, taking under the Land Transfer Act,
1897, or his devisee in case the executors assented to the
de\dse (p), could only be admitted on payment of a
double fine ; since the Wills Act provides that, where a
testator was entitled to be admitted to any real estate
of the nature of copyholds and might, if he had been
admitted thereto, liave surrendered the same to the use
of his will, and shall not have been admitted thereto, no
person entitled or claiming to be entitled to such real
estate in conaequenco of such will shall be entitled to be
admitted to the same except on payment of all such
stamp duties, fees, fine and sums of money as would
have been payable in respect of the admittance of the
testator thereto and his subsequent surrender thereof to
the use of his will, in addition to the stamp duties,
fine, &c. payable on the admittance of the person so
entitled or claiming {q).
% 2. — Sale of Leaseholds.
Leaseholds. The principal duties of a conveyancer advising a pur-
chaser of leasehold land have been already noticed (r) .
He must see that the lease or term offered by the
abstract corresponds at all points with that offered by
the contract. The purchaser is entitled to require the
assignment to him of a lease from the freeholder unless
the contract distinctly specified an underlease as the
subject of the sale («). And it is now settled that,
{o) See Hall v. Bromley, 35
Ch. D. 652.
ip) See above, pp. 228—2:50,
233, 235.
{q) Stat. 7 Will. IV. & 1
Vict. c. 26, s. 4 ; Londesborotigh
V. Foster, 3 B. & S. 805.
(r) Above, pp. 100, 101, and
n.(j), 163, 164, 176.
(•sj Above, p. 101, n. («).
I
OF PARTICULAR TITLES. ^^^
notwithstanding the general rule that notice of a docu-
ment is notice of its contents (f), a purchaser of lease-
hold land is entitled to object to the title if the covenants
contained in tlie lease are more onerous or stringent
than those usually inserted in leases of like character to
that purchased, unless the existence of such covenants
were brouglit to his notice at the time of entering into
the contract, either through express mention therein or
through his having been afforded an opportunity of
inspecting the contents of the lease {ii). So we have
seen that the existence of a considerable ground rent
not mentioned in the particulars on the sale of houses
held for a long term of years may be an objection to
the title (.r) . A stipulation is frequently made on the
sale of leaseholds by auction that the lease will be pro-
duced at the sale and may be inspected at the office of
the vendor's solicitors at any time within a week pre-
viously, to the sale, and that any purchaser shall be
deemed to have full notice of the contents of the lease,
whether he avail himself of the opportunity of inspection
or not (//). A piu-chaser of leaseholds buying under
such a stipulation as this cannot, of course, object to
anything contained in the lease (s) ; unless, indeed, an
actual misrepresentation has been made by the vendor,
in the particulars of sale or otherwise, as to the contents
of the lease (a).
When the property purchased is held for a term of Evidence that
a lease held
years determinable by re-entry for non-payment of rent subject to a
U) Above, p. '21). shall be accepted: lie Ilaedickc
\u) Reeve v. livtridye, 20 Q. B. D. and Lipskis Contract, 1901, 2 Ch.
523 ; Midgk;/ v. S.nith, 18!).{, 666.
W.N. 120; ReWltitrai)dSmith\s (x) Above, pp. 175, 176.
Contract, 1896, 1 Ch. 637 ; Molii- (y) 1 Key & Elph Prec. Conv.
nrux V. Hawtri-n, 1903, 2 K. B. 270, 4th ed. ; 259, u. (r), 8th ed.
487 ; see also Xouai/le v. Fliyht, 7 {z) See Laicriev. Lcen, 14 Ch. D.
Beav. 521 ; Rr Davis to Cavei), 40 249, 252, 257.
Ch. D. 601 ; above, p. 205. This (a) See Van v. Curpe, 3 My. &
is so even though tlii' contract K. 269 ; Flight v. Barton, ib. 282 ;
provide that the voudor's title above, p. 199.
352
OF PARTICULAR TITLES.
condition of or breach of covenant (/>), it is, of course, important to
not deter- ascertain that no cause of forfeiture under the condition
mnied. ^^^ re-entry has occurred. Before the year 1882, the
purchaser in such a case was entitled, in the absence of
stipulation to the contrary, to require evidence that all
the covenants and conditions in the lease had been duly
performed and observed up to the date of the actual
completion of the contract (c). It was, however, usually
stipulated that production of the receipt for the last
payment of rent due before the completion of the sale
should be conclusive evidence of this (d). At the present
time, the purchaser's rights in this respect are regulated,
in the absence of special stipulation, by the following
provision of the Conveyancing Act of 1881 {e) : — Where
land sold is held by lease (not including underlease),
the purchaser shall assume, unless the contrary appears,
that the lease was duly granted ; and on production of
the receipt for the last payment due for rent under the
lease before the date of actual completion of the pur-
chase, he shall assume, unless the contrary appears, that
all the covenants and provisions of the lease have been
duly performed and observed up to the date of actual
completion of the purchase. This provision is less
stringent than the special stipulation previously usual,
which was construed as obliging the purchaser to accept
the title, notwithstanding the existence of a continuing
breach of the covenants in the lease ( /'). The stipulation
contained in the Act only binds the purchaser to assume,
UTiless the contrary shall appear, that the covenants have
been performed, and does not preclude him from ob-
jecting to the title on the ground that a cause of forfei-
[b] Wms. Real Prop. 337, 513, (e) Stat. 44 & 45 Vict. c. 41,
21st ed. s. 3(4).
{(■) 1 Davidson, Prec. Conv. (/) See JiiiH v. Htitchens, 32
536, 4tlied. ; rolmer \. Goren, 2b Beav. G15 ; Lawrie v. Lees, 14
L. J. Ch. 841. Ch. D. 249; 7 App. Cas. 19, 30
{d) 1 Davidson, Prec. Conv. —33, 37—39, 42.
537, 624, 048 and u. {y), 4th ed.
OF PARTICULAR TITLES. 353
hire has occurred, if it appear that a breach of covenant
has in fact been committed and has not been waived (r/) .
Receipt of rent by a landlord is a waiver of forfeiture Waiver of
for breaches of covenant which have occun-ed and been receip "of ^
brought to his notice before the rent became due (//) : rent,
but it is not a waiver on account of breaches of which
he had no notice (/), or subsequent breaches {k). Pro-
duction of a receipt for rent is not, therefore, in itself
complete evidence of any waiver of a breach of covenant.
But a purchaser buying under the present statutory
stipulation must, on production of the last receipt for
rent in accordance therewith, assume (unless the con-
trary appear) that the covenants have been duly per-
formed, not only prior to the receipt of rent, but up to
the date of actual completion of the purchase. It has
been decided that the statutory stipulation does not
apply where the land sold is held under a lease for years
at a peppercorn rent, or indeed at any other rent in
kind and not in money ; in which ease the purchaser
has the same right to require strict evidence of the
performance of the lessee's covenants as in the case of
an open contract made before the year 1882 (/).
We have seen (in) that if a man buy land with notice, Purchaser
either oral or written but not contained in the contract holdTwith*^"
for sale, that a good title cannot or will not be made, notice of a
' ° ' breach of
(ff) Re Highett and Bird's Con- [1] Re Moody and Yates' Contract,
tract, 1902, 2 Ch. 214; 1903, 1 28 Ch. D. 661; 30 Ch. D. 344.
Ch. 287. In this case there was a covenant
(A) Bridges v. Longman, 24 to finish a house within six months
Beav. 27, 30 ; Davmport v. The to the satisfaction of the lessor's
Queen, 3 App. Cas. 1 1.5 ; Jacoh v. surveyor, and it was held that the
Down, 1900, 2 Ch. 156. surveyor'scertificate to this effect
(«) ronnant''s Case, 3 Rep. 64 ; was a part of the vendor's title.
Ewart v. Frgrv, 1901, 1 Ch. 499, and that the expense of procur-
•502, 511 ; .S'. C, nam. Fryer v. ing the .same was therefore not
Ewart, 1902, A. C. 187; Mnlthews payable by the purchaser under
v. Smallwood, 1910, 1 Ch. 777. sect. 3 (6) of the Conveyancing
786 sq. Act of 1881 ; see above, pp. 33,
{k) See .Vartfi v. Curteys, Cro. 10.5, 121, 136.
Eliz. 528; 3 Rep. Go a; Price v. [m\ Above, p. 203.
Woruood. 4 H. & N. .512.
w. 23
354
OF PARTICULAR TITLES.
covenant that the vendor is exonerated from showing title to the
will not be extent indicated by the notice, unless he should have
remedied. expressly agreed by the contract for sale to show a good
title. It follows, therefore, that if one buy leasehold
land with notice so given to him that there has been a
breach of covenant, which cannot or will not be reme-
died by the vendor, he is precluded, unless the contract
contain an express stipulation that the vendor shall show
a good title, fi'om requiring the evidence, to which lie
would otherwise be entitled, that the covenant in ques-
tion has been duly performed. Thus, where houses
held under a repairing lease are obviously dilapidated
and the purchaser agrees, outside of the written contract,
to take them as they are, it is thought that he could not
insist on the vendor furnishing evidence of his perform-
ance of the covenant to repair. The rule in question,
though perfectly well established, was, however, un-
accountably overlooked both by the vendor's counsel,
by Swinfen Eady, J., and by the Court of Appeal in
the case of Re Highett and Bird's Contract [n) . In that
case the purchaser bought under an open contract a
leasehold house, which was obviously out of repair, and
the vendor accepted a rednced price in consequence. Before
the title was accepted, the vendor was served with a
" dangerous structure " notice from the London County
Council under the London Building Acts, 1894 and
1898, requiring him to pull down or render secure a
part of the house. The notice not being complied with,
a police court order was made requiring him to do the
repairs within fourteen days. This order was made
before, but not served on the vendor till after the
acceptance of the title. The vendor, who had produced
the receipt for the last quarter's rent (o), took out a
vendor and purchaser summons for a declaration that
Jie Highett
and Bird^s
Contract.
[n) 1902, '2 Ch. 214 ; 1903, 1 Ch. 287.
(o) Above, p. 352.
OF PARTICULAR TITLES. 855
he had shown a good title, and that the expense of
complying with the police court order was an out-
going {p) which ought to he borne by the purchaser.
The vendor's counsel mainly contended that this expense
had not ripened into a charge or liability until after
the proper time for completion (p), and that under the
Conveyancing Act, 1881 {q), production of the last
receipt was conclusive evidence of perfonnance of the
covenant to repair. It was held (and in this respect,
no doubt, rightly) that under the statutory stipulation
such production is only evidence prima, focio of per-
formance of the covenant, and that the purchaser is
not obliged to accept it as conclusive where he has
notice of a breach of the covenant. It was, however,
decided in both Courts that the vendor was under an
obligation to prove that the covenant to repair had
been performed, and was /or this reason bound to defray
the expense of complying with the notice and order ;
and the Courts declined to consider at wliat time
this liability became a charge. But it is submitted
that this decision cannot be supported on the ground
so assigned for it. The Courts rested their judg-
ment on the supposed authority of the case of Baniett
V. Wheeler (r). That case, however, was an action of
assunipsif by a purchaser, in which the declaration stated
a sale of leaseholds on the express condition that the
vendor should make a good title, and was argued on
demurrer to a plea that the vendor made a good title
in all respects except as to compliance with a covenant
to repair, and that the purchaser knew that the property
sold was out of repair. It was considered that the plea
was bad, but Parke, B., particularly mentioned that
there was an express contract to make a good title.
This accords with the rule stated above («), As already
{p) See above, p. oO. and below, {>■) 7 M. ic W. 364.
Chap. XI. («) Pp. 203, 3.54.
{q) Above, p. 362.
23 (2)
356 OF PARTICULAR TITLES.
mentioned, this rule was not brought to the notice of
either Court in Re Highett and BircVs Coniract, nor
were any of the authorities cited by which it is esta-
blished. No doubt under an open contracl3» for the sale
of leaseholds, without more, the vendor is bound to
prove that there is no liability to forfeiture by reason
of the non-performance of a covenant to repair {t) ; and
this may be the case notwithstanding that the property
is obviously out of repair, for it may be contemplated
that the vendor shall perform the covenant before com-
pletion (?f). But where a vendor is induced to accept
a lower price than he would otherwise take on account of
the property being out of repair, it is submitted that the
parties plainly intend to waive all objection to the title
caused by the non-performance of a covenant to repair,
and must be taken to have contracted on that footing.
This view appears to have commended itself to Lord
Justice Romer, who explained in a subsequent case (.r),
that Re Highett and Bird\s Contract was decided on the
footing that the vendor was in the same position as if
he had expressly agreed to make a good title ; and
declared that that case was not to be taken as an
authority for any case in which there is not an express
contract by tlie vendor to make a good title. To avoid
all question, however, of the apjDlication of the decision
above criticised, a vendor selling houses held under a
repairing lease should be most careful to stipulate
expressl}^ in the contract for sale that the purchaser
shall be deemed to have notice of the actual state and
condition of the property, and shall take the houses as
they are. And a vendor of leaseholds should always
employ an express stipulation, such as was generally
used before the Conveyancing Act, making production
of the last receipt for rent eoncluHire evidence of the
(0 Above, p. 352. {x) Re Allen and BriscoWs Con-
\u) See 7 M. & W. 366, 367. tract, 1904, 2 Ch. '226, 231.
OF PAKTICULAK JITLES. ^57
performance of all covenants, and providing further, if
necessary, that the person giving such receipt, though
not the original lessor, shall be assumed to be the
reversioner or his agent {//). In default of this last
proviso, the vendor would have to prove that the giver
of the receipt, if not the lessor, was the reversioner or
his agent.
Where land held by underlease is sold as such, the ^^]% «* ^^^^
purchaser cannot or course reject the title because he is underlease,
not getting a term granted by a lease from the free-
liolder ; but he has the same right as the purchaser of
su(^h a lease to object to the title on the ground of
liability to unusually onerous covenants not brought to
his notice at the time of sale (s). Where the under-
lease sold and the superior lease are both determinable
by re-entry for non-payment of rent and breach of
covenant, it is of course material to the title to show
that no cause of forfeiture of either has occurred.
And where the head lease includes other lands than those
demised by the underlease, it is important to ascertain
that no forfeiture of the head lease has been incurred
through omission to comply with the head lessee's
covenants relating to such other lands (a). Under
the Conveyancing Act of 1881 (b), a provision
similar to that considered above is implied, in the
absence of stipulation to the contrary, in contracts made
after the year 1882 for the sale of land held by under-
lease ; the purchaser being bound to assume, unless the
contrary appears, on production of the receipt for the
(y) Above, pp. 79, 352, 3o3. the assigns of the underlessor
(z) Above, p. 351, and cases under covenants by him to per-
cited in n. {u) thereto; Hi/rle v. form and to indemnify the under-
Warden, 3 Ex. D. 72. le.ssee against the covenants of
(a) See Deirtirv. Gvodiiiiiii, \9U1, the liead lease relating to otlier
1 K. B. 612 ; 1908, 1 K. B. 94 ; lands than those comprised in the
1909, A. C. 72, deciding that, in underlease.
case of such a forfeiture, the {/>) Stat. 44 & 4.t Vict. c. 41,
underlesisee has no remedy against s. 3 (5, 9, 10, II).
358 OF PARTICULAR TITLES.
last payment due for rent under the underlease before
the date of actual completion of the purchase, that all
the covenants and provisions of the underlease have
been duly performed and observed up to the date of
actual completion of the purchase, and further that all
rent due under every superior lease, and all the cove-
nants and provisions of every superior lease, have been
paid and duly performed and observed up to that date.
It has been held that the vendor of an underlease does
not comply with this provision by producing a receipt
given by the superior landlord for rent paid to him by
the vendor under threat of distress ; what is required is
the receipt for the rent due under the underlease (c).
Where the receipt for the rent last due under the
imderlease had been produced, but it appeared that the
superior landlord had brought, though he had prac-
tically ceased to prosecute, an action to recover posses-
sion of the premises on the ground of breach of covenant
to repair, it was held that the purchaser must accept, as
sufficient proof that the covenants in the superior lease
had been performed, an affidavit by the vendor that he
.had been in possession of the premises without any
other distm-bance than the above, that he had repaired
the premises, and that, to the best of his knowledge
and belief, the covenants had been performed [d). As
already mentioned, it is desirable for a vendor of land
held by underlease to stipulate expressly that the last
receipt for rent thereunder shall be conclusive evidence
of the performance of the covenants and conditions of
the underlease and of every superior lease, and also,
where necessary, that the giver of the receipt shall be
assumed to be the reversioner or his agent (e).
Sale of lease- When leaseholds are sold, which are subject to a
holds not
(c) lie Miggbis and Percival, {d) Mini/er to Thompxon, b\ Li. J.
1888, W. N. 172. Ch. 42.
(e) Above, pp. 80, 357.
I
OF PARTICULAR TITLES.
359
covenant not to assign without the landlord's licence (/), assignable
the vendor is bound to procure such licence at his own landlord's
expense, and if he fail to do this, he will not have ^^J^^^e-
shown a good title and will have broken the contract {g).
But it appears that the procuring of the necessary
licence is at first to be treated as a matter of conveyance
rather than of title (/?), and the purchaser cannot object
to the title on the ground of the absence of any licence
to assign, if the vendor procure such licence before the
day fixed for completion {Pf. If such property be sold
under an express stipulation that the sale is subject to
the landlord's approval or to his consent to the assign-
ment, the vendor is still bound to use his best endea-
vours to procure the necessary licence ; and if he do
this and the licence be refused, he will be discharged
from his contract {h). If, on the other hand, he fail to
(/) See Wms. Real Prop. 508,
509, 515, 21st ed. By stat. 55 &
56 Vict. 0. 13, s. 3, agreements in
leases against assigning or under-
lotting without licence shall,
unless the lease contain an express
provision to the contrary, be
deemed to be subject to a proviso
that no fine shall be payable for
such licence. It has been held
that this enactment does not
make the payment of such a fine
an illegal payment : so that if a
fine be voluntarily paid, it cannot
be recovered back. But if the
lessor refuse to give the licence
except on payment of a fine, the
lessee may lawfully as.sign or
underlet without the licence ; see
ll'diU V. Joinings, 1906, 2 K. B.
11 ; Jenkins v. Price, 1907,
2 Ch. 229, 233, 234, reversed on
other grounds, 1908, 1 Ch. 10 ;
Andrew v. liridtfmnn, 1908, 1
KB. 596. So if a lease contain
a covenant not to assign without
the lessor's licence, such licence
not to be unreasonably withheld,
and the lessor do unreasonably
refu.se his licence to assign, the
lessee may lawfully assign the
demised premises without the
licence : Bates v. Donaldson, 1896,
2 Q. B. 241 ; Jenkins v. Price,
ubi sup. But he has no right
of action against the lessor to
recover damages for unreasonably
refusing the licence : Trcloar v.
Bigge, L. R. 9 Ex. 151 ; Sear v.
House Property, if-c. Society, 16
Ch. D. 387. He may, however,
bring an action against the lessor
for a declaration that he is entitled
to assign without licence : Young
v. yls/iley Gardens, ^r.. 1903, 2
Ch. 112. This casewas not cited in
Jenkins v. Price, ubi sup., where
Swinfen Ea4y, J., considered
that the lessee ought not to have
the costs of bringing such an
action. But this ruling was fol-
lowed by Eve, J., in Evans v.
Levy, 1910, 1 Ch. 453.
(ff) Bain v. Fothergill, L. R. 7
H. L. 158.
{h) See above, pp. 164—166.
(j) Monro v. Tat/lor, 3 Mac. «fc
G. 713. 714, 722 ; ^ Ellis v. Rogers,
29 Ch. D. 661 ; Day v. Singleton,
1899, 2 Ch. 320. 327; and see
Smith V. Butler, 1900. 1 Q. B. 694.
(/•) Lehmann v. McArthur, L. B.
360 OF PARTICULAR TITLES.
fulfil this duty, he will have broken the contract ; and
in such case he will be liable to compensate the pur-
chaser in damages for the loss of his bargain {/), con-
trary to the general rule (m). Whenever leaseholds
subject to a covenant against assignment without the
lessor's consent are offered for sale, it should be stated
that tbe property is subject to such covenant {>/), and it
should be expressly stipulated that, if the lessor's con-
sent cannot be obtained, the contract shall be rescinded,
the vendor returning the deposit, if any, but not paying
the purchaser's expenses of investigating the title or
otherwise (o). If the person to give the licence to
assign should not be the original lessor, the vendor
would have to prove that such person was the proper
person to give the licence ; and as this would involve
investigation of the landlord's title, it is better for the
vendor to relieve himself by express stipulation of the
obligation of giving such proof (p). Leaseholds subject
to a covenant not to assign without the lessor's licence
may 'he sold and conveyed, without committing any
breach of the covenant, either by way of underlease
(provided that the covenant do not also prohibit under-
letting) (q) , or by any disposition operating as an assign-
ment in equity only and not at law, such as a declaration
of trust for the purchaser (r). But if the vendor propose
3 Ch. 496. In Uk!/ v. SiHgleton, {i) Jjai/ v. t^iiiyhdou, ubi sup.
1899, 2 Ch. 320, 327, 328, there [m) Above, p. ;57.
are dicta to the apparent effect («) See above, p. 351.
that the vendor would in such (o) See 1 Davidson, Prec. Couv.
case be liable at law for breach 562, 5th ed. ; Davidson's Concise
of the contract; but it is sub- Prec. 120, 18th ed.
luitted that they must be read as [p) See 1 Key & Elph. Prec.
referring to an open contract to Conv. 292, 8th ed.
sell such leaseholds. In that case {q) Crusoe d. Blencowe v. Bugby,
the sale was expressly made sM^yeci 2 W. Bl. 766; Church \. Brown,
to the lancllord''s coHnent to the 15 Ves. 258, 265.
transference of the lease. This, it (»•) Gentle v. Faulkner, 1900,
it is submitted, would clearly 2 Q. B. 267. See also Horsey
absolve the vendor from breach Ettate, Limited \. ISteiyer, 1899, 2
of the contract at law. if he tried Q. B. 79 ; Grove v. Portal, 1902,
his best but failed to obtain the 1 Ch. 727.
necessary consent.
OF PARTICULAR TITLES. 361
to carry out the sale in either of these ways, he must
make an express stipulation to that effect, or the pur-
chaser will not be bound to accept the same as a due
performance of the contract. If leaseholds be held sub- Where land-
ject to a covenant by the lessee not to assign without no^tobcT^^'^
the lessor's licence, which is not to be unreasonably unreasonably
withheld, and the lessee sell them under an open con-
tract, and the landlord refuse to consent to the proposed
assignment on grounds which are apparently unreason-
able, it appears that the vendor cannot oblige the pur-
chaser to perform the contract specifically by accepting
an assignment without the lessor's consent (.s) ; for the
lessor may have some good reason for refusing it (;*), and
would be at liberty to prove this in an action brought
by himself to enforce his right of re-entry for breach of
the covenant. The title would therefore be too doubtful
for a Court of Equity to force upon an unwilling pm--
chaser {u).
If a lessee for years, holding at a rent and subject to Sale of part
lessee's covenants, assign over part of the demised land, ^ fease^for
the assignee is liable to be distrained ujjon for the whole years,
of the rent reserved (x) ; although if the lessor sue him
personally for the rent, either in debt or on the cove-
nant to pay the rent, he will only be liable to pay an
apportioned part of the rent proportionate to the value
of the land he holds, as his personal liability to pay the
rent arises only from the privity of estate between him
and the lessor (//). It has been held that, if an assignee
(«) See aboTe, p. 359, n. (_/'). v. London Road Gar Co., 1910, 1
But of course the vendor would Ch. T-'i-i.
have a good title to assign after (»<) Re Marshall and Halt's <,'ov-
he had obtaiuea, in an action tract, 1900, 2 Ch. 202.
against his landlord, a deolara- (.c) Curtis v. Hpitti/, 1 Bing.
tion of his right to assign without N. C. T^e, 760 ; Hyde v. Jfarden,
the landlord's consent. 3 Ex. D. 72, 76 ; see VVms. Real
(<) See and consider Re Spark's Prop. 67, 336, 2l8t ed.
Lra.te, 190,'), 1 Ch. 4o6 ; Jndim (;/) Hare v. Calor, Cowp. 766 ;
V. Price, 1907, 2 Ch. 229, j-c- Stevenson v. Lawbard, 2 'Eaat, n't r);
versed, 1908, ICh. 10; Willmott Sallsv. Battersbt/, l9lO,2K.B.l5b.
362 OF PAETICULAR TITLES.
of part of land let on lease pay the whole rent reserved
by the lease under threat of distress, he cannot assert a
right of confnhution to such payment against an under-
lessee of the other part of the land, for the right to
roiitrihution only arises either at law or in equity where
both parties are subject to a common liability (3). It
is submitted, however, that in such case the party so
coerced to pay the whole rent is not without remedy.
He has paid off a charge upon the whole of the lands
comprised in the lease (a), and on general principles of
equity he should be entitled to the benefit of the charge,
and to stand in the lessor's place as against that part of
the demised premises which he does not hold himself {h) .
If a lessee for years holding subject to a proviso for
re-entry on breach of covenant assign over part of the
demised land, the lease remains determinable as to the
whole of the demised premises on any breach of cove-
nant; so that the lessor could re-enter upon the assignee
for breach of covenant committed after the assignment
by the original lessee with respect to the other part of
the land (r) . If, therefore, a tenant for years holding
at a rent and subject to lessee's covenants and a proviso
for re-entry on breach of covenant sell part of the land
leased to him, and represent that the property sold is
held at a rent less than that which he has to pay for the
whole of the land, the purchaser could object to the
title on the ground that the laud sold is charged with
the whole of the rent, and is subject to forfeiture for
breach of covenant committed in respect of the rest of
the land leased {d). It follows that on a sale of part
only of land held on lease for years, special stipulation
{£) Johnson v. Wild, 44 Ch. D. (c) Hyde v. Warden, 3 Ex. D.
146. 72, 76 ; Bewar v. Goodman, 1909,
[a] See above, p. 361, n. [x). A. C. 72; above, p. 357, and
\h) This view of the question n. [a).
seems to have escaped the notice
of the learned counsel for the {d) Hyde v. Warden, 3 Ex. D.
plaintiff and of the Court in 72, 76, 81 ; see also Tildes v.
Johnson V. Wild, ubi sup. Hooker, 3 Madd. 193.
OF PARTICULAR TITLES. 363
must be made precluding objection to the title on these
grounds, and providing for apportionment of the rent
as between the vendor and the purchaser (e) . As already Sale of lease-
mentioned, when leasehold property is sold in lots, it is
usually stipulated that one of the purchasers shall take
an assignment of the lease, and the others shall accept
underleases either from that purchaser or from the
vendor (_/') .
Where leaseholds for years perpetually renewable Sale of
under a covenant in that behalf (a) are sold as such, it Renewable
^"^^ ' leaseholds,
appears that, in the absence of stipulation to the con-
trary, the purchaser is entitled to be satisfied that he
will obtain, not only the existing term, but also the
effective right to renew it for ever. He is in fact
buying, not merely the term, but an equitable interest
in the fee simple as well {h). It is thought therefore
that, where the first lease was granted less than forty
yeai's before the contract, the purchaser is not pre-
cluded by the Vendor and Purchaser Act, 1874 (/),
from calling for the title to confer the right of renewal,
and may require the production, not only of the first
lease containing the covenant of renewal and the sub-
sequent title thereunder, but also of the title to the
(c) See above, p. 81. Fcudredv. Griffith, ib. 314; Sweet
If) Above, p. 82 ; 1 Dart, V. v. Anderson, 2 Bro. P. C. 256 :
& P. 132, .5th ed. ; 148, Cth ed. ; Igguldcn v. May, 9 Ves. 325, 334 ;
866 1 Davidson, Prec. Conv. 545, S. C, 7 East, 237, 242 — 245 ;
632, n., 699—701, 4th ed. ; ibid. Hare v. Surges, 4 K. & J. 45, 57 ;
453, 529. n., 563—566, 5th ed. ; Pollock v. Booth, Ir. R 9 Eq.
1 Key & Elph. Prec. Conv. 293, 229 : Jessel, M. R., Lottdo,, ,\-
and n. {d), 8th ed. ; Davidson's South Western Ry. Co. v. Gomm,
Concise Precedents. 116, and n. 20 Ch. D. 562, 579 ; Swinburne v.
(*), 17th ed. Milhurn, 9 App. Cas. 844, 850,
(g) Covenants to renew leases 853, 855 ; 42 Sol. J. 629, 630 (by
for years or lives cemtinually ou the author) ; Gray, Rule against
their expiration for ever are hold Perpetuities, §\j 230, 230a, 2nd ed.
to be valid and either not to be ob- /is a t i -m- r> ..-
i i 1 i. J i r (h) See Jessel, M. R. , Moore v.
noxious to or to be excepted out of r^, , , /-,u ^V. .- . ' >
.11 • . J ■.- J Cleneh, 1 Ch. D. 44<, 4n2.
the rule against perpetuities, and ' '
may be specificaliy enforced ; see (i) Stat. 37 & 38 Vict. c. 78.
Ross V. Worsop, 1 Bro. P. C. 281 ; s. 2, r. 1 ; above, p. 99.
364 OF PARTICULAR TITLES.
freehold from the granting of the first lease back to the
beginning of forty years before the contract (./) . Where
the first lease was granted more than forty years before
the contract, it is thought that not more than forty
years' title under the leases and the covenant to renew
them could be required to be shown, and that such
enjoyment would have to be accepted as prima facie
evidence that the right of renewal was effectually con-
ferred (./). But it is conceived that the purchaser would
be entitled to require proof of some covenant for per-
petual renewal entered into forty years at least before
the sale ; and that if the right of perpetual renewal
should depend solely on the original covenant to renew,
and not on new covenants to that effect contained in
the renewed leases, he would have the right to call for
an abstract and production of the instrument containing
the original covenant (/»). In cases of this kind, the
renewed lease is usually granted partly in consideration
of the surrender of the then existing lease, and where
this has occurred within the time, for which title can be
required to be shown, the purchaser has the right to
require proof that the surrenderor was entitled to the
entire interest, legal as well as equitable, in the lease
surrendered. For if there were anything in that lease
to give notice that the surrenderor was a trustee of his
interest therein, and consequently of his interest in
the renewed lease, the purchaser would take with
notice of such trust (/) . It appears from this that any
lease granted in express consideration of the surrender
of a prior lease is not in itself a good root of title (/«).
The vendor of leaseholds, which are renewable, whether
(/) Seeabove, pp. 94 — 97, 100; Cooper, 9 Beav. 304; Sug. V. &
1 Davidson, Prec. Conv. 534, 4th P. 369 ; 1 Dart, V. & P. 291,
ed. ; 443, 5th ed. ; Sug. V. & P. .5th ed. ; 332, 6th ed. ; 327, 7th
369. 370. ed. ; 1 Davidson, Prec. Conv.
{k) See above, pp. 94—98, 100. 696, n. (/), 4th ed. ; above, pp.
(/) See Coppin v. Fernijhoiigh, 237 sq.
2 Bro. C. C. 291 ; Hodgkinson v. {m) See above, pp. 106 — 108.
OF PARTICULAR TITLES. 365
perpetually or for some definite period, should protect
himself by special stipulation against these liabilities (><).
And it seems that in any ease where a lease is sold, Sale of lease
which has on the face of it been granted in consideration gurrender^f a
of the smTender of a former lease, the vendor should P"or lease.
make special provision to preclude his being required to
prove that the surrenderor was entitled to the whole
interest in the lease surrendered (o).
The reader will remember that under the present Satisfied
law, when the purposes of long terms of years created ^*^""'*-
for secui'ing the payment of money charged on land
have been satisfied, they either cease, where originally
limited subject to a proviso for cesser, by virtue of such
proviso, or they are made to merge by being assigned
or surrendered to the person or persons seised of the
freehold in the land subject to the term, or they become
attendant upon the inheritance by express declaration
or construction of law and thereupon cease and deter-
mine under the Satisfied Terms Act of 1845 [p).
Whenever any land sold has been subject to such a
term, it is of course material for the purchaser's counsel
to ascertain that it became utterl}' extinct ; and if the
date of the term's alleged cesser fall within the period
for which title has to be shown, the title to the term
down to that date must be abstracted and produced (q).
It should be borne in mind that cesser under an express Proviso for
proviso does not usuall}^ take place unless and until the
cesser.
(«) See 1 David^oll, Prec. Conv. that the title shall commence
696, n. (/), 4th ed. ; 1 Key & with the new lease; see stat.
Elph. Prec. Conv. 2.S4. 4th ed. ; 44 & 4.5 Vict. c. 41, s. 3 (3);
•290, 8th ed. ; Eucyclopjedia of above, pp. 108. n. {o), 193 xr/..
Forms and Precedents, xii. 344. 209.
(o) See authorities cited in last / - o^ j. o <> f> i'- ^ , ■■ ■.
1 1 . >. Ti 1 iPi otat. 8 & 9 Vict. c. 112.
note but two. It appears, how- ., xxr d id , , ., . ,, '
»i i. r .. 1 1 .... J s. 2 ; Wms. Real Prop. 413—421,
ever, that if It be oxiHessly stated ,oi.u j -o< -,- ,\ ^ j
A . , ^ jf- .■ 13th ed. ; i)34— o4o, 21st ed.
m the contract or conditions ot '
sale that the lease sold was (q) See Z//fc v. Yarborough,
granted in consideration of the John. 70, 74, 77, 78; Sug. V. & P.
surrender of a prior lease, it 616 sq. ; 1 Dart. V. & P. 289,
would be sufficient to stipulate Sth ed. ; 329, 6th ed. ; 326, 7th ed.
366
OF PARTICULAR TITLES.
Mersrer.
Trustees of a
term should
surrender it
themselves.
Cesser under
Satisfied
Terms Act.
trustees of the term have been duly reimbursed all
their costs and expenses (r) ; and that, in order to effect
the merger of a term, it must be surrendered to the
person entitled at law in reversion immediately ex-
pectant on the term to the freehold or some leasehold (.s)
estate in the land demised (^). No merger will take
place if the surrenderee were entitled in equity only
and not at law, or if another term of years be out-
standing between the estates of the surrenderor and the
surrenderee {u). Whenever a term vested in trustees is
intended to be merged, they should themselves sur-
render it ; as the persons equitably interested in the
term cannot make any effective assurance of the legal
estate therein, and the trustees may have a lien on the
term for their costs, which would prevent it from
becoming extinct as a satisfied term (x). With respect
to the cesser under the Satisfied Terms Act of 1845
of terms becoming satisfied after that year (//), it is to
be noted that such terms only are extinguished as have
become satisfied and attendant on the inheritance. A
term does not become so satisfied and attendant unless
the beneficial interest in the whole charge secm-ed by
the term and the beneficial interest in the entire free-
hold estate affected by the term are united in one
person, or so long as there remains any useful purpose
beneficial to the owner of the term and consistent with
(r) See 3 Davidson, Prec. Conv.
1165, 1251, n., 1261, 3rd ed.
(a) Hnqhcs v. Robuthum, Cro.
Eliz. 302; Sug. V. & P. 619.
(O Co. Litt. 337 b; Shep.
Touch. 303 sq.; 2 Black. Comm.
32b ; Burton, Comp. 287, 2nd ed.;
Sug. V. & P. 617 sq.
{u) See Whitchurch v. Whit-
church, 2 P. W. 326; 9 Mod.
124 ; Scott V. Fenhoullet, 1 Bro.
C. C. 69 ; Roopcr v. Harrison, 2
K. & J. 86, 110—115; Burt.
Comp. 287, 2nd ed. ; Sug. V. &
P. 625.
[x) See Davidson, Prec. Conv.
vol. ii. part i. p. 310, n., 4th ed. ;
cf. Davidson, Prec. Conv. vol. v.
part ii. p. 178, 3rd ed., where the
point as to costs is not mentioned.
{ij) Stat. 8 & 9 Vict. c. 112,
s. 2. As to the cesser under that
Act of satisfied terms, which were
on the 31st Dec. 1845, attendant
on the inheritance, and the pro-
tection afi^orded by such terms,
see Doe v. Price, 16 M. & W. 603 ;
Doe V. ilousdaU, ib. 689 ; Cottrell
V. Hughes, 15 C. B. 532 ; Plant v.
Taylor, 7 H. & N. 211.
OF PARTICULAR TITLES. ^^'^
the trusts thereof (z). And a term is not mtisfied, so as
to cease under the Act, so long as any of the moneys
originally secured thereby, including the trustees'
costs {((), remain unpaid, or if any incumbrance,
against which the term would be an effectual pro-
tection, be outstanding {b).
The rules as to terms becoming satisfied are not ^Vhether
iiPii f • terms subject
applicable to terms granted tor the purpose ot reserving to rent and
rent and subiect to the performance of lessee's cove- lessee's cove-
J ^ , nants become
nants, but questions often arise upon titles whether extinct when
such terms have been extinguished by reason of the ^^e fre^e- '^
ownership of the term and of the fee simple becoming holder.
united in one person ; as where the termor has purchased
the fee simple or the freeholder the term. Under the Old la^^ of
^ 1 ^ • p ^ merger.
common law such a term merged at law it by any
means it became vested in the tenant of the freehold in
his own right and not en autre droit (e). But if in Rules of
- ,, , .,..,, -ill equity as to
such case merger would be prejudicial to any equitable merger,
interest in the term, or the owner had expressed the
intention of keeping the term alive, the term would be
treated in equity as still subsisting (rf) . On the other
hand a term not merged at law would be treated in
equity as attendant on the inheritance if the equitable
ownership of the term and the fee simple became
united and an intention of extinguishing the term were
(z) Anderson v. r'ujnet, L. R. (c) Co. Litt. 338 b ; 2 Black.
8 Ch. 180, 188—190. Comm. 177 ; Sug. V. & P. 617
(a) Above, p. 366. xq. ; 1 Wms. Exors. 641, 64"2,
(/>) See Doe d. Clnii v. Joihh, 13 7th ed. ; Wms. Re^l Prop. 251,
Q. B. 774; /">vr>v. >/rs.s.'. 17 Jur. 283, 414-416, 13th ed. : 341,
177, reversed on other gnjunds, 371, 535 — 538, 2l8ted.
ib. 703. 4 De G. M. k. G. 495 ; [d) See Thorn v. Neumnn, 3
Shaw V. Johnson, 1 Dr. & Sm. Swanst. 603 ; Nurse v. Tcrirorth,
412, 7 Jur. N. S. 1005 (where ib. 008. 618; Fhilips v. FhiUps.
the dates are given) ; Anderson v. 1 P. W. 34.41; Sug. V. & P.
Hffiiet, L. R. 8 Ch. 180, 1S9 ; 620.621; Chambers v. Kiiigham,
Sug. R. P. Stat. 278-281, 2nd 10 Ch. D. 743; also Adams v.
ed. ; Sug. V. & P. 626 ; 1 Dart, Angdl, 5 Ch. D. 034, 645, 646 ;
V. & P. 507, 508, 5th ed. ; 577, and cases cited below. \>. 368,
578, 6th ed. n. {J).
368
OF PARTICULAR TITLES.
Purchase of expressed or implied (^). Thus if the termor contracted
fee by termor j. i j.i p • i • ^ -l • i j
or of term by ^^ "^y ^'^^ ^^^ Simple, or Vice versa, it was considered
freeholder. that the term would be extinguished in equity, unless
a contrary intention were shown (./'). But where the
intention of keeping the term on foot was expressed, as
where the termor took a conveyance of the fee in the
name of a trustee for himself and his heirs with a
declaration against merger (^), or the freeholder in fee
took a conveyance of the term to a trustee on trust for
himself, his executors, administrators and assigns (//),
the purchaser's interest in the term remained distinct,
in equity as well as at law, from his ownership of the
Present law as fee simple. Since the commencement of the Judicature
Acts (/) merger does not take place by operation of law
only of any estate, in which the beneficial interest would
not be deemed to be merged or extinguished in equity.
And since that time, when the owner of the term pur-
chases or takes a conveyance of the fee simple, or vice
versa, the term does not merge, if an intention of
keeping it on foot be shown, notwithstanding that the
term and the inheritance be vested at law in the same
person (,/).
to mersrer.
Land held for
long term
enlarged
into fee
simple.
Where land sold is held for a long term of years
enlarged into a fee simple under the Conveyancing Acts
of 1881 and 1882 (/«•), and the enlargement has taken
place within the period for which the , title is to be
investigated, the vendor must remember that the deed
(e) Whitchurch v. JFhitchurch,
2 P. W. 236 ; 9 Mod. 124 ; Good-
rujht V. Sales, 2 Wils. 329, 331.
( f) Capel V. Girdlcr, 9 Ves.
509 ; Sug. V. & P. 625, 626 ; and
see Saxton v. Saxton, 13 Ch. D.
359, and cases there cited.
((/) Belaney v. Belanei/, L. R.
2 Ch. 138.
[h) Gnnter v. Gunier, 23 Beav.
571.
(i) Stat. 36 & 37 Vict. c. 66,
s. 25 (4), which commenced on
the 1st Nor. 1875 ; stat. 37 «S: 38
Vict. c. 83.
{J) See liiffk V. Vauqhan Jen-
kins, 1900, 2 Ch. 368; 'ihelhisson
V. Liddard, ib. 635 ; Capital ^■
Counties Bank, Ltd. v. Rhodes,
1903, 1 Ch. 631 ; Lea v. Thursby,
1904, 2 Ch. 57 ; Re Gibbon, 1909,
1 Ch. 367, 373.
[k) Stats. 44 & 45 Vict. c. 41,
s. 65, amended by 45 & 46 Vict,
c. 39, s. 11.
OF PARTICULAR TITLES. 369
of enlargement is not in itself a good root of title (/),
and that, in the absence of stipulation to the contrary,
he will be bound to show title to the term down to the
date of the enlargement, that is, to abstract and produce
the instrument which created the term, and so much of
the subsequent title prior to the enlargement as will
carry the abstract back to a date at least forty years
before the sale {>»). And he must not forget that it
lies on him to prove that the enlargement purported to
be made was warranted by the powers given by the
Acts («). The purchaser's advisers should see that the
vendor's duties in these respects are duly discharged ;
except of course so far as he is by special stipulation in
the contract exonerated from performing them.
On the purchase of leaseholds settled on sach trusts Leaseholds
as shall correspond, as nearly as the rules of law and ti-ust to go
equity will permit, with the uses declared of some 7''^^^ ^^^^'
freehold lands assured in strict settlement (o), it must
not be forgotten that the leaseholds are not thereby
converted in equity into real estate {])). On the con-
trary, they remain personal estate and mil therefore
vest absolutely (subject to any prior life interests) in
the person, who becomes entitled to the first estate of
inheritance, whether in fee or in tail, in the settled
freeholds {q) ; unless the settlement contain the usual
proviso that the leaseholds shall not vest absolutely in
any person thereby made tenant in tail by purchase
unless he shall attain tlie age of twenty-one years, but
(/) See above, pp. 106—108, ed. ; vol. 4, p. 436, 3rd ed. ;
208—210. Williams on Settlements, 223.
(w) Sec above, pp. 97 101, {p) See He TTalkrr, 1908, 2 Ch.
192, 208—210. 70o, 712 ; lie Gibbon, 1909, 1 Ch.
(m) See Hood & Challis, Couv. 367, 378.
and Settled Laud Acts, 160 sq., [q) See Folei/y. BtirueU, 1 Bro.
9th ed. C. C. 274, 4 Bro. P. C. 319;
(o) As to this modo of settle- Wms. Pers. Prop. 363, 409. 410,
ment. see Davidson, Prec. Conv. 16th ed.; and authorities cited iu
vol. 3, pp. .599—605, 1130, 3rd note (o), above.
w. 24
370
OF PARTICULAR TITLES.
shall devolve on his death as if they were freeholds of
inheritance limited to the uses of the settlement. Such
a proviso is only effective if confined to tenants in tail
taking by purchase ; and does not of course prevent
the leaseholds from vesting absolutely in the person,
who becomes entitled to the first estate tail, if he take
by purchase and be of or attain full age, or if he should
become entitled thereto by inheritance (whether of full
age or not) (r). Leaseholds settled in this way do not,
of course, require to be disentailed at any time. If a
re-settlement be made, they should be assigned, as the
absolute property in reversion of the tenant in tail,
upon trusts to correspond with the uses declared of
the freeholds thereby assured, subject to the above-
mentioned proviso (.s) .
Options to
purchase con-
tained in
leases.
How far
options of
purchase
are subject to
the rule
against
perpetuities.
Sometimes leases contain an agreement giving to the
lessee, his executors, administrators or assigns, the option
of pm-chasing the freehold from the lessor, his heirs or
assigns, either at any time during the continuance of
the term or within some shorter period. It must be
remembered that covenants of this kind are collateral
covenants, not touching or concerning the demised pre-
mises as such, and are subject to the same law as options
to purchase conferred by agreements independent of
leases {f) . Contracts giving options exercisable at any
fixture time (without limit) to purchase land are so far
subject to the rule against perpetuities that the Courts
will not enforce them specifically against persons not
parties to the contract, who have acquired the original
(>•) See authorities cited in
note (o), above. Personal chattels
such as furniture, pictures, plate
and jewels, are governed by the
same law when settled on trust to
accompany freeholds ; see Wms.
Pers. Prop. 408—410, 16th ed. ;
but see He Chexham's Setfkmcnt,
1909, 2 Ch. 329, and Mr. Charles
Sweet's c-riticism of this decision
in 54 Sol. J. 26 ; Re Parker, 1910,
1 Ch. 581.
[s) See 2 Key & Elph. Prec.
Conv. 710, 715, 4th ed. ; 744,
748, 9th ed.
[t) Woodall V. Clifton, 1905,
2 Ch. 257 ; and see an article by
the writer in 42 Sol. J. 628, 650.
I
OF PARTICULAR TITLES. -371
contractor's estate by succession after death or by
assignment with notice of the contract, in any case
where the efpect of ordering such specific performance
would be to secure to the person entitled to the option
a contingent equitable interest in the land, which would
not necessarily vest (if at all) within the period allowed
by the rule {k). It has been held, however, that such
agreements are not void at law as contracts, but are
enforceable by action for damages in case of their
breach (^■). Audit has been considered that contracts
of this kind are specifically enforceable against the
original contractor, even though made by a corporation
enjoying immortal existence {//). The result is that, to
be perfectly effective, options to purchase land must be
limited so as to be exercisable only within some period
not exceeding that allowed by tlie rule against perpetui-
ties, namely, the duration of some specified life or lives
in being at the date of the contract giving the option
and twenty- one years thereafter (s), and this is equally
the case where the contract is contained in a lease as
where it is not. If therefore the lease be for a term
exceeding twenty- one years and the option be for the
lessee, his executors, administrators or assigns, to piu'-
chase of the lessor, his heirs or assigns, at any time
during the term, the option is only partially effective.
(«) Zondoti ^- South Western kind are in general or unlimited
Ry. Co. V. Gomm, 20 Ch. D. 562, restraint of alienation, and ought
580, nq. ; and see South Ensfeni to be treated as void on that
i?y. Co. V. Associafifl I'ortlaitd account ; see also another article
^•c, Ltd., 1910, I Ch. 12, 28 — 34, by the writer on this subject iu
the decision iu Avhich case is 54 Sol. J. 471, 501.
criticised by the writer in .Vl {y) South EuKtern Ry. Co. v.
Sol. J. 471, 501. Associated Portland ^r., Ltd.,
(x) TForthiiiy Corpn.v. Hrafhcr, 1910, 1 Ch. 12. 28—34. This
1906, 2 Ch. 532. An appeal was decision is criticised by the writer
entered against this decision, but in 54 Sol. J. 471, 501.
the case was compromised. The (z) See Wms. Real Prop. 405 —
decision in this case is criticised 407, 21st ed. : and the writer's
by the writer in 51 Sol. J. 648, article on the Rule against Per-
069, where it is respectfully snb- petuities in the Encyclopaedia of
mitted that agreements uf tliis the Laws of England, 2nd ed.
24 (2)
372
OF PARTICULAR TITLES.
It would be specifically enforceable against the lessor
himself, or (as it appears) by the lessee himself against
the lessor's heirs or assigns : but not by the lessee's
assigns against the lessor's assigns (a) .
Reversionary
leases.
Terms to
commence
infntttro.
Where the landlord of a tenant for a term of years
has granted to him a new lease to commence in reversion
upon the expiration of the existing term, it must not be
forgotten that during this term the tenant has only an
interesiie termini, and no term, under the new lease ; he
is not tenant for one term compiled by adding the
years to be enjoyed under the new lease to the existing
term. If, therefore, the tenant should have underlet
for a period exceeding the existing term, he will in
effect have assigned his interest in the term, and will
have no reversion enabling him to distrain for the rent
reserved by the underlease {h). Terms of years may
of course be limited to commence at a future time (c) ;
and no period was defined by the ancient common law
within which such terms should be required to take
effect {d). But of late years the question has been
raised whether terms to commence in futuro are well
limited if they may take effect at some time exceeding
the period allowed by the rule against perpetuities {e).
And having regard to the recent trend of judicial
opinion on this subject (/), it cannot safely be assumed
[a) See WoodaUw. Clifton, 1905,
2 Ch. 257 ; Worthing Corpn. v.
Heather, 1906, 2 Ch. 532 ; and the
writer's articles in 42 Sol. J. 630,
650; 51 Sol. J. 648, 669, 670.
[h) Lewis V. Baker, 1905, 1 Ch.
46; Llatigattock v. Watne>/, ^-c,
ltd., 1910, 1 K. B. 236 ; affirmed,
1910, A. C. 394 ; see Wms. Real
Prop. 507, 523, 21st ed.
(c) Wms. Real Prop. 395, 13th
ed. ; 505, 21st ed.
(d) See Smith v. Dai/, 2 M. &
W. 684 ; 3rd Rep. of Real Pro-
perty Commrs., 29, 31 ; Encyclo-
paedia of the Laws of England,
xi. 72, 73, 2nd ed. (by the author).
(f) See 1 Sand. Uses, 197, 199,
4th ed. ; Lewis on Perpetuities,
600, 609, 614; Gray on Per-
petuities, ^ 299—303, 314, 316,
319, 2nded.
(/) See North, J., Dmiii v.
Flood, 25 Ch. D. 629 ; Baggallay,
L. J., S.C, 28 Ch. D. 592 ; Jig
HoUis^ Hospital and Hague, 1899,
2 Ch. 540 (these opinions are
criticised below. Chap. XII. ^ 3) ;
Farwell, L. J., South Eastern Ry.
Go. V. Associated Portland ^-c,
OP PARTICULAR TITLES.
373
that terms limited to commence at a future time beyond
that period are validly created.
§ 3. — Sale of Lands in a Register County or Coinpuhory
Registration Dii^triet.
If the property purchased be situate in Middlesex or Lands in
Yorkshire (including the town and county of Kingston- Yorkshire. °
upon-HuU), the conveyancer must, of course, have
regard, in advising on title, to the law established by
the Hegistry Acts {y) for those counties, and to the
construction placed on the Middlesex and the old
Yorkshire Registry Acts in Courts of Equity with
regard to purchasers having notice of prior unregistered
assurances {h). He should note, in perusing the abstract,
whether every document which ought to be registered
has been duly registered, and, if not, he should require
the vendor to procure the same, if still capable of
registration, to be registered at the vendor's expense {i).
Ltd., 1910, 1 Ch. 12, 27 (as to
which case and dictum, see above,
p. 371, u. (//)); Wms. Real
Prop. 415, and note (c), 21st
ed. ; and the writer's article on
the Rule against Perpetuities in
the Encycloi^aedia of the Laws
of England, vol. ii. pp. 72, 73,
2nd ed.
{g) Stats. 7 Anne, c. 20, for
Middlesex, of which the register
was transferred to the Land
Registry Office by 54 & 55 Vict.
c. 64 ; 2 & 3 Anne, c. 4 ; 6 Anne,
0. 20 (5 Anne, c. 18, in Ruffhead),
for the West Riding of Yorkshire ;
6 Anne, c. 62 (c. 35 in Rutfhead;,
for the East Riding and King-
ston-upou-HuU : and S Geo. II.
c. C. for the North Riding. All
the Yorkshire Acts were repealed
and replaced by 47 & 48 Vict.
c. 54, amended by 48 & 49 Vict,
c. 26.
(A) See Wms. Real Prop. 211,
262, 572—574, 2l9t ed. ; 2 Dart,
V. i: P. G78— G85, 852—857, 5th
ed. : 767—776, 9.58—965, 6th ed.;
697—705, 865—872, 7th ed. ;
Brickdale on Registration in
Middlesex.
(i) Sug. V. & P. 546. The
memorial to be I'egi.stered in
Middlesex or Yorkshire of any
deed was required to be under
the hand and seal of some or one
of the grantors or grantees, his
or their heirs, executors or ad-
ministrators, guardians or trus-
tees, and to be attested by two
witnesses, whereof one should be
one of the witnesses to the exe-
cution of the deed : Sug. V. & P.
729, 730. The Yorkshire Regis-
tries Act. 1884, s. 6, substituted
parlies to the deed for f/raiitors or
grantees and one or more for two
witnesses. In Middlesex, the
memorial is now required to
be attested by one witness only,
such witness, tc/icrc practicable, to
be a witne.ss to the execution of
the deed : stat. 54 & 55 Vict,
c. 64, 8. 2, and First Schedule,
374 OF PARTICULAR TITLES.
If the omission to register cannot be rectified, the pm--
chaser's counsel must consider whether the circumstances
are such as prevent his client from obtaining an inde-
feasible legal estate in the property purchased, and he
should make requisitions or objections as to the title,
according to the conclusion at which he arrives. With
regard to dispositions taking effect inter vivos, the general
effect of the Middlesex and old Yorkshire Registry Acts
was that an unregistered deed or conveyance of lands
in either of these counties was voidable at law by
a subsequent registered deed or conveyance of the
same lands to a purchaser or mortgagee for valuable
consideration {k) . But an unregistered assm-ance by
deed was not void or inoperative ; it passed the
legal estate to the grantee, and was only defeasible
by such a registered assurance as above described [l).
Thus, if A. granted the same lands by unregistered
deed first to B. and subsequently to C, whether
r. 2 ; Land Registry (Middlesex agreement or memorandum in
Deeds) Rules, 1892, r. 6 ; W. N. writing: Suiiiptcrw. Cooper, 2 B.
ISth Feb. 1892. It is suflBcient & Ad. 223; or to a vendor's lien
if a witness to the execution of arising without express agree-
the deed by the grantee attest the nient in writing : Kettlcwdl v.
memorial : R. v. Registrar for Watson, 26 Ch. D. 501, 507 ; or
Middlesex, 21 Q. B. D. 555. In to the vesting, effected by an
default of compliance with these adjudication of bankruptcy, of
conditions theregistration is void: the banki'upt's estate in his
Essex V. Baiigh, 1 Y. & C. C. C. trustee: Re Cakott and Elvin^s
620. Contract, 1898, 2 Ch. 460. Con-
(k) Stats. 2 & 3 Anne, c. 4, s. 1 ; sidering these decisions, it would
6 Anne, c. 62 (c. 35 in RuflFhead), appear that the words above
s. 1 ; 7 Anne, c. 20, s. 1 ; 8 Geo. II. quoted are wide enough to in-
c. 6, s. 1. TThese enactments re- elude an unsealed memorandum in
quired the registration of " all writing of a contract to sell laud,
deeds and conveyances whereby Brady, Ir. C, Gardiner v. Blesin-
any hereditaments may be in any ton, 1 Ir. Ch. Rep. 79, 85 ; but
way affected at law or inequity"; see and consider Inland Revenue
and it was held that these words Commrs. v. Angus, 23 Q. B. D.
extend to a written memorandum 579; Rodger v. Harrison, 1893,
of an agreement gis'ing or opera- 1 Q. B. 161. The law stated in
ting as a charge in equity upon this note now applies to lands in
certain lands: Neve -v . Pennell, 2 Middlesex only; see below, p. 377,
H. & M. 170, 185—187 : Credland and n. (s).
V. Totter, L. R. 10 Ch. 8; but
not to the charge created by a {I) Grant, M. R., Jones v.
deposit of title deeds without Gibbons, 9 Ves. 407, 411.
OF PARTICULAR TITLES. 375
for value or not, and C. by registered deed granted
the lands to D. on a sale or mortgage, I), did
not thus obtain the legal estate or any priority of
interest over B. For when A. granted the lands to C,
he had already parted with all his estate therein to B.,
and A.'s grant to C, being unregistered, could not
operate to displace B.'s estate (m). If, however, the
conveyance from A. to C. were duly registered, as well
as that from C. to D., D. would obtain the legal estate,
whether he had or had not notice of the conveyance
from A. to B. {n) ; but if he had such notice, i)i equiti/
he would obtain no priority of interest over B., and
would be a trustee of his legal estate for B.'s benefit (o).
It has been decided by the House of Lords, in a case
upon the Irish Registry Act, that in order to avoid an
unregistered assurance it is not necessary that the
subsequent registered conveyance shoidd be made by
the first grantor personally ; it may be made by anyone
who, but for the unregistered assurance, would take his
estate by operation of law in his lifetime (p). And
(»«) Jack d. Rennick v. Arm- be imputed to him: Holland v.
KtroHff, 1 Hud. & B. 727 ; Furi/ Hart, L. R. 6 Ch. 678. Regis-
V. Smith, lb. 735 : both oases on tration of an assurance is not of
the Irish Registry Act ; 2 Dart, itself equivalent to notice thereof:
V. >Sc P. 80.5, 856, 5th ed. ; 963, Moncock v. Dickins, Amb. 678 ;
964, 6th ed. ; 871, 872, 7th ed. He limsell Iloud PKrchasc Moneys,
(«) Dov d. Robinson v. Allsop, L. R. 12 Eq. 78, 83. But if one
5 B. & A. 142. search in the register, he is
(0) Le Xevc V. Lc Neve, Amb. affected with notice of registex-ed
436; 2 White & Tudor L. C Eq. assurances : Bimhell v. Bit-shell, 1
As a iide, actual notice of a Sch. & Lef. 90, 103 ; Ilodyion v.
previous unregistered aasurance Lean, 2 Sim. it Stu. 221, 225;
was necessary tu deprive a pur- Procter v. Cooper, 1 Jur. N. S.
chaser of the benefit of registra- 149.
tiou: Wyutt v.Bnriall, 19 Ves. ^^,^ ir,irburton v. Lonland, 2
435. He would not lose his D^^. & c. 480, where a woman
priority through not makiug entitled to a term of years settled
mvestigations or inquiries for it on her marriage by unregistered
unregistered documents : Ayra sissurance, and it was held that
Bank, Limited v. Barry, L. R. 7 this settlement must be postponed
?■ T "r.l"^^ ' ^^ t' ^t''""^"' *''' to a registered assignment of the
L. J. Ch. 43, 46 L. J. Ch. 48. term by her husband to a pur-
But if his solicitor or agent had chaser,
actual notice, such notice would
376 OF PARTICULAR TITLES.
in the same case the English judges, who were called
in to advise the House, unanimously expressed the
opinion (q) that a secret conveyance of a man's lands
made by unregistered assurance may be avoided by a
registered conveyance from his heii-, or even from his
Wills. devisee (r) to a purchaser. Wills of lands in Middlesex
or Yorkshire, if not registered within six months of the
testator's death, were voidable by a registered convey-
ance from the testator's heii' to a purchaser (.s) ; so that
the devisee imder a will not so registered could not
make a good title to the devised lands without the
heir's concurrence (t). But under the Vendor and
Purchaser Act, 1874 {a), where such a will has not
been registered within due time, an assurance of the
land to a purchaser or mortgagee by the devisee, or by
someone deriving title under him, shall, if registered
before, take precedence of and prevail over any assur-
ance from the testator's heir-at-law. It is not clear to
what extent this enactment is retrospective. On a sale
of lands in Middlesex by the devisees under an
unregistered will of a testator, who died in 1875,
subject to the condition that no objection should be
taken on account of any document not being registered
in Middlesex, the purchaser was obliged to take the
{q) 2 Dow & C. 495. the death of a testator dying'
(?•) Assuming, it is presumed, upon or beyond the seas. In
that the wiU was duly registered : case of an impediment to the
see Dart, V. & P. 683, 684, 5th registration of the will, a memorial
ed., 772, 6th ed. ; 701, 7th ed. of the impediment might be
The rule Mibsequently laid down registered and the will might
by Mr. Dart and his editors be registered within six months
(p. 855, 5th ed., 963, 6th ed. ; after the removal of the impedi-
871, 7th ed.), that a purchaser ment. See stats. 7 Anne, c. 20,
under an uni-egistered conveyance ss. 1, 8, 9 ; 2 & 3 Anne, c. 4,
can only be disturbed by a pur- ss. 1, 20, 21 ; 6 Anne, c. 35, ss. 1,
chaser from the first grantor or 14, 15, 34 ; 8 Geo. 2, c. 6, ss. 1,
parties taking vmder him by aci 15, 16 ; Chadwlck v. Tunur, 34
in laiv, does not appear to be Beav. 634, L. R. 1 Ch. 310.
quite accurately expressed, as a {() 2 Dart, V. & P. 682, 683,
devisee is the testator's assign. 5th ed. ; 771, 772, 6th ed. ; 701,
(«) That is, if the testator died 7th ed.
in Great Britain. Three years («) Stat. 37 & 38 Vict. c. 78,
were given for registration from s. 8.
OF PARTICULAR TITLES.
•377
title, notwithstanding that it was unknown who was
the heir, and search against the heir's name was thus
prevented {x).
The Yorkshire liegistries Act, 1884 {>/), provides Yorkshire
that all assurances (as defined in the Act) {z) AcFIssT
affecting lands in Yorkshire ma// be registered under
the Act, and that all assurances entitled to be
registered under this Act shall have priority accord-
ing to the date of registration {a), and that all
priorities given by this Act shall have full effect in all
Courts, except in cases of actual fraud, and all persons
claiming thereunder any legal or equitable interests
shall be entitled to corresponding priorities, and no
{x) Girli)i(j V. Giii'uig, W. N.
1886, p. 18.
(y) Stat. 47 & 48 Vict. c. .54,
ss. 4, 14, as amended by 48 & 49
Vict. c. 26, s. 4.
[z) By Stat. 47 & 48 Vict. c. 54,
s. 3, in this Act, unless the con-
text otherwise requires, the ex-
pression asKuraxcr shall include
any conveyance, enlargement of
term into foe simple, memo-
randum of charge, deed of con-
sent to the discharge of a trustee,
statutory receipt, private Act of
Parliament, award or order of
the Land Commissioners, order of
a Court, certificate of appoint-
ment of a trustee in bankruptcy,
or affidavit of vesting under any
Act of Parliament ; and the e\-
■pTCH>*\onscv>ivii/)incv (which is con-
fined to certain conveyances
made by deed), enlargement of
term into fee ainiplr, itiiiiioranduin
of charr/e, stdtutory receipt, anard
or order of Laud Commissioners
and ord^'r of a Court (which in-
cludes writ of execution and
adjudication in bankruptcy), are
also ehiborately interpreted. The
powers (if the I>:iinl Cmimis-
sioners were in 188'.) tran.sfeiTed
to the Board of Agricultiure ; .-see
above, pp. 146, n. {k), 147, u. ((/),
lo'i. By sect. 7 of the Act, the
charge given by a vendor's lien
or a deposit of title deeds is re-
quired to be accompanied by a
registered memorandum in order
to give priority over subsequent
registered assurances for valuable
consideration. It ha^s been held
that a written memorandum of a
contract for the sale of laud in
Yorkshire, subject to the con-
ditions implied by law that the
vendor shall show a good title
and convey on acceptance of the
title, and payment of the price, is
not an assurance withiu the
meaning of this Act: Rodger \.
JfarrisoH, 1893, 1 Q. B. 161.
(«) By Stat. 48 & 49 Vict. c. 2C,
s. 3, a caveat in favour of any
person may be registered with
respect to any lands in Yorkshire
by any person claiming to be
entitled to any interest therein ;
and if, while the eaveat remains
in force, an assurance of the lands
from the g^ver of the caveat to the
other, his representatives or as-
signs, be duly registered, such
assurance shall have priority as
though it had been registered on
the date of registration of the
caveat.
ST'S OF PARTICULAR TITLES.
such person shall lose any such priority merely in conse-
tj[uence of his having heeu affected with actual or con-
structive notice, except in cases of actual fraud {h).
This Act appears to have the same effect as the Acts
which it repealed {(■), with respect to the operation of
conveyances inter civo>i at law [d) ; but to abolish the
doctrine as to notice applied in equity to the old
Acts (e). Under the Act of 1884 (./'), wills of lands in
Yorkshire shall have priority according to the date of
the testator's death, if registered or entitled to rank as
registered, within six months thereafter [g) ; and if
registered later, according to the date of registration.
But the Act provides (A) for the registration within six
months after a landholder's death of an affidavit of his
intestacy, and gives priority, where such an affidavit
has been registered, to any duly registered assurance
for valuable consideration by any person entitled to
execute the same in case of such intestacy, over any will
of the supposed intestate which shall be subsequently
registered, and shall not be entitled to rank as regis-
tered within six months after the testator's death.
Exceptions. The Middlesex Registry Act and the old Yorkshire
Registry Acts do not extend to copjhold estates, leases at
a rack rent, or leases not exceeding twenty-one years when
the actual possession and occupation go along with the
lease (?'). And the Middlesex Registry Act does not extend
{b) Hee JJatti»ijtt\'. Mu/jxuti.lSim, may be registered within the
2 Ch. 403. same period, and iu such case the
(e) Above, p. 373, n. (;/). will, if registered within two
{d) Above, p. 374. years after the testator's death,
(e) Above, p. 375. This doctrine will have priority as though it
remains in force with regard to were registered on the date of
lands in Middlesex. registration of the notice : stat.
(/} Stat. 47 & 48 Vict. c. .',4, 47 >)c 48 Vict. c. 54, s. 11.
ss. 4, 14, amended by 48 & 49 n a *- ^.■l
Yict. c. 26, s. 4. ^ '
[g) If the will cannot be regis- (i) Stats. 7 Anne, c. 20, s. 17 ;
tercd within six months after the 2 & 3 Anne, c. 4, s. 16; G Anne,
testator's death, notice of the will c. 35, s. 29 ; 8 Geo. II. c. tJ, s. 34.
OF PARTICULAR TITLES. 379
to Chambers in Serjeant's Inn, the Inns of Court or Inns
of Chancer J (A-), and has no application to the City of
London (/) . The Yorkshire Registry Act, 1 884 (m) , does
not extend to copyhohls, or to any lease not exceeding
twenty-one years, or any assignment thereof, where accom-
panied by actual possession from the making of such lease
or assignment ; and the Act does not apply to land in
the city of York (ii). It has been held that, under the
old Yorkshire Registry Acts, it w^as not necessary to
register an assignment by deed of a pecuniary legacy
charged on land in Yorkshire (o) ; and that, under
the Middlesex Registry Act, registration need not
be made of a conveyance of an interest in the
proceeds of sale of land devised in trust for
sale ( p) . Here we may note that the non-registration Wills of
of wills of leaseholds does not appear to be an objection
to the title thereto {q), as, when a will of leaseholds has
been proved, there is no one, like the heir of freeholds,
who could possibly convey them to a purchaser so as to
defeat the executors' or legatees' title (r) . And pending
probate, the leaseholds could only be lawfully disposed
of by an administrator duly appointed on the supposi-
tion of intestacy ; in which case the validity of the
administrator's dealings therewith would appear to
depend on the general law (.s) and not on the policy of
(k) Stat. 7 Auue, c. 20, s. 17. in Aidoi v. A/dnt, 29 Ch. D. 7U2.
(/) Sug. V. & P. 732. Lauds <.P) ^Irdenv. Ardm, ubi sup.
takeu in 18>S8 from Middlesex to (?) See 2 Dart, V. k P. (383,
make up the anuiin of London -'th ed.; 772, 6th ed.; 702, 7th ed.
remained subject to the jurisdic- ('') Besides this reason, thepro-
tion of the Middlese.t Registry : visions of the Middlesex and old
Stat. 51 & 52 Vict. c. 41, .ss. 40, 96. Yorkshire Registry Acts for re-
/ X oi i .- I . o 17- i. -. gistrations of wills of kinds appear
[m) btat. i, .^.-JSVict. c. 04, f^^.pp^^.^^ble to leaseholds the
**• " memorial being required to be
(h) This was equally the case the act of the devisee : see stjit.
with the old Yorkshire Registry 54 & 55 Vict. c. 64, First Sched.
Acts. r. 3. The Yorkshire Registries
(0) Malcolm v. VharUsworth, Act, 18S4, s. 6, permit** registra-
1 Keen, 63, doubted in Davidson, tion of a will by the executor.
Piec. Conv. vol. 2, part 2. p. 219, (.■<) See 1 Wins. Exors. Pt. I.
4th ed., but approved by Kay, J., Bk. VI. Ch. III.
380
OF PARTICULAR TITLES.
Lands regis ■
tered in
the Land
Registry.
the Registry Acts. It may be observed that since the
descent of the legal estate in freeholds lias been assimi-
lated to that of chattels real {f) , it is in most cases, if not
in all («), impossible for an heir of freehold lands in
Middlesex or Yorkshire to convey the same to a pur-
chaser so as to defeat the title of an executor or devisee
under an unregistered will. Lands situate within the
jurisdiction of the Middlesex Registry, or any of the
Yorkshire Registries, become exempt from such juris-
diction on being registered under the Land Transfer
Acts, 1875 and 1897, and no document relating to such
lands and executed after such registration, and no testa-
mentary instrument relating to such lands and coming
into operation after such registration, need be registered
in the county register {.r). But this provision does not
apply to estates and interests excepted from the effect
of registration under a possessory or qualified title (//),
or to an unregistered reversion on a registered leasehold
title, or to dealings with incumbrances created prior to
the registration of the land(s). If any such lands so
registered in the Land Registry should after^^'ards be
removed therefrom, they will again become subject to
the jurisdiction of the county register as from the date
of removal {a).
Where the land purchased is situate in a district in
Lands in a
district where ^ • ^ • i i- c l•,^ • ^ ^ -i^
reo-istration which registration 01 title IS compulsory on sale, it
{t) Above, pp. 228, 231.
(m) Title must now be made
through the administrator in ca^e
of intestacy : above, p. 231. But
if the existence of a will were
not discovered for some years after
the testator's death, and the ad-
ministrator had conveyed to the
heir (see above, p. 233) and the
heir to a purchaser, both by duly
registered deed, it appears that in
Middlesex the purchaser's title
would prevail over that of the
devisee, as in Chddirick v. THviicr,
L. R. 1 Ch. 310. So, also, in
Yorkshire, if an affidavit of intes-
tacy had been registered (sec
above, p. 378) ; if not, queen .
{x) Stat. 38 k 39 Vict. c. 87,
s. 127 ; 54 & 55 Vict. c. 64, First
Sched. §14; Land Transfer Rules,
1908, I. r. 48.
(//) See Stat. 38 & 39 Vict. c. 87,
Fs. ' 8, 9 ; Wms. Real Prop. 645,
646, 21st ed.
(:;) Stat. 60 & 61 Vict. c. 65,
First Sched.
{<() Stat. 60 & 61 Vict. c. 65,
s. 17 (3).
OF PARTICULAR TITLES.
381
must be remembered that under the Land Transfer of title is
Act, 1837 (/>), any conveyance on sale (c) executed on on sale,
or after the day on which registration of title on sale
was made compulsory in that district {(/), does not pass
(b) Stat. GO & 61 Vict. c. 65,
8. 20 (1, 2) ; Capital c^- Counties
Bank, Ltd. v. Uhodcx, 1903, 1 Ch.
631, 654.
(c) " Sale " in this enactmout
appears to be confined to sale
strictlj'' so called (cee above,
pp. 1, 266), and not to extend to
transactions in which other valu-
able consideration than the pay-
ment of a price in money is given
for the conveyance of land, such
as exchange, partition, mortgage
and marriage or family settle-
ment, and of course not to volun-
tary gifts.
{d) By Orders in Council dated the 18th July and 20th Oct. 1898,
28th Nov. 1899. 9th March and 10th Dec. 1901, and 6th March, 1902
(W. N. 23rd July and 29th Oct. 1898, 9th Dec. 1899, 23rd March and
21st Dec. 19ul, and loth March, 1902), registration of title was made
compulsory on sale in the following- districts comprising the county
and city of London on the dates mentioned below : —
DISTRICTS.
The parishes of Hampstead, St. Pancras,
St. Marylebone and St. Oeorge's, Hanover
Square
The parishes of Shoreditch, Bethnal Green, Mile
End Old Town, Wapping, St. George's in the
East, Shadwell, Ratcliff, Limehouse, Bow,
Bromley and Poplar
The parishes of Christ Church, South wark,
St. George the Martyr, Camberwell, Horsley-
down, Lambeth, Bermondsey, Newington,
Rotherhithe, St. Olave and St. Thomas,
St. Saviour and the detached part of the
parish of Streatham situate between the
parishes of Lambeth and Camberwell
The parishes of Battersea, Clapham, Putney,
Tooting Graveney, Wandsworth, and the re-
mainder of the parish of Streatliam
The remainder of the county of London (except
the city)
The city of London
Days of commencement
of Compulsory
Regi./). If
on the purchase of land situate in a district where
registration is compulsory, title be deduced under
a conveyance on sale, or a grant or an assignment of
a lease, which is affected by the above provisions, it
must be ascertained that the purchaser, lessee, or assignee,
was duly registered as proprietor of the land, or the
legal estate must be required to be got in from the
vendor, lessor, or assignor or his representatives, and the
title thereto required to be deduced accordingly. And if
the land should not have been registered since registration
was made compulsory in the district, it must be remem-
bered that the purchaser must himself be registered as
proprietor of the land before he can acquire the legal
estate on completion of the purchase. The expense of
such registration will apparently fall on tlie purchaser,
{m) Stat. 60 & 61 Vict. c. 65, («) See Wms. Real Prop. 632,
First Schedule. ^33 and n. («), 21st ed. ; 45 Sol.
J. 357.
OF PARTICULAR TITLES.
380
in the absence of special stipulation, under the general
principle that the purchaser must bear the expense of
the conveyance to himself of the property sold (o). It
appears, however, that in the absence of stipulation it is
the vendor's duty to procure the purchaser to be regis-
tered as proprietor ; for the general rule is that the
vendor must make the conveyance — i.e., do all acts
necessary to pass the legal estate — though the purchaser
must pay for the conveyance {p) ; and in the present
case the legal estate cannot pass until registration.
For the same reasons, it does not appear that the
vendor can claim payment of the purchase money
before the purchaser's registration, the rule being that
payment can only be demanded on conveyance of the
estate {p). When unregistered land situate in a com-
(o) Sug. V. & P. .j(il : Dart,
V. & P. 707, 5th ed. ; 798, 6th
ed. ; 714, 7th ed.
[p) See beh)w. Chap. XII..
^ 1, 5; Chap. XX. It i.s sub-
mitted that the case is iiot parallel
to that of the coiiveyanco of land
in a register county, when the
legal estate passes by the deed of
conveyance : above, p. 374. In
L. Q. R. XX. 97, the learned re-
viewer of the first edition of this
book challenged the correctness
of the statement in the text, and
(compared the case to that of a
tenant in tail selling the fee
simple, when (he suggested) the
duty of enrolling a conveyance
made by way of disentailing
assurance rests on the purcha.ser.
With great respe(^t for this
opinion, the aiithor is (constrained
to adhere ti> the view al>ovi> ex-
pressed ; and he submits tliat tlu'
case of a sale by a tenant in tail
is different. The effect of stat.
8 & 4 Will. IV. c. 74, .".s. IT), 41,
appears to be that the grantee of
an estate in fee simple under a
disentailing deed exei'uted by the
teniiiit in tail obtains th(> legal
estate in fee simple on the execu-
tion of the deed, subject to a con-
W.
dition subsequent reducing the
as.surance, in case of non-enrol-
ment within due time, to such a
conveyance as the tenant in tail
could make at common law ; see
}V hit more- Searle v. Whitmorc-
Srnrlft, 1907, 2 Ch. 332. And
even at common law the grantee
would take a fee simple defeasible
bv the entry of the issue in tail :
Doe d. XevUIe v. NiviUe, 7 T. R.
276 ; Doe d. Gregory v. Whiehelo,
8 T. R. 211, 214; Wms. Real
Prop. 108 andn (« ), 2l8t ed.
Besides, the fact that the tenant
in tail is bound to pay the costs
of ennilinetit (below, Chap. XII.
^^ 4), appears to .show that the
duty of jJi'ocurinff the enrolment
(as being an act without which
he cannot convey the estate he
has sold iiud so a step in the
vendor's title) really lies on the
vendor. t>o in the case of the
sale of land in a compulsory
registration district it is sub-
mitted that the registration of
the pui'cha.ser is an act without
which the vendor cannot convey
to the jiurchaser the estate con-
tracted for, and is e rr .
25 (2)
enactment.
•3'S8 OF PARTICULAR TITLES.
from the trusteeship and appoint a new trustee in his
place, and shall put the purchaser into possession of the
property sold. Let the purchaser take possession on
comj)letion and afterwards execute a deed removing the
vendor from the trusteeship, appointing some nominee
of his own trustee in the vendor's place, and vesting the
land in the new trustee. Then let the purchaser call
upon this trustee to convey to him the legal estate in
the land, and let the same be conveyed to him accord-
ingly. There certainly seems to he good ground for
contending that neither the deed appointing the new
trustee nor the deed of conveyance from the new
trustee to the purchaser himself is " an instrument
executed on sale" within the meaning of the enactment
in question (a), for when the price was paid, the first
deed executed, and the purchaser put into possession,
the contract of sale would have been completely dis-
charged on both sides by performance of all the
obligations thereby undertaken (/»). But this plan is
open to the very serious objection that the purchaser
parts with the whole of the piu-ehase money against the
conveyance to him of a merely equitable estate. . It is
never safe for a purchaser to do this, because in that
event he takes subject to all equitable interests (if any)
affecting the land and created previously to his own,
and this is equally the case whether he has or has not
notice of such prior interests (c).
Successive
purchases
of several
undivided
shares.
It is a question whether registration of the title is
necessary to pass the legal estate on the completion of
the last of several successive purchases of undivided
shares (together making the entirety) of unregistered
land situate in a compulsory registration district. Tlie
enactment as to compulsory registration applies to every
(a) Above, p. 382.
(/>) See below, Chap. XVIII. ^ 1.
(c) See above, p. 386, n. ( p) ; below, § 10 of this chapter.
OF PAKTICULAK TITLK8. 389
instrument executed on sale whereby a title to apply
for first registration is conveyed or wmplctcd : but
nothing in the Act is to render compulsory the regis-
tration of the title to an undivided share in land [d).
There seems to be no doubt that the conveyance by Conveyance
deed on purchase of an undivided share in unregistered )|^ undivided
land situate in a compulsory registration district passes '^'^'i^e alone,
the legal estate, so long as there is not conferred or
completed by virtue thereof a title to apply for first
registration of something more than an undivided share
in land. Thus, if A. be the owner of one-half of Purt^H'wo
Blackacre, and the other half belong to X., and B. shares from
purchase A.'s moiety, it seems clear that a deed of $ 4. — Voluntanj Conveyances.
Voluntary conveyances, and conveyances revocable Voluntary
by the grantor, of any estate in lands or other lieredita- ^'^^^"^^'y^^^^^^-
ments were liable to be defeated {r), before the 29th of
June, 1893 (s), by a subsequent conveyance thereof by
the grantor {t) for any valuable consideration ; but this
doctrine was not applied to voluntary conveyances in In favour of
favour of a charity («). And if the grantee under the ^^ ^^^ ^'
voluntary conveyance disposed of the lands for valuable
consideration the voluntary conveyance could no longer
be so defeated by the grantor (.r). Voluntary convey- Voluntary
ances of lands, and also of goods, are voidable if tondiu"'- to^''
they tend to defeat or delay creditors, as against the defeat or
grantor's creditors seeking to take the lands or goods in creditors,
execution in his lifetime, or to make the same applicable
in payment of his debts after his death, or as against
the trustee in the event of his bankruptcy (//). And
{p) Stat. 15 Car. II. c. 17. fraudulent within the meaniuij;-
\q) Willis V. Brown, 10 Sim. of stat. 27 Eliz. c. 4, or be
127. defeated thereunder.
(>•) Lender the judicial w)ustruc- {() Not by his heirs or assigns :
tiou of stat. 27 Eliz. c. 4, made iJoe d. Newman v. Rmliaiii, 17
perpetual by ;i9 Eliz. e. 18, s. 31, Q. B. 723; Lewis v. Rees, 3 K.
and avoiding conveyances made & J. 132, 150; unless actually
with intent to defraud .subsequent fraudulent : see Sug. V. «& P.
purchasers; see Sug. V. & P. 713; 2 Dart, V. & P. 902, 5th
712 sqq. ; 2 Dart, V. & P. 889 sq., ed. ; 1021, 6th ed. : 931, 7th ed.
5th ed. ; 1003 .vv., Gth ed. : 914 («) Rammy v. Oilehrltt, 1892,
sq., 7th ed. : Wms. Real Prop. A. 0. 412.
79, 21.st ed. [x) Ptodqers v. Laiiqham, I Sid.
(v) The date of the pa.s.siug of 133; Sug.'V. & P. 719, 720; 2
the Voluntary Conveyances Act. Dart, V. & P. 901. 5th ed. ; 1019,
IS93 (5(i iS: 57 Vict. c. 21^, pro- Gth ed. : 929. 7th ed.
vidiug that voluntary convey- (;/) Stat. 13 Eliz. c. 5 : Tw;ine'\
ances, if in fact made hand Jidr Case, 3 Rep. 81a; 1 Smith, L. C.
and without any fraudulent in- 1 ; Richardson v. fi/tia/livood, Jac.
tent, should no lunger be deemed 552 ; R'- Ridlcr, 22 Ch. D. 74 ;
391
OF PAK'TICITLAK TITLES.
Bankruptcy
within two or
ten years
thereafter.
voluntar}' eonvejances of any property are voidable
uuder the Bankruptcy Act, 1883 (s), as against the
trustee in the grantor's bankruptcy, if the grantor
become (a) bankrupt within two years thereafter ; and
such conveyances are further so voidable if the grantor
become (rr) bankrupt within ten years thereafter, unless
it can be shown that at the time of making the con-
veyance he was able to pay all his debts without the
aid of the property so conveyed. But if the grantee
under the voluntary conveyance dispose of the lands
or goods to a bond fide purchaser for valuable con-
sideration, the purchaser's title cannot be displaced by
the creditors or trustee in bankruptcy of the maker of
the voluntary conveyance (/^). It appears however that,
in order to escape the operation of the above provisions
of the Banki^uptcy Act, 1883 (s), the disposition in
favour of the bond fide purchaser must be made before
the grantor, who executed the voluntary conveyance,
■1 Dart, V. & P. 905-910, oth
ed. ; 1024—1030, 6th ed. ; 9:14 —
912, 7th ed. ; Williams on Settle-
ments, 362, 368 ; see Jie Johnson,
20 Ch. D. 389 : lie Bolland. 1902,
2 Ch. 360; Maskehjnc v. Snnth,
1903, 1 K. B. 671.
(2) Stat. 46 & 47 Vict. c. r)2,
s. 47- Under the Bankruptcy
Act, 1869 (32 & 33 Vict. c. 71;,
s. 91, voluntary conveyances by
traders were similarly voidable.
Voluntary conveyances are not
so voidable under the Act of 1883
if the grantor die insolvent, but
not bankrupt, and his estate be
administered in banki'uptcy after
his death : Ex purie Official Re-
ceiver, re Gould, 19 Q. B. D. 92.
(«) A debtor becomes bankrupt
at the exact moment of time
when he commits the act of
bankruptcy (if only one) on which
a receiving order is subsequently
made against him, or the lirst of
several acts of bankruptcy, which
shall be proved to have been
committed by liim within three
months before the presentation
of the bankruptcy petition on
which such an order shall be
made : stat 46 & 47 Vict. c. .52,
s. 43, amended bj' 53 & i^A Vict,
c. 71, s. 20 ; Wright, J., Re Reis,
1904, 1 K. B. 4f)l, 455 (whose
judgment on this point is not
Hffected by the overruling of his
decision on the main question in
the case ; see S. C, 1904, 2 K. B.
769: 1905, A. C. 442); Fonsfurd,
Baker S; Co. v. I'nioii of London ^■
Smiths Bank, 1906, 2 Ch. 440;
Re Bumpus, 1908, 2 K B. 330 ;
Wms. Pers. Prop. 266—269,
16th ed.
[h] See Halifax Joint Stock
Bankiny Co. \. (ilrdhill, 1891,
1 Ch. 31, as to Stat. 13 Eliz. c. 5 ;
and as to the Bankruptcy Act,
1883, Re Vansittart, 1893, 2 Q. B.
377 ; Re Brail, ib. 381 ; Re Carter
and Kenderchne^s Contract, 1897,
1 Ch. 776.
OF PAKTICULAK TITLES. 395
hecotnex bankrupt {(•). It was held that, on a voluntary Voluntary
assignment of leaseholds subject to the payment of rent leaseholdr '^
and performance of onerc^us covenants, the liability so
incurred by the assignee was sufficient consideration to
save the assignment from being defeated b}' a subse-
quent assignment for value id) ; but this liability does
not preserve a voluntary assignment of leaseholds from
avoidance by the assignor's creditors or trustee in bank-
ruptcy {^). Where title is made under a voluntary
conveyance, followed by a conveyance for valuable con-
sideration made by the grantee, the mere fact that the
voluntary conveyance was voidable in the interval is not
an objection to the title ',/). But the purchaser is, as Proof that a
we have seen (//), entitled to require e^ddence that the converame
voluntary conveyance was not avoided by a subsequent has not been
conveyance for valuable consideration, or otherwise :
though after long continued possession in accordance
with the title under tlie voluntary conveyance, it will
be presumed that it was not so avoided [1i). Similarly,
where title is made under the avoidance prior to the
29th of June, I(S9;i, of a voluntary conveyance by a
subsequent conveyance by the grantor for valuable con-
sideration, it does not appear to be a fatal objection
that, in the interval, the voluntary conveyance may
have ceased to be defeasible (/) ; but the purchaser is
(c) See the htst three cases cited sell lands with the intention of
in the previous note, and the last defeating a voluntary conveyance
note but one. thereof previously made by hira,
(rf) I'live V. Jenkins, .') Ch. J). the Couit would not enforce the
Hiy; Marrixv. 7m//A, 42 Ch. D. 79. specific i)erformance of the con-
(e) Ex parte Uilhnau, rr Fitin- tract against an unwilling pur-
/re;/, 10 Ch. D. tJ2"J : Re Rtdler, chaser at the vendor's suit : Stnith
22 Ch. D. 74. V. Carland, 2 Mer. 123; Johnson
(/) Xoijrs v. r•) That is, where the value of
the property conveyed does not
exceed 500/. and the instrument
of conveyance contains a state-
ment certifying that the trans-
action thereby effected does not
form part of a larger transaction
or of a series of transactions in
respect of which the amount or
value, or the aggregate amount or
value of the property conveyed
exceeds 500/., nt the rate of M.
for every 5/. or fraction thereof
up to 25/., 2.S. 6d. for every 25/.
or fraction thereof up to 300/.,
and above 300/., 5s. for every 50/.
or fraction thereof : and in all
other cases at double those rates ;
see stats. 54 & 55 Vict. c. 39,
ss. 1, 14, 54 — 61, and First Sche-
dule ; 58 Vint. c. 16, Part II. ;
10 Edw. VII. c. 8, 8. 73 : Wms.
Real Prop. p. 615, n. (p), 2l8t
ed. ; below. Chap. XII. § 3.
Voluntary conveyances made by
deed executed before the 29th
April, 1910, were subject to a
stamp duty of 10«. only; stat.
54 & 55 Vict. c. 39, s. 1, and
First Schedule, tit. Deed, re-
placing 33 & 34 Viet. c. 97, s. 3.
and Schedule.
(.s) Jfaundi/ v. Mnnndii, 2 Str.
1020.
[t) Ground rent properly means
the rent at which land is let for
the purpose of improvement by
building. Thus, it conveys the
idea of something less than the
rack rent, and a purchaser of a
ground rent described as such
without further explanation will
not be compelled to accept a rack
rent : Stewart v. AUlston, 1 Mer.
26 ; Bartletf v. Salmon, 6 De G.
M. & G. 33, 41 : 1 Dart, V. & P.
123, 5th ed. ; 138, 6th ed. ; 135,
7th ed.
ill) Lecoy v. Mogford, 2 Jur.
N. S. 1084: Langfordv. Selmes,
3 K. & J. 220 : F.vans v. Robins,
8 Jur. N. S. 846 ; cf. Smith v.
Watt-f, 4 Dr. 338.
OF PARTICULAR TITLKS. '^^^
lessee's covenants, or re-entrj, for non-payment of the
rent reserved and breach of the lessee's covenants ; and
secondly, to ascertain that the vendor has been in actual
receipt of the rents, the right to which constitutes tlie
profitable part of the thing sold. Whether the first of
these requirements is fulfilled will of course appear
from the usual investigation of tlie documentary title ;
tlie second is necessary to ensure that the purcliaser is
not getting a paper title and nothing more. The title
whicli ought to be abstracted on the purchase under an
open contract of a reversion expectant on a lease for
years has been already shown (./). If the lease be more
than forty years old, the title to the reversion, if free-
hold, must be carried back so as to show that the lease
was well granted. If the reversion sold be leasehold,
the title should of course commence with the lease,
under which the reversion is derived (//). The vendor
of a reversion on a lease is under no obligation to deduce
the title under the lease so as to prove who is the
assignee thereof or person entitled thereunder at the
time of sale ; it is sufficient if he show that there is a
person in possession paying to him the rent reserved on
the lease (c). The purchaser should of course inquire Inqixirics on
who is in possession of tlie property demised under the fhe reversion
lease on which he is purchasing the reversion, and should "n ^ lease,
ask the person so ascertained to be in possession as to
tlie extent of his interest in the property (a), and also
whether he has been paying rent to the vendor. If
such person be not the actual occupant of the property,
inquiry should be made of the occupant as to the nature
of his interest in the property, and to whom he pays
rent {/>) . A tenant or occupant is not bound to answer
{x) Above, pp. 97, 101. HIJ. HtiiU v. L, 4'.) ;
(y) Above, p 101. Chap. XII , § 2, below.
(z) Flint V. ff'uodi)/, 9 Hare. (b) If the occupant should not
018. (5'21. be payiujr rent to the vendor's
(a) If he omit this, he will take tenant, the inquiry should be
with notic(> of such interest : see pursued until all the links of the
400
OF PARTICULAR TITLES.
Sale of land
leased for
years, where
succession
duty i^ayable
at end of
lease.
any inquiry to whom he pays his rent (f) : but where
the inquiry is made in connection with the purchase of
the reversion, the information sought is in most cases
not likely to be withheld. If it should be refused, it is
submitted that the vendor would be bound to furnish
some other evidence of his receipt of the rent sold.
This is merely equivalent to the duty of a vendor of
land in possession to produce land corresponding with
that described in the contract for sale (d) ; and it is
obvious that for the purchaser to dispense with such
evidence would be to run the risk of the vendor's title
having been extinguished by payment of the rent for
twelve years or more to some person wrongfully claiming
to be entitled to the land in reversion (e) .
Where the reversion in fee simple on a lease for years
is sold free from incumbrances as a property to be
immediately enjoyed and without any special stipula-
tion as to payment of succession duty, and it turns out
that the property will be subject to a liability to pay
succession duty on the expiration of the lease (,/), the
vendor must (if he can) procure the duty to be com-
muted at his own expense, or the purchaser will be at
liberty to reject the title (g) ; and the purchaser is not
chain between the vendor and
the occupant have been dis-
covered.
(c) Hnntv. Luck. 1901, 1 Ch.
45, 53.
{d) See above, pp. 33, 43.
{e) Stats. 3 & 4 Will. IV. c. 27,
ss. 9, 34: 37 k 38 Vict. c. .57,
ss. 1, 9 ; see I)oe d. AnqeU v.
Angell, 9 Q. B. 328, 355—359;
JFiUtams v. Tott, L. R. 12 Eq.
149. But in the case of mere non-
payment of the rent for twelve
years or more the vendor's title
will not have been affected, though
tlie arrears recoverable will be
limited : see Grant v. H/lis, 9 M.
& W. 113, 126, 127; Archbold v.
Scullij, 9 H. L. C. 360, 375;
Wms. Real Prop. 581, 583. and
n. (A), 21st ed. As to the case in
which a good title has been ac-
quu'ed under the Statute of
Limitations as against the lessee,
see Walter v. YalrJen, 1902, 2
K B. 304.
(/) Where a succession con-
sists of a beneficial interest m
possession in lands let at a ground
rent by a lease not granted by the
successor himself, the succession
duty in respect of the increased
value accruing on the determina-
tion of the lease need not be paid
till then ; stat. 16 k 17 Vict. c. 51,
s. 20 ; see the chapter on the
Death Duties in vol. ii.
((/^ Re Kidrl and Gibhon'n Con-
tract, 1893, 1 Ch. 695.
OF PARTICULAR TITLES. 401
obliged to accept the vendor's covenant of indemnity
against this liability, however small it may be (h).
Whenever it appears, on the investigation of the title Purchaser
to lands let at a ground rent, that succession duty has t^in whether
become payable since the commencement of the lease, ^^7 4"*^ ^^
the purchaser's advisers should be careful to ascertain payable,
whether the Crown's claim has been entirely satisfied or
whether the duty payable in respect of the increased
value to accrue on the determination of the lease has
been left outstanding till then (i). When the reversion
on a lease at a ground rent is subject to such a liability
and is proposed to be sold, special stipulation must be
made, if it be intended that the purchaser shall himself
discharge the duty to become payable on the expiration
of the lease. The purchaser of the reversion on a lease Reversion
will of course have to bear any reversion duty which " ^'
may become payable on the determination of the
lease (k) ; and there is no need for the vendor of such a
reversion to make any mention of this liability, which
is now a legal incident of such property, like land tax
or tithe rentcharge (/).
Here the reader may be reminded that by a grant of Effect of
the freehold reversion on a lease for years the rent reversion,
reserved (which is incident to the reversion) passps to
the grantee at common law, and, since statute 4 & 5
Anne, c. 3 {m), without the necessity of any attornment
by the tenant ; and tlio grantee may distrain or sue for
the rent accordingly {»). By statute ••52 Hen. YIII.
(h) lie WcKton and Thomas's the mineral rights duty ; .see
Contract, 1907, 1 Ch. 244; see sects. 20-24.
below, Chap. XII. J 4. (/) See above, p. 176.
(i) See the three preceding {m) [C. 16 in Rutthoad] s. it :
notes. see AUcock v.Moor/iouse, 9 Q. B. D.
{k) See Stat. 10 Edw. VII. 366.
c. 8, 88. 13, 14, 22 (1). And the (w) Litt. ss. 58, 72. 213, 214,
purchaser of the reversion on a 228, 229, 572 ; Sug. V. & P. rtS'S ;
mining lease will have to bear Dart, V. & P. 812, 6th ed. ; 914,
w. 26
402
OF PARTICULAR TITLES.
Grantee's
right to
enforce
lessee's cove-
nants and
conditions.
c. 34, the grantee of such a reversion is enabled to sue
upon such of the lessee's covenants contained in the
lease as "touch or concern " the land demised (o), and
also to take advantage of any condition of re-entry
contained in the lease for non-payment of rent or
breach of covenant (/?). This statute, however, does not
enable the grantee of the reversion to sue upon any
covenant by the lessee which is collateral, and does not
touch or concern the land demised (q) , or to sue at law
upon any agreement to be performed by a lessee and
contained in a lease not made by deed (r). But in
consequence of the doctrine introduced since the com-
mencement of the Judicature Acts (s) that, where land
is held under an agreement for a lease of which either
landlord or tenant can enforce specific performance, the
party so entitled is to be treated, in all Courts having
jurisdiction to decree specific performance of the con-
tract, as holding the land as landlord or tenant thereof
at law upon the terms of the agreement (t), it has
been decided that, where land is held for a term of years
under a contract not made by deed but specifically
enforceable by the landlord, and the landlord assigns
the reversion with the benefit of the contract, the
assignee is entitled to enforce all stipulations by the
lessee contained in the contract and relating to the
land demised as effectually as if such stipulations
6th ed. ; 822, 7th ed. ; Wins.
Real Prop. 340, 2l8t ed.
(o) Sfipncn'''s case, 5 Eep. IG, 18;
Sug. V. & P. 582, 583; 2 Dart,
V. & P. 814, 5th ed. ; 916, 6th
ed. ; 824, 7th ed.
{p) Co. Litt. 215; Wms. Real
Prop. 338, 512, 513, 21st ed.
(q) 6 Rep. 18 ; Sug. V. & P.
583 ; and see Webb v. Russell,
3 T. R. 393 ; Bewar v. Goodman,
1909, A. C. 72 ; Ricketts v. Eti-
field Churchwardens, 1909, 1 Ch.
544.
(r) Standen v. Christmas, 10
Q. B. 135; Bickford v. Parson,
5 C. B. 920.
(*) Stats. 36 & 37 Vict. c. 66 ;
37 & 38 Vict. c. 83 ; 38 & 39 Vict,
c. 77.
{t) Walsh V. Lonsdale, 21 Ch. D.
9 ; Furness v. Bond, 4 Times L. R.
457 ; Loicther v. Heaver, 41 Ch. D.
248, 264 ; Crumj) v. Temple, 7
Times L. R. 120 ; Foster v. Reeves,
1892, 2 Q. B. 255; Wms. Real
Prop. 503, 21st ed.
OF PARTICULAR TITLES. 403
had been expressed in covenants contained in a lease by
deed (w).
As regards leases made after the year LS81, the Rights ^ven
Conveyancing Act of 1881 (r) provides that the rent veyancing '
thereby reserved and the benefit of the lessees' cove- -^<^* '*/ ^^^^
1 • -Til' p 1 *'° eufoi'ce
nants therein contained and having reierence to the lessees' cove-
subject-matter thereof, and every condition of re-entry co^^tfong
and other conditions therein contained shall be annexed
to the reversionary estate in the land, immediately
expectant on the term thereby granted (notwithstand-
ing severance of that reversionary estate), and shall be
capable of being recovered and enforced by the person
from time to time entitled, subject to the term, to the
income of the whole or any part of the land leased.
The chief effect of the first part of this enactment is to In leases
enable the person seised of the legal estate in reversion statutory
in land leased under some statutory power to sue upon powers.
the lessee's covenants or a condition of re-entry con-
tained in the lease. Thus where land is leased by a
mortgagor under the power of leasing given by the
Conveyancing Act of 1881 (?/), the mortgagee is enabled
to sue on the lessee's covenants and conditions contained
in the lease (s). So where a lease is granted by a legal
or an equitable tenant for life under the Settled Land
Act, 1882 (a), the right to recover the rent and sue on
the lessee's covenants and conditions is annexed to the
legal estate in revertiion on the term granted. And the in other
enactment quoted applies equally to leases made in ^^^■■^^^•
exercise of the right of alienation incident to the
lessor's estate (h), and to those granted under express
(//) Maiwhestrr Breucry Co. v. («) Stat. 45 & 46 Vict. c. 38,
Coombs, 1901,2 Ch. 608; Itkkett ss. 6—12, 20; see Wms. Real
V. Green, 1910, 1 K. B. 253. Prop. 121—123, 125, 189, 403,
[x) Stat 44 & 45 Vict. c. 41, 404, I'lst ed.
8. 10. (A) Rickett V. Green, 1910, 1
((/) Stat.44&45Vict.c.41,s. 18. K. B. 253; see Wms. Real
(z) Municipal, ^-c. liuildtug Prop. 74, 108, 118, 218, 513,
Society v. Smith, 22 Q. B. D. 70. 2l8t ed.
26 (2)
404
OF PARTICULAR TITLES.
powers of leasing conferred by means of the Statute of
Uses (c) or by will : tbougli as to these it hardly seems
to have extended the previous law (d). But the last
part of this enactment invests the person for the time
Remedy given being entitled to the income of the land leased (in that
enmfedTo"the capacity) with a new and independent remedy ; and it
income of the has been held that it enables a mortgagor in possession
(who has received no notice from the mortgagee of
intention to enter into receipt of the rents) to sue upon
the lessee's covenants contained in a lease made by him
before the mortgage {c). The same construction has
been placed on this enactment with respect to agree-
ments for leases (/) as has been applied to the statute
of Henry YIII. (g).
land leased.
The assignee of the reversion on a lease cannot sue
covenant committed previously to the assignment (/)
Assignee of
rcvGrsion *^
cannot sue for the lessee for any rent due {//) or for any breach of
rent due or
breach of
covenant And he is not entitled to exercise any right of re-entry
before Ms gi"^'en by the lease in respect of any breach of covenant
time. committed previously to the assignment (/.•) ; nor can
{c) Stat. 27 Hen. VIII. c. 10 ;
see Wms. Real Prop. 392, 554,
21st ed.
[d] See Whitlock^s case, 8 Rep.
69b, 71a ; Ishencood v. Oldknow,
3 M. & S. 382 ; Greenmcay v.
Hart, 14 C. B. 340; Yellouly v.
Goxcer, 11 Ex. 274 ; Davidson,
Prec. Conv. vol. iii. pp. 484 and
n. (x), 491—500, 3rd ed. ; vol. ii.
pt. ii. p. '■'>?>&, n., 4th ed. ; Sug.
Pow. 7^2, 813—815, 8th ed. ;
Williams on Settlements, 36 — 39,
311—313.
{e) Turner v. Walsh, 1909, 2
K. B. 484.
(/■) Rickett V. Green, 1910, 1
K. B. 2o3.
[g) Above, pp. 402, note [t),
403, note [n).
(/() Flight V. Bentley, 7 Sim.
149, 151.
(i) Johnsony. St. Peter'' s Church-
wardens, 4 A. & E. 520 ; Martyn
V. Williams, 1 H. & N. 817 ;
cf. MaseaVs case, 1 Leon. 62 ;
Brown v. Trumper, 26 Beav. 11,
16. The statement to the con-
trary made in Sug. V. & P. 181
and adopted in 2 Dart, V. & P.
814, 5th ed. (916, 6th ed. ; 824,
7th ed.) seems to be incorrect.
The mere right to sue for
damages for a past breach of
covenant, other than a covenant
to pay money, appears not to be
assignable : see Torkington v.
Magec, 1902, 2 K. B. 427, 434 ;
jDanson v. Great Northern and
City Rail., 1905, 1 K. B. 260,
270, 271.
[k] Fenn v. Smart, 12 East,
444 ; Ru7it v. Bishop, 8 Ex. 675,
6^0 ; Hutit V Remnant, 9 Ex. 635,
G40 ; Crane v. Batten, 2 Com. Law
liep. 1696; 23 L. T. (O S.) 220;
Williams on Seisin, 12-5 ; Cohen
V. Tannar, 1900, 2 Q. B. 609 ; cf.
Bennett v. Herring, 3 C. B. N. S.
370.
OF PARTICULAR TITLES. 40'
the right to re-enter for any such past breach of cove-
nant be effectually assigned to him, as a right of entry
for condition broken is not assignable in law (/). It
does not appear that the law has been altered in any of
these respects by the provisions of the Conveyancing
Act quoted in the preceding paragraph (/«).
Where land has been let for a term of years and the Severance of
reversion of part only of the land is assigned over, the ^ ^^^^^ f^j.
rent is apportionable at common law {n), and the years,
assignee can sue on the lessee's covenants under the
statute 32 Hen. VIII. c. 34, with respect to that part
of the land of which the reversion has been assigned to
him (o). But the assignee of the reversion of part Its effect on
of lands demised could not, under the statute of re-entry.
Henry VIII., take advantage of any condition of
re-entry contained in the lease ; for the condition was
destroyed by the severance of the reversion and was no
longer enforceable even by ihe original landlord as to
that part of the reversion which he retained (p). By
Lord St. Leonards' Act (y), where the reversion
upon a lease is severed and the rent is legally
apportioned (>•), the assignee of each part of the re-
version is allowed to take the benefit of a condition
of re-entry for non-payment of rent in respect of the
apportioned rent so belonging to him. And under the
Conveyancing Act of 1881 (s), on severance of the
reversion on a lease made after that year every condi-
tion of re-entry or other condition therein contained
(l) See cases cited in presious 48 ; 1 Davidson, Prec. Couv. 546,
note ; Jen/dm v. Jones, 9 Q. B. D. 4th ed. ; 452, 5th ed.
128, 131 ; below, Chap. XV. (o) Twi/nam v. Pickard. 2 B.
(hi) See Cohen v. Tannar, 1900, & A. 105 ; Badeley v. Vignrs, 4
2 Q. B. G09 ; Morris v. Komedr/, E. & B. 71 : Mai/or of ^Swansea v.
1896, 2 Ir. R. 247. Thomas, 10 Q. B. D. 48.
(«) 2 Inst. 504. Rout can (;;) Winter^ s case. Dyer, 308;
only be legally apportionod with Co. Litt. 215a.
the con.sent of the tenant to (v) Stat. 22 & 23 Vict. c. 35, s. 3.
the apportiouinont, or by the (») See above, n. («).
verdict of a jury : Bliss v. Col- (.<) Stat. 44 & 45 Vict. c. 41,
lins, 5 B. «fc A. 876 ; Mayor of s. 12 ; see also s. 10, above,
Swansea v. Thomas, 10 Q. B. D. p. 403.
406
OF PARTICULAR TITLES.
Notice to quit
where the
reversion has
been severed.
Stipulation
precluding
legal appor-
tionment of
rent.
Reversions
or remainders
on an estate
of freehold —
(including, of course, any condition of re-entry for
breach of covenant) is apportionable, and may be
enforced by the assignee or other person entitled to
each part of the reversionary estate. But the assignee
of the reversion of part of the land demised by a lease
made before the year 1882 cannot take advantage of a
proviso for re-entry on breach of covenant : though the
condition is apportionable if the reversion were severed
by act in the law, or by the involuntary act of the
reversioner, as where part of the land leased has been
taken compulsorily under the Lands Clauses Act,
1845 {f). Where lands have been let to a tenant from
year to year, and the reversion of part of the lands is
assigned, a valid notice to quit can only be given by
the persons for the time being entitled to the reversion
of the whole of the demised premises, and the assignee
of the reversion of part cannot give notice to determine
the tenancy as to his part {u) . It does not appear that
in this respect the law has been altered by the Convey-
ancing Act of 1881 {x). As already mentioned (y),
when the reversion of part of lands leased for years is
sold by auction, it is usual to stipulate that the pur-
chaser shall be entitled to some specified portion of the
rent, and shall not require the rent to be legally
apportioned.
We have seen {z) that on the j^iu-chase under an open
contract of a reversion or remainder expectant on an
estate of freehold, the title must be carried back to the
instrument creating the same, whatever be its date ;
and proof must be given that the possession of the land
{t) Stat. 8 & 9 Vict. c. 18 ;
Pigott v. Middlesex County Council,
1909, 1 Ch. 134, 142, 143. The
common law iiile (above, p. 405,
and n. (jw) ) is also subject to an
exception in favour of the Crown ;
Uniffht's case, 5 Rep. 54 ; Co.
Litt. 215a.
(it) Prince v. Evans, 29 L. T.
N. S. 835 ; see dl&oBoe d. Prichitt
V. Mitchell, 1 Brod. & Bing. 11 ;
Eight d. Fisher v. Cuthell, 5 East,
491, 498, per Grose, J. ; Doe d.
Aslin V. Summcrsett, 1 B. & Ad.
135, 141.
[x) Stat. 44 & 45 Vict. c. 41,
see ss. 10, 12.
iy) Above, p. 81.
[z) Above, pp. 97, 101, 102.
OF PARTICULAR TITLES. 407
has been in accordance with that instrument. The main
difficulty in establishing the title to sucli interests arises
from the fact that, as the tenant of the particular estate
is entitled to the custody of the title deeds, no proof can
be given, beyond the vendor's affirmation, that the
reversion or remainder sold has not been previously
disposed of by way of sale or mortgage (a). Purchasers
and mortgagees of reversions or remainders expectant Are subject to
on estates for life or other interests conferring the power powers o-iven
of sale and other powers given by the Settled Land ^y Settled
Acts, 1882 to 1890 (h), take subject to the subsequent
exercise of such powers by the particular tenant, and
their estates are liable to be divested accordingly, and
in the case of sale to be transferred to the purchase
money (c). Purchasers and mortgagees of such estates
also take subject to the liability to pay any succession and to
or estate duty which shall be charged thereon when the and'est'ate
same shall fall into possession (d) ; and in the case of a ^^^y-
sale the purchaser cannot (unless he specially stipulate
therefor) require the vendor to procure such duty to be
commuted or to discharge it when it falls due ; for the
tax is regarded as an incident of the estate and not as
an incumbrance (c). But where such estates have been
{a) Wms. Real Prop. 463, 13th 47 & 48 "Vict. c. 18; 50 & 51
ed. ; 599, 2l8t ed. The pur- Vict. c. 30 ; 52 & 53 Viet. c. 30 ;
cha.ser can of course iucjuire of 53 & 54 Vict. c. 69.
the person entitled to the custody , , jrr, , ■ , . tt^ ,, ^r,
r A ...1 1 1 1 ., ■. ■ (c) Wheelwright v. Walker, 23
01 the title deeds whether he is ^/ t\ - .. n n- i ■ j V- i
c \ I ix ■ ^h- J-'- '■''2 : lie JJic/cin and E.el-
awareoi any sale 01 the reversion, „, /, ^ ', ,nr,o i /-m_ .tk.
1 T, i.u ' ii, ] 1 I, 1, sails Contract, 1908, 1 Ch. 213;
and whether the deeds have been on- j r- \y r, . .
J 1 . -1 i £ 4.1, D.C navies and Kvut .s Contract,
produced at the request of the mm .i /-.i ..^ i. '
^ -.1 *■ . 1910, 2 Lh. 35 ; see above, pp.
reversioner with a view to any ■>iq_1.-).;)o ^*
sale or mortgage by him ; but the " '
person internjgated is not bound ('^ Stats. 16^ & 1_7 Vict. c. 51,
to answer, and an answer in the **''• '^> '^^' ^'^ J ^7 & 58 Vict. c. 30,
negative is no certain protection, s^. 1, 2, 9 ; eee the chapter on the
as the reversion may have been Death Duties in vol. ii.
disposed of by way of sale or («) Cooper v. Treubi/, 28 Beav.
mortgage without tlie knowledge 194 ; He Kidd and Gibbons^ Con-
of the particular tenant, and tract, 1893, 1 Ch. G9-t, (i98 ; lie
without production of the title Itepington, 1904, 1 Ch. 811, 814;
deeds. see also Re Langhani, 1890, W. N.
(*) Stats. 45 & 46 Vict. c. 38 ; 213 ; 60 L. J. Ch. 110.
408
OF PARTICULAR TITLES.
Sales of
reversionary
interests at
an under-
value.
Time of
essence of
contract on
sale of
reversionary
property.
bona fide sold or mortgaged for full consideration in
money or money's worth, before the 2nd of August,
1894 (the date of the commencement of the Finance
Act, 1894), no other duty will be payable by the pur-
chaser or mortgagee, when the estates fall into posses-
sion, than would have been payable if that Act had not
passed ; and in the case of a mortgage, any higher duty
payable by the mortgagor shall rank as a charge subse-
quent to that of the mortgagee ( /). Sales of rever-
pionary interests were formerly liable to be set aside in
equity on the ground of mere inadequacy of considera-
tion {g). But this rule was abolished by statute as
from the 1st of January, 1868, since when no purchase
made bond fide and without fraud or unfair dealing of
any reversionary interest in real or personal estate is to
be opened or set aside merely on the ground of under-
value (//) . On the purchase of reversionary property,
time is of the essence of the contract {i), and as the
wearing out of the interest of the particular tenant is
considered equivalent to perception of the profits, interest
is payable on the purchase money from the date of the
contract, if no time be specified for completion (/.•) ;
(/) Stat. 57 & 58 Vict. c. 30,
s. 21 (3). By Stat. 7 Edw. VII.
0. 13, 8. 12 (whicli increased the
scale of rates of estate duty),
where such estates have been
sold or mortgaged as above men-
tioned before the 19th April,
1907, no other duty will be pay-
able by the purchaser or mort-
gagee, when the estates fall into
possession, than would have been
payable if that section had not
passed ; and in the case of a
mortgage any higher duty pay-
able by the mortgagor shall rank
as a charge subsequent to that of
the mortgagee. Stat. 10 Edw.
VII. 0. 8 (which further increased
the scale of rates of estate duty)
contains a similar provision (sect.
64) as to sales and mortgages
made as above mentioned of such
estates before the 30th April,
1909.
{g) See 2 Dart, V. & P. 750
sq. oth ed. ; 844 sq. 6th ed. ; 749
sq. 7th ed.
(70 Stat. 31 & 32 Vict. c. 4 ; see
below. Chap. XIV. § 2, as to the
construction of this Act.
(i) Above, pp. 58, 59 ; New-
mati V. Rogers, 4 Bro. C. C. 391 ;
Sug. V. & P. 262 ; 1 Dart, V. &
P. 419, 5th ed. ; 484, 6th ed. ;
497, 7th ed. ; helow, Chap. XII.
[k) Ex parte Manning, 2 P. W.
410; Child v. Abingdon, 1 Ves.
jun. 94; Cha?npernoume v. Brooke,
3 CI. & Fin. 4, 23; Brooke v.
Champernoicne, 4 CI. «&: Fin. 589 ;
Enraght v. Fitzgerald, 2 Dr. &
OF PARTICULAR TITLES.
409
under an
Inclosure Act.
or if a time be fixed for completion, then from that
time (/).
Where land sold consists of an allotment acquired Allotments
under an Inclosure Act (m), the title material to be
investigated, prior to the award made pursuant to the
Act, is that under which all the lands, in respect of
which the allotment was awarded, were held (n). It is
also material to ascertain that the powers given by the
Act were not exceeded in making the award, for no
title is confeiTed by the award of any allotment made
ultra vires (o).
Where the title to land sold is made under an ex- Exchange
change effected in the manner which has now long been ^'^'^*^'^«^^ ^y
usual, — namely, by deeds of mutual conveyance con- conveyances,
taining vendor's covenants for title, but no provision
for mutual re-entry in case of eviction (/;), — the title to
War. 43, 47 ; Veneij v. Elwood,
3 Dr. & War. 74, 82 ; Wallis v.
Sarel, 5 De G. & S. 429.
(l) Bailey v. Collett, 18 Beav.
179; Sug. V. & P. 628 ; 1 Dart,
V. & P. 630, 631, 5th ed. ; 712,
6th ed. ; 654, 7th ed.
{m) As to the inclosure of com-
mon fields and commons, see
Wms. Real Prop. 62, 424, 2l8t
ed. ; Williams on Commons, 77 —
79, 246 sq.
iti) Major V. Ward, n Hare
598, 604 ■; Sug. V. & P. 372, 373
1 Dart. V. & P. 164, 286, oth ed.
186, 326, 6th ed. ; 181, 322, 7th
ed. ; 1 Davidson, Prcc. Conv. 527,
4th ed. Inclosure Acts usually
provided that the tenure of the
lands allotted should bo the same
as that of the lauds in respect of
which the allotment was made,
and reserved the minerals under
the lands allotted to the persons
previously entitled to them : but
where no su(!h provisions were
made the tenure of the allotments
was freehold and the mines under
them passed with the soil to the
allottees ; see Davidson, Prec.
Conv. vol. ii. part i. p. 491, n.,
4th ed. ; Toivnleyv. Gibson, 2 T. R.
701 ; Doe d. Zotvesv. Davidson, 2 M.
& S. 175 ; Doe v. Hellard, 9 B. &
C. 789 ; Wakejield v. Bucclciigh,
L. R. 4 Eq. 613, 627; 4 H. L.
377 ; Butterknowle Colliery Co.,
Ltd. V. Bishop Auckland, S;c. Co.,
Ltd.. 1906, A. C. 305; Williams
on Commons, 223, 224, 250, 251 ;
Inclosure Act, 1845 (stat. 8 & 9
Vict. c. 118), ss. 94, 98. As to
the question whether the right of
sporting over allotments of waste
land has been reserved by an
Inclosure Act to the lord of the
manor, see Williams on Commons,
240 — 243 ; Devonshire v. (P Connor,
24 Q. B. D. 468; Ecroyd v.
Coulthard, 1898, 2 Ch. 358.
(o) Winyfield v. Tharp, 10 B. &
C. 785 ; Casamajor v. Strode, 2
My. & K. 706, 718—722; Sug.
V. & P. 375.
(p) See Da\ad8on, Prec. C«mv.
vol. V. pt. ii. pp. 77—81, 3rd ed. ;
1 Key & Elph. Prec. Conv. 700 —
713, 4th ed.
410
OF PARTICULAE TITLES.
be investigated prior to the exchange (q) is the previous
title to the land faken in exchange alone, and the title
^^chaugeby to the land given 'vix exchange is immaterial (>•). But
the Inclosure where land sold has been acquired through an exchange
Act, 1845. effected by an order of exchange made under the
Inclosure Act, 1845, and the Acts amending it {s), it
is unnecessary for the purchaser to investigate the title
to the land so acquired prior to the order of ex-
change {t) ; for unless the order were made without
jurisdictiou, that land thenceforward became irre-
vocably subject to the title, under which the land
given in exchange was held [u). The prior title to the
land given in exchange is, therefore, the only title
which it is material to investigate (,r) ; but as it appears
that the order of exchange would be invalid if made
without jurisdiction, and such jurisdiction arises on the
application of the persons interested in the land pro-
iq) If the exchange were made
at least forty years befoi'e the
sale, it would of course be a good
root of title; see above, pp. 100,
106.
(r) The acquisition of laud in
this way is exactly similar to its
acquisition on sale, and if the
title to the land given in exchange
were bad, the party who took it
in exchange would, in the absence
of fraudulent misrepresentation,
have no right to recover posses-
sion of the land which he ex-
changed for it, but could only
pursue his remedy in damages
under the covenants for title ;
Bartram v. Whichcotc, 6 Sim. 86,
92 ; see below. Chap. XII. ^ 3 ;
Chap. XIV. § 1 ; Chap. XIX.
§ 5. But where an exchange of
lands was effected at coiitinon laio
before the year 1845, a mutual
right of re-entry on eviction was
implied, and so the title both to
the land given and to the land
taken in exchange was material ;
see BustarcVs cane, 4 Rep. 121a;
Sug. V. & P. 372 ; 1 David.son,
Prec. Conv. 528, 4th ed. ; Wms.
Real Prop. 160, and n. (c), 217,
610, 611, 2l8t ed. ; stats. 7 & 8
Vict. c. 76, s. 6; 8 & 9 Vict,
c. 104, s. 4.
(.v) See above, i^p. 147 and
n. (9), 152 and n. (;•) ; Wms.
Real Prop. 143, 217, 21st ed.
[t) 1 Davidson, Prec. Conv.
529, 4th ed. ; 1 Dart, V. & P.
287, 5th ed. ; 328, 6th ed. ; 324,
7th ed.
(«) Stat. 8 & 9 Vict. c. 118,
s. 147 ; Jfiiief V. Leinan, 20 Beav.
269, 279, 7 De G. M. & G. 340
(deciding that gavelkind land
may well be so exchanged for
land held in free and common
socage) ; Collins, J., Jacoinb v.
Turner, 1892, 1 Q. B. 47, 51, 52 ;
Davidson, Prec. Conv. vol. ii.
pt. i. pp. 94, 95, n., 100, n.,
4th ed.
{x) Such an order of exchange
is not in itself a good root of
title, as it affords no evidence of
the validity of the title to the
laud given in exchange ; see
previous note ; above, p. 106.
OF PARTICULAR TITLES. 411
posed to be exchanged (?/) , it seems that the purchaser
would be entitled to require proof that the person who
applied for the order iu respect of the land taken in
exchange was in fact interested therein within the
meaning of the Acts (s).
A sale as well as a conveyance of land includes the Mines and
right to all mines and minerals in and under the
land (a) ; except only gold and silver mines, which Royal mines,
belong to the Crown (h). If, therefore, the vendor
desire to reserve any minerals or have no title to the
mines, he must be careful to provide by express stipula-
tion that the minerals he desires to retain shall be
excepted from the sale and sufficient working powers
reserved to him, or that he is selling the surface only {a) .
Whenever mines and minerals are excepted from a con- What is
veyance of land by the agreement of the parties thereto, ^^le term
it appears that the word minerals, unless limited by the mi'i'erais.
(v) Jacomb v. Turner, 1892, 1 in exchange from a charity under
Q. "B. 47, 52. Stat. 1 & 2 Geo. IV. c. 92, re-
{z) See Stat. 8 & 9 Vict. c. 118, pealed by 36 & 37 Vict. c. 91,
S8. 16 sq., 147 ; above, p. 409, the title to the land given and
note [p) ; Davidson, Free. Conv. to that taken in exchange was
vol. ii.pt. i. pp.9.), u., 100, n., 4th material; 1 Dart, V. & P. 288,
ed So also after exchanges made 5th ed. ; 328, 6th ed. ; 325, 7th
under most local Inclosurt- Acts, ed. ; 1 Davidson, Prec. Conv.
upon inclosureuurler the Inclosui'c 530, 4th ed. But where an ex-
Act, 1845 (see Jacomb v. Turner, change of charity land has been
1892, 1 Q. B. 47, 50), of lands effected under the Charitable
lying in common fields, under Trusts Act, 1853 (stat. 16 & 17
Stat. 4 & 5 Will. IV. c. 30, or Vict. c. 137), ss. 24, 26, the
under the Acts authorising the tran8acti(in stands on the same
exchange of ecclesiastical pro- footing as an exchange by deed
perty (stats. 55 Geo. III. c. 147 ; of mutual conveyance : see above,
56 Geo. III. c. 52; I Geo. IV. p. 409; beh)w. ^^ 7 of this chapter :
c. 6 ; 6 Geo. IV. c. 8), the title, 1 Dart, V. & P. 329, 6th ed. ;
prior to the exchange, of the 325, 7th ed.
land taken in exchange is not i \ a r> „ n i. i
. • , J .. • 1 " («) bee Belldini/ v. Deoenliani,
material and it is only necessary ^^^{ ^ ^ ^^.^ ; Re Jackson and
toascerainthat^ the jurisdiction ^^^^^^,^ Contract, 1906, iCh.
or right to make the exchange , , „ , , „- '
1 1 ■* c Tr I D 412; above, p. 167.
duly arose ; see Suir. V. «.v P. ' ^
373 ; 1 Dart, V. & P. 287, 5th (A) The case of Minen, Plowd.
ed. : 327, 6th ed. ; 323, 7th ed. ; 310, 336, 337 ; 1 Black. Com.
1 Davidson, Prec. Conv. 529, 295 ; A.-G. v. Morgan, 1891,
4th ed. Where laud was taken 1 Ch. 432.
412
OF PARTICULAR TITLES.
Working
powers im-
plied on an
exception of
mines and
minerals.
context, will include every substance embedded in or
forming part of the land and having a value of its own
apart from its worth as a portion of the soil (c). Thus
the term minerals, when used in such a conveyance (d),
has been held to include china clay (e), coprolites (/),
and brick earth and clay {(j), and would certainly com-
prise slate, freestone and limestone {h), and every other
kind of stone (/), besides coal and ironstone {k). It
appears that the term minerala would have the same
meaning in a contract of sale as in a conveyance of
land (/). A landowner who has sold and conveyed
away the surface excepting the mines and minerals, but
without reserving any express power to enter and get
them, retains by implication of law all necessary powers
(c) Komilly, M. E,., Midland
Ey. Co. V. (Jheckley, L. K. 4 Eq.
ly, -lb ; Hext v. GM, L. E,. 7 Ch.
699, 712, 719 ; Kay, J., Midland
Ry. Co. V. Haunchwood, ^-c. Co.,
20 Ch. D. 552, 555 ; Jemey v.
JS'eath Poor Laic Union, 22
Q. B. D. 555, 559, 561, 563 ;
Johnstone v. Crompton, 1899, 2
Ch. 190 ; Great (Festern Rail. Co.
V. Blades, 1901, 2 Ch. 624, 631,
636, 638; Re Todd, Birleston ^'
Co. and North Eastern Ry., 1903,
1 K. B. 603, 606, 607 ; Great
Western Ry. v. Carpalla, ^-c. Co.,
Ltd., 1909, 1 Ch. 218, 226, 229,
231, 237; affirmed, 1910, A.C.83.
(d) As to the meaning of the
term minerals in the Railways
Clauses Act, 1845 (stat. 8 & 9
Vict. c. 20), 8. 77, and the Water-
works Clauses Act, 1847 (stat.
10 & 11 Vict. c. 17), s. 18, which
except from conveyances of any
land acquired subject to the pro-
visions of those Acts ' ' all mines
of coal, ironstone or other mine-
rals " under such laud, unless
expressly named and conveyed ;
see Lord Froiost, ^c. of Glasgow
v. Fairie, 13 App. Cas. 657 ;
Midland Ry. Co. v. Robinson, 15
App. Cas. 19; Great Western Ry.
V. Blades, 1901, 2 Ch. 624 ; Re
Todd, Birleston ^- Co. and North
Eastern Ry., 1903, 1 K. B.
603 ; Great Western Ry. v. Gar-
palla, i-e. Co., Ltd., 1909, 1 Ch.
218 ; 1910, A. C. 83, 85 ; from
which it appears that in such
cases the actual surface soil of
the lauds conveyed is not ex-
cepted, though it may have a
vaiuo independently of its worth
as mere soil.
(«) Hext v. Gill ; Great Western
Ry. V. Carpalla, ^c. Co., Ltd.,
ubi sup.
( /■) A.-G. V. Tomline, 5 Ch. D.
750, 762.
((/) Jersey v. Neath Poor Law
Union, ubi sup.
(A) Bell V. Wilson, L. R. 1 Ch.
303 ; Watson, L. A., Lord Provost,
^'•c. of Glasgow v. Fairie, 13 App.
Cas. 657, 679.
(i) Midland Ry. Co. v. Chcckley,
L. R. 4 Eq. 19, 25.
[k) Moultou, L. J., Great
Western Ry. v. Carpalla, ^-c. Co..
Ltd., 1909, 1 Ch. 218, 231 ; and
see Midland Ry. Co. v. Robinson.
15 App. Cas. 19, 26, 33.
(/) See cases cited, above,
note (c) ; Newton, Chambers ^•
Co., Ltd. V. Rail, 1907, 2 K. B.
446, 452.
OF PARTICULAR TITLES. 413
for working the same : but the powers so reserved to
him aie only such as are strictly necessary for the
purpose (w) ; and it is usual on such sales for the vendor
to stipulate expressly for the reservation of larger
powers, including the liberty of using the surface for
works connected with the mines, such as the deposit of
rubbish, the erection of engines and other works, or of
cottages for workpeople, and the making of tramways,
railways, &c. hi). If a contract of sale of land should No larger
provide for the mines and mmerals being excepted, but be reserved
not for the reservation of any express powers of working *^^ ^j^^^d
them, the vendor would not be entitled to require the for in the
reservation to him, in the conveyance to the purchaser,
of any larger powers than he would retain by implica-
tion of law ; and if the contract should expressly provide
for certain powers of working, the vendor could not
require any larger powers to be reserved to him by the
conveyance (o). In the absence of express or implied Surface can-
. , . •, , ro 1 ... V^, not be let
stipulation to that ettect, a vendor retaining the down or
mines and minerals mil have no right to let down ^^!^°^f*^
the surface by his workings ( /;), or, where the ex- special power
cepted minerals can only be gotten by surface work-
(w) Cardigan v. Armitage, 2 v. White, 8 App. Cas. 833, 842,
B. & C. 197, 207, 208, 211; 843; Love v. Bell, 9 App. Ciis.
affirmed in D. P., Sugd. Law of 286 ; Greemccll v. Loiv liccchburn
Property, S8— 91. ' Coal Co., 1897, 2 Q. B. 16.5 ; New
(«) Williams on Commons, 221 ; Sharhton Collieries Co., Ltd. v.
see Davidson, Prec. Conv. vol. ii. Westmorland, 1904, 2 Ch. 443, n. ;
pt. i. 484 sq. and note ; 1 Key & Jiittterknowlc Colliery Co., Ltd. v.
Elph. Prec. Conv. 310, 311, 4th Bishop Auckland, ^-c. Co., Ltd.,
ed. ; 314, 315, 8th ed. 1906, A. C. 30o ; Markham v.
(«) The rule is that the rights Paget, 1908, 1 Ch. 697, 710. As
to be defined in the conveyance to what provi.xions will confer the
are those conferred by th(> con- right to let down the surface, see
tract ; see lie i'eck and London Rowbothum v. Wilson, ubi sup. ;
School Board, 1893, 2 Ch. 315; 5//itar/iit/ht,l P.W.
406 ; Bourne v. Tai/lor, 10 Ea.st,
189; Lewi.i v. Bra'nthwaite, 2 B.
k Ad. 437 ; Kcyes v. Pon-dl, 2 E.
& B. 132; Enrdlri) v. Grauville,
3 Ch. D. 826, 832,' 833 ; 1 Scriv.
Cr>p. 508 xq . :^rd ed. ; Wms. Real
Prop. 355, liSth ed. ; 464, 21st
ed. II the lord have by custom
416
OF PARTICULAR TITLES.
veyance of the freehold in fee under the general law (d),
unless of course they are expressly excepted : but they
do not pass upon an enfranchisement (whether voluntary
or compulsory) effected under the powers given by the
Copyhold Acts, unless specially comprised therein (e).
Soil of roads. At common law, it is presumed that the soil of all
roads, whether highways or private ways, running
through and enclosed on both sides by one man's land
belongs to him ( /) ; that a conveyance of the lands on
both sides of the road includes the soil of the road (g) ;
and that a conveyance by him of the land on one side
of the road includes the soil of the nearest half, up to
the middle of the road (//). Where such roads divide
the lands of different owners, the presumption is that
the owner of the land on each side of the road is
entitled to the soil of that part of the road which adjoins
his land up to the middle of the road ; that any strips
of waste land lying by the side of the road belong to
the owner of the adjoining close (i) ; and that any con-
a right to enter and get the
mines, he is not entitled to
use the spaces left where the
minerals have been worked out
for any other purposes than such
as are incidental to exercising this
right, without the tenant's con-
sent ; Edvdlry v. Granville, 3
Ch. D. 826; of. above, p. 414,
n. {x).
{d) 1 Scriv. Cop. 25, 3rd ed. ;
above, p. 414 ; and see Davidson,
Prec. Conv. vol. ii. pt. i. p. 386,
n., 4th ed.
(e) See above, p. 414, n. (>•).
(_/) Salisbury v. Great Northern
By. Co., 5 C. B. N. S. 174 ; Har-
rison V. Rutland, 1893, 1 Q. B.
142 ; Hickman v. Maisey, 1900,
1 Q. B. 752.
{(/) See Salisbury v. Great Xor-
thern Ity. Co., ubi sup.
[h) See cases cited in note [k),
p. 417. below.
(J) Due d. Priny v. Fearsey, 7 B.
6 C. 304; Scoones v. Morrell, 1
Beav. 251 ; Holmes v. Bellingham,
7 C. B. N. S. 329 (as to private
roads) . As to cases where a road
adjoins an open common, see the
first two cases cited in note (w«),
below. It should be noted that,
where a high road, having un-
metalled strips of land on either
side of it, runs between fences,
and there is nothing to show that
the fences are not the boundaries
of the highway, the presumption
is that the public right of way
extends over the whole of the
land between the fences ; R. v.
United Kingdom Telegraph Co.,
6 L. T. N. S. 378; Harvei/ v.
Truro Rural Council, 1903, 2 Ch.
638 ; Offin v. Rochford Rural Dis-
trict Council, 1906, 1 Ch. 342;
cf. Neeld v. Hcndon Urban District
Council, 81 L. T. 406 ; Belmore v.
Kent County Council, 1901, 1 Ch.
873.
OF PARTICULAR TITLES. 'II"
veyanee of the adjoining land carries with it the soil of
one half of the road (k). And the same presumption
arises in the case of a contract of sale of land as in that
of a conveyance (l). These presumptions, however,
may be rebutted by evidence that the ownership of the
soil is not in the person or persons in whom, but for
such evidence, it would be presumed to be {m) , or that
it was not the intention of the conveying parties to assure
any part of the soil of the road (n) . Whenever any con-
veyance is to be made of any land adjoining a road, the
draftsman should take great care to make it unmistakably
plain, whether any part of the soil of the road is intended
to pass or not. Under the Public Health Act, 1875 (o), Streets within
the surface soil of all streets, which are or become djstnct.
highways repairable by the inhabitants at large within
any urban district, \ests in the urban sanitary authority
to the depth necessary for exercising the powers con-
feiTed by the Act : l)ut the sub-soil, including all mines Mines and
and minerals therein, remains \ested in the person or thereunder,
persons entitled (save as provided by the Act) to the
land, which is the site of the street (p). Under the
(k) Simpson v. ])endij, 8 C. B. 206 ; Leiyh v. Jack, 5 Ex. D.
N. S. 433, affd. 7 Jur. N. S. 10.58; 2G4 ; Pryor v. FHrc, 1894, 2 Ch.
Jlrrridf/e v. If'ard, 10 C. B. N. S. 11 ; Mappin v. Liberty df- Cu., Ltd.,
400 (where the land conveyed was 1903, 1 Ch. 118. The above pre-
deHcribed by roference to a plan sumptions have no application in
not including- any part of the the case where a railway runs
road) ; Ite Whiter Charities, 1898, through one man's land, or (as it
1 Ch. 659; and see Lo))do>i df- appears) between the lands of dif-
North Western Ity. Cu. v. West- ferent owners ; 'Tliompson v. Hick-
minster Corptt., 1902, 1 Ch. ^69. man, 1907, 1 Ch. 550, 556.
279, afBrmed, 1905, A. C. 426, (o) Stat. 38 & 39 Vict. v. 55,
428, 429, 438. s. 149. By s. 4, street includes
(f) Re Poppli and harratt^i Con- any highway (not being a tum-
tract, 25 W. R. 248. pike road), and any public bridge
[in) Grose v. West, 7 Taunt. 39 ; (not being a county bridge), and
Doe V. Kemp, 2 Bing. N. C. 102 ; any road, lane, footway, square,
Beckrit V. Leeds Corpn., L. R. court, alley or passage, whether
7 Ch. 421 ; Hau/h v. West, 1893, a tlioroughfare or not.
2Q. B. 19, 20. ' {p) Coverdak v. Charlton, 4
(w) Salislmrn v. Great Northern Q. B. D. 104, 121 ; Tiotbri/ige
Ry. Co., 5 C. B. N. S. 174 ; Plum- Wells Corpn. v. Baird, 1896, A. C.
stead Board of Works v. Britis/i 434 ; Finchley Electric Light (Jo.
Land Co., L. R. 10 Q. B. 16, 203, v. Finchley Urban Ihstricf Council,
w. 27
418
OF PARTICULAR TITLES.
Streets in the
metropolis.
Public
convenieuops
under roads
ill London.
Main roads
Metropolis Management Act, 1855 (y), the surface soil
of all streets in the metropolis, which are highways,
vests in the local authority to the same extent (r).
Under the Public Health (London) Act, 1801 (.),
however, the suh-soil of any road, exclusive of the foot-
way adjoining any building or the curtilage of a
building, is vested in the local sanitary authority for
the purposes of making such public conveniences as are
specified in sect. 44 of that Act. This enactment makes
the sanitary authority the owner of such conveniences
when made, but does not appear to confer any greater
interest in the sub-soil than is necessary for the pur-
poses specified (f) . Under the Local Government Act,
1888 {((), all main roads within the meaning of the
Highways and Locomotives (Amendment) Act, 1878 (j^-),
vest in the County Council, except where the ui'ban
sanitary authority retain the powers and duties of
maintaining and repairing such road {//). It has been
held that this enactment does not make the County
Council the owner of strips of waste land lying by the
side of such roads, so as to entitle them to take the
herbage thereof (s) : but it appears to vest in them the
surface soil of the metalled road and any footpath
1903, 1 Ch. 437; IVedmsbury
Corpn. V. Lodge Holes Colliery Co.,
Ltd., 1905, 2 K. B. 823, 826;
1907, 1 K. B. 78, 89, 90; 1908,
A. C. 323 ; Folefs Charitii Trus-
tees V. Dudley Corpn., 1910, 1 K.B.
317, 322, 324, 325.
[q] Stat. 18 & 19 Vict. c. 120,
.s. 96. By s. 2o0, street is defined
in the same way as in the Public
Health Act, 1875 ; see note (o),
p. 417, above.
(»•) Rolls V. iSY. George'' s Vestry,
SoHthwark, 14 Ch. D. 785 ;
Wandsworth Board of Works v.
Vni/ed Telephone Co., 13 Q. B. D.
904 ; Battersen Vestry v. County
of London, S;c. Lighting Co., lAd.,
1899, 1 Ch. 474.
(s) Stat. 54 & 55 Vict. c. 76.
(<) London and North Western
Ry. Co. V. Westminster Corpn.,
1902, 1 Ch. 269, affirmed 1905,
A. C. 426 ; Westminster Corpn. v.
Johnson, 1904, 2 K. B. 737. See
cases cited in note [p), above,
p. 417.
(?/) Stat. 51 & 52 Vict. c. 41,
s. 11 (1,6).
[x) Stat. 41 & 42 Vict. c. 77,
s. 13.
(y) See Finehley Electric Light
Co. V. Finehley Urban Disti-ict
Council, 1902, 1 Ch. 866, reversed
1903, 1 Ch. 437.
{:) Curtis v. Kesteren Counti)
Council, 45 Ch. D. 504.
i
OF PARTICULAR TITLES. 419
lying by its side (a), so far as is necessary for the
exercise of the powers vested in them {l>).
The like presumptions are made with respect to the Soil of rivers,
soil of rivers (where they are not tidal rivers) as with
regard to the soil of roads (c). If the lands on both
sides of the river belong to the same owner, it is pre-
sumed that he is the owner of the river-bed (r/) ; that
the whole of the river-bed passes on any conveyance or
sale ((') of the lands on both sides of the river ; and that
one-half of the river-bed, up to mid-stream, passes by
the conveyauce or sale(^') of the land lying on one side of
the river. And if the river divide the lands of different
owners, it is presumed that each of them is the owner
of that part of the river-bed which adjoins his own
land, up to mid- stream, and that a conveyance or
sale of the adjoining land carries mth it the ownership
of half the river-bed (./'). These presumptions may
pqually be rebutted by evidence to the contrary, as in
the ease of roads (//). Where there is an ancient island Island in a
in the middle of a river, and the lands on either bank
of the ri\er belong to different ownors, the presumption
that each rijjaiian proprietor is the owner of half the
river-bed applies only as far as the middle of the stream
running between either bank and the island, and not so
as to raise anj' presumption as to the ownership of the
{a) See Derbi/ Couuty Council v. (e) lie Popplr and Barratt''x
Matlock Bath, *r. Urbnn District, (Contract, 25 "W. R. 248.
1896, A. C. ?.U->. (/) Lord v. Sudnnj Vommrs., 12
(b) Sec ca»p« oited in note (/^), Moo. P. C. 473; Micklethwait v.
p. 417, abovL'. Xcuiai/ Bridge Co., 33 Ch. D.
(c) Above, pp. UG, 417. 133: Kay, J., rUbiir;/ v. 6'i7t'rt,
(d) As to what is the bed of 4.i Ch. D. 98. 108. These pre-
tt river, see TIiuhkw Coiixcreatorx humptious do not apply in the
V. Smccd, 1897, 2 Q. B. 3.J4. ea-se of lands abutting on a canal,
With respect to the legal results of which the surface soil belongs
of a river changing its course, to other owners ; Chambrr Colluri/
see C,irH!='lili>i, (p) Devonshire v. Pattin.son, 20
1896, 2 Ch. 1. Q. B. D. 263 ; above, p. 417.
•>7 {2)
420
OF PARTICULAR TITLES.
Owner of
several fishery
presumed to
be owner of
the soil.
Soil of
tidal rivers.
Tublio riaht
of navigation.
Seashore.
Foreshore.
island (//). It must not be forgotten that, where there
has been a grant of a several fishery in any river, it is
presumed, in the absence of evidence to the contrary,
that the owner of the fishery is the owner of the soil of
the river (/). In the case of tidal and navigable (A-)
rivers, estuaries and inland arms of the sea, the pre-
sumption is that the soil of the river-bed or sea-bed up
to high-w^ater mark belongs to the Crown (/) ; but such
ownership is subject to the public right of navigation (;») .
The Crown is also presumably entitled to the soil of the
seashore below high- water mark of ordinary tides,
between the spring and the neap(yO. But a subject
may have become the owner of the soil of the foreshore —
that is, the land lying between high and low-water
mark of medium tides (o) — by grant from the Crown
either conveying it in express terms (p), or presumed
(A) Great Torrington Commons
Conservators v. Moore Stevens,
1903, 1 Oh. 347.
(() See Marshall v. Ulleswater
Steam Navigation Co., Ltd., 3
B. & S. 732; A.-G. v. Emerson,
1891, A. C. 649 : Hindson y.
Ashby, 1896, 2 Ch. 1, 11, 20;
Eckroyd v. Coulthard, 1897, 2 Ch.
554, 565, 570; Hanburyx. Jtnkins,
1901, 2 Ch. 401, 411 ; Fitzhardinge
y.Furcell, 1908, 2 Ch. 139, 146, 161.
(A-) As to the meaning of navi-
f/able, see Ilchesfur x. 2ialshleir/h,
61 L. T. 477.
{I) Colchester Corpn. v. Brooke,
7 Q. B. 339, 374 ; Malcomson v.
CBea, 10 H. L. C. 593, 618 :
Gann v. Free Fishers of Whitstable,
11 H. L. C. 192, 207; Lijoti r.
Fishmongers^ Co., 1 App. Cas. 662,
682 ; N^orth Shore Ry. Co. v. Pion,
14 App. Cas. 612, 621 ; A.-G. v.
Einerson, 1891, A. C. 649. 653;
Fitzhardinge v. Fnrcell, 1908, 2
Ch. 139, 146.
(«;) See cases cited in previous
note. Inland or non-tidal rivers
may by immemorial uf•). And the owner of a several fishery Several
extending over the foreshore is presumed to be the foreshore.
owner of the soil thereof (s). A subject may also have Land below
derived from the Crown a title to the soil of the sea jnark.
shore or of a tidal river below low- water mark : but in
all such cases the owner holds subject to the right of
public navigation (t). And if stone or shingle on part Foreshore,
of the foreshore granted to a subject form a natural barrier
barrier against the incursion of the sea, he is not entitled agamsc the
o ' _ ^ sea.
to remove it (u). Where laud conveyed is described as l.^jjJ bounded
bounded by the seashore, that means by the inland ^y ^^^ «ea-
. shore.
limit of the foreshore, i.e., high- water mark of medium
tides ; and there is no presumption that any part of the
foreshore is included in the conveyance U). The owner li«p;'"ii'»
. • i J J.1 owner s right
of land abutting on the seashore or situated on the of access to
bank of a tidal and navigable river, has the like right *^^ ^^''^'
of access over the foreshore to and from the sea or river
for the purpose of navigation and otherwise as is
enjoyed by the owner of land on the bank of a non-
tidal river (//). But the public have no general right to No public
use the foreshore 'whether in the hands of the Crown or ©n the fore-
of a subject) for bathing or other purposes (save such
as may be incident to the proper exercise of the public
rights of navigation and fishing), or to pass and repass
N. S. 600 ; Llandudno Urban Lis- {() See cases cited iu note (/)
iricl CoHucil V. Woods, 1899, 2 Ch. to p. 420, above; The Swift, 1901,
705; Liverpool, ^-c. Stenmship Co. P. 168, 173.
V. Mersnj Trading Co., Ltd., 1909, (?«) A.-G.v. Tomline, 14 Ch. D.
1 Ch. 209 ; and .see Scratton v. oH, followed Musselburgh jRral
Broun. 4 B. & C. 485, 495 sij. Estate Co., Ltd. v. Musselburgh
(q) Calmady v. Rowe, 6 C. B. (Provost), 1905, A. C. 491.
861 ; lieaufort v. Suauiea, 3 Ex. (x) Mellor v. Walnieslei/, 190.),
413; A.-G. of Ireland \. Vande- 2 Ch. 164.
Ifur, 1907, A. C. 369, 370; Fitz- (y) Lyon v. Fishmongers' Co., 1
hardingi v. Pnrcrll, 1908, 2 Ch. App. Cas. 662: A.-G. of Straits
i;^9. Settlements v. Ifemgss, 13 App.
[r] A.-G. v. Emerson, 1891, Cas. 192 ; Xorth Shore Jtg. Co. v.
A. C. 649, 6f>'S. J'ion, 14 App. Cas. 612 : Mellor v.
(s) A.-G. V. Emerson, Fit:- Waltr^ley, 1905, 2 Ch. 164, 181.
hardinge v. Farcell, ubi sup.
shore.
422
OF PARTICULAR TITLES.
Inland lake, over it wlieu not covered by the sea (;:) . The Crown
is not entitled of common right to the soil of any
inland lake, whether navigable or not ; and it is a
question whether the presumptions as to the soil of
inland rivers (a) apply to inland lakes (6) .
Water rights
in natural
rivers.
The owner of the land forming the bank of any
natural river or stream has the right, as incident to
such ownership and not as an easement (c), to have the
water flow down in its natural state, neither increased
nor diminished in quantity (save only so far as may be
occasioned by the lawful uses of the owners higher up
the stream) (d) and unpolluted (e). But the owner of
any land higher up the stream ma}^ enj^y a prescriptive
[z) Biundell v. Catterall, 5 B. ) Wood v. Waud, 3 Ex. 748 ;
John Young 4' ^'o. v. Bankier Dis-
tillery Co.', 1893, A. C. 691, 697,
698, 701 ; and cases cited in pre-
vious note.
OF PAKTICULAK TITLES. 423
right in the nature of an easement to abstract from the
stream a larger quantity of water than he is allowed as
ri])arian owner to take for his own use (./"), or to dis-
charge extraneous water or other matter into the
stream {g). But any prescripti^e right to discharge
such matter into a stream does not absolve its owner
from the necessity of observing the requirements of the
Rivers Pollution Prevention Act, 1876 (h). The right Surface or
•nij 1 underground
to the natural now of water is confined to such water water not
as flows in a known and defined stream or channel, and iJ'^'"^ ^"j*
' known and
does not extend to surface water not so flowing (/), or defined
to underground water merely percolating through the
strata in no known channels {k). If, however, a stream
of water flow underground in a defined and known
cliannel and afterwards emerge on to the surface, the
o\vners of land lower down the stream will be entitled
to the natural flow of W\q water down to them (/).
The right to the flow of water along an artificial Water rights
, , • 1 T r*- • • 1 .in artificial
watercourse depends on entirely din:erent principles ; it watercourses.
is not enjoyed of common right as incident to the
ownership of the land through which the water fiows,
but is an easement arising by grant or prescription {m).
Where an artificial watercourse is obviously made for a
(f) See Wright v. Howard, 1 [k) Chaseinore v. Hichards, 7
S. & S. I!t0, -203 : Jiace v. JFard, H. L. C. M9 ; Bradford Corpii. v.
•J K. k B. 702; Williams on Pick/c.s, IH96, A. C. 5^7 ; Bradford
Commons, 305, 331, 33"2. Corpn. v. Ferrand, 1902, 2 Ch. 655.
{,,) See Cro.ssh',1 ^- Sons, Ltd. v. . [l) ^eJ)wkh,i^o>iy. Grand June
Lulhlowla; L. R. 2 cL 478; ^'f Canal, 1 ^^ 282. 300 301:
BnxendaU v. Mc.Murra,j. ib. 790 ; Chascmore v. Rtchards, > H. L. C.
Mclntyrr lira., v. McGavin, 1893, t*^' '^'^ ^^^ ' l^'Mford Corpn. y.
A. C. 268 ; Williams, on Commons, Ferrand, 1902, 2 Ch 6o5, 66o, in
•jgg which ca^c it was held that there
.',■, Q. . .,„ 1 ,,, 1-- 4, -- is "o right to the flow of water
(A) Stat. o9 A: 40 \ ict. c /.., .^^ ^^ underground channel,
T^ ^' ,i^J ■ T.' ,''■'""" « ''■ ^hich nmy be defined, but is not
JVent Ittdtng of Inrkslnrr Jiirers known
Board 1909, A. C. 45, 48-50. (,„) 'j{u,neshur I'ershad Xaraiu
.)4, .lb, 57. }^^„g|^ y j^^„j j^^hari Pattuk,
(i) Raustron v. Tui/lor. 11 Ex. 5 App. Cas. 121, 126—128;
obi) ; Bradford Corpn. v. Ferrand, Williams on Commons, 305, 311,
1902, 2 Ch. G55, 6G0. 338, 342.
424
OF PARTICULAR TITLES.
particular and temporary purpose only, as for draining
a mine or land or for supplying water power to a water
mill, the owner of any land lower down the stream, as
he takes the water with notice of such purpose, does
not acquire by reason of such enjoyment, though long
continued, any right to the continuance of the flow of
water {n). But where the circumstances are such that
it appears that the watercourse must have been con-
structed for the mutual benefit of the owners of the
lands, through which it flows, a right to the continuance
of the water supply may be acquired, as an easement,
through long continued enjoyment io). And in the
case of an ancient artificial watercourse of which the
exact origin is unknown, it will be presumed in such
circumstances that it was constructed on the terms that
the various riparian owners should enjoy the like rights
to the flow of water, and also (it seems) in the bed- of
the stream, as they would have if the stream were
natural {])). Of course an artificial watercom'se flowing
through the lands of more than one owner is in its
inception a burdeu as well as a benefit to the landowner
lower down the stream ; that is to say, the landowner
higher up can have no right to discharge the water on
to the land lower down without acquiring an easement
for that purpose (). Where sucli a right exists for
pure water, it appears that the landowner higher up
can have no right to discharge into the watercourse
extraneous matter which pollutes the water, unless he
(«) Arkwriyht v. Gcll, 5 M. & W.
203 ; JFood v. TFaHd, 3 Exch.
748 ; Grvatrex v. Hayu-ard, 8 Ex.
291 ; Burrows v. Lang, 1901, 2
Ch. 502.
(o) Sutclife V. Booth, 9 Jui-.
N. S. 1037; Rameslutr Pnshad
Narain Singh v. Koonj Behari
Fattuk, 4 App. Cas. 121, 128.
Such an easement may be gained
either by prescription at common
Uiw alleging immemorial user, or
through twenty years' enjoyment
from which a lost grant can be
presumed, or through twenty or
forty years' enjoyment under the
Prescription Act (stat. 2 & 3
Will. IV. c. 71), s. 2 ; see
Williams on Commons, 305 — 310.
{2)) Baih/ v. Clark, 1902, 1 Ch.
(149 ; Whitworefi {Edenhridge), Ltd.
V. Stanford, 1909, 1 Ch. 427.
{q) See Writiht v. WilliaMs, 1
M. &W. 77. "
OP' PARTICULAR TITLES.
42o
has acquired an enlarged easement entitling- him to do
so (/•). And if the circumstances be such that the land-
owner lower down has acquired the right to the con-
tinuance of the How of water, he will have the like
right to have the water come down to him unpolluted
as if the stream were natural (s).
On the pm'chase of landed estates in the country it is
of course a matter of great importance to ascertain that
the title to the rights of fishing and sporting is clear.
The right of fishing in all tidal waters, whether of the
sea-coast or of any tidal river, estuary or inlet of the
sea, is prinid facie public ij), the public being entitled to
exercise this right by virtue of the Crown's ownershi}*
of the soil covered by such tidal waters, which owner-
ship is subject to the public rights of navigation there-
over and fishing therein (^O- But the Crown had power,
until deprived of it by Magna Carta U) , to grant to any
individual subject a several fishery in such tidal waters,
that is, the exclusive right of fishing therein ; and there
are many several fisheries existing by virtue of such
grants in tidal waters at the present day (//) . The right
of fishing in non-tidal waters is an incident of the
Riglits of
fishing and
spoi-tiug.
Rights of
fishing iu
tidal waters.
{)•) See Goldsinid v. Tunbridye
JFellx Improvement C'omiiiissioners,
L. R. 1 Oh. 349 ; Crossley .J- Sons,
Ltd. V. Liyhtuu-ler, L. R. 2 Oh.
478 ; Baxendale v. McMurrai/, ib.
790.
U) See Mayor v. Cliadwivk, 11
A.'& E. .)71 ; Williams ou Com-
mons, 341, 342.
(t) Ward V. Cremvell, Willes,
26.) ; Bagoti v. Orr, 2 Bos. & P.
472 ; liluudi'U v. Cattrrall, ;"> B. it
A. 268, 276, 294, 301. 304 ; Mal-
commn v. r/y;^ri
facie the exclusive right of fishing between them, each
being entitled (it appears) to fish the waters coA'ering
the soil, which he owns {h). The right of fishing in
non-tidal waters may, however, have become vested by
grant or prescription, either wholly or partially, in some
other person than the owner of the soil covered by them.
A right of fishing so acquired apart from the ownership
of the soil is njJi'ofit a prendre (c), and may take the
form either of a several fishery, which is the right of
fishing to the exclusion of all others {(/), or of common
of piscary, which is the right to fisli in common with
others {e) . We have seen that it is presumed that the
owner of a several fishery is the owner of the soil
covered by the waters over which his right of fishing
extends (./) : but there is no doubt that a several fishery
may also exist as a separate incorporeal hereditament
apart from the ownership of the soil (r/). And it
{z) Hale de Jure Maris, Ch. 1,
p. i (see Hargrave's Law Tracts) ;
The Banne, Davis, 55, 56, 57 ;
2 Black. Comm. 39 ; Marshall
V. Ulletiivater Steam Navigation
Co., 3 B. & S. 732, 745, 748 ;
Bnstoic V. Cormtcaii, 3 App. Cas.
(i4l, 664; Pearce v. Scotcher, 9
Q. B. D. 162, 165, 167 ; Bowen,
L. J., Blouni V. lai/ard, 1891,
2 Ch. 681, D., 689, ii : Hindson
V. Anhhy, 1896, 2 Ch. 1, 9, 10;
E(kro>id\. I'ouUhard, 1897, 1 Ch.
554, 566 ; 1898. 2 Cli. 358. 366,
373.
[a] Above, p. 119.
[b] See authorities cited iu note
(r), above ; Williams ou Commons,
269 ; Stuart Moore on Fisheries,
113; nanbiiry v. Jenkim, 1901,
2 Ch. 401. 405, 415, 419, 421 ;
Chederfield v. Harrix, 1908, 2 Ch.
397.
(c) Williams on Commons, 18 ;
Fitz(/erald \'. Flrhinik, 1897, 2 Ch.
96. ■
() Makviiisuii V. ()'I)ei
V. Jcnhbif:, 1901, 2 Ch. 401, 111.'
(c) Williams on Commons, 259 ;
Stuart Moore on Fisheries, 32 nq. ;
Vhesterjield v. Harris, 1908, 2 Ch.
397, 412, 418—424, 426—420.
(/) Above, p. 420.
\g) Somerset v. Fogurll, 5 B. &
C. 875 : Williams on Commons,
264 : Hanbnry v. Jetikins, 1901,
2 Ch. 4 01. A claim to a several
fishery in gross cannot be esta-
blished under the Prescription
I
OF PAKTICULAR TITLES. 427
appears that, wliere there is a several fishery severed
from the ownership of the soil, there may be appur-
tenant thereto a right of way ahmg the banks of the
river for the purpose of exercising the right of fishing {/i) .
The public have no right of fishing in any non-tidal
river, though iiavigable (/) , and cannot acquire such
right by user, for however long a period (/•). The right ^'»i.'!^ "*
of sporting over land, that is, the right of killing and
taking away the game and other Avild animals thereon,
n\a.y be enjoyed either by virtue of some franchise
derived from the Crown (such as a forest, a chase, a
park, or a free warren), or as an incident of the owner-
ship of the land (/), or as a separate incorporeal
hereditament, in the nature of a profif d pinir/rc, enjoyed
through grant or prescription, independently of the
ownership of the soil (m) . It must not be forgotten Lessee's
that all rights of fishing and sporting, whi(,-h are fi^^iiilrimd
incident to the 0Avnershi[) of the soil of any land, are sportinjr.
exerciseable by a lessee of the land for any term of
lives or years or less in virtue of his occupation of the
demised premises, unless these rights were expressly
reserved to the lessor, his heirs and assigns upon the
granting of the lease (ii). A reservation of this kiml
Act (stat. '2 & 3 Will. IV. c. 71j ; {in) See Wickham v. Hawker, 7
Shutttni-ortli v. Lr Flemmi), 19 M. & W. 63 ; Ewnrt \. Graham,
C. B. N. S. 687 : see Williams on 7 H. L. C. 33 1. 334, 33') ; rTooprr
(Jomraons, 1, 4. u, 9, 11, 26.J. v. (Jlurk, L. K. 2 Q,. B. 200;
As to tlu' legal effect upon a Webber v. Lee, 9 Q. B. D 315 ;
several fisliery of a river chaugiug' Lowe v. Adams-, 1901, 2 Ch. 59S.
its course, see cases cited above. As to the differeuce betweeu a
p. 419, 11. {(l). mere licence and the gi'ant of a
(A) Htotbury v. Jenkuis, 1901, profit li prendre, »ee JVocff v, Leail-
2 Ch. 401. ' hitlr, 13 M. & W 838, 844, 84r) :
(t) See above, p. 420, n. /w). Holford v. Batleii, 13 Q. B. 426,
[k] Jfadsou V. Macrae, 4 B. & S. 446 ; Lowe v. Adams, 1901, 2 Ch.
•)8.5 ; Ifar(frea>'en v. Diddams, ,')98, 601 ; and see (froi'r v.
L. R. 10 Q. B. 082 ; Pearce v. P„rtal, 1902, 1 Ch. 727.
Scotcher, 9 Q. B. D. 162 ; Smifh [ii) Except, howiver, as to
V. Andrea-s, 1891, 2 Ch t)78. .iramo, in the case of leases made
J) See Case of jrono/nd,. ■,. 11 before the 5th Oct., 1831; sec
Rep. 84b, 87b; Williams on stat. 1 i: 2 Will. IV. c 32,
Commons, 18, 82, 152. 228 sij.. ss. (i— 8; Coleman v. Bathnrxt,
■2i0— 2 i3: Ltevon-shirev. O'Connor, L. R. 6 Q. B. 366; Poc/iln v.
24 Q. B. D. 468. :Smif/i, 52 J. P. 4 ; Jones v.
428
OF PARTICULAR TITLES.
Waste laud
of a manor.
ill a lease is not an exception or a reservation in the
strict legal sense of these words, but operates as a grant
from the lessee of the profit a prendre specified (o) ; and
such a grant, being of an incorporeal hereditament, is
required at common law to be made by deed (7;). It
is therefore necessary that the lease should be by deed,
and the lessee should execute it in order that the lessor
may obtain the Jegdl right to the privilege so purported
to be reserved {q) : though the lessor would enjoy the
like right in eqtiifi/ without such execution (r). And it
is requisite that the privilege should be expressed to be
reserved to the lessor (irnJ //is //eirs or to him in fee
■simp/e in order that the /)ivfif a prendre so granted shall
endure beyond the lessor's own life (.s).
In buying a manor or any waste land of a manor, it
should be borne in mind that the lord of the manor is
entitled to the soil of any waste land of the manor,
including any mines or minerals thereunder, and is con-
sequently entitled to the right of sporting thereover if),
but such ownership is subject to all rights of common
thereover of the freehold and copyhold tenants of the
Davies, 86 L. T. 447 ; Wins. Pers.
Prop. 21—27, 11th ed. ; 47,
141-143, 16th ed.
(o) It is the general practice so
to reserve the rights of sporting
in granting leases of agricultural
land : see Davidson, Prec. Conv.,
vol. v., pt. i., pp. 87, 215, 227,
228, 243, 260, 3rd ed. ; David-
son's Concise Precedents, 390,
398, 1 8th ed. Such reservations
are subject to the provisions of
the Ground G-ame Acts, 1880 and
1906, stats. 43 & 44 Vict. c. 47 ;
6 Edw. VII. c. 21 ; see Wms.
Pers. Prop. 141, leth ed.
[))) Bird V. Hlggiyimn, 2 A. &
E. 696, 704, 6 A. & E. 824 ;
JJriffstockeY. Er<>/>in\ 40 J. P. 245.
[q) iJoe V. Lock, 2 A. & E. 705,
710, 743 : IFickham v. Hairker,
7 M. & W. 63, 70, 77 ; Ewart v.
Griihom, 7 H. L. C. 331, 334,
335; Proud v. Batrs, 11 Jur.
N. S. 441 ; see however as to a
reservation of the right to kill
game, R. v. Thurhtone, 1 E. & E.
502.
[r] See Lour v. Adaiita, 1901, 2
Ch. 598 ; 3Iatj v. Belleville, 1905,
2 Ch. 605 ; Laws of England, x.,
377, 401, §^ 678, 721 (by the
writer) .
(6) Litt. s. 1 ; Co. Litt. 9 a, b,
307 a ; Heulins v. Shippam, 5
B. & C. 221, 228, 229.
[t) Bract, fo. 227, 228 ; Tounley
V. Gibson, 2 T. R. 701; Williams
on Commons, 103 sq., 150—152,
212, 213, 240 — 243; Lancashire
V. Hunt, 10 Times L. R. 310;
above, pp. 409, n. (w), 427, and
n. U).
OF PARTICULAR TITLES. 429
manor (//). Since the 21st of September, 1893, the Approvement
lord's right of ap])roveraent under the Statutes of |.'ommoTi°
Merton aud Westminster the Second {j) of any part of
a common is only exercisable with the consent of the
Board of Agriculture (//). The lord of a manor has
no right to enter upon any lands held by his freehold
or copyhold tenants for the purpose of sporting there-
over (~) , or for any other purpose {a) .
Every landowner is entitled of common right, and Right of
as a natural incident of his ownership, to have his support,
soil supported in its natural state by the soil of tlie
adjacent lauds (/>). Tliis right does not, however,
entitle him to any additional support required for any
buildings which he may erect on his land (c) : but he
may by grant, express or implied (d), or through long
continued enjoyment become entitled to such further
support. The right to further lateral support for any
buildings or additional buildings erected on any land
may be acquired by twenty years' open and uninter-
rupted enjoyment : but conflicting opinions have been
given by the judges and in the House of Lords on tlie
question whether this right is a positive easement
invohing an actual physical burden on the supporting
soil, a negative easement merely restricting the use of
that soil, or simply an enlargement of the riglit of
lateral support arising from the ownersliip of the land
supported [r). When land is sold with any buildings
(m) See WilliHtns ou Commons, {/>) See lJa/to>i v. Angus, 6 App.
2.V/.. 17, 24, 31 sq., 103 .vy., 123. Ca.s. 740; Nrw Moss Colltf., Lid.
l.iO .v(/., 1G8 .ty.. 170. 212 .sy. v. Manchester Corpii., 1908, A. C.
[x) Stats. 20 Hen. III. r. 4 ; 117: Gale on Easements, 21G
13 Ethv. I. f. 46 ; see Williams (33.i, 4th ed.).
on Commons, 103 sq. (c) Wyatt v. Hnrriioti, 3 B. &
((/) Stat. 56 & 57 Vict, c 57, Ad. 871 ; Fartridije v. Scott, 3
8. 2, passed 22nd Sept. 1893. M. & W. 220 : Gale on Ease-
(s) Pickering v. N'-ges, 4 B. & C. ments, 218 (343, 4th ed.).
639. {d See ca.'4e8 cited iji note (/■ ,
(«) See Wms. Real Prop. 7. 17, l)elow, p. 430.
27, 36, 38 and n. (r), 58, «4 — 66, (e)I)aUo}i v. Atiqiis, C App.
460—462, 464, 2l8t ed. CaH. 740.
430
OF PARTICULAR TITLES.
Sale of land
with build -
iDgs or for
building'
purposes.
erected thereon or for the purpose of erecting any
buildings or additional buildings thereon, the vendor
impliedly agrees to confer upon the purchaser the right
of support for such buildings by any adjoining lands,
which the vendor retains, and the purchaser is entitled
to such right of support accordingly (/).
Support of
buildings
b)^ buildings
on adjoining-
land.
Party walls.
It appears that the right of support of some
building by another building erected on adjoining land
and not belonging to the owner of the building so
supported is an easement to be acquired by grant or
prescription (g). The common user, for the purposes of
support, of a wall separating the houses or buildings of
two different owners is evidence prima facie that the
wall and the land on which it is erected belongs to
them as tenants in common in equal shares (/^). But
this presumption may be rebutted by evidence that the
wall was actually built half on one owner's land and
half on the other's at their joint expense, or entirely on
one owner's land or otherwise ; and in such case the
o\^'nership of the wall and the rights of support thereby
will be according to the facts proved (?). The term
" party wall " may be applied in any of such cases, but
its primary meaning appears to be that of a dividing-
wall held in common (//). In the metropolis the rights
of landowners, whose properties are divided by a party
(/) North Eastern Ry. Co. v.
Elliot, I J. & H. 14.'), 153 ;
affirmed, 2 De G. F. & J. 423 ;
and nom. Elliot v. North Eastern
Ry. Co., 10 H. L. C. 333, 356,
362 ; Siddons v. Hhort, 2 C. P. D.
572 ; Lalton v. Angus, 6 App.
Cas. 740, 792, 826; Rigby v.
Bennett, 21 Ch. D. 559 ; Orosvenor
Hotel Cv. V. Hamilton, 1894, 2
Q. B. 836, 841, 842.
{y) Lemaitrev. Davis, 19 Ch. D.
281; Tone Y. Preston, 24 Ch. D.
739, 742 ; and see Union Lighter-
aye Co. V. London Granny Buck
Co., 1902, 2 Ch. 557.
(h) Cuhitt V. Porter, 8 B. & C.
257 ; and see Watson v. Gray, 14
Ch. D. 192; Mayfair Property
Co. V. Johnston, 1894, 1 Ch. 508.
At common law, either owner has
the right to repair such a pai'ty
wall; Coleheck v. Girdlers' Co, 1
Q. B. D. 234, 243.
(;) Matts V Hawkins, 5 Taunt.
20 ; and see TFatsnn v. Gray, 14
Ch.D. 192, 195 ; Jonesv.Pritchard,
1908, 1 Ch. 630 ; JIason v. Fiilha/n
Corpn., 1910, 1 K. B. 631, 637.
(/i) See Watson v. Gray, iibi sup.
OP^ PARTICULAR TITLES. 431
wall, are regulated by tli<^ London Building Act,
1894 (/).
Where thp lands of two ditferent owners are separated Boundary
by a ditch nnd a bank or hedge, it is presumed, in the aitrhos.
absence of evidence to the contrary, that the bank or
liedge and also the soil of the ditch belong to the owner
of the land on the side where the ditch is not : but no
such presumption arises where there is a ditch on both
sides of a hedge (in).
If an undivided share in land be sold, which is held Undiviaed
under a tenancy in common created less than forty
years before the sale, tlie title to be shown, in the
absence of special stipulation, is the title to the entirety
fi'om a date forty years at least before the contract down
to the creation of the tenancy in common, and thence-
forward the title to the share sold only (n). But where
the share sold has been held as an undivided share for
more than forty years, only forty years' title to the
shart^, as such, can be required. Of course in either
case the abstract must commence with a good root of
title (o). If one tenant in common buy the share of Tenant in
another, and stipulate generally for the delivery of an buyinjf i.tlier
abstract of title or stipulate expressly that a good title shares.
shall be sho^\^l, he is entitled to production of the same
title as if he were a stranger (p). But if he make no
(/) Stat. 57 & 58 Vict.c. ccxiii. ; Laurence, J., Vowles v. Mrllor,
see Druri/ v. Armi/ and Xavif, ^c. 3 Taunt. 137, 138 ; Holroyd, J.,
Siipph/, 1896, 2 Q." R. 271 ; ITobbg Doe v. Pearsey, 7 B. & C. 304,
V. Graver, 1899. 1 Ch. 11; lie 307, 308; Marshnll v. Taxflur,
Stone and Hastir, 1903, 2 K. B. 1895, 1 Ch. 6-11, 644, 647, (349;
463; Carlixhv. Salt, 1906, 1 Ch. (haven v. Pridmore, 18 Times
335 (a.s to which see above, p. 177 L. R. 282 ; H'-nniker v. Ilotrard,
andn.(o)) ; Leivixv. CharitK/ Cross, 90 L. T. 157.
S;c. Rij.,ib.bm\Crosbii\. Alhambrn (n) Sug. V. & P. 377.
Co., Ltd., 1907, 1 Ch. 295; Maxon (o) Above, pp. 94—100, 106 —
V. Fulham Corpu., 1910, 1 K. B. 108, 192, 20«— 210.
()31. [p) Morris v. Kearsiti/, 2 Y. i^'
(w) Baylev, J.. Om/ v. U'c^t, C. 139; Sug. V. & P. 377, 428.
2 Sel. N. P. 1244, 13th ed. ; ■
version.
482 OF PARTICULAR TITLES.
such stipulation, and the tenancy in common were
created less than fort}'^ years before the sale, it appears
that he can only demand production of the title to the
share sold since the creation of the tenancy in common (q) .
The vendor of an undivided share in land must of
course be careful to describe it as such and to state
accurately the proportion to which he is entitled ; as if
he should purport to sell the entirety or a larger share
than he has (r), the purchaser would be entitled at his
option either to reject the title altogether (.s), or to take
what the vendor could convey and demand compensa-
tion for the deficiency (f).
Title under Whenever a vendor claims to have become entitled to
trust for con- , ■,, li. j i. j. £
some property as realty or personalty under a trust tor
conversion of money into land, or piee versa (it), the
purchaser's advisers should be careful to ascertain that
there is or has been an effective trust for conversion as
alleged. And it must be borne in mind that, except in
the two cases of a term of years attendant upon the
inheritance {x) and capital money actually arising under
the Settled Land Acts (//), personalty can only acquire
in equity the character and incidents of realty by
means of an imperative trust for investment in the
purchase of real estate (s). Thus it has been held that
a direction, that money shall be held and applied upon
the same trusts and in the same manner as if it were
capital money arising under the Settled Land Acts
{q) Law V. Lau\ 9 Jur. 74/J ; Ch. D. 180 ; see above, p. 43 :
Phipps V. Child, 3 Drew. 709 ; below. Chap. XII. § 4.
Brooke v. Garrod, 2 De G-. & J. (m) See Wms. Real Prop. 186,
62, 68 : Dart, V. & P. 286, .5th 187, 21st ed. ; Wms. Pers. Prop,
ed. ; 326, 6th ed. ; 322, 7th ed. ; 381, 382, 407, 16th ed.
but see Sug. V. & P. 377, 428. [x) Wms. Real Prop. 420, 13th
(r) Rofey v. Shal/cross, 4 Madd. ed. ; 541, 21sT, ed.
227. iv) Stat. 45 & 46 Vict. c. 38,
(,9) JRe ArnoU, 14 Ch. D. 270 ; s. 22 (5, 6).
see above, pp. 33, 43, 167. [z) Re Walker, 1908, 2 Ch.
(t) Hooper v. Rmart, L. R. IS 705, 712; Re Gihbon, 1909, 1 CL.
Eq. 683 ; Horrocks v. Rigby, 9 " 367, 378.
il
OF PARTICULAR TITLES. 433
from the sale of certain freehold lands limited in strict
settlement, is insufficient to invest the money with the
quality of real estate in equity ; and in such case the
absolute property in the money will vest, as personalty,
in the person entitled to the fii'st estate tail under the
settlement {a) . So also, where a purchaser of land keeps
on foot for his own benefit a mortgage affecting it, he
remains entitled to the mortgage as his personal pro-
perty (h). Similarly, in order to invest land in equity
with the character of personalty, there must be an
imperative trust for sale. Where land is given to
trustees on trust for certain persons, with a mere power
of sale at the trustees' discretion, and a direction that
the beneficiaries shall at once be entitled to their
respective interests as personalty (a mode of disposition
by no means infrequent in ill-drawn wills), the direc-
tion is entii'ely ineffective, and until actual sale the
beneficiaries take the property as realty (c) .
§ 6. — Sale of purely Incorporeal Hereditaments.
Upon the purchase of purely incorporeal heredita- sale of purely
ments, the general rule as to the title required to be jncorporeivl
shown is the same as upon the jnirchaso of land, tliat is ments.
to say, if the incorporeal hereditament be sold in fee
and under an open contract, forty years' title, com-
mencing witli a good root of title, must be shown {d).
This applies equally to the sale of a seigniory, a rent-
charge, a profit a prendre, a franchise, or an easement.
The exceptions are tliose already noted {c) of the sale of
(ff) ;?« /raWvr, 1908, 2 Ch. 70,); v. Smith, 1 Macq. 760. Cf.
and see above, pp. 369. 870 and IFatson v. lihick, 16 Q. B. D.
n. (»•). 270.
[b) Re Gihbon, 1909, 1 Ch. 367. (rf) See above, pp. 98, and n.
((■) See authorities cited in (m), 100, 100, 107 ; Itr Enrmhaic
note (c), above, p. 432 ; A.-G. v. Wall, 1894, 3 Ch. 156, 158.
Mangh's, ,5 M. & W. 120 ; A.-G. {c) Above, pp. 97, 101.
V. Simcox, 1 Ex. 749 ; Adr.-Gen.
w. 28
4M
OF PARTICULAR TITLES.
Contract to
grant an
incorporeal
hereditament
de novo.
tithes or other property held under a grant from the
Crown, and of an advowson. Upon a contract to grant
in fee a new incorporeal hereditament to be exercisable
over or issue out of the grantor's land, such as a right
of way or a rent-charge, the same title must be shown
to all the land, which will be subject to the grant, as
upon a sale thereof (/).
>v':;
Perpetual
rents, when
redeemable.
Rent-charge. On the sale of a rent-charge in fee, besides the docu-
mentary title, evidence must be given that the vendor is
in actual receipt of the rent sold, as in the case of a sale
of ground rent (g). This is the more necessary on the
sale of a rent-charge, in that such a rent may be barred
and extinguished after twelve years' non-payment
under the Statute of Limitations (/?). The purchaser
should inquire of the terre-tenant whether he pays the
rent in question to the vendor (/). Purchasers of
perpptual rents, whether rents service, rents-charge or
rents seek, should not forget that a rent in fee, not
being a tithe rent-charge or a rent reserved on a sale or
lease or made payable under a grant or licence for
buiLling purposes, is redeemable on the requisition of
any person interested in the land, out of which the rent
issues, at an amount of money to be certified by the
Board of Agiinultnre (/.•). "With regard to the remedies
to which a purchaser of a rent in fee will become
entitlnd, rents seek are of course now recoverable by
distress equally with rents-charge (/) ; owners of rents
{f) Bi'd,r>ngt. 494. -^Oii. The principle of
this is tlie samp which was applied
ill d'cidintr that one, who con-
tracted to grant a lease for years,
WHS hinmd to show a irood title to
the freehold of the lauds to be
leased: above, p 97, n. [in) ;
Fildes V. Booker, 2 Mer. 421.
(r/) Above, p 39s.
{h'\ See Janie-1 v. Snltfir, 3 Bing.
N. C. 544 : Grant v Ellis, 9 M. &
W. 113; Le Beaiivoir v, Ou-en,
Remedies of
owners of
rents.
o Ex. IfiR ; Bean of Ehi v. ,
2 De G. M. & G. 4.59, 472 ; Irish
Land Commrs. v. Grant, lOApp.
Cis. 14. 2f'.. 27: Ho'itt v. Hnr-
rini/ion, 1R93, 2 Ch. 497, .504, 507 ;
Sha>v V. CromptoH, 1910, 2 K. B.
370. H76.
(i) See above, p. 3^9.
[k) Stats 4t & 45 Vict. c. 41,
8. 45 ; 5i & 53 Vict. c. 30, s. 2.
(/) Stat. 4 Geo. II. c. 28, s. -5 ;
Wrus. Real Prop. 428, 429,
21st ed.
I
OF PARTICULAR TITLES. 435
have, since the abolition of real actions, been allowed a
remedy by suing the terre-tenant personally (m) ; and
they may apply to a Court of Equity to order any
arrears of the rent to be raised by sale or mortgage of
the land, out of which it issues, the granting of such
relief being discretionary (;?). Where the rent sold is a Covenant to
rent-charge in fee created on a grant of land for charo-e.
building purposes in consideration of a rent-charge, it
■will of course be borne in mind that any covenant
contained in the deed of grant that the grantee, his
heirs and assigns will pay the rent or build on the land
is only a personal covenant and will not run with the
land, either at law or in equity, so as to be enforceable
against the grantee's assigns (o) . Where on such a Pro\'iso for
grant the rent-charge and the grantee's estate have been non-payment
limited by way of use to be executed by the Statute of °* rent-charge.
Uses (p), and there has been a proviso allowing the
grantor, his heirs or assigns, on non-payment of the rent
or breach of covenant to re-enter and hold the land
charged in fee, it appears, according to modern
doctrine (q), that the right of re-entry is void, at least
as regards the gi'antor's heirs and assigns, unless it
were so limited that it must necessarily arise within the
period allowed by the rule against perpetuities. But a
power given on such a grant of a rent-charge in fee for
the gi-antee, his heirs or assigns, to enter on the land
charged, in case of non-payment of the rent, and hold
(m) Thomai< v. Si/hr-iffr, L. R. (ii) Hambro v. Hamhro, 1894,
8 Q B. 368; Rr Blackburn, ^c. 2 Ch. 564.
Building Sociefi/, Ex parte Grn- {o) Tfai/tvood v. Brim^tcick, &c-
ham, 42 Ch. D. 343; f^earle v. Bnildinfj'Sociefif, S Q. B. D. 403;
Cookfi, 43 Ch. D. 519; Perfu-ee v. Austerbn-rtj y. Oldham, 29 Ch. D.
Tou-nsend, 1896, 2 Q. B. 129 ; Re 750.
Herbage Rents, 1«96. 2 Ch. 811 ; {p) Stat. 27 Hen VIII. c. 10.
Frdeu's Chnritii Trustees v. Ihid'ey (q) Dunn v. Flood, 2.') Ch. D.
Corpn., 1910, 1 K. B. 317. The 629. 28 Ch. D. 586. .592 ; Re
defi.«ir)n in Thomas v. Sglres/er is HoUis\s Hnspitnl ar,d Hague's Con-
critifised by the author in L.Q.R. trnet, 1899. 2 Ch. 540. 554 ; Gray,
xiii. 288. Rule afrainst Perpehiities, § 303.
See below, Chap. XII. Sect 3.
28 (2)
436
OF PARTICULAR TITLES.
Release of
part of land
subject to a
rent - char o-e.
Release of
part of land
subject to a
rent-seek.
the land until all arrears of the rent and all expenses
shall have been discharged, appears to stand upon a
different footing. Such a power is regarded as remedial
only and as being part of the estate which the grantee
has in the rent ; and whether the power be conferred in
express words or by virtue of the 44th section of the
Conveyancing Act of 1881 (r), there appears to be no
good reason for supposing that the same is invalid, if
not limited to arise within the period allowed by the
rule against perpetuities (x). Here the reader may be
reminded that, before the 1-Hh of August, 1859, a
release by the owner of a rent-charge of part of the
lands, out of which the rent issued, had the effect of
entirely extinguishing the rent-charge {f). Since then,
if such a release be made, the right only to recover any
part of the rent-charge out of the lands released is
barred ; and the lands not included in the release
remain liable, not to the whole rent-charge, but only to
a part thereof proportionate to their value (»). It
appears, however, that this alteration of the law does
not extend to a rent seek, which seems to remain on the
same footing, in respect of apportionment, as a rent-
charge stood at common law (,r).
Registration No registration is required to perfect in any way the
of a rent- grant of a rent in fee or in tail. But an annuity or
charge, where & _ , "^
necessary. rent-charge granted, otherwise than by marriage settle-
ment or will, for a life or lives or for any estate
(>•) Stat. 44 & 45 Vict. c. 41.
(s) Havergill v. Bare, Cro. Jac
510 ; Sugd.'Gilb. Uses, 178, 179 :
Lewis on Perpetuities, 618 ; Da
vidson, Prec. Conv. vol. ii. part i
508, 511, and notes, 4th ed. ,
Gray, Rule against Perpetuities,
^ 303. See below. Chap. XII.
Sect. 3.
{t) Litt. ss. 2'22, 2-24 ; Bennett
V. Pern, 1 Bing. N. C. 388 ;
Wms. Real Prop. 437, 438,
2 1st ed.
(m) Stat. 22 & 23 Vict. c. 35,
s. 10 ; Booth V. Smith, 14 Q. B.
D. 318.
{x) See Litt. ss. 217— 227; Co.
Litt. 147 b, 150 b; Gilb. Tenui-es,
402 and n. Ivii., 4th ed. All rent
service payable in money, whether
incident to a seigniory or re-
served on a lease for years, is
apportionable at common law ;
Litt. ss. 222, 223 ; Co. Litt.
148 a, 149 b.
OF PARTICULAR TITLES. 437
determinable on a life or lives, must be registered in
the Office of Land Kegistry against the name of the
person, whose estate is intended to be affected, other-
wise the same will not affect any lands, tene-
ments or hereditaments, as to purchasers, mortgagees
or creditors {y). Purchasers, however, who take with
notice of such annuities or rent-charges, are bound by
them in equity, although they be not registered (s).
Rent-charges coming within the definition of a land
charge contained in the Land Charges Act, 1888, and
created after that year, must be duly registered at the
Office of Land Registry, or they will be void as against
a purchaser for value of the land charged, or any
interest therein {a). And similar rent-charges pre-
viously created but assigned by act niter rii-on after
that year must be duly registered at tlie Office of Land
Registry. For the same Act further provides that,
after the expiration of one year from the first assign-
ment made by act inter viron after the year 1888 of a
similar rent-charge previously created, the person
entitled thereto shall not be able to recover the same as
against a purchaser for value of the land charged, or
any interest therein, unless the charge be so registered
(y) Stat. IS & 19 Vict. c. lo, ments, or otherwise, with or
88. 12, 14, passed 26th April, without interest, charged other-
185.5, and applyinir to annuities wise than by deed upon land
or rent- charges granted after the under the provisions of any Act
passing of the Act. The regis- of Parliament for securing to
tration was fomu^rly required to any person either the moneys
be made in the Court of Common spent by him, or the costs, charges
Pleas, and afterwards in the Cen - and expenses incurred by him
tral Office of the Supreme Court ; under such Act, or the moneys
see stat. 42 & 43 Vict. c. 78 ; advanced by hini for repaying
R. S. C. 1883, Ord. LXI. ; stat. the moneys spent, or the costs,
63 & 64 Vict. 0. 26. s. 1, and charges and e.xpenses incurred by
Order thereunder, W. N. 18th anotlier person under the autho-
Aug. 1900. rity of an Act of Parliament,
(z) Greaves v. Tojicld, 14 Cli. D. and a charge under the 35th
663. secticm of the Land Drainage
(fl) Stat. 61 & 52 Vict. c. 51. Act, 1861, or under the 29th sec-
8. 12. By sect. 4. " land charge " tion of the Agricultural Holdings
means a rent, or annuity or prin- (England) Act, 1883, but does
cipal moneys payable by instal- not include a rate or scot.
438 OF PARTICULAR TITLES.
before the completion of the purchase (6). The rent-
charges, to which these provisions apply, are mainly
those created under the Improvement of Land Act,
1864 ((?), or other Land Improvement Acts {d). By
the Improvement of Land Act, 1899 (e), rent-charges
created either before or after that Act under the
Improvement of Land Act, 1864, or any special
Improvement Act, shall be recoverable, as regards any
instalment accruing due after the year 1899, by the
like remedies as are provided by the Conveyancing Act
of 1881 in respect of rent-charges thereafter created,
and not otherwise. This appears to preclude the owners
of such rent- charges from recovering such arrears by
personal action against the terre-tenant under the
doctrine laid down in Thomas v. Sylvester {f). When
a rent-charge sold is of such a kind that it requires
registration, the conveyancer advising the purchaser
should of course inquire whether the necessary registra-
tion was duly made. If not, he should object to the
title, unless the defect should be removable by subsequent
registration, as it might be if since the grant of the rent-
charge there had been no dealing for value with the
land charged.
Tithe rent- An impropriate tithe rent-charge, being of course a
'' " rent-charge in commutation of tithes {g), is subject to
the rules already mentioned as to proof of title on the
Lands sold as sales of tithes {h) . And when lands are sold as tithe-
free owing to the merger of the tithe rent-charge
therein (?), the title to the tithes prior to the merger
{b) Stat. 51 & 52 Vict. c. 51, {e) Stat. 62 & 63 Vict. c. 46,
s. 13. By sect. 4, in this Act s. 3.
"purchaser for value " includes (_/') Above, p. 435, n. («)).
a mortgagee or lessee or other (r/) "Wms. Real Prop. 448, 21st
person who for valuable con- ed.
sideration takes any interest in [h) Above, p. 101.
land or a charge on land. (i) A tithe rent-chai-ge can only
(c) Stat. 27 & 28 Vict. c. 114. be merged by the execution of
{d) See Wms. Real Prop. 12fi, some instrument under stats. 6 &
21st ed. 7 Will. IV. c. 71, s. 71 ; 1 & 2
tithe- free.
OF PARTICULAR TITLES. 439
must be shown in the absence of stipulation to the
contrary. If the tithes should have been merged more
than forty years before the sale, the grant of the tithes
fi'om the Crown and, apparently, the instrument of
merger must still be produced (/>•). If lands be sold as
tithe-free, and the exemption be alleged to arise from
other cause than merger (/), the facts giving rise to the
exemption must be strictly proved (w). And if hmd
sold as tithe-free should not be free from tithe, the
purchaser will not be compelled to take the title {u).
The length of title which must be shown on a sale of Advowson.
an advowson under an open contract has been already
noticed (o). On the sale of an advowson, the abstract
of title should be accompanied with or comprise a list
of the presentations made during the time for which
title has to be deduced, so as to show that enjoyment
has gone along with the title (/?). The purchaser should
verify this list of pres^-ntations by examination of the
bishop's institution book or diocesan regi.^ter of institu-
tions, the entry in which is, next to the presentation
itself (if in writing), good evidence of the presenta-
Vict. c. 64 ; 2 & 3 Vict. c. 62, dnetion of snch an instrumpnt
8. 1 ; 9 & 10 Vict. c. 7-^ S8. 18, appeais. tlieretore, to lie sufficient
19. It does not nierfi-e by the proof of tbe ineiyer of the tithe.
mere fact of the union iu the (/) See Burton's Compendium,
same person of the estate in the ch. 6, sect. 4 ; stats. 2 A: 3 ^ViH. IV.
land and in the tithes: Shelford c. 100; 4 & 5 WUl IV. c. 83 ;
on Tithes, 292, n., 3rd ed. Salkcld v. Johmton, 1 Mac. & G.
(A-) Su^. V. & P. 367 ; 1 Dart, 242.
V. &P. 29.^, 5thed.; 336, 6th ed.; {>») Dart, V. & P. 3.54— 3o6,
331, 7tb ed. But any instru- 1075, n. (/.), .5th ed. ; 401. 402,
ment purp«)rtin>^ to merge any 1201, n. ((/), 6th ed.; 396, 397, 7th
tithes or rent-charge, and exe- ed. ; above, p. 170, and n. (<•).
cuted with the consent of the («) Ker v. Clobunj, Sug. V. &
Tithe Commissioners before the P. 321 ; ^imAs v. J?oAt^y, 2 Swanst.
passing of stat. 9 & 10 Vict. c. 73, 222.
s. 19 (2(;th August, 1816), is (o) Above, p. 101.
valid and effectual to merge the {p) Sug. V. «!c P. 367 ; 1 Dart,
tithes, although the person pur- V. k P. 293, 5th ed. ; 334, 6th
porting to merge the tithes had ed. ; 329, 7ih ed. ; 1 David.son,
no estate therein : Walkei- v. Prec. Couv. 527, 4th ed. ; 439,
Bentley, 9 Hare, 629. The pro- 5th ed.
440 OF PARTICULAR TITLES.
tion (q). The law relating to the sales of advowsons is
now regulated by the Benefices Act, 1898 (r). Prior
to that Act, an advowson was as freely saleable and
transferable as any other real property, subject only to
the laws by which any presentation made to an eccle-
siastical benefice in consideration of any profit or benefit
was void as simoniacal (.s). With respect to this, the
following distinctions were established : — It was not
simoniacal for any person, whether layman or clerk, to
purchase an advowson, either in fee or for any less
estate, while the church was full ; and the conveyance
on such a purchase would carry with it the right of next
presentation, however immediate were the prospect of a
vacancy at the time of sale, provided that the vacancy
were not occasioned by some agreement or arrangement
between the parties {f). And if a clerk so purchased an
estate in fee or for life in an advowson, he might present
himself to the living [ii). But any agreement or
arrangement between the parties to the sale of an
advowson for causing the living to become vacant was
simoniacal ; and a presentation made upon any vacancy
so caused was void, and the right of presentation for the
next turn became forfeited to the Crown [x). A sale of
an advowson made while the church was vacant did not
carry with it the right of next presentation (i/), but was
in other respects perfectly valid and passed the right of
presentation for all subsequent turns. And if an
[q) See Tillard v. Shebbeare, 2 H. L. 17, 45, 52 ; Walsh v. Lin-
Wils. K. B. 366. The register coin, L. R. 10 C. P. 518; see
appears to be such a public docu- Bac. Abr. Simony.
ment as is admissible in evidence [i) See preceding note.
on mere productiou from its [ii) See JFalsh v. Lincoln, L. R.
proper custody : 1 Phillimore, 10 C. P. 518 ; lour v. Chester,
Eccl. Law, 354, 355, 2ud ed. ; 10 Q. B. D. 407.
Ii. V. Bishop of Ely, 8 B. & C. [x) Stat. 31 Eliz. c. 6, s. 5 ;
112; see above, pp. 122, 123. Abbott, C. J., Fox v. Chester, 2
(>•) Stat. 61 & 62 Vict. c. 48. B. & C. 635, 660; Cripps' Laws
(a) Barret v. Glubb, 2 W. Bl. of the Church, 475, 476, 6th ed.
1052 ; Fox v. Chester, 3 Bli. N. S. (y) Alston v. Atlaij, 7 A. & E.
123 ; Exeter v. Marshall, L. R. 3 289.
OF PARTICULAR TITLES. 441
advowson were sold and conveyed while the church was
full and at the same time a simoniacal arrangement
were made for causing a vacancy, the next presentation
only was forfeited to the Crown, and the conversance
was otherwise good and passed the right of presentation
for the succeeding turns (z). And the sale of the right
of next presentation only was valid if made while the
church was full (a), though not if it were vacant ; but
a clerk was prohibited from purchasing a next presenta-
tion in order to present himself to the living (/>).
By the Benefices Act, 181)8 {c), a transfer of a right Benefices Act,
of patronage of a benefice shall not be valid unless
(1) it is registered in the prescribed manner (d) in the
registry of the diocese within one month from the date
of the transfer, or within such extended time as under
special circumstances the bishop may think fit to allow ;
(2) it transfers the whole interest of the transferor in the
right except as thereinafter provided ; and (3) more than
twelve months have elapsed since the last institution or
admission to tlie benefice. The expression frai/sfer here
includes any conveyance or assurance passing or creating
any legal or equitable interest infer vivos, and any
agreement for such conveyance or assurance ; but does
not include a transfer on marriage, death, or bankruptcy,
or otherAvise by operation of law, or a transfer on the
appointment of a new trustee where no beneficial
interest passes {e) . And nothing in this enactment
shall prevent the reservation or limitation in a family
settlement of a life interest to the settlor, or in a mort-
gage the reservation of a riglit of redemption (./').
(s) Greennood v. London, 5 (c) Stat. 61 i!c (JJ Vict. c. 48,
Taimt. 727. s. 1 (1).
[a) Fox\. Ch'ntcr, 3 Bli. N. S. (rf) Sec Benefices Rules, 1898,
l'2;i. W. N. 7th Jan. 1899.
(A) Stat. 12 Anue, st. 2, c. 12, (<•) Sect. 1 (6).
8.2. (/■) Sect. I (7).
442
OF PARTICULAR TITLES.
The Act also invalidates (p) any agreement for any
exercise of a right of patronage of a benefice in favour
or on the nomination of any particular person, and any
agreement on the transfer of a right of patronage of a
benefi.ce for the resignation of a benefice in favour of
any person. Any conveyance either of an advowson or
a next presentation must now conform with the require-
ments of this Act or it will be invalid. Thus it appears
that the conveyance of an advowson by way of family
settlement must be registered and must in other
respects conform with the provisions of the Act : whilst
a conveyance of an advowson by way of marriage
settlement remains exempt from the requirements of
the Act as to transfer, including the necessity of regis- ,
tration. And it seems that these rules apply equally to
the transfer of an advowson appendant or in gross.
The second requirement imposed by the Act appears to
invalidate sales or grants by the owners of an advow-
son (A) of the next presentation or any less estate or
interest than the whole fee simple in the advowson ;
except only by way of reservation or limitation in a
family settlement of a life interest to the settlor, or of
reservation in a mortgage of an equity of redemption.
And it is to be noted that, even in a family settlement,
only the limitation of a life interest to the settlor is
allowed ; so that the limitation in such a settlement of
an advowson by a settlor entitled in fee simple to the use
of himself in tail or for any term of years appears to be
invalid. If, however, the grantor transfer the whole of
his own estate in the advowson by way of family settle-
(.17) Sect. 1 (3). By sect. 2 (la), fice, unless it be proved that the
a bishop may refuse to institute transfer was not effected in view
or admit a presentee to a benefice of the probability of a vacancy
if at the date of the vacancy not within such year,
more than one year has elapsed (A) The right of next presen-
since a transfer as defined by the tation obviously remains trans-
first section of this Act of the ferable where it constitutes the
right of patronage of the bene- whole interest of the transferor.
OF PARTICULAR TITLES. 443
ment, the limitation of estates for years, for life, or in
tail, with an iiltiraate remainder in fee simple to other
persons than himself, does not appear to offend against
the statute. But where the ultimate remainder in fee
simple is limited to the use of the grantor, the Act
seems to be infringed and the transfer to he invalid.
And this seems to be the case where a life interest is
reserved to the grantor, with intermediate limitations
to others and an ultimate remainder in fee to him-
self. The Act also provides (/) that it shall not be Prohibition
lawful to offer for sale by public auction any right of advowsom by
patronage, except in the case of an advowson to be sold auction.
in conjunction with any manor, or with an estate in
land of not less than one hundred acres situate in the
parish in which the advowson is situate, or in an
adjoining parish and belonging to the same owner as
the advowson.
Upon the sale of an advowson when the church is Right of
full, the legal right to present on the next vacancy ^5^^°*^*'*^^
remains with the vendor until the salt^be completed by completion of
conveyance (/.•) ; but in equity the right of presentation advowson.
belongs to the purchaser as from the date of the contract
for sale, subject to the condition of liis accepting the
title. If, therefore, a vacancy occur before completion,
the purchaser, having first accepted the title, may
require the vendor to present to the living such perspn
as the purchaser may select (/). But if the living
became vacant by the promotion of the incumbent to
(t) Sect. 1 (2), whereby also (A) 17 Vin. Abr. Presentation,
any person offering any right of ."519, pi. 11.
patronage for sale by auction in (/) Fox v. Chestei-, 3 Bli. N. S.
contravention thereof, or bidding 123, 15.") — 157; Nichohon v.
at any such sale, is rendered Liable Knapp, 9 Sim. 326; Bowling v.
on summary con%'ictiou to a fine Magiiire, LI. & G. t. Plunk. 1,
not exceeding 100/. 30; Greenslade \. Dare, 17 Beav.
50*2.
441 OF PARTICULAR TITLES.
the bishopric of a see in England, the Crown is entitled
to present for that turn {in).
Devices When an advowson or a next presentation was sold
on sale in in expectation of an earlj^ avoidance of the living,
expectation of various devices were resorted to in order to protect the
a vacancy. . ^ /^
purchaser in case the expected avoidance did not take
place. Thus it was sometimes provided in the contract
for sale that the purchase money should on completion
be deposited with trustees to be paid over to the vendor
if the vacancy occurred within a specified time, but
otherwise to be returned to the purchaser and the ad-
vowson to be reconveyed to the vendor (ii). Or it was
stipulated that the voir/or should pay interest on the
purchase money from the date fixed for completion
until the benefice should become vacant (o) ; and such a
stipulation was held not to be void as simoniacal on the
sale of an advowson, where the vendor was not the
incumbent (p). Or it was agreed that the vendor should
re-pm^chase the advowson, if the living were not avoided
within a certain time. But now, by the Benefices Act,
1898 (q), any agreement on the transfer of a right of
patronage of a benefice either (i) for re-transfer of the
right, or (ii) for postponing payment of any part of the
consideration for the transfer until a vacancy or for more
than three months, or (iii) for payment of interest until a
vacancy or for more than three months, or (iv) for any
payment in respect of the date at which a vacancy
occurs, shall be invalid.
{m) Grocers'' Co. v. Archbp. of vul. ii. part i. 37, 41, 4th ed. ;
Canterbury, 3 Wils. K. B. 214, 1 Key & Elphinstone, Prec. Conv.
232, 233 ; Ii. v. Eton Colleye, 8 E. 632, n., 4th edit.
& B. 610. {p) Sweet v. Meredith, 3 Giff.
(«) Davidson, Prec. Conv. 610, 8 Jur. N. S. 637.
vol. ii. parti. 30, 35, 4th ed. [q) Stat. 61 & 62 Vict. c. 48,
(o) Davidson, Prec. Conv. s. 1 (3).
OF PARTICULAR TITLES. 445
§ 7. — Sale of Charity Lands.
On the sale of any hereditaments whicli are or liave Charity lands.
been subject to any charitable uses or trusts (r), there
are two main points to be considered b}^ the conveyancer
advising on the title ; first, whether the hereditaments
were duly assured in accordance with Part II. of the
Mortmain and Charitable Uses Act, 188>-S (.s), or the
statutes now replaced by that enactment {t), to the
charitable uses on which it is alleged that they are or
were held ; and secondly, whether any conveyance
of such hereditaments agreed by the contract of sale to
be made or purported to be made by any of the docu-
ments of title is or was subject to the restrictions
imposed by the 29th section of the Charitable Trusts
Amendment Act, 18o5 (/<), and if so, whether the condi-
tions thereby imposed have been complied with. The
first of these requirements must also be observed on the
purchase of any hereditaments to be assured to any
charitable uses. Besides which, if the title should
comprise a conveyance to a corporation for charitable
purposes, it must be ascertained that the same was made
in conformity with the law of conveyance to a corpora-
tion into mortmain, now contained in Part I. of the
Mortmain and Charitable Uses Act, 1888.
By Part II. of the Mortmain and Charitable Uses Requisit&s of
Act, 1888 (j^-), subject to the savings and exceptions in anceof land
to charitable
, uses.
(>•) As to what uses or trusts (commonly called the Mortmain
are charitable, see Income Tax Act) ; 9 Geo. IV. c. 85 ; 24 & 25
Comtnrs. v. Pcmstl, 1891, A. C. Vict. c. 9 ; 25 & 20 Vict. c. 17;
531,588; jrunter \. A.-G .,\md, 27 & 28 Vict. o. 13 ; 29 & 30 Vict.
A. C. 309 ; Tndor's Charitable c. 57 ; 31 & 32 Vict, c 44 ; 34 &
Trusts, Chap. I. : 1 Jarm. Wills, 35 Vict. o. 13; 35 & 3() Vict.
160, 5th ed. c. 24.
(,v) Stat. 51 & 52 Vict. c. 42, (m) Stat. 18 & 19 Vict. c. 124.
amended by 54 & 55 Vict. c. 73. [x) Stat. 51 & 52 Vict. c. 42,
(<) Stats. 9 Geo. II. o. 36 s. 4.
446 OF PARTICULAR TITLES.
the Act contained, and to the amendments now made (//)
as stated below with respect to assurances by will, every
assurance (s) of land to or for the benefit of any charit-
able uses shall be made in accordance with the require-
ments of this Act, and unless so made shall be void (a).
These requirements are that the assurance must be
made — (1) by deed (2) executed in the presence of at
least two witnesses (3) twelve months at least before
the assuror's death [b) and (4) enrolled in the Central
Office of the Supreme Court within six months after
the execution thereof ; and (5) must be made to take
effect in possession for the charitable use intended
immediately from the making thereof, and (6) must,
except as in the Act provided (c) , be without any power
(y) By stat. 54 & 55 Vict. of statute, any transaction which
e. 73; seep. 454, below. operates to transfer the property
Assurance. {z) By stat. 51 & 52 Vict. c. 42, in lands or goods and any docu-
s. 10, in this Act, unless the con- ment evidencing such a trans-
text otherwise requires, " assur- action is an assurance ; see Shep.
ance " includes a gift, convey- Touch. 1 ; 2 Black. Coram. 294;
ance, appointment, lease, transfer, Me Roberts, 3S Ch. D. 196; Re
settleme.it, mortgage, charge, R^!/, 1896, 1 Ch. 468, 476. Cf.
incumbrance, devise, bequest, above, p. 377, n. (z).
and every other assurance by (a) See Churclier v. Martin, 42
deed, wall or other instrument ; Ch. D. 312.
and "assure" and "assuror" {h) Including in those twelve
have moHnings corresponding months the days of the making
with assurance. Independently of the assurance and of the death.
(c) Bj' stat. 51 & 52 Vict. c. 42, s. 4 (4), the assurance, or an^- in-
strument formiug part of the same transaction, may contain all or
any of the following provisions ; .so, however, that they reserve the
same benefits to persons claiming under the assuror as to the assuror
himself, namely —
(i.) The grant or reservation of a peppercorn or other nominal
rent ;
(ii.) The grant or reservation of mines or minerals ;
(iii.) The grant or reservation of any easement ;
(iv.) Covenants or provisi(m8 as to the erection, repair, position, or
de.scription of buildings, the formation or repair of streets or
roads, drainage "r nuisances, and covenants or provisions of
the like nature for the use and enjoyment as well of the land
comprised in the assurance as of any other adjacent or
neighbouring land ;
(v.) A right of entry on non-payment of any such rent or on breach
of any such covenant or provision ;
(vi." Any stipulations of the like nature for the benefit of the
assuror, or any person claiming under him.
OF PARTICULAR TITLES. "^"^^
of revocation, reservation, condition or provision for the
benefit of the assuror or any person claiming under
him. The first and second of these requirements do
not apply to assurances of land of copyhold or customary
tenui-e (d) . The third requirement, whereby any assur-
ance of land to any charitable uses may become void
by reason of the assuror's death within a year after the
execution thereof, is not imposed on assurances of land
made in good faith for full and valuable consideration ;
and this is equally the case whether such consideration
be actually paid upon or before the making of the
assurance, or be reserved or made payable to the vendor
or any other person by way of rent, rent-charge or
other annual payment in ]ierpetuity, or for any term
of 3^ears or other period, with or without a right of
re-entry for non-payment thereof, or partly paid and
partly reserved as aforesaid {r). Any assurance of land. Assurance by
which is by the Act required to be made b}' deed, may disposition
be made by a registered disposition under the provisions LandVransfer
of the Laud Transfer Acts, 1875 and 1897, and if so Acts,
made shall be exempt from tbe requirements of the
Act of 1888 as to execution in the presence of witnesses
and as to enrolment (./'). And enrolment is not
required of an assurance of land to or for the benefit of
any charitable uses, if those uses are declared by a Enrolment of
separate instrument, but in such case that separate deed'^onrust.
By sect, l (o), if the as-iurance is made in jrood faith on a sale for
full and valuable consideration, that consideration inay consist wholly
or partly of a rent, rent-charge, or other annual payment re-iorved or
maile ]>ayable to the vendor, or any other person, with or without a
right of re-entry for n(m-i>ayinent thereof : see also sect. 10 (iv.).
These enactments replace stat. '14 & '2/J Vi(!t. c. (', s. 1 (passed 17th
May, 1861), by which e.\c«'ptions were first introdu'^ed to the rule of
stat. 9 (Jeo. II. c. Ii6, that the assurance xnust be without any provi-
.sion for the bcTiefit of the grantor. This must not be forgotten in
considering the effect of a?suraaces to charitable uses made before
that date.
(d) See stat. 51 & 52 Vict. c. -12, placing stats. 9 Geo. II. c. 36,
8. 4 (6). 8. 2 ; 27 & 28 Vict. c. 13, s. 4.
(f) See sects. 4 (7), 10 (iv.), re- (/) Stat. 51 & 52 Vict. c. 42,
• 8. 9.
448
OF PARTICULAR TITLES.
instrument must be enrolled in the Central Office within
six months after the making of the assurance of the
Power to land (q). Where any such assurance or instrument has
enrol mstru- ^' ' "^ , . . . . ,
iiients not uot been dulj^ enrolled within the requisite time, the
within due High Court of Justice, or the officer having control
time. over the enrolment of deeds in the Central Office, is
empowered to order or cause the same to he subsequently
enrolled ; but this power is only exercisable where the
Court or officer is satisfied, first, that the omission to
enrol in proper time has arisen from ignorance or
inadvertence, or through the destruction or loss of the
document {h) ; and, secondly, that the assurance was of
a nature to be validated under the enabling enactment
in that behalf. This provides that if the assurance to
be validated was made in good faith and for full and
valuable consideration, and was made to take effect in
possession immediately from the making thereof without
any power of revocation, reservation, condition, or ]3ro-
vision, except such as is authorised by the Act (/) , and
if, at the time of the application for enrolment, posses-
sion or enjoyment was held under the assurance, then
such subsequent enrolment shall have the same effect as
if it had been made within the requisite time ; but such
subsequent enrolment shall not give any validity to the
assurance if at the time of such application any pro-
ceeding for setting aside the assurance or for asserting
any right founded on the invalidity of the assurance is
pending, or any decree or judgment founded on such
invalidity has been obtained (Z-). Where an assurance
of land to any charitable uses has not been executed in
the presence of two witnesses, or has otherwise failed
{;i) Stat. 51 & 52 Vict. c. 42, trusts sufficiently appear, may be
s. 4 (6), replacing' 24 & 25 Vict. enrolled.
c. 9, s. 2. (() Above, p. 446, n. {e\.
[h) In such case some copy or [k] Stat. .Jl & 52 Vict. c. 42,
abstract thereof, or some subse- s. 5, replacing 35 & 36 Vict. c. 24,
quent instnuiicnt by which the s. 13 ; 29 & 30 Vict. c. 57.
OF PAETICULA.R TITLES. 449
to comply with the requirements of the Act, except No power to
only in respect of want of due enrolment, there is no defects than^
power subsequently to amend the defect and the assur- "^^^^ o^ ^n-
ance remains altogether void(/). And an assurance The assurance
failing to comply with the requirements of the Act is "^^ ^e void
equally void whether the intended charitable uses or charitable
trusts appear from the assurance itself, from some *,^"8ts be not
^ ^ . ' disclosed,
separate instrument or from other circumstances ; so
that if the trustees of a charity buy land with money
belonging to the charity and take a conveyance to
themselves, not disclosing their trust, the conveyance
will be void unless made in accordance with the Act.
And it must not be forgotten that conveyances of land
to a charity for valuable consideration are void, as well
as voluntary conveyances, if not made in accordance
with the statutory requirements (w). If, however, the
grantees imder any assurance which is void for non-
compliance with the present or fomier Mortmain Act (n)
should have entered into possession of the land purported
to be thereby assured, and remained in such possession The charity
long enough for the assuror's title to be extinguished ^def th^
under the Statutes of Limitation (o), they "v\dll have a Statutes of
1 • ^ 1 1 1 \ mi 1 • Lumtation.
good title to the land(7>). ihe above-mentioned -j.^ ^j^^^.
restrictions of the Mortmain and Charitable Uses Act, interests in
1888 (q), and the Mortmain Act of George II. (r) were extends,
imposed on the assurance to any charitable uses not
only of land, but also of any tenements or heredita-
ments, corporeal or incorporeal, of whatsoever tenure,
{I) See Wickham w.Bath, L. R. (;;) Above, p. 445, notes (», t).
1 Eq. 17 ; Webster- v. Soitthey, 36 (o) Stats. 3 & 4 "Will. TV. c. 27 ;
Ch. D. 9. 37 & 38 Vict. c. 57.
{/«) See Lord. Wellardv. Haw- (p) See A.-G. v. Gardner, 2
thorn, 2 B. & A. 96, 101 — 103; De G. & S. 102 ; A.-G.v. ^fl(nro,
Doe d. Preece v. Honelh, 2 B. & ib. 122 ; Churcher v. Martin, 42
Ad. 744; A.-G. v. Gardner, 2 Ch. D. 312.
De U. & S. 102; A.-G.v. Munro, {) Stat, ol & 52 Vict. c. 42,
ib. 122 ; Bunting v. Sarqent, 13 s. 10 (iii.).
Ch. D. 330 : Webster v. 'Southey, (r) Stat. 9 Geo. II. c. 36.
36 Ch. D. 9.
450
OF PARTICULAR TITLP:S.
Assurance of
personal
estate to be
laid out in
purchase of
land for a
charity.
and any edate or intcred tJiercin. This had the effect of
prohibiting the assurance to such uses, except in con-
formity with the statutory requirements, of money
secured by mortgage of land and other property com-
monly called impure personalty (.s). But now by the
Mortmain and Charitable Uses Act, 1891 {t), the pro-
visions of the Act of 1888, relating to the assurance
of land to charitable uses, apply only to land and
tenements and hereditaments, corporeal or incorporeal,
of any tenure, and no longer extend to money secured
on land or other personal estate arising from or con-
nected with land. By the Act of 1888, as by that of
George II., every assurance {u) of personal estate to be
laid out in the purchase of land to or for the benefit of
any charitable uses, was subjected to the like restrictions
as were thereby imposed on the assurance of land to
such uses (r) ; but with respect to the assurance by will
of personal estate for such purposes, the law is now
altered by the Act of 1891 (//) as stated below.
Exemptions
from the
requirements
of the Mort-
main Acts.
Part III. of the Mortmain and Charitable Uses Act,
1888, makes the following exemptions from the provi-
sions of Part II. of the Act : —
(1.) An assurance of land, or personal estate to be
laid out in the purchase of land, to or in trust
for any of the Universities of Oxford, Cam-
bridge, London, Durham, and the Victoria
University, or any of the colleges or houses of
learning within any of those Universities, or
to or in trust for any of the Colleges of Eton,
(s) See Wms. Pers. Prop. 46.'J,
466, 16th ed. ; 1 Jarm. Wills,
177, 5th ed.
[t) Stat. 54 k 5o Vict. c. 73,
s. 3, repealing 51 & 52 Vict. c. 42,
s. 10 (iii.).
(«) See above, p. 446, n. [z).
[x) Except that the transfer of
stoclc in the public funds fur such
purposes is not required to be
made by deed executed in the
presence oi two witnesses or to
be enrolled, and remains valid
unless the transferor die within
six months thereafter : stat. 51 &
52 Vict. c. 42, s. 4.
(//) Stat. 54 & 55 Vict. c. 73,
s. 7 ; see pp. 454, 455, below.
OF PARTICULAR TITLES. 451
Winchester, and Westminster, for the better
support and maintenance of the scholars only
upon the foundations of those last-mentioned
colleges, or to or in triist for the warden,
council, and scholars of Keble College (~).
(2.) An assurance, otherwise than by will, to trustees
on behalf of any society or body of persons
associated together for religious purposes or
for the promotion of education, art, literature,
science, or other like purposes, of land not
exceeding two acres for the erection thereon
of a building for such purposes, or any of
them, or whereon a building used or intended
to be used for such pui'poses, or any of them,
has been erected, so that the assurance be
made in good faith for full and valuable
consideration (a).
(3.) An assurance by deed of land of any quantity
or an assm-ance by will of land of the quantity
therein mentioned (b) for the pui'poses only of
a public park, a school-house for an elementary
school, a public museum (c), or an assiu'anee
by will of personal estate to be appKed in or
towards the purchase of land for all or any of
the same purposes only ; provided that a will
containing such an assurance, and a deed con-
taining such an assurance and made otherwise
than in good faith for full and valuable con-
sideration, must be executed not less than
(:) Stat. .')1 & rrZ Vict. c. 42, however, be enrolled, if thought
s. 7. (i.), replaoino; 9 Geo. II. fit.
(!. 30, s. 4, except as to Loudon, {b) Not exceeding twenty acres
Durham and Victoria Universities for any one public park, two acres
and Keble College : see Tudor's for any one public museum, and
Charitable Trusts, 467 — 470, 4th one acre for any one school-house :
ed. Stat. 51 & 52 Vict. c. 42, s. 6 (3).
(a) Stat. 51 & 52 Vict. c. 42, (c) See s. 6 (4) for the defini-
8. 7 (ii.), replacing 31 & 32 Vict. tion of these terms,
c. 44, s. 1. Such assui'ance may,
29 (2)
452 OF PARTICULAR TITLES.
twelve months before the death of the assuror,
or he a reproduction in substance of a devise
made in a previous will in force at the time of
such reproduction, and which was executed
not less than twelve months before the death
of the assuror, and must be enrolled in the
books of the Charity Commissioners within
six months after the death of the testator, or
in case of a deed the execution of the deed {d).
(4.) Wliere by any statute in force any provision
repealed by the Act of 1888 is excluded either
wholly or partially from application or is
applied with modification, in every such ease
the corresponding provision of that Act shall
be excluded or applied in like extent or
manner (e) . This refers to the cases in which
exemption from all or some of the restrictions
imposed by the Mortmain Act of Greorge II.
has been granted by statute in favour either
of particular charitable institutions or bodies
or of assurances for certain particular pur-
poses (,/').
{d) Stat. 51 & 52 Vict. c. 42, for which such authoiity is em-
s. 6, replacing- 34 & 35 Vict. c. 13, powered by any Act of Parlia-
and also exempting the assurances ment to acquire land, without
therein meutioned from the ope- the requirement that an assur-
ration of Part I. of the Act : see ance not made for full valuable
above, p. 445. consideration mu.st be executed
By stat. 55 Vict. c. 11, this not less than twelve months be-
exemption is extended to any fore the assuror's death,
assurance by deed of land to a {/•) Stat. 51 & 52 Vict. c. 42,
local authority for any purpose s. 8.
(/) SeeTudor's Charitable Trusts, 470—476, 4th ed. ; I Jarm. Wills,
202 — 204, 5th ed. ; Index to Statutes, Mort.main, 2, 3. With regard
to particular charitable institutions specially authorized by statute to
take lands, where these are corporations, it must be considered whether
they are exempted from the provisions of Part I. only of the Mortmain
and Charitable Uses Act, 1888 (above, p. 445), or whether they have
been granted a dispensation from the restrictions imposed by Part H.
of the Act : see Nethersole v. School fur Indigent Blind, L. R. 11 Eq. 1 ;
Chester v. Chestn-, L. R. 12 Eq. 444 ; cf. Perrimj v. Trail, L. R. IS
Eq. 88. As to assurances for particular charitable purposes, there
nre numerous instances in which the Legislature has exempted the
OF PARTICULAR TITLES. 453
Besides these exemptions, it was considered that the
Mortmain Act of George II. {(j) had no application in
ease of land, which was already in mortmain by reason
of its being lawfully vested in a corporation ; and it
was decided on this ground that the conveyance of land
to charitable uses by an ecclesiastical or an eleemosynary
corporation was not subject to any of the restrictions
imposed by that Act {h). And following the spirit of
these decisions, it was further held that, when land had
been once duly assured into mortmain by reason of its
having been vested in trustees for charitable purposes,
the conveyance thereof to other trustees or to another
charity did not fall within the purview of the same
Mortmain Act, and needed not to be made with any of
the formalities therein prescribed (/). And as the
Mortmain and Charitable Uses Act, 1888 (/•), is mainly
iissui-uuce of laud ov of limited quantities of laud for objects rt-garded
as laudablp from all or some of the requirements of Part II. of the
Act of 1888, and also from tlie pnmsions of Part I. of the Act.
Amongst these are the augmentation of benefices, the building of
churches (see Tudor's Charitable Trusts, 473, 773. sy., 785 sq., 4th ed.),
the provision of public recreation grounds (stat. "22 Vict. c. 27), and of
dwellings for the working classes in populous places (stat. o3 & o4 Vict,
c. I G), and the acquisition of land by institutions for promoting technical
and industrial instruction and training (stat. 55 & 56 Vict. c. 29, s. 10).
Other instances, in which also tenants for life or other limited owners
are empowered to couvey the whole estate in the laud for the charitable
purpose in question are the pro\'ision of sites for schools (stats. 4 & 5
Vict. c. 38 ; 7 & 8 Vict. c. 37 ; 12 & 13 Vict. c. 49 ; 14 & 15 Vict,
e. 24 ; 15 & 16 Vict. c. 49), for literary, scientific and like institutions
(stat. 17 & 18 Vict. c. 1 12), and for places of worship or burial (stats.
30 & 31 Vict. c. 133 : 36 & 37 Vict. c. 50 ; 45 & 46 Vict. c. 21). Also,
by stat. 33 & 34 Vict. c. 34, the investment on mortgage of land of
any money held by any corporation or trustees for any public or
charitable purpose is exempted from the restrictions now contained in
Part II. of the Mortmain Act of 1888, and also from any forfeiture
for alienation of land into mortmain : but in every case in which the
ecjuity of redemption of the promises comprised in any such security
shall become liable to foreclosure or otlier\\'ise barred or released, the
same shall thenceforth be held in trust to be sold and converted into
money, and shall be sold accordinglj' ; and in any proceedings for
redeeming or enforcing such security the decree shall direct (in default
of redemption) a .sale and not foreclosure.
(ff) Stat. 9 Geo. II. o. 36. (i) A.'t, 3 dent and beneficial to the charity ;
Atk. 141, 150; Boson v. Statham, and if he failed to establish this
1 Eden, 508, 513. the disposition would be set
(m) Stat. 18 & 19 Vict. c. 124, aside, unless the defence of pur-
passed 14th August, 1855. Ac- chase for value without notice of
cording to the previous law the the trust or of tho Statute of
alienation of charity lands was Limitations could be maintained,
not absolutely prohibited, but See A.-G. v. Wdrren, 2 Swanst.
was liable to be set aside if not 291, 302 ; A.-G. v. Rumjerford,
provident and beneficial to the 2 CI. & Fin. 357 ; A.-G. v. Brct-
charity. And a sale or other tingham, 3 Beav. 91 ; A.-G. v.
alienation of charity lands might South Sea Co., 4 Beav. 453 ; Mag-
well be made under the direction dalen Colkge, Oxford v. A.-G., 6
of the Court of Chancery, or by H. L. C. 189, 205, 213 ; Re Ash-
the trustees of a charity acting ton Charity, 22 Beav. 288 ; Re
under express powers conferred Chrgy Orphan Corp., 1894, 3 Ch.
by the author of the trust. But 145, 154 ; Re Maxon's Orphanage
if a sale or other disposition of and London and North Western Rail.
charity lands were made by the Co., 1896, 1 Ch. 54, 59, 603, 604.
trustees without the authority of
460 OF PARTICULAR TITLES.
of competent jurisdiction, or according to a scheme
legally established, or with the approval of the Board
of Charity Commissioners, any sale, mortgage, or charge
of the charity estate, or any lease thereof in reversion
after more than three years of any existing term, or for
any term of life, or in consideration wholly or in part
of any fine, or for any term of years exceeding twenty-
one years. It is held that this enactment absolutely
prohibits any disposition of charity lands in contraven-
tion of the restrictions thereby imposed (.r) ; and any
such disposition is altogether void (//). And it has
been held that the expressions in the Act authorising
alienation under a scheme legally established relate
only to schemes for the administration of charities made
under the jurisdiction in that behalf inherited by the
High Court from the Court of Chancery or conferred
by the Charitable Trusts Acts [z) ; so that the trustees
of charities are no longer at liberty to exercise express
powers of alienation conferred on them by the author of
the trust, except in accordance with the restrictions of
the Act of 1855 {a). The word " charity" in this Act
includes every institution in England or Wales endowed
for charitable purposes, but not any charity or institu-
tion expressly exempted from the operation of the
Charitable Trusts Act, 1853 ; and the Act of 1855 does
not extend to any case excepted by sect. 62 of the Act
of 1853 from the operation thereof (b). These ex-
ceptions are stated in the note (c), and regard must of
{x) Re Maso}i''s Orphanage, ^-c, Vict. c. 137, ss. 28, 29, 32, 43 ;
1896, 1 Ch. 54, 596 ; Fell y. OJfi- 23 & 24 Vict. c. 136, s. 2.
cial Trustee of Chariti/ Zands, \S98, («) Re Maso)i's Orphanage, ^-c.,
2 Ch. 44. 1896, 1 Ch. 54, 596: A.-G. v.
(y) Bangor v. Farri/, 1891, 2 National Epileptic Hospital, 1904,
Q. B. 277. ' 2 Ch. 252; A.-G.\. Mathieson,
(2) See Tiidor's Charitable 1907, 2 Ch. 383.
Trusts, 3, 181 sq., 184 sq., I'dbsq., {b) Stat. 18 & 19 Vict. c. 124,
593, 596 .sry., 4th ed.; stats. 10 & 17 ss. 47, 48.
(c) By sect. 62 of the Charitable Trusts Act, 1853, this Act shall
uot extend to —
(1) The Universities of Oxford, Cambridge, Loudon or Durham, or
OF PARTICULAR TITLES.
course be had to them in advisinj^ on the title to any
land sold by charity trustees.
any colleg'o or hall in the said Universities of Oxford, Cam-
bridge and Durham ; or to
(2) Any cathedral or collegiate church (see Rf Dod's Charity, 1905,
1 Ch. 442) : or to
(;i) Any building registered as a place of meeting for religious
worship with the Registrar-General of Births, Deaths or
Man-iages in England or Wales, and bond Jldv used as a
place of meeting for religious worship (see stats. 18 & 19
Vict. c. 81, s. 9 ; 32 & 33 Vict c. 110, s. lo) ; or to
(4) The Commissioners of Queen Anne's Bounty ; or to
(5) The British Museum : or to
(6) Any friendly or benefit society or savings bank ; or to
(7) Any institution, establishment, or society for religious or other
charitable purposes, or the auxiliary or branch associations
connected therewith, whollij maintained by voluntary contribu'
tions ; or to
(8) Any bookselling or publishing business carried on by or under
the direction of any society wholly or partially exempted
from this Act, so far as such business is or shall be carried
on by me.ans of voluntary contributions only, or the capital
or stock of such business ; and
(9) Where any charity is iticintaiiti-d pertly by voluntary subscriptions
and partly by income arising from any endowment, the power.'^
and provisions of the Act shall, with respect to such charity,
extend and apply to the income from endowment only, to
the exclusion of voluntary subscriptions, and the application
thereof ; aud no donation or bequest unto or in trust for any
such charity as last aforesaid, of which no special application
or appropriation shall be directed or declared by the donor
or testator, and which may legally be applied by the govern-
ing or managing body of such charity as income in aid ot
the voluntary subscriptions, shall be subject to the jurisdic-
tion or control of the Board of Charity Commissioners or the
powers or provisions of this Act ; and no portion of any such
donation or bequest as last aforesaid, or of any voluntary
.subscription, which is now or shall or may from time to time
be set apart or appropriated and invested by the governing
or managing body of the charity, for the purpose of being
held and applied or expended for or to some defined and
specific object or purpose connected with such charity, in
pursuance of any rule or resolution made or adopted by the
governing or managing body of such charity, or of any
donation or bequest in aid of any fund so set apart or appro-
priated for any such object or purpose as aforesaid, shall be
subject t<) the jurisdiction or contiol of the said Board or the
powers or provisions of this Act : and
(10) Nothing in this Act shall subject the funds or property of
any missionary or other similar society, or the missionaries,
teachers, or otticcrs of such society, or of any branch thereof,
which funds or pnipcrty shall nut be within the limits of
P^nglaud or Wales, to the jurisdiction of the said Boai-d :
Trovidixl always, that the said exemption shall not extend to any
cathedral, collegiate, chapter, or other schools, See also sect. 66.
461
462
OF PARTICULAR TITLES.
Dispositions
of charity
lands by
authority of
the Charity
Commis-
sioners.
Under the Charitable Trusts Act, 1853 {d), the
Cliarity Commissioners may authorise the sale, ex-
change, mortgage {c) , or leasing of charity lands, where
advantageous to the charity ; and leases, sales, exchanges,
and other transactions so authorised shall have the like
effect and validity as if they had been authorised b}'
the express terms of the trust affecting the charity ( /') .
Thus, where express powers of alienation have not been
conferred on the trustees of charity lands, the Charity
It has been held that, by charities wholly maintained by voluntary
contributions, it is intended to describe charities which have no invested
endowment yielding an income for their support, or other property
permanently available for the purposes of the charity (as freehold
land owned and occupied for such purposes), but are entirely depen-
dent on the gifts of the benevolent, whether recurrent or occasional,
and whether infei- vivos or by will; A.-G. v. Mathieson, 1907, 2 Ch.
383. With regard to charities maintained partly by voluntary sub-
scriptions and partly by income arising from any endowment, it has
been held that the income of any endowment prima facie means income
derived from any invested funds ; that in the case of such charities,
bequests and donations for the general purposes of the charity, which
may be lawfully applied as income consistently with the terms of the
gift, are exempt from the operation of the Acts ; and that, so
long as they remain so applicable as income, such gifts and the
income thereof are not brought within the operation of the Acts
by being invested, even in the purchase of land. So that in the case
of the last-mentioned charities, land bought by the trustees with the
produce of such gifts can be disposed of without the consent of the
Charity Commissioners, and, further, appears to be alienable by the
trustees at their discretion without subjecting the jiurchaser to the
burden of proving that the alienation was beneficial to the charity ;
above, p. 459, n. [n) ; see Re Clergy Orphan Corporation, 1894, 3 Ch.
145, 150, 154 ; Royal Society of London and Thompson, 17 Ch. D. 407 ;
Finnis and Younq to Forbes and Pochin, 24 Ch. D. 587, 591 ; Re Gilchrist
Educational Trust, 1895, 1 Ch. 367; Re Stockport, ^-c. Schools, 1898, 2 Ch.
687 ; Re Church Army, 1906, W. N. 73 ; 94 L. T. 559 ; A.-G. v.
Mathieson, 1907, 2 Ch. 383, 393 ; Re Society for traitting Teachers of the
Leaf and Whittle^ s Contract, ib. 486 ; Re Wesleyan Methodist Chapel,
South Street, Wandsu-orth, 1909, 1 Ch. 484 ; see also Corporation of Sons
of Clergy and Skinner, 1893, 1 Ch. 178 ; sed qncere whether this case
is consistent with Re Mason^s Orphanage, S;c., 1896, 1 Ch. 54, 596. If
however any land so purchased be by deed or othei-wise so settled or
appropriated to some particular charitable purposes that it is no longer
competent for the governing body of the charity to apply the proceeds
of a sale thereof as income, it will become an endowment and be
subject to the jurisdiction and control of the Charity Commissioners ;
A.-G. V. Mathieson, ubi sup.
{d) Stat. 16 & 17 Vict. c. 137,
ss. 21, 24.
{e) See also stats. 18 & 19 Vict.
c. 124, s. 30 ; 23 & 24 Vict. c. 136,
s. 15.
(/) Stat. 16 & 17 Vict. c. 137,
s. 26.
OF PARTICULAR TITLES. 463
Commissioners may authorise provident dispositions
thereof {(j) ; and where such express powers have been
conferred, the approval of the Charity Commissioners is
generally necessary to their exercise (//). Wliere the
title to any land sold depends on any disposition of
charity lands, to which the authority or approval of the
Charity Commissioners is necessary, the order of the
Commissioners giving such authority or approval should
be abstracted and produced ; and if this be not done,
the order should be inquired for, and in default of the
production of such an order, objection should be taken
to the title. The order of the Charity Commissioners
authorising a disposition of charity lands does not of
course operate as a conveyance of the legal estate therein ;
that must be duly assured in order to give effect to the
disposition authorised (/ ) . Such assurance may be made Assurance of
either by the person or all the persons seised of the estate in
legal estate, or else under sect. 12 of the Charitable charity lands.
Trusts Act, 1869 (A), providing that, where the trustees
or persons acting in the administration of any charity
have power to determine on any sale, exchange, parti-
tion, mortgage, lease, or other disposition of any property
of the charity, a majority of those trustees or persons
who are present at a meeting of their body duly con-
stituted and vote on the question shall have and be
(' Mortsraarees of chanty lands,
dLspositions (above, p. 4oy, n. (m i, * * i^ ^ ^- n \
^ • > \ 1 ^.1 ,,1 ■'' however, are i!renerallv satished
remains ; but under the Chant- -.i ^. • • r
. , rp , . . . ,u-.j ,. with the provision for repayment
able 1 rusts Act, 18.>3, no apiih- , . * ^, /-,. -^ K •
. • 1 1 * .1 /^ t made by the Chanty Lommis-
cation can be made to the Court > /^ i t> j . /-n
tor sucli purpose vs-ithout the cer- ^^""'^^ ^^^^'^^i ,T.Tl! [ ' "'""
tificate of the Charity Commis- ^'^^'^ trusts, .r28, 4th ed.
sioners: stat. 16 tc 17 Vict. c. 1^7, (/.) Stat. 32 & 33 Vict. c. 110.
8. 17.
464 OF PARTICULAR TITLES.
assurances, acts and things shall have the same effect as
if they were respectively executed and done by all such
trustees or persons for the time being and by the official
trustee of charity lands. This section appears to be
applicable where the power of determining on a sale or
other disposition of the charity lands has been conferred
on the trustees by order of the Charity Commissioners ;
and it enables the majority of the trustees to convey the
legal estate in the land, whether the same be vested in
the whole number of trustees or in the official trustee of
charity lands (/). But where the title to any land sold
depends on an assm-ance executed under this section,
proof must be given that the persons who executed the
same were the majority of those present at a meeting of
their body duly constituted and voting on the question (m) .
As the Charitable Trusts Act, 1869 («), is to be con-
strued as one with the Charitable Trusts Acts, 1853 and
1855, it does not appear to apply in cases excepted from
the operation of these Acts (o) . In such cases, therefore,
all persons seised of the legal estate in the charity lands
must concur in executing any assurance thereof. Where
any land sold has been held by a succession of charity
trustees, of course the appointments of any new trustee
and the conveyances consequent on such appointment
form part of the title, and must be abstracted and pro-
duced accordingly. Under the Trustees Appointment
Acts, 1^50 to 1890 (p), lands held in trust for certain
religious or educational purposes vest in new trustees
duly appointed, or in such new trustees together with
the continuing trustees, without any express conveyance
for the purpose.
{I) See stats. 15 & 17 Vict. (n) Stat. 32 & 33 Vict. c. 110,
c. 137, ss. 47—50 ; 18 & 19 Vict. s. 3.
124, s. 15. {o) Above, p. 460, and u. (c).
' Im) 1 Dart, V. & P. 288, 289, [p) Stats. 13 & 14 Vict. c. 28 ;
r,th pd. ; 329, 6th ed. ; 325, 7tli ed. 32 & 33 Vict. c. 26 ; 53 & 54 Vict.
c, 19.
OF PARTICULAR TITLES. 465
Under the Board of Education Act, 1899 (y), and Board of
the Orders in Council made thereunder (r), all the SbSut^
powers conferred on the Charity Commissioners by the for Charity
enactments ahove mentioned (.s) were, so far as those s^io^fas t«
powers relate to endowments held solely for educational endowments
purposes, transferred to the Board of Education. fortdS
tional
pui-poses.
§ 8. — Partnership Property.
Where a purchaser has notice that any land sold is Partnership
or has been partnership property, he must ascertain that Property,
the same has been or shall be duly assured, not only by
all persons seised of the legal estate therein, but also by
all persons interested therein in equity under the agree-
ment of partnership {f). As is well known, when any
land becomes partnership property, the legal estate
therein devolves according to the general law applicable
to land of the like nature and tenure : but in equity the
land is held in trust for the partners, who are entitled
thereto, as between themselves and their representatives,
as personal estate (//). The devolution at law of real
estate, which is partnersliip property, varies, of coui-se,
according as it has been dealt with. It may have been
con\'eyed to the partners or some of them only, as joint
tenants in fee or as tenants in common, or to one partner
only in fee, or it may have been vested in trustees, none
of whom were ]iartners. But in whatever form tlie
(7) Stat. 62 & 63 Vict. c. 3.S. him and the plaintiff as partners,
^1^]^ were held to have had construc-
[)■) .See ()rder.s of 7th Aug. tive notice of the firm's title
1900, 24th July, 1901, 11th because they were aware that the
Aug. 1902 : Tudor's Charitahlc business of the finn was carried
Irusts 760-769, 4th ed. on there. And see abi.ve,
(.«) Above, pp. 455, 460—464. pp. 237 xq.
(0 See Cavmuler v. Bulteel, L. R. («) See stat. 53 & 54 Vict. c. 39
;• < h. 79. where the defendants, .ss. 20—22; Darby v. Darby 3
having taken from on.- Be w lay a Drew. 495; IFatc'rer \. IVatcrer
mortgage of land, of which at L. R. 15 Eq. 402 ; A.-O v Hiih-
law he was solely seised iu fee, b,uh; 13 Q. B. D. 275 ; Rr Bourm-
but which m equity belonged to 1906, 2 Ch. 427. 429, 432, 433.
w. 30
466
OF PARTICULAR TITLES.
conveyance was taken, the subsequent devolution of the
legal estate is to be traced according to the general rules
governing the devolution of real estate held upon trust (./') .
Prior to the year 1882, therefore, if a person (whether
a partner or not) were solely seised in fee of land held
in equity as partnership property, the legal estate
passed, on his death, to his heir or devisee : but the heir
or devisee was held to be a trustee for the persons
entitled under the partnership agreement (//). Since
the end of the year 1881, it appears that, in the same
circumstances, the legal estate passes to the deceased
tenant's personal representatives under the Conveyancing
Act of 1881 (s). As regards the persons, who should
(.r) Land, which is partnership Drew. 495 ; A.-G. v. Hubhuclc,
property, is in effect held tipon 10 Q. B. D. 488, 13 Q. B. D.
trust for sale and conversion into 27.'), 289 ; stat. 53 & 54 Vict,
money and application of the c. 89, ss. 20 (2), 22, 44 ; Ite
proceeds of the sale, first, in Bourne, 1906, 2 Ch. 427, 432,
discharging the partnership lia- 433.
bihties and subject thereto in {tj) Broom v. Broom, 2>M.j. Sc'K..
dividing the same between the 443; West of £vijlimd,^-c. Broil \.
partners in proportion to their Murch, 23 Ch. D. 138 ; above,
interests : Darby v. Darby, 3 p. 219.
(j) Stat. 44 & 45 Vict. c. 41, s. 30 ; above, p. 221. It is submitted
that the cases cited in the two preceding- notes establish that the
estate, even when vested in a partner or in all the partners, is held
upon a trust within the meaning of this enactment. Where land has
been vested in partners as joint tenants in fee, but as part of their
partnership estate (see 1 Key & Elph. Prec. Conv. 4 38, 4th ed. ; 436,
8th ed.), or as tenants in common in equal shares, the case of Re Stloim,
1901, 1 Ch. 921, may perhaps be thought to raise a doubt whether
the partners can have different interests in the land in equity from
what they have at law. In that case, one who was a trustee of lease-
holds for two ladies in equal shares, by deed reciting that they had
requested him to execute to them such assignment thereof as was
thereinafter expressed, assigned the same to them as joint tenants,
and they jointly covenanted to indemnify him against the rent and
lessee's covenants. On the death of one of the ladies her executors
claimed her share on the ground that in equity the ladies had remained
tenants in common. Farwell, J., decided against this claim, liolding
that the case came within the rule in Selby v. Alston, 3 Ves. 339, that
where eqiutable and legal estates, equal and co-extensive, unite in the
same person, the fomier merges, or in other words, that a person
cannot be a trustee for himself. Ho said: "The only doubt I felt
was whether the advantage of a tenancy in common over a joint
tenancy raised any presumption against merger. But the difference
in interest between these two estates is so smnll unci shadowy that I do
not think it would be sirfficient to raise that presumption. I hold that
two or more persons cannot be trustees for themselves for an estate
OF PARTICULAR TITLES. 467
conciu' in a disposition of land, which is partnership
property, as being entitled nnder the partnership agree-
co-extensive with their legal estate." It is respectfully submitted
that the learned judge rightly rejected the executors' claim, but for
the wrong reasons. The deed of a.ssignment was a conveyance by a
trustee under a simple trust, who had been requested by his ccstiti que
tntsfs to execute the estate to them. In such conveyance the limita-
tion of the estate was expressly made to the cestui que tntsts as joint
tenants at theu- own request ; their intention to take as such was
plainly evidenced by the deed which they executed themselves. Why,
then, shoidd there be any equity to preserve theii' estate in common
contrary to their expressed intention? (See Fotckes v. Pascoc, L. R. 10
Ch. 343.) Suppose, however, that they had taken the assignment to
themselves jointly on trust as to one moiety for the one and as to the
other moiety for the other, or, which is the same thing, on trust for
themselves as tenants in common in equal shares. Would the Court
then have rejected the executors' claim? I think not. It is respect-
fully submitted tl)at the learned Judge's dict/nn as to the difference
between joint tenancy and tenancy in common being small and shadowy
was an incautious utterance. There is nothing to prevent a man from
being a trustee for himself and others, or from being one of several
trustees for him.self . If lands are conveyed to the use of A. and B. in
fee as joint tenants on trust for them in fee in equal shares, each
undivided moiety is, in equit}-. held by a several title: see Litt. s. 292.
At law A. and B. are joint tenants in fee ; each is therefore sensed of
the whole. But in equity A. and B. have no interest in each other's
shares ; each has a several titli^ to one half only. In all except unity
of posses.sion the case is the same as if two separate pieces of land had
been assured to the use of A. and B. in fee on trust, as to one for A.
in fee, and as to the other for B. in fee. How, then, can it possibly
be maintained that their estates in equity are co-extensive and com-
mensurate with their estates in law ? And where the equitable estate
ia not commensurate with the legal estate in the .same person, there is
no merger: see Ih-ydgcs v. Bryih/es, 3 Ves. 120, which was not cited
in Ite Si'loHs. The rule in Sclbij v. Ahton has never been supposed to
apply to land assured to the use of partners in fee as part of their
partner.ship estate ; and the case of Re Seluus certainly affords no good
reason why the construction previou.sly placed on such a.ssurances
should be in any way disturbed. The interest which the partners
take in equity by reason of their interest in the partnership is altogether
different from that which they have by reason of their tenancy at law:
see note {c) above. And it is contrary to the principles of equity that
an equitable interest in any property, whicli interest has become
vested in the legal or equitable owner of the property, but is not of
exactly the same nature as his ownership, shall merge in the owner-
ship if it were not intended that such merger should take place : see
Forbes V. Mnfatl, 18 Ves. 3S4 ; Adams v. Angell, H Ch. D. 634; Re
Pnd<; 1891, "2 Ch. 13'); Minler v. Vnrr, 1894,'3 Ch. 49S ; Thome v.
Caiin, 1895, A. C. 11 ; Ingle v. Vaughan Jenkins, 1900, 2 Ch. 368;
Thelliisson v. I.iddard, ib. 635. The' cases of Re Wra>i, 1905, 2 Ch.
349, 352, Re Bourne, 1906, 2 Ch. 427, 432, 433, and Re Kent Count;,
Gas, ^T. Co., Ltd.. 1909, 2 Ch. 195, show clearly that, where real
e.state is vested in partners a.s joint tenants, their beneficial interests
therein are personalty in i>quity, and are according to their interests
in the partnership property.
30 (2)
468 OF PARTICULAR TITLES.
ment, it is to be observed, first, that one partner has no
general authority arising from the. relation of partner-
ship to bind the firm or the other partners b}^ deed or to
execute a deed on their behalf (a) ; and, seeondl_y,
that one partner may, it seems, make an equitable
mortgage of the firm's land to secure the firm's debt (b) ;
but, except where the ordinary business of the firm is to
sell land {(■) , he has no general authority arising out of
the relation of partnership to sell the firm's land {). All
dispositions, therefore, required by law to be made by
deed of a partnership firm's estate or interest in any
land must be executed by all the partners either person-
ally or by attorney acting under an express power of
attorney given by deed ; and except in the case of an
equitable mortgage to secure the firm's debt or a sale or
lease by a firm whose ordinary business it is to sell or
let land, all dispositions of the firm's equitable interest
in any land, which is partnership property, must be
made by all the partners ; as, for instance, a contract
for the sale or letting of the land where the business is
carried on. After the dissolution of a partnership,
whether by death or otherwise, the authority of each
partner to bind the firm continues, notwithstanding the
dissolution, so far as may be necessary to wind up the
affairs of the partnership and to complete transactions
begun but unfinished at the time of the dissolution, but
not otherwise : provided that the firm is in no case
bound by the acts of a partner who has become bank-
rupt (r). It has been held that the survivor of two
partners may make a good equitable mortgage by
(a) Harrison v. Jackson, 7 T. R. [c] See stat. 53 & 54 Vict.
207 ; Steiglitz v. Egginton, Holt, c. 39, ss. 5, 6.
141 ; Marchant v. Morton, 1901, [d) See Biitchart v. Dn-sser, 10
2 K. B. 829, 832. Hare, 453, 4.50, 4 Do G. M. &
ib) See Re Vloiiyh, 31 Cli. D. G. 512.
324; Lindley on Partnership, 16G, [e) Stat. 53 & 51 Viet. c. 39,
7tli ed. ; Pollock on Partnership, .s. 38,
35, 8th ed.
OF PAKTICULAK TITLES. 469
deposit of the title deeds of the firm's land to secure a
firm debt (./), and that such a mortgage has priority
over any lien of the deceased partner's executors on
the surplus assets for his share in the partnership {g) .
And it has been laid do^\^l by the Court of Appeal that, Power of
on the dissolution of a partnership by the death of one ^'^^7°^) sell
of two partners, it is the duty of the surviving partner or mort-ainst the land in that Court, or where a trust for sale of the land
had been created and was exercisable : Lechmere v. Brasier, 2 J. & W.
•2S7 : Calvert v. Godfrey, 6 Beav. 97 ; Carhjon Y.Truscott, L. R. 20 Eq.
348 ; Re Staines, 33 Ch. D. 172. Thus in suits for the administration
of the estates of deceased persons the Court might order a sale of
chattels real, and might, if there was jurisdiction to administer the
real estate, either bv reason of the s;ime haA-ing been charged with the
payment of debts or under stat. 3 .Sc 4 Will. IV. c. 104, order a sale
of real estate. The Court might also order a sale of land in a suit to
enforce an equitable hen in the nature of an equitable mortgage of
land, as in the case of a vendor's lien for unpaid purchase money :
Mackreth v. Sijnimonii, 15 Ves. 329 ; Nente v. Marlboroiujh, 3 My. & Cr.
407 417- Governors of Gmjcoat Hospital v. ll'rstmiu.ster Improvement
Commrs., 1 De G. & J. 531 ; Skene v. Vook, 1902, 1 K. B. 682, 688,
689 ; Seton on Judgments, 2054, 6th ed. And lands forming part of
the assets of a partnership firm might be ordered to be sold under the
general jurisdiction of the Court to order the sale of the firm's pro-
perty on a dissolution of partnership : FcatIicrstotihau(jh v. Fenwick,
17 Ves. 298 ; Darbij v. Durlnj, 3 Drew. 495 ; Tai/lor v. Kenle, 39 Ch. D.
538. The principal statutory jurisdiction of the High Court of Justice
to order a sale of land is tlic following :— (1) That conferred by sect. 25
of the Conveyancing Act of 1881 (stat. 44 & 45 Vict. c. 41) to order a
sale in redemption or foreclosure actions. This was new as to redemp-
tion actions, while as to foreclosure actions it replaced and extended
the jurisdiction given by .sect. 48 of the Chancery Trocedure Act,
1852 (stat. 15 & 10 Vict. c. 86). (2) That conferred by the Partition
Acts, 1868 and 187G (stats. 31 & 32 Vict. c. 40 ; 39 & 40 Vict. c. 17).
472
OF PARTICULAK TITLES.
What in-
terests are
bound by
an order for
sale.
the statutory jurisdiction of the Court of Chancery
transferred by the Judicature Acts to the High Court
of Justice and for the most part exercisable in the
Chancery Division {j>), or else has been expressly con-
ferred on the High Coiu't since the Judicatui-e Acts, so
that such orders have been made in the past either by
the Court of Chancery or by the High Court acting as
a Court of Equity. When such an order is made, it
binds the equitable interests iu the land sold of all
persons, who are either parties to or bound by the pro-
ceedings in which the order is made {q). There is
therefore no need, when land is sold in pursuance of
such an order, for any such persons to join in the con-
veyance to the purchaser ; and where there are no other
equitable interests existing iu tlie property sold, all that
is necessary is that the legal estate should be duly con-
veyed to liim (;•) . But an order for the sale of any land
does not affect either the legal or the equitable interests
therein of any persons who are neither parties to nor
bound by the proceedings in which the order was made ;
so that if any such interests should be outstanding, a
good title is not made (s) . As a rule, a purchaser of
(3) That conferred by the Settled Estates Act, 1877, replacing a
similar Act of 1856 (stats. 40 & 41 Vict. c. 18 ; 19 & 20 Vict. c. 120).
(4) That conferred by the Confirmation of Sales Act, 1862 (stat. 2") &
26 Vict. c. 108). (5) That conferred by the Judgments Act, 1864,
enabling the Coiu-t to order the sale of a judgment debtor's interest
in land taken in execution by a judgment creditor. This superseded
the former proceedings under the Judgments Act, 1838, to realise the
charge given by that Act (see stats. 27 & 28 Vict. c. 112, s. 4 : 1 & 2
Vict. c. 110, s. 13 ; Wms. Real Prop. 275, 21st ed.). (6) That con-
ferred by R. S. C, Nov. 1893, r. 18 (Ord. LI. r. 1b), to order a sale in
debenture holders' actions: and see R. S. C. 1883, Ord. LI. r. 1,
which has been held not to extend the jurisdiction of the Court so as
to enable it to make an order for sale of real estate, where none could
have been made before : Jic- Jivbiiiso)/, 31 Ch. D. 247.
[p) Stats. 36 & 37 Vict. c. 66,
S8. 16, 34 ; 37 & 38 Vict. c. 83 ;
38 & 39 Vict. c. 77 : Wms. Real
Prop. 167, 21st ed.
{g) Cole v. Sm-eU, 1 7 Sim. 40 ;
He Williams, 5 De G. & S. 515 ;
Bamictt v. 3fo.io)i, L. R. 20 Eq.
182, 184.
(>•) 2 Hayes's Conveyancing,
104, n. ; Davidson, Prec. Con v.
vol. ii. pt. i. 270, n. {ir), 283,
n. (/;), 4th ed.
(.s) See Cradduclc v. F'qier, 14 Sim.
310, 312; Govrs. of Greycoat IIon-
pital V. Westminster Imprortmeht
Commrs., 1 De G. t!c J. 531 ;
OF PARTICULAR TITLES. 47;j
land under an order for sale made by the Court is What estates
entitled to require that the legal estate shall be duly shoidiUx-quku
conveyed to him (f) : thoue-h the Court of Chancery, in *« ^e c-//s V. <7rt>7.:.«0M, 3Swau8t. («) Stat. 56 & 57 Vict. c. 53.
558, 564 ; Sug. V. & P. 397, 398 ; a. 30 ; ser also sects. 26—29,
Freeland v. rearson, L. R. 7 Eq. 31 — 33, 50 ; and .see as to the
246. orders made and practice there-
(m) See stat. 11 (tpo. IV. & under, 2 Seton on Judirraents.
1 Will. IV. o. 47, s. 11 ; Sug. V. 1261 ««/.. 6th -d.
& P. 397. 398. (A) 2 Dart. V. A: P. 1220, and
(.'■) H'alt/iaiii'.s nine, cited C. n. 'q), 5tli ed. ; 1347, aud
Coop. 139. Sug. V. &. P. 397; n. (/;, 6th ed. ; 1184, and n. («),
Morris V. (Jlarksoii, 3 Swanst. 558. 7th ed.
474
OF PARTICULAR TITLES.
The urder
should have
been rightly
made —
Aud the sale
properly
carried out.
taiued person or persons, the purchaser's title will not
be complete unless an order vesting the same in him has
been duly obtained (c) . As regards the assurance to
the purchaser of lands sold under an order of the Court of
the equitable estate therein, we have seen {d) that the
order for sale binds the equitable interests of all persons
who are parties to or otherwise bound by the proceed-
ings in which the order was made, and there is no need
for any other assurance of such interests to be made.
So that where any equitahic estate has been limited to
any unborn or unascertained person, there is no occasion
to obtain an order expressly vesting the same in the
pm'chaser ; the order for sale is sufficient for this purpose.
But in order to bind the equitable interests of persons
intended to be bound by the proceedings, it was formerly
necessary that the order for sale should be dulij made,
that is, made on a right exercise of some jurisdiction in
that behalf {e) vested in the Court ; and if this were
not the case, the Court would not oblige the pm'chaser,
if he took the objection, to accept the title, and if he did
accept the title, it appears that he would not have been
protected by the order (,/). And the same result would
follow, if the sale were not properly carried out accord-
ing to the order, although the order itself were valid {(j) .
Other irregularities in the proceedings, in which the
order for sale was made, would not, as a rule, affect a
purchaser under the order (A). But, as the order did
((■) See Wale v. Wake, 17 Jur.
.545 ; Wood v. BrctJcutouc, 1 K. &
J. 213 ; Lcvs V. CouUoii, L. R. 20
Eq. 20 ; Jjasiictt v. JIoxou, ib.
182; Setoii ou Judgments, 1261,
12G2, 6th ed.
{d) Above, p. 472.
(e) Above, p. 471, u. (w).
(/) Lechmere v. Brasier, 2 J. &
W. 287 ; Blacklow v. Laws, 2
Hare, 40 ; Calvert v. Godfrci/, 6
Beav. 97 ; 2 Dart, V. & P. 1224,
5th ed. ; 1351, 6th ed. ; IISG,
7th ed.
((/) Colcloiujh V. atenuu, 3 Bligh,
181 ; Poicell v. Poivell, L. R. 10
Ch. 130.
(A) See Lutwyeh v. Wiiifuvd, 2
Bro. C. C. 248 ; Lloijd v. Johnes,
9 Ves. 37, 65 ; Curtin v. Biice, 12
Ves. 89 ; Bowcu v. Evam, 2 H. L.
C. 2.57 ; Beloley v. Carter, L. R.
4 Ch. 230, 238 ; Sug. V. & P.
110; 2 Dart, V. k P. 1223—
1225, 5th ed. ; 1350 — 1352, 6th
ed. ; 1185—1187, 7th ed.
OF PARTICULAR TITLES. -175
not affect the interests, whether legal or equitable, of
any persons who were neither parties to nor otherwise
bound by the proceedings, it was always necessary for
the purchaser to see that all persons interested in the
property sold were so bound, or else that he would
obtain an express conveyance from them of their
respective interests (/). By the Conveyancing Act of Oidoiuftho
1881 (k) an order of the Court under any statutory or ^^ invalidated
other iurisdiction shall not as against a purchaser be for want of
invalidated on the ground or want oi jurisdiction, or
want of any eoncun-ence, consent, notice, or service,
whether the purchaser has notice of any such want or
not. The dicta, if not the decisions, upon the construc-
tion of this enactment have been somewhat conflicting (/) ;
and it is not easy to state its precise effect. But it is to
be observed that it purports to cure one defect of title
only, the invalidity of an order of the Court, whether
for sale or otherwise ; aud that it does not appear to
extend the effect of a valid order so as to bind any
persons whose interests would not otherwise have been
affected thereby [in). The enactment appears to protect
purchasers from disturbance by persons who might
otherwise have ejected them or recovered against them
on the ground that an order of the Court forming part
of their title was invalid for want of jurisdiction or for
any other cause therein mentioned. And it has been held
(t) Colclvtiijh V. iSleiiiiii, 3 Bligh, rised by the Court imdur the Set-
Ibl, 18G ; JSeiulri/ V. Citrtcr, Li.R. tletl Estates Act, 1877, or the
•1 Ch. -JoO, -238 ; Siig. V. k P. Act of 18oG, uotwithstandiug the
111; '2 l)art, V. & P. I'i'i.'), oth exceptions therein meutioued : see
ed. ; 1352, (ith ed. ; 1187, 7th stats. I'J A: 20 Vict. c. 120, s. 28 ;
ed. ; and see above, p. 172, aud 40 & 11 Vict. c. 18, s. 40.
uote (.«). (/) See Jte Hail Darr'-s <'untr) . And where the order, being valid, is not
properly carried out, the enactment does not appear to
have any application. The duties of the conveyancer
advising a piu^chaser of land, to which the title depends
upon an order for sale made by the Court, remain,
therefore, as above stated {p).
i 10. — Sale of iDi E(piitij of Redemption.
Risks iu- The purchaser of an equity of redemption is exposed
purclfasTof ^^ ^^^ following risks :— First, since equitable charges or
an equity of rights affecting equitable estates in land rank, as a rule,
iL emp 1011. jj(3QQj.(jiQg iq the order of the times at which they were
created (y), he takes subject to all equities affecting the
land purchased in the hands of the vendor at the time
of sale, whether he have notice of any such equities or
not. He buys, therefore, subject to all prior equitable
mortgages of the land, whether made in favour of the
legal mortgagee on further advances or of any other
person (r), to any right of consolidation of securities
which the mortgagee may have already acquired (.s),
{ii) Re Hall Bares Cvntract, 21 {r) See previous iiote, aiid
Ch. D. 41. Bailey v. Blchardson, 9 Hare, 734 ;
(o) Jones V. Uiiriu'tt, 1899, 1 'Tai/lur v. Mii.s.scll, 1892, A. C.
Ch. 611, 1900, 1 Ch. 370. 244, where the prior equitable
(p) Pp. 470, 471. mortgage was only excluded by
[f/) JoiicH V. Jouen, 8 Sim. 633 ; tacking.
Wilmot V. Pike, o Hare, 14 ; {s) See White v. Hillacre, 3 Y.
Phillips V. Phillips, 4 De G. P. & & C. Ex. 597, 608, 609 ; Jenninrjs
J. 208, 215 ; Tai/lury. Londun and v. /«my/«m, 6 App. Cas. 698 ; Har-
Couniij Bank, 1901, 2 Ch. 231, tcr v. Colinan, 19 Ch. D. 630;
260; Perham v. Kempster, 1907, Minter v. Carr, 1894, 3 Ch._498.
1 Ch. 373, 379. These cases establish that, if no
477
OF PARTICULAR TITLES.
and to all other equities affecting the premises, such as
any equitable right to set aside the conveyance to the
vendor {t), or any claims on the premises arismg from
any trust to which the same may have been subject m
the vendor's hands (.0- And after completion of the
contract by conveyance and payment of the purchase
money, he remains subject to such of these prior equities
as amount to an infrrext in the land, in distinction to
a bare right of suit(..). Secondly, in consequence o Thvou.h
the doctrine of tacking equitable charges to the legal
estate, the purchaser of an equity of redemption mcurs
the danger of being excluded by or postponed to equit-
able charges on the land made subsequently to the sale.
Thus if the legal mortgagee were to make further
advances to the vendor after the sale, but whilst the
vendor remained in possession or otherwise m apparent
ownership of the land, and without having received
notice of the sale, he would be entitled to tack all that
mioht become due in respect- of such advances to his
original charge (//). And any other person who should
make advances to the vendor on the security of the
land after the sale and in the same circumstances,
richtof consolidation shouldhave able right was only defeated by
be^en acquired prior to the sale of tacking ^ ^^^^
:SXS;^rS;:;':iatonoi 30,Uere^^^tUe^-
themortgageandeomesecunty^n ,«. .-^ - TcL" 15 Ch. K
tbo same inort-'ugor, and at the 639, (.1. —(.49. io a oare n lu
the same "^o"" " . ' ^ j.j3^^e„,p. of suit in eciuity. such as a claim
to ditterent mo „ „ , j_,,^^^ purchase for
tiuentlv arise : I mt \. i("'!/<', - ']^\ • ' ^tv ^i
no P t T 611 ■ Fled,/, v. JrhUe, ^ 1 ; Chap. XIV. ^ 1.
Ch. '25, where the prior equit-
478
OF PARTICULAR TITLES.
Inquiries to
be iiiado by
purchaser of
au equity of
redemption.
might, if lie could obtain a transfer of the legal mort-
gage, tack what should be due under such subsequent
advances to the original mortgage debt {z). The pur-
chaser of an equity of redemption may guard against
some of these risks, but against others he has no
protection. Thus he may, and of course he always
should inquire of the mortgagee, first, as to the state of
the mortgage debt and what is owing thereon; secondly,
whether the mortgagee has already made any further
advances to the mortgagor on the security of the land
purchased ; and thirdly, whether the mortgagee has
vested in himself any other mortgages or charges which
affect any other property of the mortgagor and which
he is entitled to consolidate with his mortgage on the
purchased land. And the purchaser should give formal
notice to the mortgagee of his contract for purchase.
It is true that the mortgagee is not bound to answer
such inquiries unless an offer to redeem his charge
is made (a). And if the mortgagee should decline
to answer these inquiries, the purchaser cannot safely
proceed with the contract, and would, it is submitted,
be entitled to repudiate the same on the ground that
the vendor has failed to prove, by the only evidence
that can possibly be accepted, facts material to the
title. But if the mortgagee do answer such inquiries
precisely, after being informed of the pm-pose with
which they are made, he will be estopped from deny-
ing the truth of his answers, and so cannot afterwards
assert his own charges or interests upon the property so
as to defeat or postpone the purchaser's interest acquired
{z) Frere v. Moore, 8 Price,
475, 488, 489; Jones v. Powles,
■?, My. & K. 581, 596, 598 ; Baten
V. Johnson, Job. 304 ; Baileij v.
Barnes, 1894, 1 Ch. 25, 36,' 37.
But a person entitled to a charge
on the purchase money to be paid
under a contract for the sale of
an equity of redemption, could
not tack this charge to the legal
mortgage: Lacet/ v. Ingle, 2 Ph.
413.
(ff) BiitjideH V. Bignold, 2 Y. &
C. C. C. 377, 390 ; Loir v. Bon-
■verie, 1891, 3 Ch. 82.
OF PARTICULAR TITLES. 479
on the faitli of the representations so made (/>). And
notice to the mortgagee of the sale of the equity of
redemption will of course prevent him from tacking
any subsequent advances to his legal security (r).
But the purchaser of an equity of redemption in
land cannot protect himself against equitable rights,
which are prior to his own and are either unknown
to or suppressed by the vendor, by any notices or
inquiries. Notice of his piux-hase to the mortgagee
seised of the legal estate can give him no priority over
equitable incumbrancers already existing {d), and will
not prevent a subsequent equitable incumbrancer from
excluding him by tacking, if the subsequent incum-
brancer should procure a transfer of the legal mort-
gage {e). The purchaser of an equity of redemption
should inquire of the vendor whether he has created or
is aware of any equitable charge, incumbrance or riglit
which affects the property sold and is not disclosed by the
abstract ( /') ; and it is submitted that, as the pm-cliaser
is to acquire no legal estate which would protect liim
against unknown equities, this question is relevant to
the title offered by the vendor, and the vendor cannot
vouch the rule in 7iV Ford and Hill {(j) as an excuse for
refusing to answer (//). The purchaser should also
inquire of the legal mortgagee whether he has had
notice or is aware of any sucli equitable charge, incum-
brance or riglit. But if these inquii-ies fail to inform
{h) Ibbottson v. Rhodes, 2 Vern. Rooprr v. Hnrrisov, 2 K. & J. 86;
.'554 ; Stronge v. Ilaiike-t, 4 De G. Phipps v. Loregrove, L. R. IG Eq.
M. & G. 186, 196; Lnv v. Bon- 80,91; 7?ei?i<-Afl)v/,s, 4o Ch.D. oSO;
wnV, 1891, 3 Ch. 82. Hopkins \. Hemsicorth, 18'.)S, _'
(e) Le Nnr v. Le Xrie, Amb. Ch. 347.
436, 446 ; Birch v. EUames, 2 {>■) Peacock v. Burt, 4 L. J.
Anst. 427 ; see sX»o Hopkiimou (N. S.) Ch. 33.
V. Kolt. ".) H. L. C. ol4 ; Mcnzies (/) Pe^ham v. Kcmpster, 1907.
V. Lujhffoot, L. R. U Eq. 4')9 ; 1 Ch. 373, 381.
London and (huutg Pauk v. Itat- {g) 10 Ch. D. 36.').
cliff'e, G App. Cas. 722; J/Vv/ v. {/i) See above, pp. 13.'). n. (/),
iniliams, 1899, 1 Ch. 132. 178.
{d) Above, p. 476, nn. {q), {r) ;
480
OF PARTICULAR TITLES.
Purchaser'
right of
tacking-.
the purchaser of some existing equitable incumbrance,
and he only discover tlie same after payment of his
purchase money, he will have no remed}^ but to procure,
if he can, a transfer of the legal mortgage, and so fore-
stall the other incumbrancer in using the resource of
tacking. If he can accomplish this, he Avill be entitled
to hold the land free from the claims of all persons
entitled thereto or interested therein under any equit-
able rights of which he had no notice at the time when
lie paid his purchase money ; and any subsequent notice
of any such right will be immaterial (i) : but he cannot
so avoid any equities of which he /lad notice, either
actual or constructive (/.•), before he actually paid the
price agreed upon for the land (/). If, therefore, he
receive notice of any such eqviities after the contract for
sale, but before completion, of course he cannot safely
proceed with the purchase unless the equities are
released or the persons entitled thereunder concur in the
conveyance to him (m).
Purchaser of
equity of
redemption
paying off
the first
mortgage —
It has been held that if the purchaser of an equity of
redemption pay off the first mortgage when he has
notice of an intermediate charge, the first mortgage is
extinguished and the intermediate incumbrancer is en-
titled to enforce his security as the first charge on the
land without redeeming the mortgage so paid off (;/).
{}) See the cases cited above,
pp.476, 477, and notes. But where
the legal estate is held on an ex-
press trust for the prior incum-
brancer, the pui-chaser cannot
obtain any advantage by getting
in the same after he has had
notice of the prior incumbrance :
Sannrlers v. Beheiv, 2 Vem. 271 ;
Muniford v. Stohtcaxscr, L. R. 18
Eq. 556 ; Harphum v. Sharkhck,
19 Ch. D. 207 ; Taylor v. Loi>don
and County Bank,' 1901, 2 Ch.
231, 2.56, 257.
(/.) Le I\'cve v. Lc Neve, Amb.
436, 446 ; Birch v. Ellames, 2
Anst. 427 ; Potter v. Sanders, 6
Hare, 1 ; Bailey v. Richardson, 9
Hare, 734.
[l) Tuurville v. Naish, 3 P. "W.
306 ; Story v. Windsor, 2 Atk.
630 ; Hardinqham v. NichoUs, 3
Atk. 304 ; MaimdreU v. 3Iann-
drcU, 10 Ves. 246, 271 ; Taylor v.
Baker, b Price, 306 ; Raync v.
Baker, 1 Giff. 241.
{m) Above, pp. 170, 238.
(h) Toulmin v. Steere, 3 Mer.
210.
OF PARTICULAR TITLES. 481
This doctrine has been frequently mentioned with dis-
approval, though never precisely overruled (o). It has
however been established that if, when the first moi-t-
gage is so got in, an intention be shown to keep the Keeping the
charge on foot, the purchaser will be entitled to the change on
benefit thereof, and the intermediate incumbrancer
cannot then enforce his security without redeeming the
charge. And it is not necessary for this purpose that
the mortgage should be transferred to a trustee for the
purchaser ; it Avill not merge if the intention to keep it
alive appear either by express declaration or by inference
from the surrounding cii'cumstances, notwithstanding
that the mortgage and the equity of redemption be
both vested in the same person (/?).
If the mortgagee under a legal mortgage of land Purchase by
purchase the equity of redemption, he will be entitled, ^g'^equfty'of
under the doctrine of tacking, to hold the land free redemption.
from all intermediate equitable incumbrances of which
he had no notice at the time when he paid his purchase
money [q). But with regard to mesne incumbrances
of which he had notice and which were not discharged,
it was formerly considered that, unless his mortgage
(o) See Wattxy. Symes, 1 De G. siib.sequent incumbrancers by pur-
M. & G. 240, 244 ; Adaiii.s v. chasing the property at a sale
Angell, 5 Ch. D. 634, 641, 645, thereof under a power of sale
647 ; Thome v. Cann, 189-5, A. C. given by such first mortgage :
11, 16—18; Li(/iii(f(itio)i Estates Otter v. Vaux, 2 K. & J. 650, 6
Purchase Co. v. WUloiifihbij, 1896, De G. M. & G. 638. But if a
I Ch. 726, 1898, A. C. 321. man become entitled to an equity
( p) See cases cited in preceding of redemption by descent or de-
note ; and liailey v. Itichardsoii, vise, he may keep alive for his
9 Hare, 734 ; Phillips v. Gultc- own benefit any charge made by
ridi/t\ 4 De G. & J. 531 ; Hayden his predecessor which he chooses
V. Kirkpatriik, 34 Beav. 645; Re to pay off: Daris v. Barrett, 14
P;iVfe,1891, 2Ch. 135. Of course, Beav. 542; or if he be hitn.self
a mortgagor paying off a first the mortgagee under any such
mortgage created by himself can- previous charge, the same will
not by any means set up the charge not merge if such be not his in-
to defeat or hinder his own sub- tention : Forbesv. Mofatt, 18 Ves.
sequent incumbrancers : Watts v. 384.
Symes, 1 De G. M. & G. 240, 244. (q) Above, pp. 477, 480, and
Neither can he defeat his own notes.
w. 31
482 OF PARTICULAR TITLES.
were transferred to a trustee for himself for the purpose
of keeping it alive, it merged in his ownership of the
premises, with the consequence that the mesne incum-
brances became first charges thereon, and the incum-
brancers could enforce their securities without redeeming
the legal mortgage (r). But it is now established in
this case, as well as that of the redemption of a first
mortgage by the purchaser of an equity of redemption,
that if an inteution to keep the mortgage on foot be
shown, either by express declaration or by implication
from the surrounding circumstances, the mortgagee
purchasing the equity of redemption may avail himself-
of the charge as a protection against mesne incum-
brancers, of whose claims he had notice, notwithstanding
that the first mortgage, as well as the equity of redemp-
tion, be vested in himself alone ; and when such an
intention is shown the mesne incumbrancers must
redeem the first mortgage if they wish to enforce their
securities (.v). Both a mortgagee purchasing the equity
of redemption, and the purchaser of an equity of
redemption redeeming the mortgage, should be careful
to take a conveyance in such form that there can be no
doubt whether it is intended to keep the charge alive or
not (t). A charge so kept on foot remains the personal
estate of the party, for whose benefit it is preserved :
but it may subsequently be merged by any assurance
of the land which would make it a fraud to keep the
charge alive (u).
Marshalling In connexion with the sale of an equity of redemption,
securities. -^ ^^^ -^^ useful to mention the rules as to marshalling
(}•) 2Dart, V. &P. 917,5thed.; sup.; Davidson, Prec. Conv. */'
1040, 6th ed. ; 952, 7th ed. ; vol. ii. pt. i. 324, n., 327, n., 4th
Touhnin v. Steere, 3 Mer. 210, ed. ; 1 Key & Elph. Prec. Conv.
224. 490, 531, and notes, 4th ed. ;
is) Adams v. AiiffeU, 5 Ch. D. 486, 525, and notes, 8th ed.
634; above, p. 481,' note (^;). {n) fie Glbhon, 19('9, 1 Ch. 367 ;
[t) See Adams v. An^ell, ubi above, p. 433.
OF PARTICULAR TITLE;S, 483
securities. Where two properties belonging to the same
owner have been mortgaged by him to the same mort-
gagee or are otherwise subject to some paramount
charge affecting both of them (.r), and he has subse-
quently assigned over one of them for valuable con-
sideration, whether on sale, mortgage, or settlement {y),
then if the paramount incumbrancer satisfy his security
out of the property so assigned {z), the assignee is
entitled in equity, as against the owner, the trustee in
his bankruptcy {a), and his representatives taking by
succession after his death and subject to any agreement
to the contrary (i), to have the securities marshalled,
that is, to stand in the place of the paramount incum-
brancer with regard to the other property to the extent
of the value of the property taken (c) to satisfy the
paramount charge. The assignee is in fact entitled, in
equity, as against the owner, his trustee in bankruptcy,
heirs, executors, administrators and devisees, and in
default of agreement to the contrary, to have the pro-
perty so assigned to \\\m exonerated from the charge (r/).
{x) See Wchh v. Smith, oO Ch. [z) The paramount iiicum-
D. 192. 200, 202; The Chioggia, brancer is entitled to sati.sfy his
189S, P. 1, 6. Mar.shalling i.s security out of whichever "^pro-
also permitted where s -veral pro- perty he may choose fir.st to resort
pertie.s have by consolidatiou of to, aud the Court will not inter-
mortgages become subject to the fer(> with the exercise of this
entire claim of oue mortgagee ; right : Wallis v. JCoodgetn; 2 Jur.
above, pp. 476, -177, and note (.») ; N. S. 179.
where properties belonging to (n) See Krpfe. Hartle,/, I Deac.
different owners are pledged for 288 ; BaMwiu v. Belcher, 3 Dru.
the same debt; Going \. Farrcll, & War. 173, 176; Gtbuot, v. Sca-
Beatt. 472; ami in favour of a grim, 20 Beav. 614; llci/min v.
surety; Hi^ymaii v. Dubois, L. R. Dubois, L. R. \.<, Eq. 158.
' ■■' I^q- 158- {!>) See Re Jfo,rer\s Trust,, L. R.
(//) Marshalhng has been 8Eq. 110.
allowed in favour of the grantees {c) See Craduck v. Ptper, lo
under a voluntary settlement Sim. 301, 302.
containing covenants that the {d) Hardwicke, C, I.anog v.
land settled .should remain to the Athol, 2 Atk. 444. 446: Eldon, 0.^
uses assured, and for quiet en- Aldrich t. Oooper, 8 Ve.s 382'
joyment: Hales v. Coj; 32 Beav. 395; Averall v. U'ad<; LI. & G.'
118: but not wliere there was a t. Sugd. 252. 259; Uuglies v.
covenant for fuither assurance iniliams, 3 Mac. & G. 683 mn
only; Ker v. Kcr, I. R. 4 Eq. 691; Uaiidcock y. Haudrork' ] Ir'
15; Re Jone.s, 1893. 2 Ch. 461, (,'h. 444, 474 ; Tidd v. Li.strr 10
"^"3- '•'•*• Hare, 140, 157, 3 De G. il". &
31(2)
484
OF PARTICULAR TITLES.
This equity is however enforced only against the
l^ersons above specified and not against any assignees
by act into' vii'os, whether taking for value or
gratuitously, of the other property [e). If therefore
in the case put the owner assign to different persons
both of the properties subject to the paramount charge,
the assignee who is prior in time will lose the right,
which but for the subsequent assignment he would have
enjoyed, to have the property assigned to him entirely
exonerated from the charge. But he will not be
deprived of all right of marshalli ug ; for if the para-
mount incumbrancer exhaust that property, he will
still have the right to have the securities marshalled by
apportioning the paramount charge on both properties
rateably according to their respective values, and
standing in the paramount incumbrancer's place as
against the other property in respect of that proportion
of the paramount charge which according to such
apportionment it ought to bear (_/) , and to the extent
of the property, which according to such apportionment
was that assigned to him ; that is to say, up to the
value of the property exhausted after deducting its
due proportion of the paramount charge (g). Thus if
Blackacre, worth 2,000/., and Whiteacre, worth 1,000/.,
belonging to A. be mortgaged to B, for 2,100/., and
then Blackacre be mortgaged to C. for 900/., and B.
sell Blackacre for 2,000/. and so repay himself to that
extent, C. is entitled to stand in B.'s place as against
Whiteacre ; and if Whiteacre should sell for 1,000/.,
Gr. 8.57, 872 ; Gibson v. Seagrim, Strange v. Hawkes. 4 De G. & J.
20 Beav. 614 ; Kay, L. J., i?'(!Jrt< 632, 641, 651—653; Wellesley
y. Howard, 1893, 2 Ch. 54, 72; v. Mornington, 17 W. R. 355;
Re Jones, 1893, 2 Ch. 461, 470 sq. Moxonv. Berkeley, %c. Bdg. Socg.,
{e) See Dolphin v. Aglward, 59 L. J. Ch. 524, 526 ; Flint v.
L. R. 4 H. L. 486, 501 ; Flint v. Hoivard, 1893, 2 Ch. 54 ; Woody.
Howard, 1893, 2 Ch. 54, 61, 72, hVest, 40 Sol. J. 114 ; Baglioni v.
73. Camlli, 49 W. R. 236.
(/) Barnes v. Bacster, 1 T. & [q) See note [c] to p. 483
C. C. C. 401, 410; Barden v. above.
Bignold, 2 Y. & C. C. C. 377 ;
OF PARTICULAR TITLES.
C would be entitled to the balance after satisfying the
remainder of B.'s charge. But if before the sale of
Blackacre A. had sold Whiteacre to D., then in adjust-
ing the equities between C. and D. after the sale of
Blackacre, the paramount charge of 2,100/. w^ould have
to be apportioned between Blackacre and "Whiteacre
according to their values, 1,400/. being attributed to
Blackacre and 700/. to Whiteacre, and C. would only
be entitled to stand in B.'s place as regards Whiteacre
in respect of the 700/. so apportioned. Out of this sum
B. would first take his remaining 100/., then C. would
have bOO/. and subject thereto Whiteacre or the proceeds
of sale thereof would belong to D. (//). It does not
appear that in these cases the rights of the assignees are
altered by the circumstance that the second assignee
took with notice, either express or implied, of the first
assignment (/) : but the second assignment may of
course be made on the terms that the assignee shall
take subject to the satisfaction or full enforcement of
the first assignee's right to have the property assigned
to him entirely exonerated from the paramount charge,
and if so, the second assignee's rights will be determined
by such agreement (/.•). It seems, however, that if the
paramount charge were a legal mortgage and either
assignee should get it in, the parties' rights might be
varied by the doctrine of tacking (/). Thus in the Tacking.
example given, if D. had purchased Whiteacre without
(h) Sec cases cited in the last assignment, or subject generally
note but one. to all equities previously created,
(i) See Kay, L. J., F/int v. he takes subject to the first
Howard, 1893', 2 Ch. .it, 7:<. aud assignee's original equity to
other cases cited in the last note marshal. It is thought that the
but two. It is thought that propositions stated in Dart, V. &
these authorities have overruled P. 914, 5th ed. (lO^o, 6th ed.,
the doctrine laid down in Hamil- and still retained, 947, 7th ed.),
ton V. Rui/sr, 2 Sch. & Lef. 'ilr), in reliance on these cases cannot
327 — 329, and Aicken v. Mack/in, now be maintained.
1 Dru. & Walsh, 621, 634, C3.'), (X) See Jie Moiver's Trusts,
that, where the second assignee L. R. 8 Eq. 110.
takes with notice of the first (/) Above, pp. 477, 479, 480.
485
486
OF PARTICULAR TITLES.
notice of C.'s charge on Blackacre, and had afterwards
taken a transfer of B.'s mortgage, D. might sell Black-
acre in satisfaction, so far as it would extend, of that
mortgage, and then tack his interest in Whiteacre to
B.'s charge thereon and so exclude any equity of C.
against Whiteacre. Or if C. had first obtained a
transfer of B.'s mortgage, he might have sold Whiteacre
to satisfy that mortgage jrro tanto (m) and then tacked
his own charge on Blackacre thereto (n).
Interest now
chargeable on
a mortgage.
Mortgage
cannot
be made
irredeemable.
Since the repeal of the Usury Laws (o), any rate of
interest that the parties may agree to may be taken on
a mortgage debt and secured on the mortgaged pro-
perty ; a commission stipulated for by the mortgagee
and deducted from the loan will, in the absence of any
fraud or undue influence, be allowed in taking the
accounts {p) ; and agreements for charging compound
interest, or capitalising interest which nuxy fall into
arrear, are no longer invalid ((/). The Court however
strenuously upholds the rules that no stipulation form-
ing part of a contract or transaction of mortgage, that
the security shall not be redeemable according to the
rules of equity, shall have any effect in equity (r) ; and
(«*) See note (z) to p. -183,
above.
(w) Titlri/ V. Davics, 2 Eq. Ca.
Abr. 604, "pi. 35, 36, 2 Y. & C.
C. C. 383, n., 393—395; Sober v.
Kemp, 6 Hare, 155 ; Liverpool
Marine Credit Co. v. Wilson, L. E.
7 Oh. 507. 512 ; Flint v. Howard,
1893, 2 Oh. 54, 68, 69 ; Dart,
V. & P. 914, 915, 5th ed. ; 1036,
6th ed. ; 947, 948, 7th ed.
(o) By Stat. 17 & 18 Vict. c. 90 ;
see Wms. Real Prop. 645, n. {e),
21st ed.
(p) Mainland v. Upjohn, 41 Oh.
D. 126. As to undue influence,
see below, Ohap. XIV. § 2.
(q) Clarl-soit v. Henderson, 14
Oh. D. 348 ; Davidson, Prec.
Oonv. vol. ii. pt. ii., p. 360, n.,
4th ed. ; Mainland v. Upjohn, 40
Oh. D. 126, 136, 142, 143 ;
Wrigley v. Gill, 1906, 1 Oh. 165.
In the absence of agreement to
the contrary, simple interest only
is chargeable in respect of a mort-
gage debt carrying interest ;
Daniell v. Sinclair, 6 App. Oas.
181 ; Ainsivorth v. Wilding, 1905,
1 Oh. 435.
(r) Price v. Prrrie, 2 Freem.
258 ; Salt v. Xorthampion, 1892,
A. 0. 1. Thus a stipulation in
the mortgage contract that the
mortgagee shall or may purchase
the mortgaged property is void ;
Samuel v. Jarrah, S;c. Corpn.,
1904, A. 0. 323. But the mort-
gagee may by an agreement
made subsequently to the mort-
OF PARTICULAR TITLES.
487
that any agreement to fetter the equity of redemption
with some other condition than the payment of the
principal, interest and costs due under the mortgage is
invalid (*), It may be mentioned here that, under the
Mone_y lenders Act, 1900 {t), a mortgage of land to a
moneylender {ii) is void, if not made to him in his
registered name {x) or if in other respects the transaction
were not carried out in conformity with the require-
ments of the Act (//) .
Equity of
redemption
not to be
clogged.
Mortgages
to money-
lenders.
gage purchase the equity of re-
demption ; Seeve v. Lis/c, 190'2,
A. C. 641 ; above, pp. 481, 482.
(*) Jenniitffs V. IFard, 2 Vem.
520 ; James v. Kerr, 40 Ch. D.
449, 459 (agreement for .subse-
quent payment of a bouus to the
mortgagee hold void) ; Field v.
Hopkins, 44 Ch. D. 524 (agree-
ment for adding to the security a
solicitor-mortgagee's profit costs
held void ; since allowed by stat.
58 & 59 Vict. c. 25) ; Noakes S;
Co., Ltd. V. Rice, 1902, A. C. 24
(covenant on mortgage of a lease-
hold public -house to take beer
during the term from the mort-
gagee only held not to bind the
mortgagor after redemption) ;
Bradley v. Carritt, 1903, A. C.
253 (agreement on mortgage of
shares in a tea company that the
mortgagee should have the sale
of all the company's teas as
broker held no longer binding
after redemption) ; British South
Africa Co. v. Be Beers, ^-c. Ltd.,
1910, 1 Ch. 354 (agreement
to grant an exclusive licence to
the mortgagee to work certain
diamondiferous ground held void
as a fetter on the equity of re-
demption) ; Morgan v. Jcffrei/n,
1910, 1 Ch. 620 (stipulation that
the mortgage should not be paid
off for twenty-eight years with-
out the consent of the mortgiigee
held void). Cf. Bii/g-s v. Iloddi-
ttott, 1898, 2 Ch. 307, where on a
mortgage of an hotel to a brewer
covenants to take beer from the
mortgagee only during the con-
tinua)icc of the seckrity and for
the continuance of the loan for
five years were upheld ; Santley
V. IFUdc, 1899, 2 Ch. 474 (where
an agreement to pay to the mort-
gagee of a leasehold theatre one-
third of the' profit rental thereof
during the term was held valid by
the C. A.). The latter decision
was however criticised adversely
in Noakes (f- Co., Ltd. v. Rice,
1902, A. C. 24, 28, 31, 32, 31 ;
and Bradley v. Carritt, 1903, A. C.
253, 255 sq.
(0 Stat. 63 & 64 Vict. c. 51,
s. 2 (1).
(») See sect. 6 ; Sadler v.
Whiteman, 1910, 1 K. B. 868, re-
versed, 1910, "W. N. 193.
{x) Chapmax v. Michaelson,
1908, 2 Ch. 612, 1909, 1 Ch.
238 ; see also Bonuard v. Dott,
1906, 1 Ch. 740: Slafordshire
Financi'il Co. v. Valentine. 1910,
2 K. B. 233 ; and cf. Lodge v.
National Union Investment Co.,
1907, 1 Ch. 300.
(y) See Gadd v. Provincial
Union Bank, 1909, 2 K. B. 353 ;
reversed, nom. Kirkiroodv. Gadd,
1910, A. C. 422 ; Jackson v. I'rice,
1910, 1 K. B. 143; Re Seed, ib.
661 ; Re a TJehtor (No. 2 of 1910),
1910, W. N. 70 ; Ruetei- v. Brad-
ford Advance Co.. 26 Times L. R.
533.
488
OF PARTICULAR TITLES.
Sale of
licensed
property.
^ 11. — Sa/e of Licensed Property.
On the sale of a public-house or other licensed pro-
perty as a going concern, the vendor is bound, on the
day fixed for completion, to produce a valid and effectual
licence of the kind promised by the contract, and to
indorse or to procm-e the holder thereof to indorse the
same to the purchaser, so that the purchaser may be
enabled to apply at once for interim authority to carry
on the business until the next special sessions, and to
apply at such sessions for a transfer of the licence (s).
And on the sale of such property, time is of the essence
of the contract ; so that if the vendor cannot perform his
obligation in this respect on the very day fixed for com-
pletion, the purchaser is entitled to repudiate the con-
tract {(i). But in the absence of special stipulation to
the contrary, the vendor is not bound to do more than
this, or to procure for the purchaser a transfer of the
licence or even interim authority to carry on the
business, and does not warrant that such transfer or
interim authority shall be procured ; and the purchaser
buys subject to the risks that the licence will not be
renewed at the next annual Brewster sessions {b), that
the transfer of the licence to him will be refused at the
special sessions, and that interim authority will not be
accorded to him (c).
{z) Tadcaster Tower Brewery Co.
V. IVilson, 1897, 1 Ch. 705. As
to the duties now imposed on
liquor licences, see stat. 10 Edw.
VJL c. 8, ss. 43—53.
(«) Scaton V. Mapp, 1 Coll.
556 ; Day v. Luhke, L. R. 5 Eq.
336 : r la yd on v. Green, L. R. 3
C. P. 51l"; Cowles v. Gale, L. R.
7 Ch. 12 ; Powell v. Marshall,
Parkes6;Co.,\?,99, I Q. B. 710, 712.
[b] See Sharp v. Wakefield,
1891, A. C. 173 ; stat. 4 Edw.
VI [. c. 23, s. 1; Grimsdick v.
Sweetman, 1909, 2 K. B. 740 ;
below, p. 490 and n. («).
(r) Tadcnaiev Ton-er Brewery Co.
V. Wilson, 1897, 1 Ch. 705.
M
OF PARTICULAR TITLES.
489
By the Licensing Act, 1904 (d), where Quarter Compensation
' „ . . T for non-
Sessious refuse the renewal of an existing oii-lioence renewal of
under that Act, the amount therein specified (represent- licence.
ing the difference between the value of the licensed
premises with and without the licence {e) ) is to be paid
as compensation to the persons interested in the licensed
premises. And the Act authorised a compensation ^jJ^^Pg^'^^^'^"''
charge at the rates therein specified to be imposed by licences.
Quarter Sessions in respect of all existing on-licences
renewed in each year {/). This charge is imposed for
the period from April 5th of the year in which it is
payable until April 5th of the succeeding year ; and on
the sale of any licensed property during such period the
amount of the charge is an outgoing apportionable
between the vendor and purchaser accordingly (//). The
Act further provides {Ji) that such deductions from rent
{d) Stat. 4 Edw. VII. c. 23,
s. 2 (1) ; see the Licensing Rules,
1904, Nos. 21—34, W. N. 14th
Jan. 1904. Under these rules
the persons interested are the
licensee, the registered owner of
the premises, and any other
person duly claiming and deter-
mined to be entitled to compensa-
tion thereunder ; and the amount
of compensation, when deter-
mined, is divided between those
persons in the shares settled by
the compensation authority, or
otherwise as therein provided ;
see Liverpool Corpn. v. Peter
Walker ^- Son, Ltd., 1908, 2 K. B.
33. Any compensation money
so awarded to any person in-
terested in the premises as owner
(whether he be freeholder or
lessee) stands in the place of his
interest therein, is equivalent to
the proceeds of a compulsory sale
thereof, and is payable, where he
has mortgaged that interest, to the
mortgagee ; Law Guarantee, ^c.
Socy. V. Mitcham, ^-e. Co. Ltd.,
1906, 2 Ch. 98 ; Noakea v.
Noakes S; Co. Ltd., 1907, 1 Ch.
64 ; Daicson v. Braime's, i^Jr. Ltd.,
1907, 2 Ch. 359; Re Bentley's
Yorkshire Breweries, Ltd., 1909,
2 Ch. 609. And where his in-
terest in the premises is subject
to any triist or equity, or his
claim ot compensation was made
as agent for others, the compen-
sation money awarded to him is
subject to the same trust or
equity or to his principals' rights :
Birkin v. Smith, 1909, 2 K. B.
112 ; see also Bent's Brewery Co.
Ltd. V. Dykes, 1909, W. N. 51,
100 L. T. 476.
((■) See Be Ashby's, i;c. Co.,
1900, 2 K. B. 754 ; Liverpool
Corpn. V. Peter Walker ^- Son,
Ltd., 1908, 2 K. B. 33.
(/) Stat. 4 Edw. VII. c. 23,
s. 3 (1).
(«7) Hortoii v. Penn, 1907, I
K. B. 561 ; see above, pp. 50,
67, 74.
(A) Sect. 3 (3).
490
OF PARTICULAK TITLES.
Effect of
refusal to
renew licence
in case of a
leasehold
licensed
house.
as are set out in the Second Schedule thereto (/) may,
notwithstanding any agreement to the contrary (/r), be
made by any licence-holder who pays the charge and
also by any person fi'om whose rent a deduction is made
in respect of the payment of the charge. The deduc-
tions so authorised constitute a charge upon the rent as
against the person, who would otherwise be entitled to
receive it (/) ; and regard must of course be had to this
liability on the purchase of the freehold or leasehold
reversion on a lease of licensed property. When a
licensed house has been demised for a term of years by
a lease containing a covenant by the lessee to use the
premises as a licensed house and not otherwise, and
the renewal of the licence is afterwards refused, the
covenant is discharged for impossibility of perform-
ance {in), but in other respects the lease remains valid
and the lessee is accordingly bound to pay the rent
reserved without any deduction on that account (n) .
(i) The amount which may be
so deducted varies by degrees
from 100 per cent, of the charge
where the tenant's unexfdred
term does not exceed one year
down to 1 per cent, of the charge
where the unexpired term ex-
ceeds 5.') but does not exceed 60
years : but the amount to be de-
ducted is in no case to exceed half
the rent. The unexpired term
is to date from the day on which
the compensation chai-ge is pay-
able by the licence-holder; Lnndon
County CoioicUy. Watney, ^-c. Ltd.,
lyO'.i,! K. B. 637. It has been
^eld that the word term is here
used in its proper legal meaning,
so that a tenant holding under an
unexpired term of not more than
two years was entitled to deduct
the amount allowed (88 per cent.)
in respect of that term, notwith-
standing that he also had a re-
versionary lease (which only gave
him H.n ititt:ressc termini at law)
for a further period of years
from the day but one after the
date of the expiration of his
existing term ; Llatigattork v.
Watneti. 6fC. Ltd., 1910, 1 K. B.
236, affirmed, 1010, A. C. 394 ;
see above, p. 372.
(A) Whether made before or
after the Act ; Wooler v. North
Emtern Breweries, 1910, 1 K. B.
247.
[1) Re Smith, 1906, 1 Ch. 799,
803, deciding that, where the
person entitled to the rent is a
tenant for life, lie is not entitled
to have the amount of the charge
raised out of capital. See also
Hancock v. Gillard, 1907, 1 K. B.
47 ; Smith V. Lion Brewery Co.
Ltd., 1!^09, 2K. B. 912.
[m) See below, Chap. XVITI.
§1.
{n) Grim.sdick v. Sweetman,
1909, 2 K. B. 740.
OF PARTICULAR TITLES. 491
?} 12. — L«))d mbjcd to Redrictive Covenants.
As we have seen (o) , the fact that au y laud purchased Land ^subject
to restricth
covenants.
is subject to restrictive covenants is such a defect of
I
title as justifies the purchaser in refusing to perform the
contract ; unless the vendor should have expressly stipu-
lated that the purchaser shall make no objection to the
title on that account. And •),
and were made with the object of benefiting the owners
and occupiers of some other land retained by the former
owner or belonging to the adjoining landowner, as the
case may be {s), the burthen thereof runs with the
land in equity, though not at law ; that is to say, the
restrictions are enforceable in equity by action for an
injunction against all persons who acquire the land
from the covenantor, either by act of law or assign-
ment {t)^ except only (as in the case of other equities)
(0) Above, pp. 107, 195—197. to submit plans before com-
{ p) Bird V. EggktoH, 29 Ch. D. mencing- any building implied au
1012; lie Punsjurd and Xcwport obligation not to build without
School Board, 1894, 1 Ch. 454; first submitting plans, ^estric-
Re BosworthandGravcsiud Corpu., tive covenants are however cun-
1905, 1 K. B. 403, -1 K. B. 426. strued strictly, and not so Jis to
[q) The law is the same where create a wider obligation than is
the adjoining landowner is the imported by the words actually
covenantor's lessee ; BrUjg v. used ; Brig(i v. Ttiornton, 1904,
Thornton, 1904, 1 Ch. 386 ; 1 Ch. 386. "
liicketts v. Eiifeld Churchwardens, (») See Formby v. Barlcer, 1903,
1909, 1 Ch. 544. 2 Ch. 539 ; lieid v. Bickrrstaff,
(r) Secl'otrenv.iremsle!/, 1909, 1909, 2 Ch. 305, 320, 325—328.
1 Ch. 680, 2 Ch. 252, where it (t) Tu!k v. Moihay, 2 Ph. 774 ;
was considered that a covenant Renals v. Coiclishaic, 9 Ch. D.
*92
OF PARTICULAR TITLES.
Formby v.
Barker.
such assigns as have acquired the legal estate in the
land as purchasers for value in good faith, without
notice of the covenant {h). But the burthen of cove-
nants by a tenant in fee to do some positive act upon
or relating to his land, as to repair a road or build a
house or a wall, does not run with the land either at
law or in equity. And where a landowner enters into
restrictive covenants with some person, but not with
the object of benefiting the owners and occupiers of
some other land belonging to the covenantee, as where
a vendor sells all his land in some particular place,
retaining no adjoining or neighbouring land, and the
purchaser enters into covenants restrictive of the use
125, 11 Ch. D. 866; Austerberry
V. Oldham, 29 Ch. D. 750 ; S2nc('r
V. Martin, 14 App. Cas. 12 ; Mac-
kenzie V. ChiJders, 43 Ch. D. 265 ;
Rogers v. Hosegood, 1900, 2 Ch.
388. In Re Ni.sbet and Fotts' Con-
tract, 1905, 1 Ch. 391, 1906",
1 Ch. 386. it was held that the
burthen of restrictive ooveiiants
is incumbent on a person, who
has wrongfully ejected the cove-
nantor or his successor in estate
bound by the covenants. This
decision is however inconsistent
with the rule laid down in Finch\'<
Case, 4 Inst. 85 (which was not
cited to the Court), that a dis-
seisor is not bound by a ti'ust
incumbent on the disseisee ; and
it is respectfully submitted that
the case of Re Nisbet and Potts was
decided on erroneous principles ;
see the writer's criticism in 51
Sol. J. 141, 155 ; Wms. Real
Prop. 181—183, 21st ed.
[n) Carter v. Williamx, L. R. 9
Eq. 678 ; London 4" South Tf'ei>(ern
Rail. Co. V. Gomm, 20 Ch. D.
562. 583 : Notthuiham, l^-c. Co. v.
Bntler, 16 Q. B. D. 778, 787, 788 ;
Rouell V. Satchell, 1903, 2 Ch.
212,221. Notice may, of course,
be either actual or constructive :
Wilson V. Hart, L. R. 1 Ch. 463 ;
Pat man v. Harland, 17 Ch. D.
353 ; above, pp. 246 sq. Where
land subject to the burthen of
restrictive covenants is taken
under the Lands Clauses Act,
1845 (stat. 8 & 9 Vict. c. 18), and
the parties entitled to the benefit
uf the covenants receive compen-
sation, the burthen is extin-
guished. If however such parties
be not compensated, the burthen
of the covenants continues to
affect the land ; although, so long
as the land is used in accordance
with the statutory powers, under
which it was taken, the rights
given b) those powers are para-
mount to the obligation of the
covenants • Kirby v. Harrogate
School Board, 1896, 1 Ch. 437;
Lony Eaton, i^r. Co. v. Midland
Ry., 1902, 2 K. B. 574. But if
the land be sold or disposed of as
superfluous, the burthen (if not
extinguished by payment of com-
pensation) will revive ; Ellis v.
Royers, 29 Ch. D. 661 ; Bird v.
Eyy/eton. ih. 1012. With respect
to the powers of a corporation,
which has been authorised by
statute to acquire land for some
special purpose, to enter into
covenants restrictive of its use,
see Re South Eastern Ry. Co. and
Wijfin's Contract, 1907, 2 Ch. 366 ;
Stourcliffe Estates Co. Ltd. v.
Bournemouth Corpn., 1910, 2 Ch.
12; below. Chap. XVI.
I
OF PAKTICULAR TITLES. 493
thereof with the vendor, the burthen of the covenants
does not run in equity with the covenantor's land, and
the covenantee cannot enforce them by action for an
injunction against the covenantor's assigns, whether
they had notice of the covenants or not ; for the burthen
imposed in equity by restrictive covenants is analogous
to the burthen of an easement, which cannot exist in the
absence of a dominant tenement (.r). In such cases the
covenantors and their representatives in law are liable
personally upon such covenants ; but their assigns of
the laud, as such, do not come under any liability in
respect thereof (//). It is therefore no objection to the
title to land that the owner or his predecessor seised
thereof in fee has entered into some covenant relating
thereto, either of a positive and not of a restrictive
natui'e, or of a restrictive nature but not made with the
object of benefiting some other land. With respect to How restric-
stipulations restrictive of the use of land, they may be x,se^of°land^
attached to land as a burthen thereon in equity, not ^'W be
only by express covenant, but also by an express or
implied contract entered into, without deed, by the
tenant in fee simple of the land (z). Thus, where
lands nre laid out and sold in plots as a building estate,
and b}^ the conditions of sale the purchasers are required
for their mutual benefit to observe stipulations restric-
tive of the use of the ])lots purchased, the burthen of
(x) Form/);/ v. Barker, 1903, than he has assumed by the
2 Ch. 530. terms of the covenant, and he is
(y) Haywood v. Brunswick, sly undertaken such lia-
Ch. 240 , Formhy v. Barker, ubi bility : see linily v. I)e (Jrftipiqntf,
sup. The personal liability to L. R. 4 Q. B. 180, 186, ist ;
damages at law for breach of a Jfull v. J-.'aen, 37 Ch. D. 74, 82 ;
restrictive covenant exists e(Hially J'oicel/ v. Jfems/ri/, 1909, 1 Ch.
where the covenant was expressly 680, 688, 689, 2 Ch. 2.52, 256 —
made for the benefit of some jiar- 258.
ticular land: but the covenantor (i) Ta/k y. Morfxri/, 2 Ph. 774,
is under no greater liability at 778 ; Carter v. fFi//irtheless power was reserved on a sale of
" invited the public to come iu allowing a variation of the plans
and take a portion of an estate aud conditions ; and of. Ellistoti
which was bound by one general v. R>mliet\ 1908, 2 Ch. 374, 66.5.
law." This invitation or offer. (/} Above, p. 491.
however, could only be established (g) Xo(fin(//iam, ^r. Co. v. liiitln;
by admitting evidence, outside the 16 Q. B. D. 77S.
written memorandum of the con- [h) F,rrr v. Jfrxsr, 4 De G. M.
tract for letting, of the circum- & C 495 ; lie Haiulmiin and JFi/-
stances uuder which the appellant cox's Contract, 1902, 1 Ch. 599.
496 OF PARTICULAR TITLES.
Devolution of With respect to the devolution of tlie benefit of a
the^beiiefit of covenant or contract restrictive of the use of the land
restrictive
covenants. and entered into by a tenant in fee with a vendor or an
adjoining landowner, the question to be considered is
whether the parties to the contra(;t intended that the
benefit thereof should eniu-e to the person originally
entitled to enforce the obligation in his capacity of
owner of some neighbouring land and should be
annexed to the ownership of that land (i). If this be
the case the benefit of the contract will pass, without
express mention, by a conveyance of that land, in the
same manner as an easement appurtenant thereto will
pass therewith at law (/.) ; and any assign, whether in fee
or for any less estate (/), of the neighbouring land will be
entitled in equity to enforce the restrictions [m). And
for this purpose it is not necessary that the assign
should he it/ of the same estate as the original con-
tractor had {n). If the restrictions be created by
covenant, it appears that the benefit of the covenant
will run at law with the land, for the advantage of
which the restrictions were imposed ; but that an
assignee of the land could not sue on the covenant at
law unless he took the original covenantor's estate
therein (o) . On the other hand, an assign of the person,
in whose favour the covenant or contract was made, will
have no right to enforce the restrictions if he cannot
prove either (I) that he is an express assignee of the
benefit of the covenant, or (2) that the covenant was
(i) See FMstov v. Reacher, (/) Taifr \. Gosling, 11 Ch. D.
1908, 2 Ch. 374, 384, f.G5 ; Reid 273.
V. Bickerstaff, 1909, 2 Ch. 305, [m) Wlialma)i v. Gibsoti, 9 Sim.
319, 320 .S(?."; Willi v. .S7. John, 196: Mnnn v. Stephcnx, 15 Sim.
1910, 1 Ch. 84, 325; and other 377; Coles v. Sims, 5 De G. M.
cases cited above, pp. 491, nn. & G. 1 ; and cases citt'd in the
(«), {t), 494, B. (ff). two preceding notes.
(^-) Child V. JJovff las; Kay, F)60, («) See note (A-), above.
568; Rogers v. Hoser/ood, 1900, 2 (o) Rogers v. Hosegood, 1900, 2
Ch. 388; EUiston v.' Rccchcr, ubi Ch. 388, 404,
sup.
OF PARTICULAR TITLES.
made for tlie benefit of some particular land, to which
the benefit of the covenant was thus annexed and of
which he is the assign, or (3) that there was a building
or similar scheme annexing restrictions on certain pieces
of land for the benefit of all purchasers or lessees
thereof (/?), and he derives title to one of those pieces
of land as or through such a purchaser or lessee {q) .
When the benefit of such a covenant or contract
has passed to an assign of the land, for the advan-
tage of which the restriction was created, the burthen
of the contract cannot, of course, be effectually
released by any act or any deed of the person
originally entitled to enforce the agreement (y). If a
landowner entitled to the benefit of a contract re-
stricting the use of adjoining land make or permit
such use of his own land that it would be unreasonable
for him to insist any longer on the observance of the
restrictions with respect to the adjoining land, he will
lose his equitable right to enforce such restrictions
specifically by action for an injunction (s). Such a
landoAvner may also lose this equitable right by
acquiescence in breach of the restrictions or delay in
asserting the right {t). These facts mil not, however,
deprive him of any riglit he may have to enforce the
contract at law, although the}' may be taken into con-
{]}) See above, pp. 493, 494. any particular property) appears
(7) EUisto)! V. Jieachev, 1908, to bo taken away by the dcciaion
2 Ch. 374, 384, 665 ; Iteid v. in Foritibi/ v. Barker, above,
liickn-Htntf, 1909, 2 Ch. 305, 319, p. 492 ; ElUston v. Reachcr, 1908,
320 sq. : JFiHc v. St. John, 1910, 2 Ch. 374, 393, 665.
1 Ch. 84, 325. (<) Roper v. Williams, T. & R.
[r) Rogcm v. Hosegood, 1900, 1 8 ; Pcr^ v. J/^ffW/jcM-s, L. R. 3 Eq.
2 Ch. 388. 515 ; Gaskin v. Balls, 13 Ch. D.
(.«) Brrtfordv. Trustees of British 324 ; Sayers v. Colhjcr, 28 Ch. D.
Mmmm, 2 My. & K. 552. See 103 ; see German v. Chapman, 7
Osborne v. Bradley, 1903, 2 Ch. Ch. D. 271 : Knight \. Simmonds,
446, but note that the ground un 1896, 2Ch.294; Rouellv.Satchell
which that decision is founded 1903, 2 Ch. 212 ; Osborne v!
(viz., that the restriction was Bradley, \Wi, 2 Ch. \A&\ Elliston
created for the benefit of the v. Reacher, 1908, 2 Ch. 374, 392,
vendor, but not as the owner of 665.
w. 32
497
498
OF PARTICULAR TITLES.
Title to
benefit of
restrictive
covenant.
sideration in assessing the amount of damages recover-
able (ii). But after long acquiescence by the covenantee
in a breach of the covenant, a waiver of the covenant
will be presumed {x). If land be sold together with
the benefit of any covenant or contract restricting the
use of any adjoining land, the vendor must, of course,
prove his title to this advantage, as in the case of his
selling any easement or other legal right exercisable
over any land of which he is not the owner. And if a
man sell land together with the advantage of some
restriction to be newly created as to the use of other land
of his own, he must show a good title to the latter
piece of land as well as the former (p).
Investigation
of title in
view of
mortgage.
§ 13. — Investigation of Title in View of a Mortgage.
A few words may be added on the investigation of
title in view of taking a mortgage of land. When it is
proposed to obtain a loan of money on the security of a
mortgage of land, the title is usually investigated even
more strictly than on a sale (z) : but the parties stand
in a very different position from that of a vendor and
purchaser. In the first place, it is not usual for persons
proposing to lend money on a mortgage of lands to bind
themselves by contract to make the loan («). They are,
therefore, generally in a position to exact any evidence
of title which they may choose to demand, as they can
at any time decline to proceed with the transaction, if
the title produced is in any respect insufiicient. They
should, however, before commencing the investigation
of the title to the lands proposed to be mortgaged or
incurring any other trouble or expense in the matter, be
careful to stipulate expressly that the mortgagor shall
(ii) See Bedford v. Trustees of
British Museum, 2 My. & K. 552 ;
Sayers v. Colkjcr, 28 Ch. D. 103.
{x) Hepworth v. Pickles, 1900,
1 Ch. 108.
(y) Above, p. 434, and n. (/).
(s) Wms. Real Prop. 449, 13th
ed. ; 596, 2l8t ed.
(rt) Davidson, Prec. Conv. vol. ii.
pt. i. p. 104, n. {a), 4th ed.
i
OF PARTICULAR TITLES.
pay all their costs and expenses of and incident to the
transaction proposed in any event, whether they choose
to make the loan or not. For although the regular
course of practice, where a mortgage is completed, is for
all costs incurred by the mortgagee in investigating the
title, valuing the land, and otherwise preparing for the
loan, to be paid by the mortgagor (^), yet where the
parties are not bound to each other by any contract,
there is no obligation on the mortgagor to discharge
such costs, if the loan be not made (c). Unless, there-
fore, an intending mortgagee make the above-mentioned
express stipulation, he runs the risk of being out of
pocket by the transaction, if he should be obliged to
decline the loan on account of some defect in the title.
If an agreement should be made that one shall lend and
another borrow money on mortgage of some particular
land, it is not an implied term of the contract tliat the
borrower shall prove his title to the land for the last sixty
or forty years, or any other particular period ; as the trans-
action of borrowing implies that securities of every degree
of safety may be made available, any risk run with regard
to the title being compensated by the terms agreed upon
as to the rate of interest to be paid or otherwise (d). It
is not, therefore, a breach of such a contract for the
borrower to fail to show a good marketable title to the
land : although the contract would appear to be broken
if the borrower should fail to produce any property of
his corresponding with that described in the contract.
(Ii) If the loan be made without where the Court sanctioued a
such costs beinjr paid, they cannot mortgage of an infant's estate,
be added as mortgagee's (losts to and the matter went off without
the security : but they arc re- the proposed mortgagee's default,
coverablc by the mortgagee from he was allowed his costs of in-
the mortgagor personally under vestigatlng the title out of the
an implied contract of indemnit}' : infant's estate : Craggs v. Oray,
ir,tltx V. Can; 1902, 1 Ch. 8G0. 35 Beav. 166.
(r) Rlglnj v. Dagkln, 2 Y. & J. (rf) Melbourne v. Cottrell, ubi
83; IFilkimoti v. Grant, 18 C. B. sup. ; and see National Provincial
Z\'d\ Melbouriic\. Cottrell, aW.'R. Bank of England v. Games, 31
884, 29 L. T. 0. S. 293. But Ch. D. 582.
32 (2)
499
500
OF PARTICULAR TITLES.
The Court will not, however, specifically enforce a con-
tract to lend money on mortgage of some particular
property at suit of either the borrower or the lender (c) ;
unless the money should have been first actually advanced
by the lender on the borrower's promise to give the
particular security (,/') : but the person aggrieved by a
breach of such a contract may recover damages pro-
portionate to the loss he has sustained {g) . It follows
that, if an intending mortgagee of land should contem-
plate entering into a contract to make the loan, he
should expressly stipulate that the borrower shall first
show a good marketable title to the land to the satisfac-
tion of the lender's counsel, that the lender shall be at
liberty to rescind the contract if his counsel shall not
accept the title, and that the borrower shall pay all the
lender's costs (h) and expenses of and incident to the
transaction in any event, whether the loan be made or
not. If it be intended that the lender shall recover any
compensation beyond expenses out of pocket in the event
of the loan not being made, such as interest for his
money whilst lying idle, this must be the subject of
express stipulation (?').
What title In advising on title on behalf of an intending mort-
required on g^gee, it must be remembered that the object of the
behalf of a transaction proposed is very different from that of a
morts:a2:ee. ^ ^ "^
(e) Rogers t. Challis, 27 Beav.
175 ; Sichel v. Mosenthal, 30 Beav.
371 ; South African Territories,
Ltd. V. Wallington, 1897, 1 Q. B.
692, 1898, A. C. 309.
(/) Ashton V. Oorrigan, L. R.
13 Eq. 76 ; Hermann v. Hodges,
L. R. 16 Eq. 18 ; Taglor v. Eck-
ersley, 2 Ch. D. 302.
[g) See Western Wagon, ^-c. Co.
V. West, 1892, 1 Ch. 271, 277 ;
South African Territories, Ltd. v.
Wallington, ubi sup. Wliere the
borrower under such a contract
breaks off the transaction without
reason, the lender can recover his
solicitor's costs as damages: Car-
ter V. Merrion, 32 L. T. N. S.
663.
(/*) Where an intending bor-
rower agreed to pay the lender's
reasonable costs in case the loan
went off, it was held that this
did not include the commission
charged by the lender's bankers
for withdrawing his money from
deposit : He Blakesley and Ber-
wick, 32 Beav. 379.
(j) Sweetland v. Smith, 3 Tyrw,
491.
OF PARTICULAR TITLES. 501
sale. Purcliasers generally buy land with the view of
occupying or enjoying it ; they seldom buy it for
immediate re-sale. But the object of a mortgagee is
simply to obtain good security for the repayment of
his money, whenever he may desire to call it in. And,
assuming that the valuation of the land is satisfactory,
what conduces most to this end is that he should be
able at any time to exercise effectually his best and
most convenient remedy, which is his power of sale.
While purchasers, therefore, so long as they can obtain
a good holding title, are often willing to waive defects
of title which will be cm-ed by lapse of time or may be
covered by special conditions on a re-sale, a mortgagee
will always desii'e to get a good marketable title ; for
he contemplates the possibility of having recourse to a
forced sale, when special conditions, in spite of the
avidity with which they are usually swallowed at the
auction mart, may be depreciatory. The conveyancer
advising an intending mortgagee should therefore see
that his client Avill obtain a good marketable title, that Good market-
is, a title under which the property can be put up for
sale without any special conditions restricting the pur-
chaser's rights, or which an unwilling purchaser under
an open contract would be obliged to accept (k). As
we have seen (/), an intending mortgagee is not usually
bound, as a purchaser very commonly is, by any con-
tract requiring him to accept less than a good market-
able title. If it should be proposed that an intending
mortgagee should accept a title less than this, the
question, whether lie may reasonably concede what is
asked, should be determined by considering whether the
suggested concession will practically hamper the exer-
cise of his power of sale. And as a mortgagee on com-
pletion gets only a parchment security, and does not,
(^•) Pi/rke V. Waddingham, 10 Hare, 1, 8.
[l) Above, p. 498.
502
OF PARTICULAR TITLES.
like a vendor, enter into possession of the land, there is
the more reason for seeing that the evidence of the
mortgagor's title is in every respect complete. The
title deeds especially should be examined with most
particular care (m) ; for frauds and forgeries have been
far more frequently effected in connection with the
mortgage of land, where there is no transfer of the
actual possession, than upon sale. As regards the
evidence both of any facts material to the title and the
identity of the premises, a mortgagee will, as a rule,
require strict proof according to conveyancing prac-
tice (n) . We have seen (o) that purchasers, who have to
pay out of their own pockets the expense of procuring
evidence not in the vendor's possession, often content
themselves with informal evidence, or sometimes waive
proof of such matters, especially where the vendor and
his predecessors have long been known as the o^vners of
the land. But an intending mortgagee cannot safely
dispense with good evidence in these respects. With
these differences, the investigation of title in view of a
mortgage of land is carried out in like manner as
upon a sale.
Transfer of
mortgage.
Investigation of title prior to taking a transfer of a
mortgage is, of course, governed by the same con-
siderations as arise on a proposal for a new mortgage.
On the transfer of a mortgage, made without the
privity of the mortgagor, the transferee takes subject to
the state of account then existing between the mort-
gagor and the mortgagee (p). And if the transferee
omit to give to the mortgagor notice of the transfer, he
will not be entitled to hold his legal estate in the
mortgaged property as security for any sums of money
(m) See above, pp. 143, 144.
(m) Above, pp. 131 sq., 143.
(o) Above, p. 142.
(p) Matthews v. TVaUwyn, 4
Ves. 118; cf. Biekertony. Walker,
31 Ch. D. 1.51 ; Bateman v. Hunt,
1904, 2 K. B. 530.
OF PARTICULAR TITLES. 503
paid since the transfer by the mortgagor to the original
mortgagee on account either of interest or principal (q) .
A transfer of a mortgage cannot therefore he safely
taken from the mortgagee alone wdthout first inquiring
of the mortgagor as to the state of the mortgage debt
and the interest thereon and obtaining a favourable
reply, and giving notice of the transfer to the mort-
gagor. In practice the mortgagor is always made a
party to a transfer of the mortgage whenever his con-
currence can be procured (r).
(q) Williams v. Sorrell, 4 Ves. 213 ; see Dixon v. Winch, 1900,
389 ; Re Lord Southamjyton'' s Us- 1 Ch. 736.
tate, 16 Ch. D. 178, 185, 187; {>■) See Davidson, Free. Conv.,
Turner v. Siiiith, 1901, 1 Ch. vol. ii. part ii. p. 264, 4th ed.
504
CHAPTER XI.
OF THE EFFECT OF THE CONTRACT PENDING
COMPLETION.
§ 1. Of the Eights and Liabilities of the Parties
pending Completion in respect of the
Property sold.
§ 2. Of the Transfer pending Completion of
the Rights and Liabilities under the
Contract.
§ 1. — Of the Rights and Liabilities of the Parties jjending
Completion in res^ycct of the Projierty sold.
The effect of the contract upon the position of the
parties has already been shortly stated {a). Unlike the
case of goods, the legal estate in land can never pass
by the contract itself ; a conveyance distinct from the
contract is always requii-ed {h). But there is a con-
siderable likeness between the effect of the unconditional
sale of a particular chattel at law and the effect in
equity of the sale of lands. For in equity, subject to
the vendor's duty of showing a good title, to his lien
for the price, and to his right to the rents and profits
up to the proper time for completion, the whole estate
contracted for in the lands sold is considered as belong-
ing to the purchaser as from the date of the contract for
sale (c). As from that date, therefore, the vendor is
(«) Above, pp. 49, 50. U) Above, pp. 49, and n. (/*),
ib) Wms. Pers. Prop. 65, 72, 50.
KJth ed.
!
EFFECT OF THE CONTRACT PENDING COMPLETION. 505
bound to use the same care in preserving or managing
the property sold as a trustee must use with regard to
the property subject to his trust id). As from that
date the property stands at the purchaser's risk as
regards all losses caused without the vendor's fault, as
through tempest, flood, fii'e, or fall in prices {e) ; and
the purchaser takes the benefit of all improvements
casually happening thereto, such as tlie death of the
tenant for life on the purchase of the reversion (./').
And as from that date in equity the lands sold are the
purchaser's lands, and, if freehold or copyhold, are the
purchaser's real estate {g), and are in the vendor's hands
converted into personalty {h) . But this passing of the
equitable estate in the lands sold to the purchaser is
subject to the condition that the contract be such as can
be specifically enforced in equity ; and if this condition
fail, as by the want of a good title on the vendor's part,
the lands remain the vendor's property in equity as
well as at law [i). It is, of course, by reason of the
doctrine that, as regards the consequences of any act
contemplated by a binding agreement, equity regai'ds
what ought to be done as actually accomplished (/.) , that
in the interval between contract and conveyance the
{(l) Above, p. 50 and n. [k). 518, 526— 529 ; Potter v. rotter, 1
{e) Foolcv. tiheryold,\Cox,'l~r6\ Ves. sen. 437; Vupcl v. Girdler,
Paine V. Jlel/er, 6 Ves. 349. 352 ; 9 Ves. 509, 510 ; Mamton v. Roe d.
Harford v. Furrier, 1 Madd. 532, Fox, 8 A. & E. 14, 63 ; Sug. V. &
539 ; Itobertson v. Skelton, 12 P. 175, 183 xq. ; lie Kenxoifftoii,
Beav. 260; Sug. V. A: P. 291 ; 1902, 1 Ch. 203 ; Fe Tai/lor, 1910,
RatjHer V. Frestoii, 18 Ch. D. 1 ; 1 K. B. 562, 671, 572, 580.
Castellain v. Frcnton, 11 Q. B. D. ,is j y~f .. •
ogQ [n) A. -It. v. lirunmiKj, 8
(/) White V. Nnttx, 1 P. W. ^' ^' ^- '■^^=^' 2^^' -^'^■
61, Gl; Kr parte MaHni>7>/,2F.'W. (') £>oo>nc v. Monek, 10 "Ves.
410; Sug. V. & P. 291, 292; ^97; Sug. V. & P. 191, 193;
Dart, V. & P. 248, n. (w), 649, Lyswjht v. Edtcards, 2 Ch. D.
5th ed. ; 286, n. («), 732, 6th ed. ; 4^9, 506—508 ; Fe T/ioma,s, 34
672 7th ed. ^'h- D. 166 ; Ridout v. Fowler,
(^) Thus,' the lauds sold will 1904, 1 Ch. 658, 2 Ch. 93; see
pass under a devise of all the above, pp. 456, 458.
purchaser's lands or real estate : {k) Re Canj - Fltces' Contract,
Grecnhill v. Gretiihill, Prec. Ch. 1906, 2 Ch. 143, 149; Wma.
320; Atcherlcyy. Vertion, 10 Mod. Real Prop. 187, 2l8t ed.
'^OQ EFFECT OF THE CONTRACT PENDING COMPLETION.
property belongs in equity to the purchaser, for whom
the vendor is constructively a trustee. This trusteeship
is not absolute, for the vendor has a personal and sub-
stantial interest in the property, which he is entitled to
protect (/). As a trustee for the piu-chaser, the vendor
is bound, as we have seen, to take proper care of the
property. His beneficial interest in the land sold con-
sists, first, in his lien thereon for the price, involving
the right to hold possession of the land until the whole
purchase money be paid {m) ; and secondly, in the right
to take for his own use the rents and profits up to the
proper time for completion, that is, the time fixed by
the contract for completion or, under an open contract,
the time when a good title shall have been shown (;?).
And the vendor lies under the obligation, correlative to
the latter benefit, of discharging all outgoings due in
respect of the property sold up to the same time (o).
We will first consider the rights of the purchaser, and
the vendor's consequent liability to him, and will then
examine the vendor's rights.
We have seen (p) that from the date of the contract
the purchaser is in equity the owner of the property
sold, though not absolutely, but subject to the condition
that the contract be specifically enforceable. The lands
sold are in equity his lands ; he can sell, charge or
devise them ; if of inheritance, they are his real estate
descendible to his heir, and are applicable as such for
payment of his debts {q) . He therefore bears all
(/) Shaw V. Foster, L. E.. 5 continues after he has let the
H. L. 321, 338 ; Lysaght v. Ed- purchaser into possession or exe-
tvards, 2 Ch. D. 499, 606 ; Mayncr cuted a conveyance to him, without
V. Preston, 18 Ch. D. 1, 6; lie recei\-ing payment of the whole or
Stuclei/, 1906, 1 Ch. 67, 78. part of the price; see below,
{m) Acland v. Gaisford, 2 Chap. XVIII. § 1.
Madd. 28, 32 ; Phillips v. Sil- (w) Above, pp. 26, 46, 50.
vaster, L. R. 8 Ch. 173, 176—178. (o) Above, p. 50.
It should be noted that the {p) Above, p. 605, and notes
vendor's equitable hen on the land (e), (/), {g).
sold for unpaid purchase money {q) Paine v. Meller, 6 Ves. 349,
EFFECT OF THE CONTRACT PENDING COMPLETION. -^07
losses and takes the advantage of all additions or im-
provements which casually happen or are made to the
property after that date. Thus, if after the signing of
the contract, but before its completion, a house or any
other building erected on the land sold be accidentally
destroyed by fire, the purchaser remains none the less
liable to perform the contract without any abatement of
the price, and this liability may be enforced, not only
at law but by a decree for specific performance in
equity (>•). The same rule is applicable if the lands
sold be devastated by tempest, earthquake, or volcanic
eruption, or be flooded, or suffer an irruption of the
sea (s), or lose in value by reason of a fall in prices (t).
On the other hand, the purchaser takes the advantage
of all imj)rovements effected in the property sold
through extraneous causes, such as any exertion of
natural forces, the dropping of lives on sale of a
reversion or remainder (ii), the death of the incumbent
on the purchase of an advowson (.r), a general rise in
the price of land, or the making of any road, railway,
or other public work or undertaking, through or near the
property (//) . And it appears that if the vendor himself
make permanent improvements, as by building after the
contract, the purchaser will be entitled to the benefit
352; St'ton v. Slade, 7 Ves. 265, P. C. 83, 104, 105; below,
274; Broomr v. Moitc/c, 10 Ves. Chap. XVIII. § 1.
597, 614, 620, 621. (.v) Sug. V. & P. 291, 293, 294 ;
(»•) Tduir V. Mellrr, 6 Vea. 'i-19, Jessel, M. R., Li^saght v. Ed-
'652; Mai/nciv.r>rs(o>i,lSCh.D.l. wards, 'l Ch. D. 499, 507. The
This is undoubtedly so in the case case is parallel to that of the
of an absolute s:ile ; but if persons absolute destruction before de-
contract on such terms that the livery and payment of the price
continued existence of the object of a particular chattel so sold as
of the contract is a condition pre- to pass the property to the pur-
cedeut to the performance of the chaser : see Taylor v. Caldwell, 3
agreement, they are discharged B. & S. 826, 833, S37.
from their respective obligations (<) Poole v. Sheryold, 1 Cox,
by the destruction of the object 273.
without their fault : Taylor v. («) Above, p. 505.
Caldwell, 3 B. & S. 826 ; and see {x) Above, p. 443.
Counter v. Macpherson, 5 Moore, (y) Paine v. Meller, 6 Ves. 349,
352.
508
EFFECT OF THE CONTRACT PENDING COMPLETION.
thereof without further payment (s) . The purchaser is
also entitled in equity to all things which belong to the
owner of the inheritance as against a tenant for life im-
peachable for waste, such as timber trees blown or cut
down (a), or minerals gotten after the contract either
by a trespasser or by the vendor otherwise than in
working, up to the proper time for completion, mines or
quarries open at the time of sale [h).
Destruction
by fire pend-
ing comple-
tion of a
house insured
by the vendor.
In connection with the destruction of a house sold by
fire occurring before the completion of the contract, it
should be mentioned that, where the house has been in-
sured by the vendor, the benefit of the policy of insurance
will not pass to the purchaser under the contract for sale
of the house, unless expressly assigned to him ; for the
policy of insurance was altogether a collateral contract (c) .
And it should be especially noted that the benefit of a
policy of insurance against fire is not, as a rule, assign-
able without the insurer's consent, for such policies
usually take the form of a contract to indemnify the
insured personally or his representatives in law, but not
his assigns otherwise than by will (d). A vendor of
(s) Clare Hall v. Harding, 6
Hare, 273, 296 ; 3Ionro v. Taylor,
8 Hare, 5). 60; Sug. V. & P.
304 ; 1 Dart, V. & P. 248, n. («),
253, 5th ed. ; 286, n. {u), 291,
6th ed. ; 294, 7th ed.
(^7) Poole V. Shergold, 1 Cox,
273 ; Magcnnis v. Fallon, 2 Moil.
561, 591.
( J) See Nelson v. Bridges, 2 Beav.
239 ; Broini v. Lihbs, 25 W. E.
776, 37 L. T. N. S. 171 ; Lepplnq-
ton V. Freeman, 40 W. R. 348,
66 L. T. N. S. 357. As to the
damages recoverable where mine-
rals have been wrongfully gotten
by wilful trespass or under a
hona fide claim of title, see Jegon
V. Vvcian, L. R. 6 Ch. 742;
Livingstone v. Eawyards Coal Co.,
5 App. Cas. 25 ; Bulll, ^c. Co. v.
Osborne, 1899, A. C. 351.
((■) Paine v. Meller, 6 Ves. 349,
352, 353 ; Poole v. Adams, 12
W. R. 683 ; Rayner v. Preston,
14 Ch. D. 297, 18 Ch. D. 1.
The vendor remains entitled to
recover the insurance money until
the contract is executed by pay-
ment of the purchase money :
Collinyridge v. Royal Exchange
Assurance Corpn., 3 Q. B. D.
173.
[d) Lynch v. Dalzell, 4 Bro.
P. C. 431 ; Saddlers' Co. v. Bad-
cock, 2 Atk. 554 ; Barrell v. Tib-
bitts, 5 Q. B. D. 560 ; Castellain
V. Preston, 1 1 Q. B. D. 380 ; West
of England, ^-e. Co. v. Isaacs, 1897,
1 Q. B. 226 ; Phoenix Assurance
Co. V. Spooncr, 1905, 2 K. B.
753 ; Bunyon on Fire Insur-
ance, 11, 182, 303, 304; Porter
on Insurance, 300, 2nd ed. There
EFFECT OF THE CONTRACT PENDING COMPLETION. 509
land should, therefore, be very careful neither to assign
to the purchaser the benefit of any existing contract of
insurance against fire of any building thereon, nor to
agree to hold any such policy on trust for the purchaser,
except subject to the consent of the insuring office {e).
For if the vendor make such an assignment or agree-
ment without the consent of the office, and pending
completion the house be barnt down, and he receive the
insurance money and hand it over to the purchaser, or
lay it out in rebuilding at the purchaser's request, he
will be liable on receiving the full purchase money at
the completion of the sale, to refund to the insurance
office the amount paid by them (./') ; but it does not
appear that he will have any cause of action to recover
anything from the purchaser. And if the vendor,
without having entered into any agreement with the
purchaser, apply the money received under a policy of
insurance against fire of a house bui-nt down pending
completion in rebuilding or reinstating the house, it
does not appear that he will be entitled to claim any
increase of the purchase money on that accoimt (//),
and he will be equally liable to repay the amount of the
insurance money to the insuring office on receiving the
full price of the property sold (//). By a provision of
is nothing iu the nature of a con- & Elph. Prec. Conv. 299, 8th ed.
tract of fire insurance which makes (/) CatiieUain v. Preston, 11
it impossible to assign over the Q. B. D. 380 ; Phwiiix Assurance
benefit thereof ; policies of marine Co.\. Spooner, 1905, 2 K. B. 7o3.
insurance, which arc equalh' con- (y) Above, p. 507.
tracts of indemnity, have always (A) CasteUauix. Preston; Phoenix
been made in favour of the iu- Assurance Co. \. Spooner, iibi sup.
sured and his assigns and have The principle is that a contract
been assignable accordingly ; al- of insurance is a contract of in-
though, of course, at common law demnity, and the insurer, having
they were only indirectly assign- made good the loss, is entitled by
able by means of a jiower of subrogation to tlic riglits of the
attorney : see Amould on INIarine insured to the benefit of any
Insurance, i. 10", 112, 'I'M, 2;M, compensation which the insured
6th ed. ; Wms. Pers. Prop. 33, luis a legal claim to exact from
34 and n. ((/), 282, 283, Kith ed. other sources. See also JFest of
((') For a form of stipulation England Fire Insurance Co. v.
appropriate to the case, see 1 Key Isaacs, 1897, 1 Q. B. 226. It la
510
EFFECT OF THE CONTKACT PENDING COMPLETION.
the old Metropolitan Building Act, still remaining
unrepealed, insurance offices are required, at the instance
of any person interested in or entitled unto any houses
or buildings damaged by fire, to cause the insurance
money to be laid out in rebuilding or reinstating the
same, unless within sixty days after the claim is ad-
justed the parties claiming the insurance money give
security that the same shall be so laid out, or the money
be disposed of among the contending parties to the satis-
faction of the office (/). It has been held that the
operation of this provision is general, and is not con-
fined to houses or buildings within the limits of the
metropolis (/••), but the' correctness of this decision has
been questioned in the House of Lords (/). It seems
very doubtful whether this enactment enables any
person who has an interest in the building damaged,
but has no independent claim to have the insurance
money applied in reinstatement, to require the office to
lay out the insurance money in rebuilding. Thus,
where a lessee under covenant with his lessor to insui'e
in their joint names to three-fourths of the value of the
premises and to apply the insurance money in re-
instatement, effected such insurance, but subsequently
improved the premises and effected a further insiu-ance
not, however, the usual policy of
insurance offices to stand upon
their strict legal rights where
such a course would involve hard-
ship to the iusured : see David-
son's Concise Precedents, 117,
118, n. (b), 18th ed.
(i) Stat. 14 Geo. III. c. 78,
s. 83. The person interested,
desiring the insurance money to
be applied in reinstatement must
make a distinct request to that
effect to the insurauce office ;
otherwise the office may pay the
'money to the person who effected
the insurance. The office is the
proi)er j^arty to rebuild, and a
person interested, not being the
person who effected the insur-
ance, cannot after he has himself
rebuilt claim the insurance money
by virtue of this enactment :
Simpsun v. tScottixh Union Insur-
ance Co., 1 H. & M. 618.
{k) Ex parte Gorelij, 4 De G. J.
& S. 477.
[1) Westminster Fire Office v.
Glasgow, S;c. Soci/., 13 App. Cas.
699, 716. The rule in Ex parte
Gorehj was followed by Swinfen
Eadv, J., in Re Q,Hicke''s Trusts,
1908, 1 Ch. 887, 893 and n. (1),
but apparent ly without the opinion
expressed in the House of Lords
liaving been cited to him.
EFFECT OF THK CONTRACT PENDING COMPLETION. 511
in his own name, it was held that the money payable
under such further insurance must be laid out at the
lessor's request in reinstating the property (;«) . But it
has been doubted by Lord Selborne in the House of
Lords whether this enactment gives a mortgagor or
subsequent incumbrancer any claim to require the money
paid imder an insurance made by a mortgagee to be
applied in reinstatement (ii), and the doubt apparently
extends to question the claim of a mortgagee to require
reinstatement, where the insurance was effected b}' the
mortgagor before the mortgage, and the mortgagor has
not expressly agreed to apply the insurance money in
reinstatement (o). If this doubt be well founded, it
does not appear that where a house sold has been insured
by the vendor and burnt down pending completion of
the contract, the purchaser can under the above-men-
tioned enactment require the insurance money to be
laid out in rebuilding, unless the vendor has expressly
agi-eed to give him the benefit of the insurance or to
lay out the money in reinstatement (p). It follows
(m) Hx parte Gorehj, 4 De G. gagor has contracted that the
J. & S. 477. money shall be so applied and the
in) Wentiiiumter Fire Oj/ire v. benefit of that contract in effect
Glasgow, ^-c. Socy., 13 App. Cas. forms part of the mortgagee's
699, 714. security, as where a lessee bound
(o) It is submitted that, inde- by covenant with the lessor to
pendently of the enactment in insure and apply the insurance
question, a mortgagee has no money in reinstatement, insures
right or equity to require any accordingly and afterwards mort-
money received under an insur- gages the demised premises : see
ance effected by the mortgagor Garden v. Ingram, 23 L. J. Ch.
prior to the mortgage to be ap- 478 ; Lce>i v. Whitcleg, L. R. 2
plied in making good the damage Eq. 143 ; Wms. Conv. Stat,
done, except where the mort- 156 — 159.
{p) The contrary is maintained in 1 Dart, V. & P. 197, 6th ed.
(of. 193, 7th ed.), written, however, before the case of Westminster
Fire Office v. Glasgow, «Jc. Soeg. It is there suggested that, unless
the vendor expressly stipulate that, as regards all insurable loss
or damage, the property shall bo at the sole risk of the purchaser,
as from the date of the contract, the vendor is liable to have
the insurance monej' applied against his will at the purchaser's
request in rebuilding and yet to refund the amount of the
insurance money to the office on completion. It is, however, sub-
mitted that, even if the above enactment should bo held to enable a
person, interested in the buildinjj burnt but having no independent
512
EFFECT OF THE CONTRACT PENDING COMPLETION.
Purchaser
should him-
self insure
ao-ainst fire.
that where the property sold comprises valuable buildings,
the purchaser should himself insure against fire as from
the date of the contract for sale, unless it be arranged
with the consent of the office that he shall have the
benefit of the existing insui'ance.
Vendor's ^g ^j^g result of the purchaser's equitable ownership
care of the of the property sold and the vendor's consequent
propel J so c . tr^gteeship for the purchaser, the vendor is bound,
while he remains in possession of the property sold, to
take reasonable care to preserve the property in the
same condition in which it was at the date of the con-
tract for sale (q). He must use the same care that a
trvistee ought to use with regard to the trust property,
of which he is in possession ; that is to say, he must take
the same care as a prudent owner would take of his own
property (r). Thus he must cultivate the lands, if in
hand, in a husbandlike manner (s), keep the property in
a reasonable state of repair {t) and take proper pre-
cautions against inj ury to the lands by trespassers (n) ;
and if he fail in any of these duties, the purchaser will
claim on the insurance money or its application, to require the office
to lay out the money in reinstatement, in such case there would in
effect be a statutory modification of the contract of insurance to the
prejudice of the insurers. They would be under a statutory duty to
lay out the money in rebuilding, which would indeed discharge them
from the obligation of paying the vendor. But as the vendor, having
previously parted with his beneficial interest in the property insured,
would derive no benefit from the reinstatement, it is submitted that
the principle of subrogation would not apply, and the vendor could
not be called upon to refund on completion a simi of money which
was neither paid to him nor laid out on /lis property : see above, p. 506 ;
Davidson's Concise Precedents, 117, n. {I>), 18th ed. (but the present
writer doubts the safety to the vendor of the clause there suggested).
It is submitted that there is no necessity for the vendor to make the
stipulation suggested as above in Dart, V. & P., 6th ed.
(q) Above, p. 50, and n. (/.;). Y. & C. 222 ; Townsend v. Chaiii-
(;■) Wilson V. Claphaiii, 1 J. & pernoivne, 3 Y. & C. 505, 508 ;
W. 36, 38; S/trriviH v. Sfiakspear, Eegcnfs Canal Co. v. Ware,
& G. 517, 537.
V. Beacon, 3 Madd.
5 De G. M.
(s) Foster
394.
{t) Binks V. Moke!);/, '2 Swanst.
222, 226 ;j Lord v. Stephens, 1
23
575, 588 ; Royal Bristol,
i^r. Bdq. Socy. v. Bomash, 35
Ch. D."390, 397, 398.
(«) Clarke v. Maimz, 1891, 2
Q. B. 456.
EFFECT OF THE CONTRACT FENDING COMPLETION. 513
be entitled to an allowance by way of compensation to
be deducted from the purchase money (,r), or in case of
his completing the purchase in ignorance of the vendor's
breach of duty he may sue the vendor for damages for
the loss sustained thereby (//). As a rule, the vendor is
boimd to execute at his own expense such repaii's as are
necessary in order to preserve the property sold from
deterioration until the proper time for completion of
the contract (z). We have seen (a), that this time is,
under an open contract, the time at which a good title
shall have been shown ; and the vendor's obligation of
keeping the property in a good state of preservation up
to that time at his own expense appears to fall on him
because until then he remains entitled as owner to the
ordinary profits and must discharge the current out-
goings {b). When the contract has fixed a particular
day for completion, and completion is delayed beyond
that time by reason of the title not having been made
out, the vendor is bound, as a rule, to preserve the
property from deterioration at his own expense until the
time when the purchaser may reasonably take possession,
that is, until a good title be shown (r) . The vendor is Vendor not
not, however, bound to improve the property, and he improve the
should be careful not to e.\i)end money on improvements, property,
as he will have no right to recover any sums so ex-
pended from the purchaser, unless the purchaser shoidd
have authorised such expenditure (d). If the state of
the property sold be such that an extraordinary outlay,
beyond Avhat may properly be regarded as current out-
(j) See note {t), above, p. iil'l. be bound to pay for any repairs
(//) Clarke v. lOnnii:, 1891, "2 out of his own pocket, if he had
Q. B. 456. no trust money in hand available
[z) See note {t) above, p. 512 ; for the purpose : see Bridye v.
Sherwin v. Shakspmr, 6 De G. Jirown, 2 Y. & C. C. C. 181, 191,
M. & G. 517, 582, 534, 539. 192 ; FazakerU-y v. Cuhhaw, 19
(fl) Above, pp. 26, 46. W. R. 793 ; Ee l)c Tri.ssier's Sttllcd
(6) Above, pp. 49, 50. An ubso- Estates, 1893, 1 Ch. 153; Re
lute trustee would, of course, been- Monlaffu, 1897, 2 Ch. 8.
titled to be reimbursed all moneys [c) Sherwin v. IShakupear, 5 De
properly expended in preservinir G. M. & G. 517, 532, 539.
the trust property, and would not (>/, Above, p. 507.
w. 33
514
EFFECT OF THE CONTRACT PENDING COMPLETION.
goings, should be necessarj^ to be. made in lasting repairs
in order to preserve the property from deterioration, it
appears that the vendor ought to be allowed his expenses
properly incurred for such purpose (r) . If by reason of
tlie purchaser's default in completing the contract the
property remain in the vendor's possession after the
time when the purchaser might reasonably have taken
possession, the purchaser will not be entitled to an}^
allowance or compensation for any deterioration which
the property may have suffered since that time (./'). If
the property sold be let to yearly or other tenants, the
vendor must manage the same as a prudent owner
would in the interval between the making of the con-
tract and its completion, and see that the tenants duly
perform their obligations {[/). He should not allow the
rents to fall into arrear (//) : but he may reduce them,
where a prudent owner would find it necessary to do
so («'). If any tenancy of lands usually let determine
during the interval in question, the vendor ought to
notify the vacancy so occurring to the purchaser, and
unless the purchaser should express a wish that the
lands should remain unlet and promise to indemnify
the vendor against loss on this account in case of the
purchase going off, the vendor ought to take steps to re-let
the lands. And the vendor should do this, whether the
tenancy expired by effluxion of time or by reason of a
notice to quit served by the vendor at the purchaser's
request {k). So the vendor should not, as a rule,
determine any existing tenancy, unless the purchaser
desire it (/). When a sale of land is not actually com-
{e) Sheru'in v. Shakspcar, 5 De W. 36, 38; Flews v. Samuel, 1904,
G. M. & G. 517, 532 ; F/iillips v. 1 Ch. 464.
Silvester, L. R. 8 Ch. 173, 176. (i) Sherwin v. Shakspear, 5 De
(/) Binks V. Fokehi/, 2 Swanst. G. M. & G. 517, 537.
222, 226; Minchln v. Naiwe, 4 ik) Egmont \. Smith, G Ch. D.
Beav. 332. 469 ; and see Bennett v. Stone,
(ff) Foster v. Deacon, 3 Madd. 1902, 1 Ch. 226, 237, affirmed,
394, 395. 1903, 1 Ch. 509.
(h) Aclandv. Gaisford,2MaM. [1) Bafety v. Schofield, 1897, I
28, 32; Wilson v. Ciapham, 1 J. k. Ch. 937," 944, 945.
EFFECT OF THE CONTRACT PENDING COMPLETION. 015
pleted, under an open contract at the proper time for Vendor
completion {iii), or otherwise on the day fixed for com- retain posses-
pletion (;?), the vendor is entitled to remain in possession si^n ^"^til
until the sale is actually completed by payment of the pietion.
purchase money (o) , whether the delay in completion be
due to the state of the title or to the purchaser's default
in payment ; unless, of course, the contract be that the
purchaser shall have possession on a day named irrespec-
tively of the completion of tlie purchase {p). But, as
we have seen (q), when the purchase is not completed
at the proper time or appointed day, the purchaser is
entitled to the rents and profits, and is bound to pay
interest on the purchase money, if he bought under an
open contract, from the time when a good title was
shown and verified (r) ; if he bought under a contract
fixing a day for completion, but not expressly pro-
viding for payment of interest, from that day, where
the delay is attributable to liis own fault, and other-
wise from the time when he took or might safely
have taken possession ; and if he bought under a con-
tract to pay interest on failure f'ro)/) an// cauHO wliot-
evcr to complete on the appointed day, as from that day.
In such cases, therefore, the vendor must account to the Vendor's
purchaser for the rents and profits received by him from account for
the date when the purchaser so became entitled to them t'lo rents.
until the date of actual completion, and the amount so
received must be deducted from the amount of purchase
money and interest payable (.s) . In taking such account
the vendor is, as a ride, chargeable only with the amount
of the rents actually received by him or for his use (/) :
(w) Above, pp. 26, 46. re.spectfuUy maintained that the
(w) Above, p. 57. decision of Parker, J., in Halkefl
(o) Above, p. ;')0(;. v. liudley, 1907, 1 Ch. r)90, 60G,
[p) See (jcihjf V. Montrose, 26 was erroneous.
Beav. 4/). W See M'Nainara v. iniluiDis,
{q) Above, pp. TiO, 60, 67, 6 Ves. 143; P/ews v. Samuel,
6S. 1004, I Ch. 464.
()•) See above, pp. 46, TiO, 166, [t) Shirtviti v. Shakspcny, !) De
n. («), 186, n. {!), whore it is G. M. & G. .')17: Setoji on Judsr-
33 (2)
516 EFFECT OF THE CONTRACT PENDING COMPLETION.
but he may in a special case be chargeable with the
amount which, but for his wilful default, he might have
received, as where he has allowed the rents to fall into
arrear (?/), or neglected to let the land(a:;), or has
wantonly abandoned the property sold (i/).
The vendor's As we have seen (::), the vendor's beneficial interest
rio-hts. •
° ' in the property sold between the making of the contract
for sale and its completion consists, first, in his lien for
the price, involving the right to hold possession of the
land sold until the whole purchase money be paid ; and
secondly, in his right to take the ordinary rents and
profits for his own use up to the proper time for com-
pletion. As to the first of these rights, the vendor is
entitled to retain possession until the whole price is
paid, unless the contract contain an express or implied
stipulation that the purchaser shall have possession on a
particular day without making such payment (a). And
where the contract provides, as upon a sale by auction
under the usual conditions (b), that the balance of the
ments, 2237, 6tli ed. ; Bennett v. home's remarks comparing the
Stone, 1902, 1 Ch. 226, affirmed, position of a vendor retaining
1903, 1 Ch. 509. possession until completion to
(u) Wilson V. Clapham, 1 J. & that of a mortgagee in posses-
W. 36 ; and see Pleivs v. Samuel, sion are dii-ectly opposed to the
1904, 1 Ch. 464, where rent was grounds of the decision in Sher-
in arrear at the time of the sale iriti v. Shakspear, 5 De G-. M. &
and on the day fixed for com- G. -517. It is submitted that
pletion, and the vendor was not these remarks of Lord Selbome
allowed to appropriate moneys were not necessary to his decision
received by him from the tenant and are not good law, although,
after that day (when the pur- in other respects the decision ap-
chaser became entitled to the pears to have been right. See
rents) in discharge of the arrears 2 Dart, V. & P. 650, 651, 5th ed. ;
due before that day. 733—735, 6th ed. ; 673—675, 7th
(x) Bennett V. Stone, 1902, 1 Ch. ed. ; Eoi/al Bristol, ^r. Bldg. Socy.
226, 237. V. Bomash, 35 Ch. D. 390, 397,
[v) Phillips V. Silvester, L. R. 398; Clarke v. Ramuz, 1891, 2
8 Ch. 173. In that case there Q. B. 456.
certainly appears to have been [z) Above, p. 506.
such wanton negligence on the («) Above, p. 515 ; Lysaght v.
vendors' part as justified a decree Echrards, 2 Ch. D. 499, 506.
against them on the footing of {b) Above, pp. 57, 67, 73, 74.
wilful default ; but Lord Sel-
I
EFFECT OF THE CONTRACT PENDING COMPLETION. 517
purchase money shall be paid on a particular day, and
also that possession shall be taken by the purchaser on
that day, it is held that such possession is intended as
may be safely taken on the one hand and given on the
other, and time is not, as a rule, of the essence of the
contract ; and as the purchaser is not bound to take
possession until he can safely do so, that is, until a good
title has been shown and verified, so the vendor cannot
be compelled to deliver up possession without receiving
payment of the whole price (<:•) . If, however, the con-
tract provide in such manner that time is either expressly
or impliedly of the essence of the stipulation, that
possession shall be given to the purchaser on a certain
day, the purchaser is entitled to take possession on that
day without paying the purchase money (d) .
The profits wliich the vendor is entitled to take up to Vendor's
the proper time for completion are the ordinary casual p^fits^ ^
profits arising in the course of the proper management of
the estate — those which a tenant for life impeachable for
waste would be entitled to take as against the remain-
derman (e). Thus, if the land sold be in hand, the
(c) TUlei/ V. Thomas, L. R. 3 been said that the same principle
Ch. 61 ; Fhillips v. Hilreiter, L. R. is applicable on a sale made out
8 Ch. 172, 176 — 178. of Court: Ci(ddon v. life, 1 Giff.
(d) Gedye v. Montrose, 26 Beav. H95, where, however, the admis-
45. sion was taken before the date
{e) This comparison appears to fixed for completion. It is sub-
be correct as a general rule. But mitted that the principle laid
it has been held, where a manor down in Garrick v. Camden is
containing copyholds was sold by anomalous and ought not to be
order of the Court of Chancery followed in a case where copy-
and copyhold tenants died w holders have died or alienated in
alienated before the date on whicli the lifetime of a tenant for life of
it was ordered tliat tlie purchaser the manor, but the admissions
should bo lot into possession, but consequent thereon have not been
the admissions so rendered neces- granted until after his death. For
sary were not granted until after it is well settled that, as between
such date, that the fines upon copyholder and lord, no fine is
such admissions were to be con- due until iulmittance, and admit-
sidered as having accrued before tance is the act of the lord for the
that date and were therefore pay- time being and is compellable by
able to the vendor: (jarrick v. him: Hobart and Hammond' s case,
Camden, 2 Cox, 231. And it has 4 Rep. 27b; E. v. Hendon, 2 T. R.
518 EFFECT OF THE CONTRACT PENDING COMPLETION.
vendor is entitled to gather in the crops in the due and
proper course of husbandly, and to dispose of them for
his own benefit (_/') ; and if the land be let, he is entitled
to receive the rents as they become payable {y) . And,
usually by express contract {h), but, if not, under the
Apportionment Act, 1870 («), he is entitled to an
apportioned part, up to the proper time for completion,
of the cmTcnt rents which will become payable after
that time. So the vendor may work mines and quarries
open at the time of sale (/.) . But he is not otherwise
entitled to take any profit or benefit which forms part
of the inheritance (/), and if he diminish the value of
the inheritance by committing any voluntary waste, as
by felling timber or working an unopened mine, the
purchaser may claim compensation for the damage ;
or, if the waste be such as affects a material alteration
in the property sold (for example, the felling of orna-
mental timber), the purchaser may repudiate the con-
tract altogetlier {m). It appears that if the purchaser
sue for specific performance of the contract, he may
obtain an injunction restraining the vendor from the
commission, pending completion, of any act tending to
destroy or depreciate the inheritance of the land sold {u).
Thus, on the sale of an advowson, if the church became
484 ; Graham v. Sinie, 1 East, 464; above, p. 516, u. (?<).
63'2 ; E. V. Wclhdcy, 2 E. & B. (/*) Above, pp. 67, 74.
924 ; Momkton v. Payne, 1899, 2 [i) Stat. 33 & 34 Vict. c. 35,
Q. B. 603 ; 1 Wat. Cop. 317, s. 2.
346, 347, 7th ed. ; 1 Scriv. Cop. [k) Above, p. 508, and n. {b).
Ill, 118, 283, 3rd ed. (Q Above, p. 507.
(/) Webster v. Donaldson, 34 {m) Magennis v. Fallon, 2 Moll.
Beav. 451, 11 Jur. N. S. 404 ; 561, 590 ; 1 Dart, V. & P. 248,
it appears from the latter report 441, 5th ed. ; 286, 507, 6th ed. ;
that the stipulation that the 290, 519, 520, 7th ed.
growing crops should be included («) See Shrewnbury and Chenter
in the sale was held to be con- Rail. Co. v. ahreinbary and Birm-
trolled by the provision that the ingham Kail. Co., 16 Jvu\ 548,
purchaser should be entitled to 550 ; Hadley v. London Bank of
the profits only as from the day Scotland, 3 De G. J. 6: S. 63, 7U,
fixed for completion. 71 ; Londoni^- Counti/Bank v. Lewis,
iff) Above, p. 49. aud n. (A) ; 21 Ch. D. 490; Siig. V. & P. 228,.
see Flews v. Samuel, 1904, 1 Ch. 229.
EFFECT OF THE CONTKACT PENDING COMPLETION. 519
vacant pending completion, the vendor may be restrained
from presenting his own nominee to the living (o).
i\jid the vendor may be so restrained from selling the
land to another, or from making any disposition of the
legal estate therein to the prejudice of the purchaser (p).
And on the same principle it would appear that the
vendor may be restrained from wasting the property
sold pending completion. But if the vendor dispute
the fact that any contract for sale was made as alleged
by the purchaser, the Court will not grant an injunction
restraining the vendor from the exercise of any of his
legal rights of ownership, unless the balance of conve-
nience be obviously in favour of such a coui'se (q).
If, as is frequently the case, there be a day fixed for Veudor
completion and a contract to pay interest on failure po,s.se!^sion
to complete on that day, either from any cause whatever '^^*^^ '^^ ^^^
or from any other cause than the vendor's wilful completion,
default, and the vendor remain in possession after the
time fixed for completion because a good title has not
yet been shown, he ought, as we have seen (/■), to
cultivate the land sold, gather in the crops, and
generally manage the property with the care of a
prudent owner, but must account to the purchaser for
the profits from the time fixed for completion until the
date of actual completion, receiving instead interest on
the purchase money. And where he is in actual occu-
pation of any part of the property, he is chargeable with
a fair occupation rent (s). Dui'ing this period the out-
(o) Nichuhun v. Kiiupp, 'J Sim. .505, 511 ; Shcnvin v. Shakapcar,
326; above, p. 443, ami n. (/). 5 De G. M. & G. 517, 532, 533,
{p) EchUfw.nulflirui, 16 Vcs. 538, 539; above, p. 51. It appears,
267 ; Curtis v. Biwhini/hdni, 3 V. however, that in an action for
& B. 168; SpilU)- V. iSpilhi, o speciiii! performance of a contract
Swaust. 556. under which the vendor has so
(y) Tiinier v. IFight, 4 Beav. remained in actual occtipatiou of
40 ; Hadleij v. London Bunk of the land .sold, the order should
Scotland, 3 De G. J. & S. 63. direct an inquiry whether ho ha«
{>•) Above, pp. 512 — 51''>. so occupied, and if so, that an
(«) Dj/vr V. Uaiijraic, 10 Ves. annual value by way of rent
520
EFFECT OF THE CONTRACT PENDING COMPLETION.
Outgoings. goings, including the expenses of cultivation or manage-
ment, fall upon the purchaser in the absence of express
stipulation to the contrary, and the vendor is entitled to
charge them against the purchaser in account {t). But
if the vendor so remain in possession after he has shown
such a title as the purchaser ought to accept, because of
the purchaser's default in completing the contract, the
Deterioration, vendor will not be liable for any subsequent deterioration
of the property sold, though he must, of course, still
account for the rents and profits until the actual com-
pletion of the sale {u). Where, however, completion is
delayed by the purchaser's default, and the vendor is,
on that account and to his own inconvenience, obliged
to remain in actual occupation of any part of the pro-
perty sold, the vendor will not be charged with any
occupation rent therefor, and the purchaser is never-
theless liable to discharge the outgoings and to pay
interest {x).
As we have seen (y/) , the vendor is, usually by express
contract, but if not, by law, liable to discharge all out-
The vendor's
duty to dis-
charge the
outa:oinsrs.
should be set thereou : Shcrwtji
V. Shnl-sprar, 5 De G. M. & G.
517, 538, 539; Seton on Judg-
ments, 2244, 6th ed. If this be
omitted the vendor cannot be
charged with an occupation rent
under the usual order for an
account of the rents and profits
received by him or for his use
(see above, p. 515) ; but where
the land so occupied is in culti-
vation, he is chargeable with the
proceeds of crops sold, less the
expenses of realizing the same :
Bennett v. Stone, 1902, 1 Ch. 226,
237, 238, affirmed, 1903, 1 Ch.
509.
[t) Above, pp. 506, 513; Ban^ht
V. Tacjg, 1900, 1 Ch. 231, 235;
Bennett v. Stone, 1902, 1 Ch. 226,
1903, 1 Ch. 509. But the vendor
cannot, under the account usually
directed in actions for specific
performance of rents and profits
received by or for him (not upon
the footing of wilful default),
charge the purchaser with losses
incurred in carrying on farming
business on a farm which was let
at tlie date of the contract, but
afterwards fell vacant and was
occuf)ied and farmed by the ven-
dor : Bennett v. Stone, ubi sup.
('«) Above, pp. 513, 514 ; Ben-
nett V. Stone, 1902, 1 Ch. 226,
affirmed, 1903, 1 Ch. 509.
(.(■) Dakin v. Hope, 2 Euss. 170 ;
Leyyott v. MetropoJitem Rail. Co.,
L. E.. 5 Ch. 716 ; also deciding
tliat in such circumstances the
purchaser cannot be charged with
the vendor's losses, and the ven-
dor is not liable to account for
his profits in respect of a busi-
ness carried on by him on the
premises diu-ing such occupation
thereof.
(y) Above, pp. 50, 67, 74, 506,
513.
EFFECT OF THE CONTRACT PENDING COMPLETION. 521
goings payable in respect of or charged upon the
property sold up till the time for completion of the
purchase, and this obligation appears to be correlative
to his right to enjoy the profits up till that time. He
must therefore pay out of his own pocket all rates, taxes,
tithe rent-charge and rent (whether quit-rent of free-
holds or copyholds or rent of leaseholds sold), accruing
due in respect of the property sold before the time for
completion of the pm'chase, also all ordinary expenses
of cultivating or managing the property and keeping
the same in a due state of preservation, including the
cost of ordinary repairs (s). The outgoings so payable
by the vendor also include all sums of money which,
before the time for completion, have become charged
by statute upon the property sold or recoverable by
distress or otherwise from the owner or occupier thereof
for the time being {a) ; and this is the case whether the
vendor have expressly contracted to discharge the out-
goings or not (b) . Thus, it has been held that the
vendor must pay the expenses so charged on the
property sold of paving, draining, or lighting the ad-
joining street under a local Improvement Act(c), the
Public Health Act, 1875 (d), or the Private Street
Works Act, 1892 (e), or of removing a dangerous
structure under the Metropolitan Building Acts, 1855
and 1869 (./'), or the London Building Acts, 1894 and
1898 {(j), and tlie same law seems applicable to the
(z) C'arrof/u-s v. Sharp, 20 Beav. S( DiiscolVit Contract, 1904, 2 Ch.
56 ; above, p. ol3. 226 ; Millard v. Balhi/, ^-c. Council,
[a) Above, pp. 50 and n. [1), 1906, 1 K. B. 60 ; East Ham
177, 178 : Stock- V. Meakin, 1900, Council v. Aylelt, 1905, 2 K. B.
1 Ch. 683 ; Stockdalf v. Ascher- 22.
berff, 1904, 1 K. B. 447, 449. (e) Stock v. Meakin, 1900, 1 Ch.
(6) J{r Btttexworth and Richir, 683 ; see West Ham Corpn. v.
37 Ch. D. 535 ; liarsht v. Ta(i;i, Sharp, 1907, 1 K. B. 445, as to
1900. 1 Ch. 231, 234, 235. the powers of enforcing the
(c) Midqlniv. Coppock, 4 Ex. I). charjfo >;ivon by thi.s Act.
309. " ■ (/•) Tnhhs V. U'lmne, 1897. 1
(rf) Rr Bettesivorth and Richer, Q. B. 74.
37 Ch. D. 536 ; and see Re Allen (y) Re Highett and Bird's Con-
522
lOFFKCr OF THE CONTRACT PENDING COMPLETION.
cost of abating a nuisance under the Public Health
(London) Act, 1891 {//). Outgoings so charged by
statute upon the land sold, whether by express words
or impliedly by reason of theii' being recoverable by
distress upon or other process of law against the land,
are payable by the vendor if the statutory charge arise
before the time for completion, even though the money
secured by the charge should not become actually pay-
able until after that date (/) ; and if the purchaser be
obliged to pay the same after completion, he can
recover the amount from the vendor either under an
e.t'pre-sii stipulation in the contract for sale that the
vendor shall discharge the outgoings up to the
time fixed for completion (A) or under the covenant
against incumbrances implied by statute (/) in the
conveyance {m). Where such outgoings are not so
charged by statute upon the property sold, but are
merely recoverable by suing the owner thereof for the
time being personally, it appears that the vendor ought
to pay them if they fall due before the time for com-
pletion ; but if he do not, and the purchaser be obliged
to pay, the amount paid cannot be recovered from the
vendor after completion under a covenant by him
against incumbrances, as there is no liability affecting
the land(//). It appears, however, that the purchaser
is entitled to refuse to complete the contract until such
outgoings are paid (o) , and that he can recover any
money which he is obliged to pay on this account after
completion if the contract for sale contained an express
stipulation that the vendor should discharge all out-
tract, 1902, 2 Ch. 214, 190a, 1
Oh. 287 ; as to -which case, see
above, p. 354.
(A) Barsht v. Taffc/, 1900, 1 Ch.
231, 234, 235.
(t) As to the times wheu the
charges given by the above-iueii-
tioued Acts attach, see the cases
cited in the six preceding notes.
(/j) Mid(ileij\. Uoppock, 4 Ex. D.
309; Tuhhsx. TFi/i/nr, 1897, 1 Q. B.
74.
(l) Stat. 44 & 45 Vict. c. 41 , s. 7.
(;«) Stock y.Meakiu, 1900, 1 Ch.
683.
(w) Eijy v. Hlmincii, 21 Q. B. D.
107.
(o) See Re Bettcsworth and
Richer, 37 Ch. D. 535.
EFFECT OF THE CONTRACT PENDING COMPLETION. 523
goings up to the time fixed for completion {p) . If, how-
ever, the contract for sale contain no such express
stipulutiou and be completed without the vendor dis-
charging such outgoings, it is a question whether the
purchaser, being subsequently obliged to pay them,
have any remedy to recover the amount expended from
the vendor [q).
As we have seen (/), contracts for the sale of land Appurtiuu-
meut iif
outj?oiui<-.s.
usually contain an express stipulation that the out ^^^^ "^'^
goings shall, if necessary, be apportioned between the
vendor and purchaser up to the time fixed for com-
pletion. Where this is the case, all such outgoings as
in their nature extend over and are attributable to a
definite period of time, such as yearly taxes or half-
yearly rates, should, it appears, be apportioned, even
though they may not be apportionable by law (v). If
the contract contain no such stipulation, such outgoings
only can be apportioned between the parties as are
apportionable by law [t).
{p) Midfflei/ V. Coppock,4Ex.D. purchaser; it would certainly
309; Ttihbs v. Wynne, 1897, 1 survive if put iuto ^.Cyw^r.v.s words.
Q. B. 74. Why, theu, should it be e.xfciu-
((/) Sec Eijf/ V. lilayiiey, 21 guished merely because it is ini-
Q. B. D. 107, whore it seems plied by law ':" See Pw/wo- v. /«/(><-
that the vendor ought to have ^on, 13 Q. B. D. 3.31, ooG, 357,
paid the amount claimed as out- 359. In Clarkv v. Rainnz, 1891,
goings; but the only point argued 2 Q. B. 456, an action was suc-
and decided was that the pur- cessfully maintained by a piu--
chaser could not recover under chaser against a vendor after
the vendor's covenant against in- completion for a breach before
(Unibrances. (liucre whether, completion of the vendor's ini-
whon land is sold under an open plied duty to take proper care of
contract, the contract is so en- the laud sold : above, p. 512.
tirely merged in the convej'ance And see below. Chap. XVIII.
as to prevent the purchaser from § 1 .
recovering after completion out- (r) Above, pp. 67, 74.
goiugs which th«; vendor ought (s) See Lmvcx v. Gihuon, L. R.
to have, but has not paid, under 1 Eq. 135, as to rent before the
the implied sti|iulation tliat Xhv .Vpportionmeut Act, 1870 (it is
vendor shall discli.irge all our- presumed that a stipulation for
goings up to the time for com- apportiomnent was implu'd from
pletiou. This stipulation is not the contract to clair the out-
in any way carried out, nor is the goings) ; MtdyUy v. Voppuck, 4
object thereof performed by the Ex. D. 309, 313.
conveyance of the property to tlie [tj Midgley v. Cuppock, 4 Kx.. D.
524
EFFECT OF THE CONTRACT PENDING COMPLETION.
Purchaser
taking posses-
sion before
completion.
If the purchaser take possession of the property sold
before completion of the contract, either in pursuance uf
a stipulation to that effect expressed or implied in the
contract or with the vendor's consent given after the
contract, he will, unless the contrary he expressly
agreed, as from the time of his entry into possession,
be entitled to take the ordinary rents and profits for his
own use, and be liable to bear the outgoings and to pay
interest on the purchase money {it). But as we have
seen {x), where there is no express contract to pay
interest, the purchaser may, in case of delay attributable
to the vendor in completing the purchase, discharge
himself from his liability to pay interest by appropriat-
ing his money to the purchase and giving the vendor
notice of such appropriation. Where the purchaser is
so let into possession before completion, the vendor, of
coiu-se, retains his legal estate in the propertj^ sold until
he parts with it by conveyance to the purchaser ; but
his only beneficial interest in the property sold is his
equitable lien for the price, and in equity he holds his
legal estate as security only for payment of the pur-
chase money {>/) . In equity, the purchaser is the owner
of the property, subject to the vendor's lien and to the
condition that a good title shall be shown (s) . It appears,
therefore, that in such case the purchaser is, as a rule,
entitled to exercise all ordinary acts of ownership over
the property sold ; for the very purpose of putting the
purchaser into possession is to enable him to act as
owner («). But he may be restrained by injunction
309, 313. And see below, Chap.
XII. § 4, as to apportionment of
the outgoings.
(?«) Powell \. Martyr, 8Ves. 146,
149 ; Fludycr v. Cocker, 12 Ves.
25 ; A.-G. V. Christ Church, 13
Sim. 214 ; Birchv. Joy, 3 H. L. C.
565, 591 ; Ballard v. Shutt, 15
Ch. D. 122 ; Fletcher v. Lanca-
shire, i-c. Rail. Co., 1902, 1 Ch.
901, 908.
(a-) Above, pp. 51, 68.
(y/) Smith v. Hibbard, 2 Dick.
730 ; Ecclesiastical Commrs. v. Fin-
ney, 1899, 2 Ch. 729, 1900, 2 Ch.
736.
[z) Above, pp. 504-506.
[a) Burronghs v. Oakley, 3
Swanst. 159, 170.
EFFECT OF THE CONTRACT PENDING COMPLETION. 525
from the commission or continuance of any such act of
waste as will depreciate the vendor's security for pay-
ment. In this respect the purchaser's position resembles
that of a mortgagor in possession (h). If the purchaser
take possession before completion without the vendor's
leave, he may be ejected and restrained by injunction I
from re-entry, or from the commission of waste, as a
mere trespasser may (c). The question to what extent
the purchaser's entry into possession before completion
may be a waiver of objection to the title has already
been considered (d).
If at the date of the contract for sale the purchaser Purchaser
be in possession of the property sold as tenant to the '^""^''^'^y. ^
vendor from year to year or for any other term, and the vendor's
contract is subject to the usual condition that the vendor
shall show a good title, the tenancy is not determined
at law pending completion of the contract (c) ; though
in equity the purchaser, of course, has the rights inci-
dent to his position under tlie contract ( /'). And it
appears that in such case, in the absence of stipulation
to the contrary, the purchaser will be entitled to the
rents and profits and liable to pay interest on the
purchase money as from the date of the contract, not-
withstanding that the contract be conditional on the
vendor's showing a good title (g). If at the date of the
contract the purchaser be in possession as tenant at will
to the vendor, it appears that the tenancy is determined
by the contract, and that thenceforth the purchaser is
(J) Crockford v. Alcxmider, 15 (c) Boc d. Gray v. Staniou,
Ves. 138 ; Humphreys w. Harrison, 1 M. & W. 695 ; Tarte v. Darby,
1 J. & W. 581 ; Kiny v. Smith, 15 M. & W. 601.
2 Hare, 239, 244; Goodman v. (/) Above, p. 604; Daniels v.
Kinc, 8 Beav. 379 ; Wms. Real Davison, 16 Ves. 249, 253.
Prop. 552, 21st ed. (y) Townky v. BedweU, 14 Ves.
(c) See Crockford v. Alexander, 590, 597 ; Daniels v. Davison, 16
15 Ves. 138. " Ves. 249, 253 ; see M,IU v. Hay-
{d) Above, pp. 188—190. u-ood, 6 Ch. D. 196.
526 EFFECT OF TTTE CONTRACT PENDING COMPLETION.
to be treated as being in possession under the con-
tract (//).
Orders for If an action be brought for the specific performance (?')
possession to of a contract for tlie sale of land and the purchaser be
pay price into j^ possession, he may be ordered, pending the trial of
Court or give ^ ' -^ • T m ,
up possession, the action, to pay the purchase money into bourt, or at
his election either to pay the money into Court or to
give up possession. The Coiu't makes such orders for
the preservation of the property, which is the subject of
the action, considering it unjust to allow the purchaser
to have both the land and the purchase money in his
possession pending the trial. Thus, if the purchaser
exercise any act of ownership, such as felling timber or
working mines, which impairs the vendor's seciuity for
payment of the price, he will be ordered to pay the
purchase money into Court without having the option
of giving up possession instead ; and this is the case,
whether the purchaser were put into possession pursuant
to the contract or with the vendor's consent given after
the contract (/.•). And where the vendor has shown
such a title as the pm-chaser ought to accept, or the
purchaser has accepted the vendor's title, the purchaser
being in possession will be ordered to pay the piu'chase
money into Court (/) . Where the purchaser being in
. possession has done nothing to diminish the value of
I the property, he will not be ordered to pay the pm-chase
money into Court without being offered the alternative
{h) Daniels V. Davison, l6Yes. 564:, 1 Mev. IS3; Cutler Y.Simons,
249 252, 253. 2 Mer. 103 ; Bradshaw v. Brad-
(i) The orders here mentioned shaw, ib. 492 ; Bramley v. Teal,
will not be made at the instance 3 Madd. 219 ; Pope v. Great Eas-
of a vendor suing for rescission tern Rail. Co., L. R. 3 Eq. 171 ;
of the contract ; but other proper Lewis v. James, 32 Ch. D. 326,
ordei's for the preservation of the 330.
property in dispute may be made (/) Bradshaw v. Bradshaw, 2
in such an action: Cook v. An- Mer. 492, 493; Crutchley v. Jer-
drews, 1897, 1 Ch. 266. ni»ghaw, ib. 502; Wood v. Ed-
[k) Dixon v. Astley, 19 Ves. n-ards, 1876. W. N. 15.
527
EFFECT OF Till': CONTRACT PENDING COMPLE'I'TON.
of giving up possession (ni) ; but it appears that, where
he has been let into possession with the vendor's leave
but not under the contract, he will, as a rule, be ordered
to elect within a specified time whether he will pay the
money into Court or give up possession, not\vithstan ding-
that a good title has not yet been shown (n), unless
there be delay in making out the title attributable to
the vendor's lar/ifs (o) . Where the purchaser has been
put into possession pursuant to the contract for sale, the
Court will not, in general, so put him to his election (p).
And where the purchaser's right to possession is refer-
able to some other title than that conferred by the
contract or the vendor's leave given after the contract,
as where he entered imder a lease granted to him prior
to the sale, there appears to be no ground for requiring
him to elect as above mentioned (q).
§ 2. — Of fJic Tramfer pending Compfrfion of the RUjhtx
(Did Liahilifirfi under the Contrnet.
We will now consider the effect of the transfer of the Transfer
rights and liabilities created by the contract pending pietion'^of tli<>
the completion thereof. This may take place either J'.'-'''.^:' :""^
. .,. -ii PI liabilities
involuntarily, which is mainly by act of law, or volun- nudcr tlio
tarily, that is, by act of the parties. The former case
occurs upon the death, bankruptcy or personal inca-
pacity supervening since the contract of either party
thereto, and on the land sold being taken in execution
(w) Greenwood v. Tnmcr, 1891, 500, oOl ; Morqan v. Shaiv, 2
2 Ch. 144. Mer. 138 ; Grli v. Walxon, 3
(«) (Jlatke V. in/xon, 15 Ves. Madd. 225; Prif.sr v. Cninhrinii
317 ; Gihmn v. (JIarkc, 1 V. & B. Rail. Co., L. R. 2 Cli. 444.
500; Smith V. IJoi/d, 1 Madd. 83 ; (//) Bonner v. Jolinnton, 1 Mer.
irick/iain V. Erenil, 4 Madd. 53 ; 36G ; Frcehody v. Pcrri/, G. Coop.
Yoiingew. Diuuombi,Yo\x\\^c,'nb\ 'Jl. Note that in GreenuuoJ v.
Ttnd^il V. CoMum, 2 My^ & K. Turner. 1891, 2 Cli. 144. tlic
385; Foirfer V. Word, (J Jiir. .')47. lease under wliich the purehasor
(o) Fox V. liirc/i, I Mer. 105. claimed to be in possession had
Ip) Oihsonv. Clarke, 1 V. & B. expired at the time of tlie motion.
eontraet.
528
EFFECT OF THE CONTEACT FENDING COMPLETION.
of a judgment against the vendor ; the latter upon the
assignment inter riros by either party of his rights
under the contract. We will consider each of these
eases in turn, first, as regards the vendor, and, secondly,
with respect to the purchaser, premising that the con-
tract, once validly concluded, is not avoided by the
death, bankruptcy, or supervening incapacity of either
party thereto, and remains, as a rule, enforceable not
only at law but specifically in equity at suit of either
party thereto, his representatives in law or assigns,
against the other party or his representatives in law (r) .
The contract is also specifically enforceable against the
vendor's assigns infer vivos of the land other than those
who have taken the legal estate therein as purchasers in
good faith for valuable consideration actually paid or
executed without notice of tlie contract (.s).
Death of the Qn the vendor's death, his rights under the contract
^'^^ °^" pass to his executors or administrators, who are the
proper persons to sue upon the contract either for
damages at law or for specific performance in equity {f).
But in order to reap the benefit of the contract, the
personal representatives must, of com-se, procure the
performance of the vendor's part of the agreement —
that is, the conveyance to the purchaser of the land
Devolution of sold — and it is therefore necessary to consider upon
2tlte°'^°'^'^ what persons the vendor's estate in the land sold
()•) Saden v. Fembroke, 2 Vem.
213; Otven v. Davics, 1 Ves. sen.
82 ; Hinton v. Hinfon, 2 Ves. sen.
631, 633 ; Taylor v. Stibbert, 2
Ves. jun. 437, 439 ; Brooke v.
Hewitt, 3 Ves. jun. 253 ; Sug.
V. & P. 175, 208 ; 1 Dart, V. & P.
255, 995, 99G, 5th ed. ; 291, 1114,
1115, 6th ed. ; 296, 1029, 1030,
7th ed.; Fry, Sp. Perf. §§ 211,
212, 241, 274, 275, 3rd ed. ;
Tearce v. BastaUc's Trustee, 1901,
2 Ch. 122.
(s) Daniels v. Davison, 16 Ves.
249, 17 Ves. 433 ; Potter v.
Sanders, 6 Hare, 1 ; 2 Dart, V. &
P. 823, 824, 996, 5th ed. ; 927,
928, 1115, 6th ed. ; 836, 837,
1030, 7th ed.
{t) Baden v. Pembroke, 2 Vem.
212 ; Eaton v. Sanxter, 6 Sim.
517; Roberts v. Marehant, 1 Ph.
370 ; Hoddel v. Pugh, 33 Beav.
489; Sug. V. &P. 177; 1 Dart,
V. & P. 256, 1008, 5th ed. ; 293,
1130, 6th ed. ; 296, 1029, 7th ed.;
Fry, Sp. Perf. § 212, 3rd ed.
EFFECT OF THE CONTRACT PENDING COMPLETION. 529
devolves upon his death pending completion. This
depends upon the nature of the property sol•) A contract giviuif an option where any particular time is
to purcha.se any land jjivcs au specified for the exercise of the
interest in the laud to the person option, time is of the essence of
536
EFFECT OF THE CONTRACT PENDING COMPLETION.
property is converted into personalty in the hands of
the vendor, his heirs and assigns, us from the time of
the exercise of the option ; and if the vendor die before
that time, his heirs or assigns of the hereditaments in
question are entitled to the rents and profits thereof
until the option is exercised, after which, in the absence
of any disposition to the contrary made by his will (.s),
his legal personal representatives are entitled to the
purchase money, with interest from that time until pay-
ment, as part of his personal estate (t).
Conveyance
of deceased
vendor's
estate by vest-
insr order.
As we have seen(i«), in case of the vendor's death
pending completion, a conveyance of his estate must be
executed to the purchaser before the purchase money
can be obtained. Such a conveyance cannot always be
immediately executed by the persons on whom the ven-
dor's estate has devolved on account of their being under
disability or from other causes. In certain cases of this
kind the required conveyance may be effected by vest-
ing order made under the jurisdiction conferred by the
Lunacy Act, 1890 {x), or the Trustee Act, 1893 (y).
the contract or matter : Brooke v.
Gan-od, 'L De G. & J. 62 ; Rane-
lagh V. Melton, 10 Jur. N. S.
1141 ; Weston v. Collins, 11 Jur.
N. S. 190 ; and see Milh v. Hay-
wood, 6 Ch. D. 196 ; Bruner v.
Moore, 1904, 1 Ch. 305. The benefit
of an option given by covenant
contained in a lease to the lessee,
his executors, administrators or
assigns, to purchase the fee sim-
ple of the demised premises goes,
after the lessee's death, to the
persons becoming entitled to the
lease : Re Adams and Kensington
Vestry, '2.7 Ch. D. 394. As to
the question how far an option
to purchase must conform with
the rule against perpetuities, see
above, pp. 370—372. As to the
eti'ect of a contract to give the
first refusal of land, see Manchester
Ship Canal Co. v. Manchester Race-
course Co., 1901, 2 Ch. 37.
(«) See above, p. 634, n. (/«).
{€) Laives v. Bennett, 1 Cox,
167 ; Townley v. Bedwell, 14 Ves.
590 ; Weeding v. Weeding, 1 J. &
H. 424 ; Re Adams and Kensington
Vestry, 27 Ch. D. 394, 399.
(m) Above, p. 529.
[x) Stat. 53 Vict. c. 5, s. 135,
enabling the Judge in lunacy to
make a vesting order when a
lunatic is solely or jointly seised
or possessed of, or entitled to a
contingent right in any land upon
trust.
[y) Stat. 56 & 57 Vict. c. 53, ss. 26 — 34. These enactments and
that mentioned in the previous note have replaced the Trustee Acts,
1850 and 1852 (stats. 13 & 14 Vict. c. 60 ; 16 & 16 Vict. c. 55), which
EFFECT OF THE CONTRACT PENDING COMPLETION. 537
But, except where the coutract is established by briiig-
iug an actiou for its specific performance, the Court will
replaced 11 Geo. IV. & 1 WiU. IV. c. 60 : 4 & 5 Will. IV. c. TS ; and
1 & 2 Vict. c. 69.
By the Trustee Act, 1893, s. 26, the High Court may make a vesting
order —
(i.) Where the High Court appoints or has appointed a new trustee ;
(ii.) Where a trustee entitled to or possessed of any laud, or entitled
to a contingent right therein, either solely or jointly with any
other person —
(a) is an infant, or
(b) is out of the jurisdiction of the High Court, or
(c) cannot be found ;
(iii.) Where it is uncertain who was the sur\dvor of two or luore
trustees jointly entitled to or possessed of any land ;
(iv.) Where, as to the last trustee known to have been entitled to or
possessed of any land, it is uncertain whether he is living or
dead ;
(v.) Where there is no heir or personal representative to a trustee
who was entitled to or possessed of land and has died intestate
as to that land, or where it is uncertain who is the heir or
personal representative or devisee of a trustee who was entitled
to or possessed of any land and is dead ;
(vi.) Where a trustee jointly or solely entitled to or possessed of
any land, or entitled to a contingent right therein, has been
required, by or on behalf of a person entitled to require a
conveyance of the land or a release of the right, to convey the
land or to release the right, and has wilfullj'' refiised or neglected
to convey the land or release the right for twenty-eight days
after the date of the requirement.
By sect. 27, where anj' laud is subject to a contingent right in an
unborn person or class of unborn persons who, on coming into exist-
ence, would, in respect thereof, become entitled to or possessed of the
land on any trust, tlie High Court may make an order releasing the
land from the contingent right, or may make an order vesting in any
person the estate to or of which the unborn person or class of unljoru
persons would, on coming into existence, be entitled or possessed in
the land.
By sect. '61, where judgment is given (amongst other things) for
the specific performance of a contract concerning any land, the High
Court may declare that any of the parties to the action are trustees of
the laud or any part thereof within the meaning of this Act, or may
declare that the interests of unborn persons who might claim under
any party to the a(;tiou, or under the will or voluntary settlement of
any person deceased who was duriug his lifetime a party to the con-
tract concerning whidi the judgment is given, are the interests of
persons who, on coming into existence, would be trustees within tlic
meaning of this Act, and thereupon the High Court may make a
vesting order relating to the rights of those persons, bom and unborn,
as if they had been trustees.
By sect. 32, vcstingorders have the effect of a conveyance by the
proper persons. By sect. 33, tlie Court niay, in all ca.scs where a
vestiug order can be nuide, appoint a per.son to convey, and a convey-
ance by siich ])ersoii shall have the same effect as a vestiug order.
By sect. 34, where an order vesting copyhold laud is made with the
538
EFFECT OF THE CONTRACT PENDING COMPLETION.
not make a vesting order as to a deceased vendor's
estate under these Acts unless the contract had been so
far executed in his Hfetime that at the time of his death
he was unquestionably an absolute trustee for the pur-
chaser (;:) ; as, for examj^le, where the whole or the
bulk of the purchase money had been paid and the
purchaser let into possession (a). It may be observed
that the construction so placed on these Acts is not
inconsistent with the doctrine that the vendor is a
trustee for the purchaser conditionally as from the date
of the contract, and absolutelj^ when the contract has
become fully binding by the acceptance of the title (/>).
The Court, in exercising the jurisdiction conferred by
these Acts, does not question this doctrine ; it merely
requires indisputable evidence of the vendor's absolute
trusteeship before it will treat his representatives as
trustees.
Death of
vendor M^ho
sold under a
power.
Where the owner of a power of appointment over
land has contracted to sell the land in exercise of the
power {(■) , and dies before completion of the sale by
conveyance under the power, the contract for sale is
treated in equity on the same footing as a defective
execution of the power, and will accordingly be speci-
fically enforceable by the purchaser against the persons
consent of the lord of the manor, the land shall vest without surrender
or admittance ; and where a person is appointed to convey any copy-
hold land, he shall do all things necessary to complete the assurance
thereof, and the lord of the manor shall, subject to the customs of the
manor and the usual payments, admit him accordingly.
(;) lie Carpenter, Kay, 418 ; be presumed that he contracted
Jte Collimj, 32 Ch. D. 333.
(a) Re Cumiwj, L. R. o Ch. 72 :
Re Pagani, 1892, 1 Ch. '236.
[h) Above, pp. 505, 529, 530.
\c) The question whether the
vendor contracted to sell in exer-
cise of the power depends upon
his intention. It is not necessary
that the contract should refer to
the power. Where the vendor
had no estate in the land, it will
to sell in exercise of his power;
but where he had an estate in the
land as well as the power, it is a
question of construction whether
he contracted to sell in exercise
of the right of alieu.ation annexed
to his estate or of the power : see
Blake v. Mariiell, 2 Ball &, Beat.
35; Sug.Pow. 201.sY?.,289,343Ar/.,
8th ed. ; Farwell on Powers. 266,
2nd ed. ; above, pp. 532, 533.
EFFECT OF THE CONTRACT PENDING COMPLETION. 539
entitled to the lauds in default of appointment. Thus,
if the power of appointment were exercisable by deed
only, and the contract for sale were made by unsealed
writing, and the vendor died before conveyance, eqvdty
would supply the defect in favom* of the purchaser, and
would oblige the persons entitled in default of appoint-
ment to carry out the contract (^/) . But in order that
a contract to exercise a power over land may be so
binding on those entitled in dnfault of appointment, it
must be valid from the beginning ; and it appears that
a parol contract, followed by part performance by the
purchaser, is not so enforceable against them {e), unless,
witli knowledge of the parol contract, they lie by and
allow him to lay out money on the estate (,/). Every Contracts for
contract for the sale of settled land made by a tenant l^e^tie'jj'^ii^Q^
for life or any person liaving the powers of a tenant for under the
life under the Settled Laud Act, 1882 {(j), is binding ^vcts.
on, and enures for the benefit of, the settled land, and
is enforceable against and by every successor in title
for the time being of the tenant for life, and may be
carried into effect by any such successor, but so that it
may be varied or rescinded by any such successor in
the like case and manner, if any, as if it had been
made by himself. And by the Settled Land Act,
1890 (A), a tenant for life may make any conveyance
which is necessary or proper for giving effect to a
contract entered into by a predecessor in title, and
which, if made by such predecessor, would have been (Sic.)
valid as against his successors in title. This enactment
appears to be applicable, not only where the contract
was made in exercise of some power conferred by the
(d) CoviHtry v. Conntti/, 1 Str. G. "24, 33.
59G; Mortluck v. Built r, 10 Ves. {f) .Sdlci v. •) Above, p. .^6 ; Levi/ v.
(«) Sect. 10. Stogdo)), 1898, 1 Ch. 478, '483.
(o) Sect. 37; see Ifardyx. Fot/in- 484, affirmed, 1899, 1 Ch. .5.
riee {f), and to be provable in his
bankruptcy accordingly.
Banki'uptcy
of the vendor.
If the vendor be adjudged bankrupt pending com-
pletion, his rights under the contract vest, as part of his
property, in the trustee in his bankruptcy (ii) ; and his
estate in the land sold also vests in the trustee, unless,
it appears, the contract had been executed by payment
of the whole of the purchase money before the act of
bankruptcy, so that the vendor h.ad become a bare
trustee for the purchaser (a") . It has, however, been
held, where leaseholds had been sold and the price paid
but no conveyance executed, that the vendor was
j)ossessed of the legal estate in the term not only as
trustee for the purchaser, but also for his own use in
virtue of his lien on the property by way of indemnity
against the rent and covenants of the lease, and that
for this reason his estate passed on his subsequent bank-
ruptcy to the trustee therein (//) . But the trustee in the
bankruptcy takes the vendor's estate in the land sold
subject to the purchaser's equities therein under the
contract (s) ; and if he cannot, or does not, disclaim the
land sold under his power to disclaim onerous pro-
perty (r/), he cannot disclaim the contract for sale, where
(t) Above, pp. 34, 35 ; and see
lie Taylor, 1910, 1 K. B. 562.
(m) Stat. 46 & 47 Vict. c. 52,
88. 20, 44, 50 (5), 168 ; Exptc. Rab-
hidge, 8 Ch. D. 367.
{x) See A'. C, 8 Ch. D. 371 ;
Re Taylor, 1910, 1 K. B. 562 ;
above, p. 529. It does not appear
that the vendor could be treated
as holding the land sold on trust
for the purchaser, so that it would
not pass to his trustee in bank-
ruptcy, merely by reason of the
acceptance of the title : see ca.se.s
cited in note [d], below, p. 547.
(«/) •) Franklin v. Brownlnir, 14 [t] See above, p. .)4f< ; Colluta
Ves. 550. V. Sfimsoii, ubi sup.
(s) See above, p. 548 ; Collins (»/) See above, pp. 548, 549.
V. Stimson, 11 Q. B. D. 142. (.r) Soo above, p. 549.
(y) See above, p. 550, n. (r).
k
554
EFFECT OF THE CONTRACT PENDING COMPLETION.
be completed after that date, and the vendor, without
notice of the act of bankruptcy, receive from the pur-
chaser any money or negotiable securities in payment
of the price, he will obtain a perfectly valid title thereto
under the general law (s).
Adjudictitiou If the purchaser be adjudged bankrupt pending com-
ao-a^^Uh^*^"^ pletion, the vendor ought to make application in writing
purchaser. to the trustee in the bankruptcy requiring him to decide
whether he will disclaim the contract or not ; for if the
trustee do not disclaim the contract within twenty-eight
days after the receipt of sucli an application or within
such extended period as may be allowed by the Court,
he wdll no longer be entitled to disclaim the contract
but shall be deemed to hare adopted it (a). These last
words, as to the adoption of the contract, were added to
the bankruptcy law by the Bankruptcy Act, 1883 (b),
and they have not yet received any judicial interpreta-
tion. Apparently, their effect is to impose on the
trustee, being so deemed to adopt the contract, the
liabilit}^ to fulfil it with the bankrupt's assets, but not
to make the trustee otherwise personally liable on the
contract (c) . If so, it would seem that the purchaser's
trustee in bankruptcy, on being so deemed to adopt
the contract, would be liable to be sued on the eon-
tract by the vendor either for specific performance or
for damages {d). If however the vendor make no ap-
plication requiiing the trustee to elect as to disclaimer
of the contract, and the trustee allow the time other-
wise limited to him for disclaiming onerous pro-
(2) See Wms. Pers. Prop. ")42,
.'A?,, 16th ed.
(«) Stat. Hi k 47 Vict. c. 52,
s. 55 (4).
(b) Apparently in consequence
of the decision in lie Sncczum, 3
Oh. D. 463.
{c) See the arguments put for-
ward in the Court of Appeal and
the judgment of James, L. J.,
in the last-mentioned case : Wil-
liams's Bankruptcy Practice, 261,
262, 7th ed.
{(l) See above, p. 552.
EFFECT OF THE CONTRACT PENDING COMPLETION.
perty (e) to elapse without disclaiming the contract,
it is not provided that the trustee shall be deemed
to have adopted the contract; and in such case it
does not appear that the trustee comes under any
liability to perform it, or that the vendor can main-
tain any action thereon, either for specific performance
or damages, against the trustee (/). But by the Bank-
ruptcy Act, 1883 {g), the Court may, on the application
of any person who is, as against the trustee, entitled to
the benefit or subject to the burden of a contract made
with the bankrupt, make an order rescinding the con-
tract on such terms as to payment by or to either party
of damages for the non-perfonnance of the contract, or
otherwise, as to the Court may seem equitable, and any
damages payable under the order to any such person
may be proved by him as a debt under the bankruptcy.
If the purchaser's trustee in bankruptcy do not disclaim
the contract, the question arises whether the vendor can
safely complete the contract with the trustee electing to
adopt it. The Bankruptcy Act, 1883 (A), gives no
express power to the trustee to perform the bankrupt's
contracts generally. But the trustee is expressly
empowered, with the permission of the committee of
inspection, to bring any action or other legal pro-
ceeding relating to the property of the bankrupt («),
which includes the benefit of a contract made by the
bankrupt (A-) ; and by the former bankruptcy law the
trustee was entitled to perform a contract entered into
by the bankrupt, if he thought it would be beneficial to
the creditors (/). It seems therefore that, as uuder the
present Bankruptcy Act the purchaser's trustee may,
with the permission of the committee of inspection, sue
(<■) Above, p. 546, n. («). see sects. 56, 57 : Re Snceziou,
if) See Re Sneeziim. 3 Gh. D. 463; 3 Ch. D. 463, 473.
Hollowa,/ V. York, 25 W. R. 627. (i) Sect. 57 (2).
iff) Stat. 46 & 47 Vict. c. 62, (k) Sect. 168.
3. 55 (5). (l) Re Sneczinn, 3 Ch. D. 463,
(A) Stat. 46 & 47 Vict. c. 52 ; 472, 474.
555
556
EFFECT OF THE CONTRACT PENDING COMPLETION.
the vendor for specific performance of the contract on
the usual terms of paying the price, so he may well
secure the same benefit on the same terms without
litigation where the vendor is willing to carry out
the contract (iii) ; but it is thought that the trustee
ought to obtain the permission of the committee of
inspection before so performing the contract, and that
the vendor cannot safely complete the contract unless
this be done [ii) .
Insolvent
purchaser
when dis-
charered from
liability on
the contract.
Purchaser an
undischarged
bankrupt at
the time of
the contract.
If before completion of the contract the pm'chaser
should be adjudged bankrupt and obtain an order of
discharge or should make a composition or a scheme of
arrangement with his creditors approved under the
Bankruptcy Act, 1890, it appears that he would be
released from all liability under the contract, even
though the trustee had not disclaimed the contract and
the vendor had not proved in respect of the purchaser's
liability (o) .
If the purchaser were an undischarged bankrupt at
the time when the contract of sale was made, and the
vendor complete the contract and receive, in ignorance
of that fact, any money or negotiable securities in pay-
ment of the price, the same cannot, of course, be
recovered from him, whether the trustee in bankruptcy
were entitled thereto or not (p). If, however, the
vendor receive notice, before completion, of the pur-
chaser's bankruptcy, it does not appear that he would
obtain a good title to any money subsequently paid to him
by the bankrupt in pursuance of the contract, unless the
money had been acquired by the purchaser since the
(»?) See the principle applied in
iltaffff V. Medivay Navigation Co.,
1903, 1 Ch. 169.
(w) See Re Vavasour, 1900, i'
Q. B. 309.
(o) See above, p. 545.
(;;) See Wms. Pers. Prop. 543,
16th ed. ; Collins v. Stimson, 11
Q. B. I). H2.
EFFECT OF THE CONTRACT PENDING COMPLETION. 5o7
commencement of tlic bankruptcy, tind the trustee had
not intervened to claim it [q) . The purchaser, it seems,
would be obliged to prove that this was the case, and,
if he failed to discharge this obligation satisfactorily,
the vendor (^ould not safely complete the contract
without the concurrence of the trustee (r).
The vendor may suffer the involuntary alienation of Land taken
the land sold pending completion, not only in the I^qI-,^" ^o°^.
event of his bankruptcy, but also if the land be taken pletion.
in execution of a judgment against him (s). If this be
done, either under a writ of e/ec/if or by virtue of an
order for the appointment of a receiver (7), and the
writ or order be duly registered under the Land
Charges Acts, 1888 and 1900 (?/), the judgment cre-
ditor vn\\ acquire an indefeasible estate by r/rt/if in the
land, entitling him to hold the same until his debt be
satisfied out of the rents and profits (r) : and this will
be a legal estate in the land sold, where the vendor's
interest therein was legal (./•). The judgment creditor
further acquires a charge on the land so taken in exe-
cution for the amount of the judgment debt and
interest (//), and may obtain an order for the sale of
the debtor's interest in the land (z) . And these rights
of the creditor are not now affected or liable to be
diminished in case the purchaser had no notice of the
(ly) See Pollock, B.. Co/lhis v. («) Stats, ol c^- o'i Vict. v. ol,
,S'/!;m.so«, 11 Q.B. D. 11.2, 144,ast<) ss. 4—6; 63 & 64 Vict. c. 26,
the money, wln•) See above, p. oo2. s. 4. amended by 63 & 64 Vict.
( v) See Wms. Real Prop. 26.S e. 26, s. .5 ; see Wms R(>al Prop.
nfj., 2l8t ed. 275, 276, 21st ed.
(0 See ibid. 269 sq., 292,
558
EFFECT OF THE CONTRACT PENDING COMPLETION.
judgment (a). The judgment creditor, however, takes
the estate and interest so acquired by him in the land
sold subject to the purchaser's equities therein under
the contract (b). If the whole or any part of the
purchase money should have been paid to the vendor
prior to the registration of the writ or order of execu-
tion (before which time the judgment cannot now
operate as a charge on the land or on any unpaid
purchase money therefor {<■) ) , the purchaser has priority
in respect of the amount so paid over the creditors'
interest in the land (b). If, however, the whole of the
purchase money have not been paid before the registra- l^
tion of the "svTit or order, the judgment creditor becomes
entitled to receive the amount remaining unpaid, or so
much thereof as will satisfy the judgment debt ; and
the purchaser is bound and must take care to pay this
amount to the creditor and not to the vendor (d). Any )
writ or order of execution and any delivery in execution I
of the land sold pending completion is void as against
the purchaser unless the writ or order be duly registered ^
in the Office of Land Registry under the Land Charges ■:
Act, 1888 {(') ; and the judgment does not operate as a
charge on the land or any interest therein, or on the
unpaid purchase money therefor, unless or until such
registration takes place (/). But, as we shall see here-
(ff) By the Judgments Act, Lodge v. Lyseleij, 4 Sim. 70.
1839, no judgment, as against (<") Stat. 63 & 64 Vict. c. 26,
purchasers and mortgagees with- s. 2 (1) ; Wms. Real Prop. 274,
out notice thereof, should bind 276, 21st ed.
any hei'editaments more exten- ((/) Sug. V. & P. 518, 527 ;
sively than a duly docketted Forth v. Norfolk, 4 Madd. 503,
judgment would have bound such 505; Re Pope, 17 Q. B. D. 743.
purchaser or mortgagee before the [e] Stat. 51 & 52 Vict. c. 51,
Judgments Act, 1838; but this ss. 4— 6.
enactment was repealed by the (/) Stat. 63 & 64 Vict. c. 26,
Land Charges Act, 1900 : see s. 2 (1). These provisions apply
stats. 2 & 3 Vict. c. 11, s. 5 ; 63 to writs or orders affecting any
& 64 Vict. c. 26, s. 5 ; Wms. hereditaments of any tenure ; and
Real Prop. 271 — 276, 521, 522, appear therefore to apply to writs
21st ed. of Ji. fa. when used for seizing
{h) Sug. V. & P. 517, 518, 527 ; leaseholds, as well as writs of
Whitworth v. Gaurjain, 1 Ph. 728 ; elegit : stats, 51 & 52 Vict. c. 51,
EFFECT OF THE CONTRACT PENDING COMPLETION. •'559
after (//), it is tliouglit tliat, if the purcliaser have notice
that the land sold has been actually delivered in execu-
tion under an unregistered Avi-it or order, lie cannot
safely disregard the fact ; for the execution is valid as
against the judgment debtor, and confers upon the
judgment creditor an estate by eJcgit voidable, in
default of registration, as against purchasers only, and
it may be held that^ such delivery in execution is valid
in equity as against a purchaser with notice thereof.
Wliere the land sold is seized pending completion under
process of execution which is valid, either at law or in
equity, as against the purchaser, the judgment creditor
must concur in the conveyance in order to convey his
interest in the land sold, and receive and give a dis-
cliarge for so much of tlie purchase mone}' as is payable
to him. The delivery in execution of any land,
whether by writ of clcnit or order apj)ointing a receiver,
is not an act of bankruptcy, so that in such cases the
sale may be safely completed with the judgment cre-
ditor's concm-renee [h). It appears that equitable Execution
execution issued by the appointment of a receiver in purchaser,
respect of a piirchaser's interest in land under the con-
tract for sale will not operate to give the judgment
creditor any charge on the land, if the vendor should
never become an absolute and a bare trustee for the
purchaser. Sucli execution cannot therefore affect the
s. 4 ; iVi & ()4 Vict. c. 'JS, s. G (.'5); In this context "goods" includes
see Wms. Ileal Prop. o'21, .V2i, all chattels personal, but not ap-
21st cd. parently chattels real: see stat.
(//) Below, Chap. XII. Sect. 2. 46 & 47 Vict. c. .52. ss. 4.),
(A) See stat.s. 4(5 & 47 Vict. 168. If execution be levied on
c. ;V2, s. 4 : -VJ <5«: o4 Vict. c. 71, a debtor's leaseholds by writ of
s. 1. A debtor commits an act Ji. fa., and the .sheriff hold them
of bankruptcy if (amouji^'st other for twenty-one days, it is a ques-
thinff.s) e.xei;ution against him has tion whether an act of bankruptcy
been levied by seizure of his good.s is committed ; and if so. a pur-
under process in an action in any chaser of the laud cuuld not safely
Court or in any civil procei'din;,'' complete his contract, even with
iu the High (Jourt, and the ffoods the judgment creditor's ooniur-
have been either .sold or held by rence : see above, p. 54S,
the sheritf for twenty-one days.
5(i0 EFFECT OF THE CONTRACT PENDING COMPLETION.
vendor's right to rescind the contract for the purchaser's
breach of one of the main duties thereby imposed on
him (/). The subject of executions issued against the
land sold pending completion is further discussed below,
under the head of Searches (k) .
Lunacy. If either vendor or purchaser, having been sane when
the contract was made, become of unsound mind before
its completion, that does not avoid the contract, and an
order for its specific performance may nevertheless be
obtained (/). As, however, a person of unsound mind
can make no valid conveyance or payment to another,
who has notice of his mental condition {in), he cannot
himself well perform the acts necessary to completion.
But the eifectual completion of the contract may be
obtained in certain cases by means of an order under
the Lunacy Acts, 1890 and 1891 (>?). By these Acts,
the Judge or a Master (o) in lunacy may by order
authorise the committee of a lunatic to perform any con-
tract relating to the property of the lunatic entered into
before his lunacy {p) ; and in the case of persons of un-
sound mind,'not being lunatics so found by inquisition,
to whom the powers of management and administration
given by the Act of 1890 apply (q), such of the powers
(«) See Midout v. Foioler, 1904, 95, 159, 16th ed.
1 Ch. 658. 2 Ch. 93 ; above, {n) Stat. 58 Vict. c. 5. .<;. 120 (i).
pp. 605, 506, 529, 530, 538 : and (o) Stat. 54 & 55 Vict. c. 65,
see above, p. 36; below. Chap. s. 27 (1), which enabled the juris-
XVIII. § 2, XIX. § 1. diction of the judge in these re-
{k) Chap. XII. ^ 2. spects to be exercised by the
[1] Ou-en V. Daries, 1 Ves. sen. Masters ; see Jif Browne, 1894.
82 ; Hall v. Warren, 9 Ves. 605. 3 Ch. 412 : Re Langdale, 1901, 1
(;w) Wms. Real Prop. 298. Ch. 3.
299, 21st ed. ; Wms. Pers. Prop. [p] Stat. 53 Vict. c. 5, s. 120 (i) .
[q) By stat. 53 Vict. c. 5, s. 116 (1), these powers apply —
(a) To lunatics so f oimd by inquisition ;
(b) To lunatics not so found by inquisition for the protection or
administration of whose property any order has been made
before the commencement of the Act :
(c) To every person lawfully detainecl as a lunatic thouffh not
so found by inquisition (see lie Whalley, 1906, 1 Ch. 565) ;
I
EFFECT OF THE CONTRACT PENDING COMPLETIOX. SGI
of that Act as are made oxercisable by the committee of
tlie estate sliall be exercised by such person as the Judge
or Master sliall direct (/•). And the committee of the
estate, or such person as the Judge or Master approves,
shall in the name and on behalf of the lunatic execute
and do all such assurances and things for giving effect to
any order under this Act as the Judge or Master directs,
and every such assurance and thing shall be valid and
effectual, and shall take effect accordingly, subject only
to any prior charge to which the property affected
thereby at the date of the order is subject (s). If the
vendor become of unsound mind after the contract has
been so far executed that lie is a trustee for the pur-
chaser within the meaning of the statutes authorising
vesting orders to be made as to the estates of trustees (;'),
an order vesting the vendor's estate in the purchaser
may be obtained under tlie Lunacy Act, 1*890 [ii).
If either party to the contract be a single woman, Marriage of
and marry pending completion, she is not, under the l^^\^^ ^^^*^
present law (.<■), disabled from enforcing or completing tract,
the contract by herself alone. If she should have made
(d) To everj' person not so detained and not found a lunatic by
inquisition, with regard to whom it is proved to the satis-
fat'tioii of tlie Judge in hinacy that such person is through
mental iiiHimity arising from disease or ago incapable of
managing his aliuirs (see Jie Ih-otnic, 1894, o Ch. 112 ; Re
Spurlhxj, I'JO!), 1 Cii. 199) ;
(e) T(\ every person as to whom it is proved to the satisfaction of
the Judge in lunacy that he is of unsound mind and
incapable of managing his affairs, and that his property
does not exceed 2,000/. in value, or that the annual income
thereof does not exceed 100/. :
(f) To every person as to whom the Judge is satisfied that he is
or has hcin a criminal liuiatic, and continues to be insane
and in eonlinement.
(>•) Sect. 116 (2). AV Vagani, 1892. I Ch. 23G.
{•«) Stat. •'):? Vict. c. ;'). s. 124, (j-) As to the elf eet of marriage
,'is amended by .")4 & o5 Vict. c. (j'), on a woman's legal cajiacity at
s. 27 (1). "ominon law, see below. Chap.
(/) Above, pp. ASG— 5.38. XVf. : Wms. Keal Prop. :?()G sq.,
{u) Stat. 'V\ Vict. c. .'), s. 1:5.'') ; 2 1st ed. ; Wm.s. Pers. Prop. IJ^S,
see lie Ciimiii;/, L. R. '» Ch. 72: ICth ed.
w. 36
'562 EFFECT OF '11111 CONTRACT PENDINCJ COMPLETION.
no disposition of her interest in the contraot by wny of
settlement, she will on marriage become entitled to the
same as lier separate property (//) and will be enabled to
sue alone in respect thereof as if she were h/chh' f[z).
And she will be liable to be sued thereon without her
husband being joined (a) ; although he will be liable
on the contract to the extent of all property belonging
to her which he shall have acquired or become entitled
to from or through her, after deducting therefrom any
payments made by him, and any sums for which judg-
ment may have been ho)id fide recovered against him at
law in respect of her ante-nuptial debts, contracts or
wrongs (/>), and he may be sned on the contract either
alone or jointly with her accordingly {<■). If she be the
vendor, her estate in the land sold will become her
separate property on marriage, unless otlierwise dis-
posed of by ante-nuptial settlement, and she will be
able to convey tlie same to the purchaser witliout her
husband's concurrence [d). In consequence of the in-
convenient doctrine that the legal estate in land vested
in a married woman as trustee does not become and
cannot be conveyed as her separate property [c) — a
doctrine intended to be remedied by the Married
Women's Property Act, 1907 (./), wluch enabled a
married woman to dispose as if she were difcmo aoh of
real or personal property held by her as trustee or
personal representative — it seems necessary to point out
that wlien a vendor of land, being the beneficial owner
tliereof, is or pending completion becomes a married
woman, the purchaser could not before that Act and
[y) Stat. 45 & 46 Vict. o. 75, 23 Q. B. D. 316.
S.S. 'l (1), 2,24. {d) Sects. 1 (1), 2; Re Drinn-
(z) Sects. 1 (2), 12, 24. moiul ei,'- I)urie\-< Co)ifracf, 1891, 1
(«) Sect. 13; and see sect. 19; Cli. 624.
J«y V. i^i/«so«, 25 Q. B. D. 467 : ('■) Re ITcirkncfis ^- AU>iopp\s
Robinson v. Lyiics, 1894,2 Q. B. Contnici, 1896, 2 Cli. 358; see
577. below, Chap. XVI.
{/)) Sect. 14. (/) Stat. 7 Edw. VII. c. 18,
\c) Sect. 15; Bee Beck v. Piercr, s. 1 (1); see below, Chap. XVI.
>
i
EFFECT OP THE CONTRACT PENDING COMPLETION. '56-3
cannot now require the concurrence of her liusband
in tlie conveyance on the ground that slie became an
absolute trustee for the purchaser at the time when
the title was accepted (r/). For in the first place,
when a married woman is disposing of her separate
property for her own use, she is not a trustee thereof
within the meaning of this doctrine at any time prior
to the execution of the contract by payment of the
purchase money (//). And secondly, even admitting
tliat she were an absolute trustee for the purchaser on
acceptance of the title, she would, on payment of the
price, become a hare trustee for him(/), and so might
well make a conveyance to him on receipt of the pur-
chase money by virtue of the power of conveyance given
to married women, wlio are bare trustees, by the Trustee
Act, 1893 (/»•). The marriage of a man does not, of
course, affect his legal capacity. But on the marriage
of either party to the contract, wliether man or woman,
the other party should incpiire wliether any settlement
or agreement for a settlement has been made affecting
the property sold or his or her interest in the contract (/) ;
as if any such disposition should have been made, the
contract can no longer be safely or properly completed
with the lately married party alone, but the concurrence
of the persons to whom his or her interest has been
assigned must bo obtained (w).
If, pending completion, either party to the contract Conviction of
have judgment of deatli or penal servitude pronounced fpio'n " "*
or recorded against liim in Kngkind, Wales or Ireland,
ui)on any charge of treason or felony, he cannot, so long
(f/) Above, p. .'J29. c. 78, s. G ; see Itc Howfiate (uid
(/i) See 7iV Jiroo/.e ^- Ficmlins (hhurii\st:outnut,VjO->,\bh..\^n \
Contract, 1898, I Ch. G47 ; above, below, Chap. XV^I.
pp. ftO.i, 506. (/) 1 Dart. V. & P. 32!), 5th
(i) Above, p. .')2'.1. f(l. ; :57;5, Gth eJ. ; 307, 7tli od.
(/.) Stat. .")(j ic .)7 Vict. c. o.'J, (;;/) See above, pp. Mb, 13U.
.s. IG, replacing' 37 & "iS Vict.
36 (2)
164
EFFECT OF THE CONTRACT J'EN1)IN(t COMPLETION.
Oiitl.iwry,
Pai'ty lipcom-
iTisjr ixn alien
eiit'iny.
as he remains a convict, bring any action on the
contract either at law or in equity, or alienate any
property (//) ; but all his property, including his interest
in the contract or in the land sold, vests in the person
appointed to be his administrator, who may sue or be
sued on the contract, and has such powers of dealing
with the convict's property as will enable him to
complete the contract (o). Outlawry, which remains
theoretically possible in criminal proceedings, would, if
incurred by a party to the contract pending com-
pletion, involve his incapacity to enforce the contract
and would raise obstacles to the completion in the
forfeiture to the Crown of the profits of his real estate
and of his goods and chattels ( p) . If, pending com-
pletion, either party to the contract become an alien
enemy (q), he cannot enforce the contract whilst he
remains so (r) ; unless indeed he be resident in this
countrj' under the King's protection.
Assi.i^nnioTit We will now consider the effect of the assignment by
by a party to gj^j^g^ party to the contract of tlie land sold or of liis
the ooiitraot. .
Assignment beneficial interest in the contract. With regard to the
by the vendor assignment by the vendor of the land sold, this land
ot the land ^ / ,
sold. Ix-ing m equity the propert}^ of tlie purchaser as from
tlie date of the contract for sale, tlie vendor is not
entitled to make any disposition thereof pending tlie
completion of the contract to any other person or other-
wise in derogation or to the prejudice of the purchaser's
rights under tlie contract (.s) ; any sucli disposition by
(«) Stat. 33 & 34 Vict. c. 23,
s.«. G — 8 ; and see .sect. 30.
(o) Sects. 9—14 ; C'arr v. An-
drrmi, 1903, 2 Ch. 279. The
administrator of a convict has,
however, no power to bar an
estate tail vested in the convict :
but the convict himself can exe-
cute a disentailing deed ; Re
GmMl&; irall(W Cnntmct, 1906,
2 Ch. 1 ; see above, p. .'532, n.
(7/) ; below, Chap. XVI.
(p) See below, Chaii. XVI. ;
Wms. Real Prop. 48, llo, 3t)l,
21st cd. ; "Wms. Pers. Prop. 96,
l.i3, KiO, 16th od.
(7) See Jansoii v. Driefontein,
.\r., 1902, A. C. 484, fjOr), r)OG.
(r) See below, Chap. XVI.
(.s) Above, pp. -501 «. 7 Ch. 2r)'J; r,n< \. Cavr, l.')Ch. I).
\c) luiuxon V. Ellin, 1 J. A: W. 63'J ; Ji>i€i,Ii v. Ldou^, l.j Q. H. I).
624. 2Si) : Ha'hs v. Jiul/in-Mjii, ib. 288;
(.(•) See iibuvo, p. 476. i>y>i!/c v. Hyxyc, 1894, 1 Q. B. 400,
(y) Above, y. .V28, ii. {») ; Fry, 471.
Sp. Peif. ^^ 2U6, Ml, 241, c;rd e'd.
566 EFFECT OF THE CONTRACT PENDING COMPEETION.
pending completion of that contract and without notice
thereof, the same lands were sold by B. to D., and the
sale to D. were completed by payment of the purchase
money, and the execution by A., at B.'s request, of an
express declaration of trust in D.'s favour, it appears
that C. would have no better equity than D. to insist
on possession of the land (a). But it is to be observed
tliat tlie protection obtained against the purchaser's
prior equity by a subsequent alienee acquiring in good
faith, for value and without notice, the legal estate or
the best right to call for it, does not extend beyond the
interest actually acquired for valuable consideration
paid or executed before any notice of such equity
has been received. If the vendor, pending com-
pletion, dispose of the land sold to a stranger for any
valuable consideration which is wholly or in part
executory, the alienee, though he has obtained the legal
estate in good faith and without notice of the sale,
cannot, if he afterwards receive notice thereof, safely
perform for the vendor's use any part of the con-
sideration then remaining unexecuted. Thus, if the
vendor, pending completion of the original sale, re-sell
the land and convey the legal estate tlierein to another
Avitliout receiving payment of the whole price, the
second purchaser is protected against the first piu^-
chaser's prior equity as regards so much of his purchase
money as he has paid before receiving notice of the
first sale, and is entitled to hold his legal estate as
security for the amount so paid. But after he has re-
ceived such notice he cannot safely pay the rest of his
purchase money ; for he will not be entitled to set up
A/.s contract of sale as specifically enforceable against
the first purchaser, and, as between himself and the
(a) See ini/.rs v. Boduujion, 'l If'ilmnl v. Pdc, 5 Hare, 14, L'l —
Veni. 599; WiUaiajlibii v. Wil- Ti : rohnm v. Kciiipslcr, 1907,
loufikby, I T. R. 76;i, 767— 77'2 ; 1 Ch. 373, 378.
Sta)ihope v. Vcniri/, 2 Edeu, 81 ;
EFFECT OF THE COXTKACT PENDING CoMI'LHllON.
0G7
veudor, tliat contract will be rescinded and lie will Le
discharged from all fm-tlier performance of his obli-
gations thereunder (h). If the vendor, pending com-
pletion of the contract, convey an equitable estate in
the land sold for valuable consideration to some third
jierson, the alienee cannot, after receiving notice of the
contract for sale, protect himself against the pm'chaser's
claim by taking a conveyance of the legal estate from
tlie vendor, or from an express trustee thereof for the
vendor (r). Uut otherwise the alienee is entitled to Titikin:,' by
lack his ovni equitable interest to the legal estate if he aiieu.ju.
can obtain it without any breach of trust on the part of
the conveying party, so that if the legal estate in the
property be outstanding in a mortgagee the alienee, on
taking a transfer of the mortgage, even after receiving
notice of the sale, can exclude tlie purchaser's rights (d).
The }»urchaser is, as we have seen (r), fidly entitled AHiimtiuu by
to dispose of the land sold as his own, at any time after of'theVand^'^'^
the makins: of the contract for sale. sold.
(b) Joiirii V. S/i/ii/ii/, 2 Eq. Ca.
Abr. 68."), pi. 9 ; Slor;/ ^^ U'liui-
for, '1 Atk. (>3() ; JIardiDyhain v.
y,vh»lh, ;i Atk. ■M)\ ; ToiinUIr v.
Xiiish. 3 P. W. 307 : Su'jr.
V. A: P. 78'.». In the last ca.so a
purchaser whu had taken a con-
veyance and given a bond for
the balance of the jjrice without
notice of a prior efpiitable incum-
brance, and received notice there-
of prior to payment of the money
due on the bond, was postponed
to the incunibruncer, as reg-ards
Much money, on the ground that
he would be entitled in equity to
avoid payment of the money on
the bond. The privinpr of a bond
or covenant for payment of the
whole or part of the purchase
money may, i)erhaps, be properly
treated as not constitutin;,' exe-
cuted consideration within the
meaning of the rule stated above,
as any assi^jrnee of the debt so
secured would take subject to the
equities between the debtor and
original creditor. Tint if the sale
were made on the terms that a
negotiable security should l>e
given for the un])aid purc^hasc
money, it appears that tlie giving
of such security ought to be
treated as executed con.sideration,
at least where the security has
lx>eu negotiated before notice of
the prior equity is received ; for
after the negotiable security has
come to the hands of a bona fide
holder for value the liability
thereon can no longer be avciided.
((■) Above, p. 4S(), n. (i) ; I'ottir
V. Sdtidrrs^ (3 Hare, 1.
d) T<(i/lvr V. UitustU, 1892,
\. C. 244 ; liuilrif v. Hunicn,
IS9i, I Ch. 25, 30, 37; tibovo,
pp. 477—480.
[r) Above, pp. 50G, o41.
5t;8
EFFECT OF THE CONTKACT PENDING COINIPLETION.
A.ssigiiniciit
of the beuefit
of the cou-
tract.
Either party to the contract may hiwfully assign
over his beneficial interest therein (/'), and the assignee
may sue the other party in his own name in equity for
the specific performance of the contract, making the
assig-nor a party to the action {(/) ; and this is the case
whether the assignment of the benefit of the contract
be made for the purpose of absohitely transferring the
assignor's whole interest or of securing some lesser or
other advantage to the assignee, such as the repayment
of money lent {//). And the assignee of the interest of
either party to the contract is entitled, under the Judi-
cature Act of I87'j, to sue the other party thereon in
his own name at law if the assignment were an absolute
assignment in writing under the hand of the assignor
(not purporting to be by way of charge only), and
express notice in writing of such assignment were
given to the other party (/). Notice of the assignment
by either party of the benefit of the contract must, of
course, be given to the other party, in order to prevent
him from further performing the contract for the
(/) ]rood V. GriJ/it/i, 1 Swaiist.
43," 55, 56 ; Sug. V. & P. 35H ;
iS/i(iw V. Fos/cr, L. R. S H. L
321, 333. 338; TolliMTKi v. As.su-
ciaUd Fort lane/, <^-c. Ltd., 19C3,
A. C. 414, 420, 423.
iff) Ncithorpe v. Hulyate, 1 Coll.
203 ; and see Crosbie v. Toolce, I
My. & K. 431 ; Mon/an v. Modes,
ib. 435 ; FoireU v. Frw, 1 Y. & C.
C. C. 345, 358 ; 12 L. J. (N. S.)Ch.
158. 162, 165; Buckhoul \. Fapil-
hn, L. R. 1 Eq. 4 77, 2 Ch. 67 ;
Ely, Sp. Perf. § 222, 3rd ed.
(/i) Browne v. Lundun Necropolis
Co., 6 W. R. 188 : Shaiv v. Fos-
ter, L. R. 5 H. L. 321, 333, 338
—344, 350.
(J) Stat. 36 & 37 Vict c. 66,
«. 25, sub-s. 6 ; Turklngton v.
McHjee, 1902, 2 K. B. 427, re-
versed on the facts, 1903, 1 K. B.
644 ; and see FJaivson v. Great
Xortherii By., 1905, 1 K. B.
200, 270, 271. It ha.s been de-
cided that where there is au abso-
lute a.ssigiiment of the chose; in
action (in the sense of a complete
transfer of the legal ownership
thereof), the a.ssiguee may sue in
his own name, although the as-
signment be made to secure
the payment of money, and be
subject to a proviso for redemp-
tion on such payment : Tancred
V. Ikhuioa lUuj, iff. Hall. Co., 23
Q. B. i). 239 ; hnrhum x.liobert-
soH, 1898, 1 Q. B. 765 ; Hughes
V. Fuwp House, ^-c. Co., 1902,
2 K. B. 190 ; cf. Merennlile Bank
of London V. Evans, 1899, 2 Q. B.
613; Jones v. Humphreys, 1902,
I K. B. 10 ; or although the as-
signment be made on trust for
the assignor : Comfort v. Bells,
1891, I Q. B. 737; FUzroy v.
Cave, 1905, 2 K. B. 361.
EFFECT OF 'J'HE CONTKACT PENDING COMPLETION. ofi->
assignor's own use, which he would otherwise he
entitled to do. And, as a ride, when one party to the
contract i-eoeives notice of the assignment by the other
of his interest in the contract, he is thenceforth bound
to continue the performance of his part of the contract
in favour of the assignee, and must no longer give to
the assignor the benefit of the contract (k). But in
order to oblige the other party to cease performance in
favour of the original contractor, and to complete the
contract with the assignee, there must be an effectual
assignment (jf the original contractor's interest and
notice of such assignment, and the assignee must show
himself ready and willing to take the assignor's place in
all respects, accepting the burtlien, as well as the benefit,
of the contract (/). Thus, where a purchaser of leaseholds S/iau-v.lox/cr.
deposited his contract with his bankers, together with a
written agreement that he would at any time there-
after, at their request, execute to them a valid assign-
ment of the contract, and the bankers gave formal
notice to the vendor of the terms of this agreement
only, not mentioning the deposit of the contract or
expressing any intention to stand in the purchaser's
place as regards its completion, and took no further
steps to secure to themselves the benefit of the sale, it
was considered that the terms of the agreement amounted,
not to a present assignment of the benefit of the
contract, but only to a promise to assign the same at a
future time upon request ; and it was held that the
vendor was justified in executing, on payment of the
purcliase money by the original purchaser, a conveyance
which took no notice of any interest on the banker's
part {m).
rX) S/,nir V. Fvstir, L. R. 5 1902. 2 K. B. 127. ivvor.swl i.u
}I. L. :?21, 3.i3, 33«, 3:jy, 3o0 ; the facti*. 1903, I K. B. li41.
Wms. Pcrs. Prop. oG, IGth cd.
(«) ahaw V. t'wlii\ L. 1\. .')
{I) See Turklngton v. Mugu, H. L. 321.
570
El'FlXT OF THF CONTUACT I'ENDING COMPLETION.
As to tilt'
burthen of
tlie contract
after ;in
ussisifuuient.
Of course, neither l)arty to the contract can assign
over tlie burthen thereof (ii). It follows that when one
party to the contract has assigned his interest therein
he remains liable to perforoi his part of the contract ;
and the other party cannot sue the assignee, either for
the specific performance or for damages for breach of
the contract {o), unless he has accepted the assignee as
occupying the assignor's place, in respect of the fulfil-
ment of the contract. In this case there appears in
trutli to be a novation of the contract, and tlio assignor
is not a necessar}' or proper party to any action
tliereon {p).
Trausfer of
part of tlic
benefit of the
coiitruct.
If a party to the contract make no direct assignment,
either legal or equitable, of his whole interest in the
contract, but merely transfer by some indej)endent act
or agreement a part of the benefit which he is to derive
from its performance — as if the vendor merely charge
the purchase money with the payment of some smaller
amount, or the purchaser agree to sell a part or to lease
the whole or a part of the land sold — the transferee,
being no party to the contract and being unable to
assert an absolute assignment to himself of the original
contractor's interest within the meaning of the Judica-
ture Act of 1873, is not entitled to sue the other party
to the original contract in his own lutme at law (y).
(«) Tolliio'st V. ^hsociiitcd Forl-
IfDid Cement MiDiiifacliorrs, 1902,
2 K. B. GGO, 608, afHrmed, 1903,
A. C. 414.
(o) Chadwick v. Madcn, 9 Hare,
188.
[p) HoldcHW Uaijn, 1 Mer. 47 ;
Hall V. Later, 3 Y. .^ C. 101.
[q) Sec above, p. 5GS ; Mei-
rKiilde Batik of J.oiidvn v. Ecarns,
1899, '1 Q. B. Glo ; Jones v. Hum-
p/nrt/n, 190-2, 1 K. B. 10. It iw
a question whether an absolute
assignment by the vendor of part
of the purchase money would
enable the assignee to sue the
purchaser at law ; but the better
opinion appears to be that it
would not : see Urice v. Bainiii'fer,
3 Q. B. D. 5U9 ; llnrham v. liu-
hrrtson, 1898, 1 Q. B. 765, 7G9—
77-5, and the two cases cited
above ; Hkippcr v. llollowat/, 1909,
W. N. 230, 79 L. J. K.'B. 91,
reversed ou the facts, 1910, W. N.
EFFECT OF 11 IK CONIKACT PENDIXG COMPLETION. '^"l
But, iu equity, one who has acquired from an orig-iual
contractor a derivative interest in the subject-matter of
a contract which is specifically enforceable, may claim,
as against his grantor and the other party to the con-
tract, to be an assignee 2)ro ianto of the benefit of tlie
contract, and to have the same specifically performed in
his own favour accordinGrlv. Thus, in Bromio v. Lmnloii ^j'O"'"^ \;
" - ' _ _ London J\'f/y-
Nccropolis Co. {/•), a vendor of laud assigned a portiou /^o./i*- Cu.
of the purchase money by way of mortgage, the mort-
gagee deposited this mortgage with another by way of
sub-mortgage, and the sub-mortgagee sued the pur-
chaser, his own mortgagor and tlie vendor, claiming, Jis
against the purchaser, tlie specific performance of the
contract. AVood, V.-C, held that the suit was maintain-
able in this form, considering that any person who was an
assignee of the vendor might assert the vendor's rights
under the agreement to purchase, and thus obtain the
benefit of his charge through the medium of specific
performance. The same rule appears to be applicable
in the case of the acquisition by a third person from
the i)urchaser of an estate or interest in the land sold.
But to obtain such relief the person claiming it must
submit to perform the original contract, so far as any
duty thereby created relates to the interest acquired by
him in tlie subject-matter of the agreement, and lie
must also procure the whole of the obligations under-
taken by his assignor in the contract to be comph^tely
discharged (s). For a contractor cannot, by a partial
any more than by a complete {t) assignment of his
74: 1910, -2 K. B. fi30; lioulr.s v. ;i')0, 3.')7. 358; aud see Sunt/i
/y^^r/-, 1910, W.N. 24, 110, 119 ; Jui.strrn Rail. Co. v. A'lwlt, 10
n(im. Fovnter v. Baker, 1910, 2 Hare, 122 ; Fen wick v. liulman,
K. B. 63C. L. R. 9 E(i. 1().5, where note that
(»•) 6 W. R. 188, where, how- Broune v. Lo)im v. Top-
ham, 19 Beav. 576, 578.
EFFECT OF THE CONTRACT PENDING COMPLETION.
573
laud under tlie coutraot or with the vendor's leave, and
the vendor's only remedies to obtain payment of the
purchase money are to sue the trustee at law and to
enforce his vendor's lien (r).
(c) Ecclesiastiral Commrs. v.
riiinei/, 1899. 2 Ch. 7'29, 190.),
2 Ch. T-'^G. Fn)in what "was said
in the judgments in this case it
ajjpears that the vendor would not
have had any remedy to obtain
payment of the purchase money
from the c xlii'i-qut-tnisfs or out
of the trust fund if the contract
had not been a breadi of trust.
574
CHAPTER XTI.
OF THE COMPLETION OF THE CONTEACT.
^ 1.
^5.
Of Completion generally.
Of Searches and Inquiries.
Of the Preparation of the Conveyance.
Of the Adjustment of Accounts.
Of the Execution of the Conveyance.
^:? 1.-
-Of Completion f/enern////.
Ak'I'KR the investigation of title is completed, the pur •
chaser either accepts the title and proceeds to completion,
or he objects to the title and claims that the vendor has
failed to perform that part of the contract. In the latter
case the vendor either admits the purchaser's claim or
disputes it, when the parties must pursue their legal
remedies. But if the purchaser accept the title, the con-
tract is either duly completed or it fails to be performed
either for non-payment of the purchase money or else
for some reason Avhich is not precisely a matter arising
upon the investigation of title, as that the contract was
induced by mistake or by misrepresentation as to some
fact, or bv fraiul, duress or undue influence, or cannot or
ouglit not to be performed by reason of the incapacity
of some party thereto or of the relation in which tlie
parties stand to each other. Of course, any of tliese
matters may be alleged as a ground for avoiding the
contract before or during the investigation of title. But
as the plan of this treatise has been to take the normal
coiirse of a contract for the sale of land, and to describe
the incidents thereof as they occur in order of time, wo
Ol^ TIIK COMF^LKTTON OF PHE COXTRACT. 575
will first examine the cases in which the contract is duly
completed, and will consider afterwards tlie various
grounds on which the contract may he avoided.
Let us now approach the subject of the completion of Tiinr- f.,r
the contract in its ordinary course. And first, as to the ""'^'
time for completion. As we have seen (a), if when the
investigation of title is concluded the vendor has shown
a good title according to the contract, the purchaser is
bound to accept the title and complete the contract
accordingly. Under an open contract, the time for
completion is when the vendor has shown a good title (//) :
but it is usual in formal contracts for the sale of land
to fix a date for completion {(•). When this is done,
time is not, as a rule, of the essence of the contract,
either in equit}' or. since the Judicature Acts commenced,
at law(^/). This rule, however, is subject to certain
exceptions. The principle to which these exceptions
are referable is the same as that on wliioli tlie rule itself
is founded (/'). As the Court will enforce the specific
performance of a contract, notwithstanding tlie failure
to comply with some stipulation as to time, where it
considers that the real intention of the parties was not
to make the condition as to time material (/"), so the
Court will not order the specific performance of a con-
tract after breach of a stipulation as to time, where the
intention appears, either expressly or impliedly, that tlie
observance of the time stipulation sliall be an essential
part of the contract (f/). A stipulation, tlierefore, tliat
a contract for tlie sale of land shall be complet(^d on a
particular day will be of the essence of the contract, if
such were the intention f»f tlie parties ; and this inten-
(rt) Above, pp. 3.'), 40. 16:3, 179. {,■) See Jlipwcll v. Knight. 1
(/;) Above, pp. 3.'), 4f). Y. & C. 401.
, . ,, ,- (/) Above, pp. .58, '>9.
(r) Above, p. 5<. (;^. j..,^ the cases cited above,
[d) Above, pp. 58. 59 ; ralnck p. 5s ; Put rick v. Milne,; 2 C. P.
V. Mihier, 2 C. P. D. 342. D. 342.
576 OF THE COMPLETION OF THE CONTRACT.
tion may be eitlier expressed or implied. An express
intention to make time of tlie essence of the contract is
best shown by providing (in these terms) that time shall
be of the essence of the contract as regards the particular
act required to be done within a given time {//) : but
such an intention may also be gathered from other
expressions in the contract (/). It must, however, be
clearly shown, or the general rule of construction, that
time is not of the essence of an agreement to complete
a sale of land on a given day, will be applied (A-) . With
regard to the implication of an intention to make time
of the essence of a contract to complete a sale of land on
a particular day, we have seen (/) that such an intention
may be inferred from the nature of the property or
from the surrounding circumstances. Thus, time is of
the essence of the contract where the value of the
property sold must necessarily increase or diminish
according to the effluxion of time (m), as in the case of
sales of remainders or reversions other than those expec-
tant merely on a lease at a profitable rent {)/), of estates
or interests determinable with life (o), or of mining
leases or short leaseholds ( p) . So, where the property is
used for trade or business purposes, time is generally of
the essence of the contract (q), as on the purchase of a
public-house {>■), mill or manufactory as a going concern,
or of mines for the purpose of working them {x). But
in all these cases the question whether time is material
{Ji) Lloifd V. Rippingah, cited 1 (ol See Withy v. Coltle, T. & R.
Y. & C. 410; Parkin v. Thorold, 78 ; ' 1 Dart, V. & P. 419, 5th
16 Beav. 59, 65 : see above, ed. ; 484, 6th ed. ; 497, 7th ed.
pp. 62, 72. {p) IlKflson v. Temple, 29 Beav.
(/) ILpwell V. Knifihl, 1 Y. & C. 536, 543.
401, 417; Bcn-cluy'y. Messenr/cr, {q) Coshike v. Till, I Rxis^fi. Z76 ;
43 L. J. N. S. Ch. 449, 455. /r«//.-^rv./^#m/.'(. 1 Hare, 341, 348.
(/■) Above, p. 575 ; TJ'/hb v. {>■) Above, p. 488.
ir>iffhe.s, L R. 10 Eq. 281, 286. (.v) Tarker v. Fnf/,, 1 S. & S.
[I) Above, p. 59. 199, n. ; Maehri/ile v. IVeekea, 22
{m) Hipurll v. Knit/ht, 1 Y. >Sc Beav. 533 ; Fry, Sp. Perf.
C. 401.416. ■ ^§1079— 1082. 3rd ed. ■^.•'
[u'l Above, p. 408. • ..
OF THE COMPI.ETION OF THE CONTRACT. 577
is to be determined by ascertaining the intention of the
parties (f) ; and if it appear from the contract that they
contemplated delay in completion after the day fixed
therefor, as where the payment of interest in case of
delay in completion is expressly provided for {u), it will
not be considered that compliance with the time stipu-
lation is essential {.a) . As to inferring an intention to
make time of the essence of the contract from the
surrounding circumstances, this may be illustrated by
the case of a contract to sell a house for the purpose of
residence (y), or to sell land for erecting a mill or
factory (s) , or for any other immediate purpose (a) : but
it does not appear that such an intention will be inferred
where the vendor does not expressly or impliedly offer
the proj)erty as available for the required piu-pose and
the purchaser does not disclose to him what use he
desires to make of it (b). An express or implied stipu-
lation that time shall be of the essence of the contract
may be waived either by express agreement or by the
conduct of the parties, as where they continue negotia-
tions as to title after the day fixed for completion (c).
As we have seen (^/), where time is not originally of Making time
,•1 p i.1 J. J. 'i 1 1 ' ±^ of the essence,
the essence oi the contract, it may be made so, in the ^here not
case of unreasonable delay by either party in the per- originally so,
formance of his part of the contract, by a notice served notice,
on him by the otli<^r party and requiring him to do the
acts, which he has so delayed to perform, within a speci-
fied time ; provided that the time so specified allow him
{t} Above, p. 575. S. & S. 190.
(m) Above, pp 67, 74. (a) See Jonrx v. Gardiner, 1902,
(x) ]Vebb V. Ilufihes, L. R. 10 1 Ch. 191.
Eq. 281, 28G; I'o'trick v. Mihier, {h) See Bofhin v. TFood, 1 J. &
2 C. P. D. 342 : and see Jones v. W. 419, 422 ; Tifki/ v. Thomas,
Gardiner, 1902, 1 Ch. 191. L. R. 3 Ch. 61, 67, "70 ; Webb v.
(,v) Lenj V. Liiido, 3 Mer. 81, Hitghrs, L. R. 10 Eq. 281. 286.
84 ; Gedi/i' v. Montrose, 26 Beav. (r) Hipwrll v. Kntqht, 1 Y. i:
45 ; Tiiley v. Thomas, L. R. 3 C. 401 ; JVebb v. Hughes, L. R.
Ch. 61. 10 Eq. 281.
(s) See U'rit/ht v. IFoicard, 1 {d) Above, p. 48.
w. 37
i78
OF THE COMPLETION OF THE CONTRACT.
Time for per-
formance by
vendor of a
condition
which is a
term of the
sale.
The acts to be
performed on
either side for
completion.
such a period commencing from the date of service of
the notice as is reasonably necessary for accomplishing
the acts required.
Here it may be mentioned that, if it be a term of the
contract for sale that some condition shall be performed
by the vendor, as that he shall procure a mortgagee of
the land to alloAv the amount advanced to remain on the
security, and a day be fixed for completion, time being
of the essence of the contract in this respect, the vendor
may, as a rule, well perform the condition at any time
before the day fixed for completion {e).
Completion of the contract consists on the part of the
vendor in conveying with a good title the estate con-
tracted for in the land sold and delivering up the actual
possession or enjoj^ment thereof ; on the purchaser's
part it lies in accepting such title, preparing and ten-
dering a conveyance for the vendor's execution, accept-
ing such conveyance, taking possession and paying the
price (/'). But the performance of either party's duty
in this respect cannot be exacted by the other unless he
himself be ready to fulfil his own part of the contract.
Thus the vendor cannot require payment of the price
and call upon the purchaser to take possession unless and
until he have shown a good title and be ready and will-
ing to execute a valid conveyance to the purchaser;
nor can the purchaser oblige the vendor to convey and
give up possession of the land without himself accepting
the title, tendering a conveyance for execution, accept-
ing the conveyance and paying the price. And this is
so, not only under an open contract, but also where a
day is fixed for completion in the ordinary way, time
not being of the essence of the contract ; either party
being at liberty in such case to decline to eomj)lete the
(e) Smith v. Butler,
Q. B. 694, 699.
1900, I
(/) Above, pp. 26, 33, 34, 46.
OF THE COMPLETION OF THE CONTRACT. '^79
contract, notwithstanding that the day for completion
anive or be past, except on the terms of the other
discharging his duty (fj).
Let us first consider the purchaser's duties. The first The pur-
step towards completion required of him is to accept the duties "^
title, if the title shown on the abstract and proved by
the documents and other evidence produced for verifica-
tion of the abstract be a good title according to the
contract (A) . No formal act or notification of such Acceptance of
acceptance is required ; it takes place when the vendor's
last answer to the purchaser's last outstanding requisi-
tion is received without objection («"). Such acceptance, .
however, is merely an acceptance of the title so put
forward by the vendor (A) ; it does not preclude objec-
tion to the title on account of defects subsequently .
discovered from other sources than the information
supplied by the vendor, as from searches or other
inquiries made by the purchaser (/), provided of course
that the title agreed to be taken were not so limited by
special stipulation as to preclude such objection (m).
Neither does acceptance of the title prevent objections
as to matters which are properly matters of conveyance
rather than of title («) . It is important to observe this,
as a part of the proper investigation of every title
consists in searcliing for registered incumbrances, making ; Searches and
• • p i i ,1 • i. i.1. i. inquiries to be
inquiries ot tenants or other occupiers as to the nature made by the
purchaser.
{g) See 3lfirtin v. Smith, 6 1903, 1 Ch. 287.
East. 555 ; Jones v. JLidd, 4 (A) Above, p. 189.
Russ. 118; Pookv. Hill, 6 M. & (/) Above, pp. 189, 190 ; Jie
W. 83.) ; Tillii/ v. Thuma.s, L. R. Jackson and Oakshott, 14 Ch. D.
3 Ch. 61 ; Phillips V. Silvestet-, 851 ; Re Monekton and Gilzean,
L. R. 8 Ch. 173. 176—178; Ti Ch. T>. obb ; Re Haedicke atid
Noble -v. Edicardes, bQh.Ti.il^X Lipski's Contract, 1901, 2 Ch.
Mosli/n V. Mosti/n, 1893. 3 Ch. 666, 669, 670 ; Rr PuckHt and
376 ; above, pp.'eo, olT), .516. Smith's Contract, 1902, 2 Ch. 258.
(A) See above, pp. 35, 36, 105, (w) Above, pp. 202—207.
115. 143, lOfi, 178, 179. («i Above, pp. 164-166, 181,
(i) See cases cited above, pp. 26, 188, 190 ; Mosti/n v. Mostyn, 1893,
n. (r). 60, n. (/) : Re Iliyhett and 3 Ch. 376 ; Re Hughes and Ashley's
Bird's Contract, 1902, 2 Ch. 214, Contract, 1900, 2 Ch. 595.
37(2)
580
OF THE COMPLETION OF THE CONTRACT.
Acceptance
by not
sending in
requisitions
in time.
Soper V.
Arnold.
of their interests, or, where vacant possession is to be
given on completion, ascertaining that the vendor is in
possession ; and these searches and inquiries should be
so made as to extend over the very latest possible time
before completion (o). And it may happen that an
objection as to some matter of conveyance may be such
as to justify the purchaser in refusing to complete the
contract {p). We have seen () that the title may also
be accepted by not sending in requisitions or objections
within the time specially limited by the contract for
that purpose. If the purchaser inadvertently accept a
defective title put forward without fi'aud, and after-
wards fail to pay the purchase money and the vendor
rescind the contract and retain the deposit as forfeited
on that account (r), the purchaser will not be enabled,
on subsequently discovering the defect in the title, to
recover the deposit (s) .
Searches,
their object.
§ 2. — Of Searches and Inquiries.
The object of searching for incumbrances or other
matters, which are registered or enrolled, is to ascertain
that the vendor's title is not adversely affected by any
judgment, Crown debt, writ or other process of execu-
tion, life annuity, land charge, Us jjendens, bankruptcy,
deed of arrangement, disentailing assurance, deed
acknowledged before the year 1883 by a married woman
entitled at common law, or by registration of the title
or any registered disposition under the Land Transfer
Acts, 1875 and 1897 {t), or in the case of lands in
Middlesex or Yorkshire, by any disposition thereof
(o) Sug. V. & P. 538 : Dart,
V. &P. 454, 499, 5th ed.; bUsq.,
569, 6th ed. ; 1191, 1227, 7th ed.
{p) Above, pp. 165. 166, 181,
182 ; Mostyn v. Mostyu, 1893, 3
Ch. 376.
(r/) Above, pp. 179—182.
(?) See above, pp. 26, 36, 57,
74.
(.s) Soprr V. Armld, 37 Ch. D.
96, 14 App. Cas. 429.
[t] Stats. 38 & 39 Vict. c. 87 ;
60 & 61 Vict. c. 65.
OP THE COMPLETION OF THE CONTRACT. 581
already registered (u), or in the ease of copyholds by
any assurance already enrolled (x).
With regard to judgments and Crown debts of record Judgments,
or by specialty in statutory form or arising from public ^^^^ ^"pj^^ ^f
accountantship to the Crown, all of which at one time execution,
were, when registered, charges on the debtor's lands (i/),
it is now provided by the Land Charges Act, 1900 (z),
that a judgment (a) or recognizance, whether obtained
or entered into on behalf of the Crown or otherwise,
either before or after the commencement of the Act (h),
shall not operate as a charge on land, or on any interest
in land, or on the unpaid purchase money for any land,
unless or until a writ or order for the pui'pose of
enforcing it is registered under the Land Charges Act of
1888 (c) ; and this provision applies to any inquisition
finding a debt due to the Crown, and any obligation or
specialty made to the Crown, and any acceptance of
office from or under the Crown, whatever may have
been its date, in like manner as it applies to a judg-
ment (d). Under the same Act (c) too, no entry shall
be made, except under an order of the High Court, in
the register of judgments established by the Judg-
ments Act, 1838 (./■), the register of Crown debts
established by the Judgments Act, 1839 {(/), the
registers of writs of execution established by the Law
of Property Amendment Act, 1860 {h), and the Judg-
ments Act, 1804 (/), or the register of Crown process of
(m) Above, pp. 373 «'/. (6) Ist July, 1901 ; stat. 6'S k
Ix) SeeWms. Real Prop. -208— 64 Vict. c. 26, s. 6 (2).
294, 602—60.'), 2l8t ed. (c) Stat. 51 & 52 Viet. c. 51.
(y) Ibid. 209—275, 28.3—287. (rf) Stat. 63 & 64 Vict. c. 26,
(2) Stat. 63 & 64 Vict. c. 26, s. 2 (2) ; see Wms. Real Prop.
8.2(1). 285— 287, 21st ed.
(a) Hero including' any order (e) Sect. 2 (3).
or decree having the effect of a (/) Stat. 1 .Sc 2 Vict. c. 110,
judgment, except an order made .•*«. 19, 21.
by a Court having bankruptcy () Stat. 2 & 3 Vict. c. 11,. i. 8.
jurisdiction in exercise of that (A) Stat. 23 & 24 Vict. c. 38.
jurisdiction : see sect. 6 (3) ; stat. (i) Stat. 27 «ic 28 Vict, c 112.
51 & 52 Vict. c. 51, s. 4.
582
OF THE COMPLETION OF THE CONTRACT.
execution established by the Crown Suits Act, 1865 (/c).
And all these registers, as well as the registers of lis
pendens and life annuities (/), have been transferred
from the Central Office of the Supreme Court to the
Office of Land Registry {m). As regards writs or other
processes of execution, we have seen {ti) that, by the
Land Charges Act of 1888 (o), every writ or order
affecting land (including hereditaments of any tenure)
issued or made by any Court for the purpose of enforc-
ing a judgment (^:)), and every delivery in execution or
other proceeding taken in pursuance of any such writ
or order shall be void, as against a purchaser for value [q)
of the land, unless the writ or order is for the time
being duly registered against the uame of the jierson
whose land is affected in the Office of Land Registry.
This enactment was extended by the Land Charges
Act, 1900 (r), to every writ or order affecting land
issued or made by any Court for the purpose of enforc-
ing a judgment, whether obtained on behalf of the
Crown or otherwise, and whether obtained before or
after the commencement of the Act, and to every
delivery in execution or proceeding taken in pursuance
of any such writ or order. Registration under these
Acts ceases to have effect at the expiration of five years,
but may be renewed, and if renewed has effect for five
years from the date of renewal (s). With regard,
therefore, to judgments, Crown debts or liabilities of
the kind mentioned in the Land Charges Act, 1900,
and process of execution, whether at suit of the Crown
(/.■) Stat. 28 & 29 Vict. c. 104 ;
sec Wins. Real Prop. 271 — 275,
286, 21st ed.
{I) See below, pp. 587, 593.
(«?) Stat. 63 & 64 Vict. c. 26,
s. i ; and Order thereunder, W. N.
18th Aug. 1900.
(w) Above, !>. 558.
(o) Stat. 51 & 52 Vict. c. 51,
ss. 4 — 6.
{p) Above, p. 581, n. {a).
[q) Including a mortgagee or
lessee, or other person who for
valuable consideration takes any
interest in or a charge on land :
sect. 4.
(»•) Stat. 63 & 64 Vict. c. 26,
s. 3.
(a) Stat. 51 & 52 Vict. c. 51,
s. 5 (3).
OF THE COMPLETION OF THE CONTRACT.
583
or of a common person, the purchaser need only now
ascertain that no writ or order affecting the land sold
has been registered or re-registered within the last five
years ; and if this be so, and the possession of the lands
sold be in accordance with the title shown, he may
safely complete the purchase (f). But if any such
writ or order be registered, the purchaser must not
complete without the concurrence of every person
entitled thereunder to any interest in the land (ii). And
this is the case whether such writ {.(•) have been followed
by actual deliver}- in execution or not, as the effect of
the Land Charges i\.ct, 1900 (//), read together with the
unrepealed provisions of the Judgments Act, 1838 (s),
appears to be that a judgment shall operate as a charge
on the judgment debtor's lands, wlien the writ or order
enforcing it has been registered under the Land Charges
Act of 1888 (r^), actual delivery in execution being no
{t) It fjiunot now be necessary,
as regards judgments suffered or
Crown debts incun-ed before the
comraenooment of tlie Land
Charges Act, 1900, to search in
any of the registers closed as
above mentioned: p. 581. If
before that Ait any sucli judg-
ments or debts wore i;harges on
any lands without the lands
having been actually delivered
in execution fas might happen
in the case of a judgment entered
up before the 'i^rd July, l.S(iO,
and kept alive by payment of
interest or otherwise, i>v a Crown
debt incuiTcd before the 2nd Nov.
18(3.)), it appears that on the
commencement of that Act they
ceased to be charges, unless or
until a writ or an order to enforce
them had been or should be
registered. If the lands had
been actually delivered in execu-
tion prior to that Act, it appears
that, by virtue of sect. 'A of the
Act (above, p. 582), unless the
land h;wl bei'n already sold under
the Judgments Act, 18G4, it
became necessary on the com-
mencement of the Act of 1900 to
register the writ or other process
of execution, and that in default
of such registration the delivery
in execution would be void as
against the jjurchaser. But the
purchaser must ascei'tain that the
possession of the land sold is in
accordance with the title shown,
because he is deemed to ha've
notice of the interests of all per-
son.s in occupation thereof, and
it may be held that, if the pur-
chaser have notice of a delivery
in execution under an unregis-
tered writ or process, the same is
valid in equity as against him :
see below, p. 581.
(it) See above, pp. 557 — 560.
(.«•) An order appointing a re-
ceiver is of itself equity to actual delivery in exe-
cution : below, p. 585, n. (i).
V) <}3 & 64 Vict. c. 26, s. 2.
(-) Stjit. 1 & 2 Vict. c. 110,
s. 13.
(a) Stat. 51 & 52 Vict. c. 51.
584
OF THE COMPLETION OF THE CONTRACT.
Notice of
judgments, or
Crown debts
of record or
by speoialty
or public
accountant-
ship.
Crown debts
by simple
contract.
Notice of
unregistered
process of
execution.
longer a condition precedent to the lien of a judg-
ment (b) . So Crown debts of tlie kind included in the
Land Charges Act, 1900 (c), h;ive the binding effect on
the debtor's lands which was given to them by common
law or early statute (d), so soon as a writ or order for
the purpose of enforcing them is registered. But as no
charge now arises in the case of Crown debts of this
kind, or of judgments, until registration of the writ or
order, the purchaser will not be adversely affected by
notice or knowledge of any of these Crown debts
incurred by or any judgments against the vendor or his
predecessors in title, so long as the purchase is com-
pleted before such registration takes place. Debts due
to the Crown by simple contract and not arising from
the above-mentioned accountantships {c) did not, under
the old law, give rise to any lien on the debtor's
lands until they were made of record for the pm^pose
of enforcing them (/') ; and they do not now give rise to
such a lien. The piux-haser may therefore safel}'
disregard these liabilities of the vendor, notwithstanding
that he have notice of them ; they could only affect
him if his purchase were made, not in good faith, but
with intent to defraud the Crown {g). With regard to
unregistered process of execution against lands, it is to
be observed that the same is made void only as against
purchasers for value {/>). The actual delivery of any
lands in execution, under an unregistered writ of elegit
or receiving order, still vests in the judgment creditor
(b) Under the Judgments Act,
1864, no judgment thereafter
entered up affected any land until
actually delivei'ed in execution.
But this enactment was repealed
by the Land Charges Act, 1900 :
see stats. 27 & 28 Vict. c. 112,
s. 1 ; 63 & 64 Vict. c. 26, s. 5 ;
Wms. Real Prop. 274, 21st ed.
(c) See above, p. 583, n. (y) ;
and p. 581.
{d) See Wms. Real Prop. 285,
21st ed.
{e) Above, p. 581.
(/) M. V. Smith, Wightw.
34 ; Casherd v. A.-G., 6 Price,
411, 473—476; Chitty on the
Prerogative of the Crown, 293 —
296 ; Sug. V. & P. 545.
((/) Sug. V. ^' P. 545.
(/() Above, p. 582.
OF THE COMPLETION OF THE CONTRACT.
585
an estate by degit, which is valid as against the judg-
ment debtor himself, his representatives in law and
assigns by voluntary conveyance (/). It appears there-
fore that the actual delivery in execution under unregis-
tered process of lands sold, whether made before or
pending the completion of the contract for sale, is an
objection to the title, the estate sold being partly vested
in some person, whom tlie vendor has no right to direct
to convey to the purchaser {k) ; and it seems by analogy
to the rule applied under the old law as to the sale of
lands already parted with by voluntary conveyance (/),
that the vendor could not enforce the specifie j^erform-
ance of the contract, upon the ground that conveyance
to the purchaser would render the execution void. Nor
could the purchaser himself be advised to rely upon this
ground and accept the title, if he had notice of the
(*) See above, p. .559. The
estate by rkgit vests in the judg-
ment creditor, in the case of exe-
cution under a writ of •) See stats. 1 & 2 Vict, c lid,
s. 18 ; 46 ic 47 Vict. c. 5:!, ss. b2,
93, 100 ; R. S. C. 1883, Orders 42
(it. 3, 24, 28), 43 (r. 1) ; Bank-
ruptcy Rules, 1886, r. 93.
(.s) Stat. 1 & 2 Vict. c. 110,
s 13.
[i) Stat. 63 e^: 64 Vict. c. 26,
OF THE COMPLETION OF THE CONTRACT. 587
contract and is ordered to pay damages or costs (?/).
There do not appear to bo any means of discovering
whether lands sold are affected by a liability of this
kind.
Annuities or rent-charges which may affect purchasers Annuities or
of land are of two kinds, those granted in exercise of ^^^ "^ arges.
the ordinary right of alienation incident to ownership,
and those created under statutory authority, generally
for the purpose of securing the repayment of money
advanced for the improvement of land. Of annuities
of the former kind, those granted on or after the 26th
of April, 1855, otherwise than by marriage settlement
or will, for a life or lives or for any estate determinable
on a life or lives, are required to be registered, for-
merly in the Court of Common Pleas and now in the
Office of Land Registry, in order to affect the lands
charged therewith as against purchasers {x) . Life N.jticc of lite
. , , T • i 1 1 annuities.
annuities so required to be registered are, however,
valid in equity, though unregistered, as against pur-
chasers who have notice of them (//). Annuities or rent-
charges of the former kind, other than those so required
to be registered, of course take effect according to their
nature ; if legal, they will affect the lands charged in
the purchaser's han'ls ; if equitable, the purchaser will
take the lands free from them, only so far as he can
claim under a c(mveyauce of the legal estate made in
(m) Above, p. 5.);3. An example an estate in fee or in tail in pos-
of an appeal made by a con- session, were formerly made void
tractor with a bankrupt to bank- by statute, unless a memorial
ruptcy jurisdiction and dismissed thereof were duly enrolled in the
with costs against him occurs in Court of Chancery : stats. 1 7
J{e Jiti-stab/c, 1901, -IK. B. n\S. Geo. III. o. -26 ; oli Geo. III.
{x) Stat. 18 & 19 Vict. c. lo, c. 141; 3 Geo. IV. c. 92: 7
88. 12, 14; above, pp. 437, 582. Geo. IV. c. 75. But the.se
Annuities for or determinable on statutes were repealed by the
any life or lives, granted for Act abolishing the Usury Laws :
valuable con.sideraticm, and not stat. 17 ic 18 Vict. c. 90.
secui'ed on lands of equal or (y) Greaves v. Tofcld, 14 Ch. D.
greater value than the annuity, oG3.
and belonging to the grantor for
588
OF THE COMPLETION OF THE CONTRACT.
good faith and for executed valuable consideration
without notice of them, and not otherwise {z). [f any
such rent-charges exist, they ought to be stated on the
abstract (a) : but if not so disclosed, they are not gene-
rally discoverable either by any search, or by the
absence of the title deeds, as a person having a rent
only is not entitled to the custody of the title deeds of
the land charged therewith {b).
Land charsfes.
Notice of
uru'egistered
land charge.-*.
Land
improvement
charges
created before
1889.
With regard to rent-charges of the latter kind, those
coming under the description ot a land charge {(•) in the
Land Charges Act of 1888 (^d), and created after that
year, are void as against a purchaser for value (c) of the
land charged therewith, unless registered in the register
of land charges at the Ottice of Land Registry. And
rent-charges coming under the same description and
created before the year 1889, but assigned over by act
inter cii'OH after the year 1888, are not recoverable after
the expiration of one year from the lirst of such assign-
ments, as against a purchaser for value {e) of the land
charged therewith, unless registered in the same
register [g) . As it may be contended that land charges
so required to be registered are valid in equity as
against purchasers who have notice of them (//), pur-
chasers cannot be advised to disregard any such charges,
though not registered, of which they have notice. Land
improvement charges created by the authority of statute
before the year 1889 were not declared to be void, as
against purchasers, if not registered : but some of them
were required to be registered and are discoverable by
search. Thus, charges created under the Public Money
{z) Above, pp. 565 — 567 ; C/c-
mnv V. Geach, L. R. 6 Ch. 147.
{a) Sec above, pp. 105, 176.
{/>) Wms. Real Prop. 462, 13th
ed. ; 598, 21st ed.
(c) Stated above, p. 437, u. {a).
{d) Stat. 51 cVc 52 Vict. c. 51,
12.
[c) Above, p. 582, n. (c/).
{(/) Sect. 13.
(/*) See above, p. 586, and n. (o).
OF THE COMPLETION OF THE CONTRACT.
589
Drjiiuage Acts (/), the Private Money Drainage Act,
1849 (/•), or the Improvement of Laud Act, 1864 (/),
he fore the year 1889, were registered against the name
of the landowner affected thereb}' at the office of the
Inclosure Commissioners, afterwards styled the Land
Commissioners (w), whose powers and duties were in the
year 1889 transferred to the Board of Agriculture («),
at whose office the search for such charges should be
made (o). Land improvement charges created under
the General Land Drainage and Improvement Com-
pany's Act(/>), the Lands Improvement Company's
Acts (q), or the Land Loan and Enfranchisement
(() Thesi! charg-fs were to be
made by certificate of the In-
closure Commissioners, and to
consist of rent-charges payable
for twenty-two years : stats.
9 & 10 Vict. c. 101 (see s. 34),
amended by 10 & II Vict. c. 11 ;
11 & 12 Vict. c. 119 ; 12 & 13
Vict. c. 100, .ss. 30, 31 (repealed
by 27 & 28 Vict. c. 114) ; 13 & 14
Vict. c. 31 ; 19 & 20 Vict. c. 9.
(/•) These consist of rent-
charg-es payable for twenty- two
years and granted by certificate
of the Inclosure Commissioners,
and. if eharsred on lands in
Middlesex or York, were to be
registered in the county regis-
ter: stat. 12 & 13 Vict. c. 100
(see ss. 10, 14), amended by
19 (5c 20 Vict. c. 9. and repealed
by 27 & 28 Vict. c. 114.
(/; These were to be made by
absolute order of the Inclosure
Commis.sioners creating a rent-
charge for the term tliereby fi.\ed,
not exceeding twenty -five j-ears :
.stat. 27 & 2S Vict. c. 1 14 (see ss. 26.
49j, amended by 62 ..t 63 Vict.
c. 46, and extended by 33 «& 34
Vict. c. 56 and 34 tV: 35 Vict,
e. 84 to the erection, (-ompletion
or improvement of limited owners'
residences ; by 4 c^- 4 I Vict. c. 31
to waterworks ; by 1 > <& 46 Vict,
c. 38. s. 30, to all improvementH
authorised by the Settled Land
Act, 1882^; and by 60 A: 61 Vict.
c. 44 to the supply of water to a
rural district. Under the Act
of 1864 (sect. 56) the rent-charges
thereb}' created were required to
be registered in the Office of
Land Registry : but the words
requiring this were repealed by
stat. 62 & 63 Vict. c. 46. s. 5,
which also prohibited any entry
or search from being made in any
register kept at the Office of Land
Registry under sect. 56 of the
Act of 1864, except under an
express order of the High Court.
This does not appear to prohibit
search at the Office of the Board
of Agrictilturc.
{ill) Stat. 45 & 46 Vict. c. 38,
s. 48.
{II) Stat. 52 & 53 Vict. c. 30.
{n See Elphinstone i: Clark
on Searches, 109 — 112 ; above,
n. {I).
(p) These wei'c to be created
by absolute order of the Inclosure
Commissioners: stat. 12 & 13
Vict. c. xci. .see s. 56) (local and
personal) .
{q] These were to be created
by absolute order of the Inclosure
Commissioners charging the lands
by way of annuity for not more
than twenty-five years; and, if
affecting lan) These are granted b^' the ment of settled estates to be
local autliority by way of rent- iharged thereim with the sanction
charge for a term not exceeding of the Court of Chancery ; but
thirty years : stat. 38 & '.id Vict. apparently seldom resortetl to :
c. .TO, 88. 2 JO, "241. Elphinsto'ne & Clark on Searches,
((•) As those created under the 11.).
Improvement of Buildings Act, {e) See Elphinstoue vS: Clark on
18()() 'c. cxxix.), as to lauds iij Searches, 121 .iq.
Middlesex, the Bradford Water- ( /) Stat. :iS A: ;{•) Vict. c. 5."),
works aud Improvement Act, s. 257 : »oc Coipn. of liirunnff ham
1K7.') (c Ixxx.), and the Leeds Im- v. Btiher, 17 Ch. D. 782: Rr littles.
provemeut .Vet, I.S77 (c. dxxviii. , north tiiid R'uhvr, 37 Ch. D. .)3.> ;
where registration in the county Rr Simfh's Sittl-il Extnlcs, 1901, 1
register is retjui red : Pjlphin.stoue Ch.C89: above, pp. 177, 521, .522.
&: Clark ou Searches, 121, 123. [g) As in sewering, paving or
(^ Enabling the repayment, by lighting private streets under
iustalmeuts extending over not sect. !.')() of the Act.
'592 OF THE COMPLirnON OF THE CONTRACT.
of the premises, for or in respect of which the expenses
were incurred, is made liable either under the Act or by
agreement with the local authority. Similar charges
have been created by various local Acts, sometimes by
express words, sometimes impliedly, as by giving power
to distrain for the amount due {/i). The charges given
under the Agricultural Holdings (England) Act,
1883 (/), to a landlord who had paid to a tenant com-
pensation under that Act and where the landlord was
not entitled for his own benefit, also required no
registration.
What are fand It appears that all the land improvement rent-charges
after Tsss^ ^^ created after the year 1888, at the instance of the owners
of the land under any of the above-mentioned Acts,
come within the description of land charges contained
in the Land Charges Act of 1888 (A-), and must be
registered accordingly in order to be effectual as against
a pm'chaser for value of the land charged. So, it seems,
must an}^ other laud improvement charge effected under
the same Acts at the instance of the owner of the land,
but not payable by way of annuity (/). The above-
mentioned charge given by the Agricultural Holdings
(England) Act, 1883, in favour of a landlord, who had
paid compensation, was expressly included in the defini-
tion of a land charge given in the Land Charges Act of
1888 [m). And by an Act of 1890 (») it was provided
(A) See Elphin stone & Clark on within the meaning of sect. 4 of
Searches, 121 .sv/. : above, pp. 177, the Land Charges Act, 1888,
521, .522. though such order or certificate
(i) Stat. 46 & 47 Vict, c. 61, be directed to be made under
ss. 29, 31. hand and seal : see above, pp. 588
(/,) Above, pp. 4 37, n. (a), 588. —591.
It is conceived that where the (l) See Ji. v. Vice-Ren'istrar of
charges are created by order or Office of Land Registri/, 24 Q. B.
certificate of the Inclosure Com- D. 178.
missioners, Land Commission ei's, (»?) Above, pp. 437, n. («).
or Board of Agriculture or other («) Stat. 53 & 54 Vict. c. 57,
body, given under statutory autho- s. 3.
rity, they are not charged by deed
OF THE COMPLETION OF THE CONTRACT. ^93
that the charge given by the Agricultm-al Holdings
Act of 18S'3, where the landlord was not entitled for his
own benefit, should be a land charge within the meaning
of the Land Charges Act of 1888, and should be regis-
tered accordingly. And similar charges created under
the Agricultural Holdings Act, 1908 (o), are also
made land charges under the Act of 1888 and required
to be registered in the same manner. But it has been
held that the charges given by sect. 257 of the Public
Health Act, 1875 (p), and similar charges imposed by
statute on lands against their owner's will (y), are not
land charges within the meaning of the Land Charges
Act of 1888 (r), and do not, since that Act, require to
be registered (.s). A charge similar to that given by
sect. 257 of the Public Health Act, 1875 {p), was autho-
rised by the Private Street Works Act, 1892 (f) : but a
register of these charges is required to be kept by the
urban authority.
With regard to the other matters above referred to (ii) Lis pendens.
in enumerating the objects of searches : — Under the
Judgments Act, 1839 {x), no Us pendem shall bind a
purchaser or mortgagee without express notice thereof
imless registered and re-registered every five years in
the Office of Land Registry. The purchaser should
therefore search the register of pending suits for the
last five years to find out if any legal proceedings
affecting the property sold are entered therein. And
as lie will be bound by the result of any action at law
(o) Stat. 8 Edw. VII. c. 28 Office of Land Ecfiislrt/, 24 Q. B.
(which consolidated and repealed D. 178.
the Act of 1888 and its amending {t) Stat. 55 k 56 Vict. c. 57,
Acts), 8. 19 ; see ss. 15—18, 35 ; s. 13 ; Stuck v. Meakui, 1900, 1
Wms. Real Prop. 532, 533, 21st Ch. 683 ; above, pp. 177, 521.
cd. (u) Above, p. 580.
(p) Above, p. 591. [x) Stats. 2 & 3 Vict. c. 11,
[q) Above, pp. 177, 521. s. 7. ; 42 & 43 Vict. c. 78 ; R. S. C.
(r) Above, p. 437, and n. (a). 1883, Order 61 ; above, p. 581.
(s) R. V. Vicc-Rc(jislrnr uf
w. 38
594
OF THE COMPLETION OF THE CONTRACT.
Lands in
Lancashire or
Durham.
Bankruptcy.
Deeds of
arrang'eraent.
or in equity affecting the property sold, wliieh is so
registered, or of which, though not so registered, he has
express notice (//), he should, if any such action be pro-
ceeding, refuse to complete without the concurrence of
all persons asserting therein any apparently well-founded
claim on the property. It should be noted, however,
that registration or express notice of a lis peiideiis against
the vendor is not necessarily notice of an incumbrance
on the land sold, for the suit in question may not affect
the land (s) . It is merely notice of a claim, and makes
it necessary for the purchaser to inquire into the nature
of the claim. And if the claim sought to be enforced
be such as would create no charge on the land sold, tlie
purchaser cannot refuse to complete the contract (rt).
Where the land sold is situate in either of the counties
palatine of Lancaster and Durham, the index of
pending suits in the Palatine Courts (h) must also be
searched (c).
Searches in bankruptcy are of course made to discover
if the title to the lands sold has been affected by reason
of theii" vesting under bankruptcy proceedings against
the vendor or some former owner, either in the trustee
in the bankruptcy or in the trustee appointed to carry
out a composition or scheme of arrangement approved
by the Court ((/). By the Deeds of Arrangement Act,
('!/) Co. Litt. 344 b ; Anon., 1
Vern. 318; mem v. Mill, 13Ves.
114, 120 ; Bellamij v. Sahinc, 1 De
G. & J. 566 ; Price v. Price, 35 Ch.
D. 297. '
{z) See above, p. 224.
[a) Bull V. Hutchenx, 32 Beav.
615.
{h) See Wms. Real Prop. 277
and n. [p), 21st ed.
[c] Stat. 18 & 19 Vict. c. 15,
a. 3.
{d) See above, pp. 546 — 550 ;
stats. 46 & 47 Vict. c. 52, s. 44 ;
53 & 54 Vict. c. 71, s. 3 (16, 17).
An order of adjudication in bauk-
ruptcy does not require to be
registered in Middlesex in order
to pass the lands there situate to
the trustee : Re Calcott and Elvin^s
Contract, 1898, 2 Ch. 460. But
as to land in Yorkshire, it appears
that under the Yorkshire Regis-
tries Act, 1884, a trustee in bank-
ruptcy must register the order of
adjudication in order to secure
for himself priority over all jjer-
sons who might claim under a
subsequent registered conveyance
from the debtor ; see stat. 47 & 48
Vict. c. 54, ss. 3, 4, 6 (3), 14;
above, p. 377, and n. (z).
OF THE COMPLETION OF THE CONTRACT, 595
1887 (c), any of the following instruments made in
respect of the affairs of a debtor for the benefit of his
creditors generally (./') (otherwise than in pursuance of
the banki-nptcy law for the time being in force) shall be
void, unless registered in the Central Office of the
Supreme Court {(/) within seven days after the first
execution thereof by the debtor or any creditor (h) , and
unless stamped in accordance with the Act ; that is to
say, an assignment of property, or deed of or agreement
for a composition, deed of inspectorship, letter of licence,
and any agreement or instrument entered into for the
purpose of carrying on, winding up, or disposing of a
debtor's business with a view to the payment of his
debts. And by the Land Charges Act of 1888 (?'),
every such deed of arrangement, whether made before
or after the commencement of that Act, shall be void as
against a person becoming after the year 1888 a pur-
chaser for value (k) of any land comprised therein or
affected thereby, unless registered in the Office of Land
Registry. Search in bankruptcy and for deeds of
arrangement should never be omitted where it is known
or there is reason to suspect that the vendor or any
former owner is or has been in embarrassed cii'cum-
stances (/) ; and having regard to the difficulties occa-
sioned where bankruptcy proceedings have taken place
(e) Stat. oO & 51 Vict. c. .57, posted within one week after
amended as to Ireland by 53 & 54 execution, and registered within
Vict. (;. 24 ; see rule thereunder, seven days after aiTival in the
W. N. 7 July, 1888. ordinary course of post : see
(/) See lir Saumarrz, 1907, stat. 50 & 51 Vict. c. 57, 8. 5.
•2 K. B. 170. (i) Stat. 51 & 52 Vict. c. 51,
(/7) In Ireland the place of ss. 2, 4, 7 — 9. Such a deed need
reg'istration is the Bills of Sale not, since the passing of the
Office of the King's Bench Land Charges Act, 1900, be
Division: stat. 50 & 51 Vict. registered in the Middlesex Re-
c. 57, 8. 8. gistry : stat. 63 k 64 Vict. c. 26,
(h) Others may execute the s. 4.
deed after registration: R< Bat- [k) Above, p. 582, n. {q).
ten. Ex parte Mtbie, 22 Q. B. D. (/) See Cooper v. Htephenso», 16
685. Instruments executed out Jur. 424, 21 L. J. Q. B. 292.
of England or Ireland may be
38 (2)
596
OF THE COMPLETION OF THE CONTRACT.
Disentailing,
assurances.
Deeds
acknow-
ledsred.
unknown (m) , it appears desirable to search in bankruptcy
on every sale. And the same remark applies to search-
ing for deeds of arrangement. Search for disentailing
assurances is only necessary where the title depends on
the fact of some estate tail, vested in a person of full
age, not having been barred. It is only requisite to
search for certificates of the acknowledgment of deeds
by married women where title is made through some
married woman entitled to the land sold at common
law, and there is reason to suppose that some disposi-
tion, inconsistent with the abstracted title, has been
made by her before the year 1883 by deed acknow-
ledged (n) and has been suppressed (o) . Both these
searches are now made, as to assurances under the Fines
and Recoveries Act, 1 833 ( p) , at the Central Office of
the Supreme Court {g) ; whilst the records of fines and
recoveries are preserved in the Public Record Office (>•).
The object of searching, on the sale of unregistered
land, in such of the registers established by the Land
Transfer Acts, 1875 and 1897 (-s), as are open to public
inspection, is to discover whether the title to the land
sold has been or is about to be registered under those
Acts. This may be ascertained at the Office of Land
Registry by inspection of the index map and search in
the list of pending applications kept there. Such in-
spection and search should certainly be made on every
sale of unregistered land situate in a district where
registration of title is compulsory on sale (t) ; and,
having regard to the effect of registration under tliese
Acts in extinguishing title (it), it is no doubt a prudent
{m) See the cases cited above,
pp. 551, 552, nn. («), (o).
(«) See Stat. 45 & 46 Vict,
c. 39, s. 7 ; Wms. Real Prop.
311 andn. {c), 21st ed.
(o) 1 Dart, V. & P. 499, 5th
ed. ; 568, 6th ed.
(p) Stat 3 & 4 Will. IV. c. 74.
Iq) Stat. 42 & 43 Vict. e. 7S ;
R. S. C. 1883, Order 61, r. 9.
(>•) Established by stat. 1 & 2
Vict. c. 94.
(«) Stats. 38 & 39 Vict. c. 87 ;
60 & 61 Vict. c. 65 ; Land
Transfer Hules (1898), 12, 14 ;
Wms. Real Prop, 671, 672,
21st ed.
{() Above, p. 380.
(«) See Wms. Real Prop. G13 —
648, 2l8t ed.
OF THE COMPLETION OF THE CONTRACT. '^97
precaution to take ou any sale. But until voluntary
registration of title becomes more common than it has
hitherto been, the risk practically run in omitting this
search, on the purchase of land not situate in a com-
pulsory registration district, will not be great. If it
should be found that the title to the land sold has been
registered, the purchaser must of course take the steps
requisite on a purchase of registered land to acquire
a transfer of the estate to himself. The object and Semcli iu
necessity of search in tlie Middlesex and Yorkshire Yorkshire
Registries on the puiehase of lands situate in those Registries.
counties sufficiently appears from what has been said
above concerning such sales (x) . The Court Rolls should Copyholds,
be searched on the sale of copyholds (?/) for similar
reasons.
It appears, then, that the searches which shoidd What searches
usually be made on the purchase of land are the be made!"''"^
f ollo\ving : —
1. In the Office of Land Registry for wiits and i. Writs aud
orders affecting land registered or re-registered 'iD,/[j^if(i ^ *
Avithin the last five years (s).
2. In the same office for any /is pendem registered or •>. Lis pendens.
re-registered within the last five years (a) . Aud
where the lands sold are situate in Lancashire
or Durham, for //s- pcndeim so registered or re-
registered iu the Lancaster or Durham Court of
Chancery (/>).
'6. In the Office of Land Registry for registered life '^- Lift-
.,. , . aunuities.
annuities (c).
A. If there is reason to suspect that the vendor or ^- '^'H'k-
some f oimer owner is or has been in embarrassed
circumstances, then certainly, but advisably on
every sale, for adjudications of bankruptcy,
{x) Above, pp. 373 nq. (a) Above, pp. 593, ;>
(y) Above, p. 346. {b) Above, p. 594.
(s) Above, pp. 580—587. [c) Above, p. 587.
598
OF THE COMPLETION OF THE CONTRACT,
5. Deeds of
arraDS'oment.
6. For regis-
tratiou of
title.
7. Land
charges.
8. Middlesex
or Torkshii'e
Register.
8.
receiving orders, schemes of arrangemeut, aud
compositions under the Bankruptcy Act,
1883 (c/) ; and where it is necessary to go
back so far, for adjudications or liquidations
by arrangement under the Bankruptcy Act,
1869 (e), or any previous Bankruptcy Act (/'),
or for insolvency {g). These searches are made
in the registers kept at the Bankruptcy Court in
London {h) . Receiving orders and adjudications
are required to be advertised in the Loudon
Gazette (i).
In the same circumstances, but advisably on every
sale, at the Office of Land Registry for deeds of
arrangement registered there (/»).
On sale of land situate in a district where regis-
tration of title is compulsory on sale, but as a
prudent precaution (though perhaps the caution
is excessive) on every sale, at the Office of Land
Registry in the index map and list of pending
applications (I).
On sale of land which is or has within the last
twenty- five years been agricultural land {ni), or
may otherwise be subject to some land improve-
ment charge {u) , in the Office of Land Registry
for land charges registered there (o), and also,
imtil by the effluxion of time land charges created
prior to the year 1889 must have ceased to atfect
lands, for land charges so created and registered
elsewhere (p).
On purchase of land situate in Middlesex
{d) Above, pp. 594, 595.
{e) Stat. 32 & 33 Vict. c. 71.
(/) See Wms. Pers. Prop. 238,
241, 254, 11. (d), 16th ed.
(ff) Ibid. 277 ; Wms. Real Prop.
279, 2l8t ed.
{h) Elphinstone and Clark on
Searches, 98, 100, 101.
m Miaaiesex or
(i) Stat. 46 cV: 47 Vict. c. 52,
ss. 13, 20 (2), 132.
(/.•) Above, p. 595.
{1} Above, p. 596.
(m) See above, pp. 177, 58S—
593.
(«) See above, pp. 588 — 593.
(o) Above, pp. 588, 689.
[p) Above, pp. 589—591.
OF THE COMPLETION OF THE CONTRACT.
599
Yorkshire, iu tlie county register for any regis-
tered assurance affecting the land {q) .
0. On purchase of copyholds, in the Court Rolls, for 9. Court
any enrolled assurance affecting the land pur-
chased (r) .
10. On the purchase of land from a company regis- lO- On pur-
tered under the Companies Act, 1862 (s), or the from a com-
Conipanies (Consolidation) Act, 1908, at the P^^y-
office of the Registrar of Joint Stock Com-
panies in the register established there by the
Companies Acts, 1900 {t) and 1907 (u) and the
Companies (Consolidation) Act, 1908 (.?•), of the
mortgages and charges created after the year
1900 by any such company for any of the pur-
poses mentioned in those Acts. Where a limited
company is the vendor the purchaser should also
inspect the company's register of all mortgages
(n) Above, p. 597.
(/•) Above, p. 597.
(») Stat. 25 & 26 Viet. c. 89.
(0 Stat. 68 k 64 Vict. c. 48,
s. 14.
(«) Stat. 7 Edw. VII. o. aO,
9. 10.
[x) Stat. 8 Edw. VII. c. 69,
8. 93, whereby every mortgage
or charge created after the Iwt of
July, 190S, by a company rcgi.s-
tered iu England or Ireland and
bei ug cither (1) for the purpose
of secniring any is.sue of deben-
tures, or (2j on uncalled capital
of the company, or (:{) created
or evidenced by an instrument
which, if executed by an indi-
vidual, would require registration
as a bill of sale, or (4) on any
laud, wherever situate, or any
interest therein, or (5) on any
book debts of the company, or
(6) a filiating i;harge oji the
undertaking or property of the
company, shall, so far as any
security on the company's pro-
perty or undertaking is thereby
conferred, be void against the
liquidator and auy creditor of the
company, unless registered as
therein required within twenty-
one days after the date of its
creation, but without prejudice
to any contract or obligation for
repayment of the money thereby
secured. This section replaced
Stat. 7 EdAv. VII. c. oO, s. 10,
which by s. 52 (3) came into
oj)eration on the 1st July, 190S,
and replaced Avith amendmenta
Stat. 63 & 64 Vict. c. 48, s. 14,
containing similar provisions but
not extending to mortgages or
charges made for piu-poses (4)
and (5; above mentioned or .saving
the contract or obligation for
repayment. See £.e Harro(/atc
Estates, Ltd., 1903, 1 Ch. 498;
Cornbrook, S;c. Co. v. Law Deben-
ture Corpn., 1904, 1 Ch. 103 ;
Illingivorth v. Hoiifdsuoit/i, 1904,
A. C. 355; Jie Yolland, i^r., Ltd.,
1908, 1 Ch. 152 ; lUistol United
Jlrtiirries, Ltd. v. Abbot, ib. 279 ;
Jie N^PW London, ^c. Co., ib. 621 ;
Cunard Steamship Co. v. Jfopwooti,
1908, 2 Ch. 564; inison v. Ke/-
land, 1910, 2 Ch. 306.
600
OF THE COMPLETION OF THE CONTRACT.
and charges specifically affecting its property (//) .
And, as by the Companies (Consolidation) Act,
1908 (s), in the case of a winding up of a com-
pany by or subject to the supervision of the
Court, every disposition of the property of the
company made after the commencement of the
winding up {a) shall, unless the Court otherwise
orders, be void, a purchaser of land from a
company should, where there is any reason to
suspect the position of the company, search in
the London. Gazette for advertisements of
winding-up petitions (/>) .
This exhausts the list of searches, which ought usually
to be made ; but it will be observed that of these the
first three only are imquestionably necessary on every
sale ; though Nos. 4 and 5 are very desirable and No. H
is perhaps advisable apart from the special circumstances
which make them absolutely requisite. Nos. 7, /) See stat. 8 Edw. VII. c. 69,
ss. 100, 101 (the latter replacing
7 Edw. VII. c. 50, s. 17), under
which this rcg-ister is open to
public inspection. This register
was established by stat. 25 & 26
Vict. c. 89, s. 43, but was thereby
made open to the inspection of
creditors and members of the
company only. It was held that
non-registration in this register
did not avoid the charge ; TFrif/ht
V. Horton, 12 App. Cas. 371.
(z) Stat. 8 Edw. VII. it. 69,
s. 206 (2) , replacing 25 & 26 Vict,
c. 89, s. 153.
{a) This is, on a winding up
by the Court, the time of the
presentation of the petition for
winding up ; and on a winding
up under the supervision of the
Court, the time of the passing
of the resolution authorising the
winding up; see stat. 8 Edw. VII.
c. 69, ss. 139, 183, replacing 25 &
26 Vict. c. 89, ss. 84, 130;
m-slon\ Cme, L. R. 4 Ch. 20 ;
lti> Dry Docks Corpn., 39 Ch. D.
306 ; Re West Cumheflniid Iron
Co., 40 Ch. D. 361.
(*) 1 Dart, V. & P. 566, 6th
ed. ; 1222, 7th ed.
{(■) Above, p. 596.
OF THE COMPLETION OF THE CONTRACT. 601
It was not the practice, prior to the Land Charges Agaiust what
Acts of 1888 {(I) and 1900 [r), to direct any search to be "'a'rchu><
made in respect of any of the charges or matters then should be
necessary to be searched for — viz. judgments, writs
of execution, Crown debts and process of execution,
annuities, //.s- pendens, and assurances registered in a
county register or enrolled in Court Rolls (,/') — against the
names of persons entitled previously to the date of the
last purchase deed, as it was assumed that all neces- \ •
sary searches were made on the occasion of the last
purchase {y). And the same practice prevails with
respect to the matters above mentioned (//) as to which
searches are now required ; though in strictness it
appears desirable to carry back searches Nos. 1 and '2.
in every case for the whole five years before the
sale and to extend searches Nos. 8 and i) over the
wliole period covered by the abstract. But search
should always be made against the names of all persons
appearing by the abstract to liave been entitled to the
land sold since the date of the last purchase deed for
any estate or interest which might be adversely affected
by any of the incumbrances to be discovered by the
search. Thus the search for writs and orders affecting
land and lis jjcitdeii-s should be made against the names
of trustees or mortgagees as well as beneficial owners ;
for a writ, order, or suit a-ffecting the land sold may well
{d) Stat. 51 & .'52 Vict. c. 51. over the whole period covered by
[c) Stat. 6:J & 64 Vict. c. 26. the abstract: 1 Dart, V. & P. 497,
(/) See Wins. Real Prop. 86— oth ed.: .')67, 6th ed.: 122:5, 7th ed.
1)4, 465—467, lljth ed. ; 270— 27«, The statement in 1 Dart, V. k, P.
2S.j— 287, 2'.)3, 294, 602-605, .560, Oth ed., that it is not the
2l8ted. practice to go further back, in
{g) On tliis p(jint the testimony searching, than the last iiwrtr/ayee
of Mr. Jo.sliuji AVilliaiiis is ex- or pui'chaser for value does not
press: Wins. Kc;il Prop. :{57, 1st appear in the 5th ed. (p. 491),
ed., 465, i;{thed. And tlie same and is the statement of the editors
rule is laid down in Klphinstone only. The same statement as to
v& Clark on Searches, 144, 148, the practice is, however, made in
149. Mr. Dart, however, stated Wolstenholme's Ctmveyancing
that si'arches in the Middlesex and Settled Laud Act«<, 196,
and York.shire Registries and in 8th ed.
the Court Rolls should extend (h) Above, pp. 597 — 600.
602 OF THE COMPLETION OF THE CONTRACT.
have been issued, made, or instituted against a trustee or
mortgagee, although the judgment or Crown debts of
a trustee {/) or of a mortgagee, who lias been paid
off (/.•), cannot affect the trust or mortgaged property.
The same search should also be made against the names
of persons entitled to a general power of appointment
over the land sold or to any vested or contingent
remainder or any executory interest therein, if the title
depend on any exercise or release of the power or any
release or conveyance of the remainder Or executory
interest. For under the Judgments Act, 1838, and the
Land Charges Act, 1900, lands over which a man has a
general power of appointment may be taken under the
writ of elegit in execution of a judgment against him,
and the judgment is a charge on the lands when the
writ or order for enforcing it has been registered (/).
Under the same Acts (/), too, a judgment is a charge on
all lands to which the judgment debtor is entitled for
any estate or interest at law or in equity, whether in
possession, reversion, remainder, or expectancy, so soon
as a writ or order for enforcing the same has been regis-
tered {ni). And, although no freehold estate in reversion
or remainder, not being merely expectant on a lease for
years (>/), can be taken in execution under a writ of
elegit (o), it appears that an order for the appointment
of a receiver may be made in respect of such an interest,
and that such an order, though not equivalent to actual
delivery in execution, may nevertheless be au oi'der
made for enforcing the judgment, and so may be suffi-
cient, if duly registered, to give rise to the statutory
(i) Finch V. innchil.sca,l'P.W. .s. 2 (1); Wms. Real Prop. 381,
277,282; Whitivorthv. Gauijain, 21st ed.
1 Ph. 728. {))>) See Wms. Real Prop. 419,
{k) Stat. 18 & 19 Vict. c. la, 21st ed.
s. 11 ; Greaves y. 7/'/to«, 25 Beuv. («) Ilai/or of Foule \. U'hitt, 15
434; Wms. Real Prop. 569, M. &W.'571.
21st ed. (o) lie South, L. R. 9 Ch. 369 ;
{i) Stats. 1 & 2 Vict. c. 110, Hood-Barrs v. Cathcarl {No. 5),
ss. 11, 13 ; 63 & 64 Vict. c. 26, 1895, 2 Ch. 411.
OF THE COMPLETION OF THE CONTRACT. 603
charge {p). This point, however, is open to question
and has not yet been decided {q), but until it be, it is
advisable to make the search suggested. Life annuities
are generally searched for against the names of bene-
ficial owners only : though a trustee might also create
such charges valid at law, where the trust is not dis-
closed by the title deeds. It is of course unnecessary
to search in bankruptcy against the names of trustees
who have no beneficial interest, as their estates are not
affected thereby (/•), but mortgagees' estates are divested
on their bankruptcy. Land charges registered under
the Land Charges Act, 1888 (-s), are entered, in the
case of freeholds, in the name of the person beneficially
entitled to the first estate of freehold at the time of the
creation of the land charge, and in the ease of copyholds,
in the name of the tenant on the Court KoUs at the time
of the creation of the charge ; and they must be searched
for against such names. Land improvement charges
created before the year 1889 must be searched for against
the name of the landowner at whose instance they were
made (f) ; generally the person beneficially entitled in
possession to the rents and profits of the land.
It may be observed that there is no obligation on a Nu obligation
piu'chaser to make or direct any search at all; he owes to scarcb'"^^'
[p) Re Httrritioit aitd Jiottomleij, laeutM Act, 1838; but the prin-
1899, 1 Ch. 465, 471. ciples laid dowu iu Hulmvs v.
(7) The juriwdictiou of the Mi/hit/r, 18913, 1 Q. B. 5.31, seem
Court to make au order for the opposed to auy such jurisdiction,
appointment of a receiver in re- (>) St»it. 46 A: 47 Vict. c. 52,
spect of a judgment debtor's .ss. 20, 44, 168.
legal or equitable estates iu (.v) Stat. 51 A: 52 Vict. c. 51,
reversion or reniaiuder in land s. 10, providing also that where
may be supported by the decision the person, on whose application
iu Tyrnlly. J'nititoii, 1S95, 1 Q. B. the laud charge was created, was
202, and the f/ictu of Lindley, beneficially entitled to a lease for
M.Il., in J{f Harrison and Hot- lives or life at a rent or to a term
tomley, 1899, 1 Ch. 465, 471, and of years, the land charge shall
by the ttousideration that uuder also be registered in the name of
the Land Charges Act, 1900, that person.
actual delivery in execution is {t) See the Acts cited above,
no longer a condition precedent pp. 588 — 593 ; Elphiustone «!c
to the attacluuent of the charge Clark on Searches, 109 sq.
given by sect. 13 of the Judg-
604
OF THE COMPLETION OF THE CONTRACT.
Senrch is
iKtticu.
Duty of
purchaser's
solicitor to
search.
uo duty in this respect to any person interested under
an entry in an}' register, and omission to search is not
negligence wliich will affect him with notice of any
matter to be discovered by searching {it) . But if he do
make a search in person or by agent, he will be affected
with notice of all entries in the register which affect
the land sold, although he may fail to discover them {x).
It is the duty of the purchaser's solicitor to make on
his behalf all searches which in the circumstances of the
case are necessary and proper (//) ; and if he omit so to
search and the purchaser's title be injuriousl}^ affected
in consequence, he will be liable to his client in an
action of negligence for the damage incurred (;:).
Official
searches.
Under the Conveyancing Act, 1882 {((), and the
Land Charges Act of 1888 (6), official searches may be
directed to be made in tlie registers of /w pendens, life
annuities, writs and orders affecting land, land charges,
deeds of arrangement, and certificates of acknowledg-
ment by married women, and a certificate of the result
of the search filed. Such a certificate, according to the
tenour thereof, is conclusive, affirmatively or negatively,
as the case may be, in favour of a purchaser as against
persons interested under the matters or documents,
which are the subject of registration ; an office copy is
evidence of the certificate ; and solicitors obtaining an
otfice copy of such a certificate, and any trustees, execu-
(u) Lam V. Jaclcson, 20 Beav.
03.).
{x) Procter V. Cooper, 2 Drew. 1,
18 Jur. 444 ; affirmed, 1 Jur.
N. S. 149. Having regard to
the provisions of stat. 45 & 46
Vict. c. 39, s. 2 (3), stated below,
as to the certificate of the result
of an official search being con-
clusive, negatively, it seems that
a purchaser will not, by merely
directing an official search to be
made, be affected with notice of
any entries not ajjpeariug in the
certificate.
(y/) See above, pp. 5^7—600.
[z] Cooper \. Stephenson, 16 Jur.
424, 21 L. J. Q. B. 292 : Sug.
V. & P. .547 ; Elphinstono &
Clark on Searches, 4, -5 ; Dart,
V. & P. 454, 455, 5th ed. ; 522,
523, 6th ed. ; 1196, 1197, 7th ed.
{a) Stat. 45 & 46 Vict. c. 39,
s. 2.
{b) Stat. 51 & 52 Vict. c. 51,
s. 17.
T
OF THE COMPLETION OF THE CONTRACT. 605
tors, agents or other persons in a fiduciary position for
wliom they are so acting, are not answerable in respect
of any loss that may arise from any error in the certifi-
cate {<■). These advantages are not obtainable on private
searches, which may still be made. The utility of
ofiicial searches ha=5, however, been doubted by the
learned authors of the treatise on searches (d), who
maintain that the certificate of the result of an official
search can only be evidence, negatively, that no entry
of any of the matters searched for is made against the
name of the person therein mentioned by the description
applied to him in the requisition for search, and does
not exclude the possibility of the existence of other
entries against that person b}^ the same name but under
a different address or description. It appears, however,
that this contention is not quite correct. The Convev-
ancing Act, 1882, provides that the certificate sliall be
conclusive according to if-s tenour (e), not according to
the tenour of the requisition for search. It is true that
by the rules made under that Act (/) any one directing
an official search to be made against a particular name
is required to state the usual or last known place of
abode as well as the title, trade or profession of the
person bearing that name. But according to the forms
prescribed by these rules, the search is directed to be
made against the irnnc mentioned in the requisition,
and the certificate is of the result of a search against the
name specified in the certificate. By the practice of the
office, too, the certificate of the result of the search does
not necessarily specify the address and description of
the person against whose name the search was made.
If no entr}^ or none but those specified in the certificate,
were found against any person of that i/a/i/r, the fact is
(<•) See the two previous notes. (/) See Wms. Con v. SUit. 47'.»
((/) Elphiustonc & Clark on >) , it is
prudent, where there is a likelihood or possibility of any
such liability, to repeat this inquiry just before comple-
tion, and also to make inquiry of others, as of neighbours
or of the local authority (q). As we have seen (r), a
purchaser may be able to insist on such a liability being
discharged as a condition precedent to completion in
cases where he might have some difficulty in recovering
the amount thereof from the vendor if paid by himself
after completion. And generally tlie purchaser should
ascertain, before he completes the purchase, that all
outgoings payable by the vendor, whether for rates,
taxes, rent or any other matters that might subject the
purchaser to any liability for their payment (.s), have
(o) Above, p. 177.
(;;) Above, pp. 520—523.
{qj See Ee Ley land and Taylor'' s
Coniracl, 1900, 2 Ch. 625, where
a purchaser, vrho completed his
contract without making such
inquiries, was held not to be
entitled to compensation, under a
condition pronding that compen-
sation should be allowed for any
omission in the particulars, by
reason of the vendor having
omitted, without fraudulent in-
tent, to disclose that such a notice
as above mentioned had been
served on him before the date of
the contract for sale, no liability
under such notice having been
actually incurred before comple-
tion. It was pointed out, how-
ever, by Rigby, L. J. (p. 632),
that, if the purchaser had not
completed the contract, he might
perhaps have relied upon such
omission as a ground for resisting
the specific performance or claim-
ing the rescission of the contract ;
cf. Carlish V. Salt, 1906, 1 Ch.
335, 340 ; but see the writer's
criticism of the dicta in this case
in 50 Sol. J. 611 ; and as to non-
disclosure, see below, Chap.
XIII. § 1, XIV. § 1. See also
Hampstead Corpn. v. Cauni, 1903,
2 K. B. 1, as to the liabilities of
the above natui'e which a pur-
chaser may incm". It has been
laid down that in cases of the
above kind there is no incum-
brance nor even a liability,
inchoate or otherwise, on the
property, until the charge given
by the statute has arisen ; Re
Allen and DriscolV s Contract, 1904,
2 Ch. 226, 230, 231 ; see above,
p. 522, and n. (i).
(>•) Above, p. 522.
(.s) Above, p. 521.
to their
interest.
OF THE COMPLETION OF THE CONTRACT. 609
been duly diseliarged. If the property sold include a
house having water, gas or electric light laid on, the
purchaser should ascertain that the water rate or other
charges payable by the vendor have been duly paid or
that non-payment thereof will not subject him to any
liability (0-
The purchaser must further ascertain that the posses- Ascertaining
sion or enjoyment of the land sold is in accordance gion is in
with the title shown. For this purpose he should accordance
make inquiries of all tenants or occupiers of the pro- title,
perty sold or any part thereof as to the nature and Inquiry of
„,.. . -n .pii . tenants and
extent of their interest therein. Jj or if he have notice occupiers as
of a tenancy of any part of the property, he will be
affected with notice of all rights or equities of the
tenant against the vendor with regard not only to the
lease (ii), but also to all collateral matters (.r) ; as, for
instance, if the tenant should have an agreement or
option to purchase the demised premises (//), or the
timber growing thereon (s), or if the property sold
belonged in equity to a partnership firm, of which the
vendor was a member {a), and were in the occupation
of the firm {h). So actual knowledge that the rents
are paid to some person, whose title is inconsistent with
the vendor's, is constructive notice of that person's
rights : but mere knowledge that the rents are paid to
an estate agent does not affect the purchaser with
any notice or put him upon inquiry (c). As we have
[t) See Shcfield Watmvorks Co. Luck, 1901. 1 Ch. 45, 49, 1902,
V. Wilkimou, 4 C. P. D. 410, 1 Ch. 428, 432.
422, 424; East London JJ'ater- (y) Dank fs y. Davidson, 16 Vefi.
works Co. V. Kellerman, 1892, 2 249, 17 Ves. 433.
Q. B. 72 ; Cannon Brewery Co. v. (z) Allen v. Anthony, 1 Mer.
Gas Light and Coke Co.. 1904. 282.
A. C. 331. (a) See above, p. 465.
(m) See Caballero v. Henty, L. R. (i) Cavander \. Biilteel, L. R.
9 Ch. 447, 449. 9 Ch. 79.
^x) Barnhart v. Urrenshields, 9 (c) Hunt v. Luck, 1901, 1 Ch.
Moore, P. C. 18, .32 ; ffiint v. 45, 1902, 1 Ch. 428.
w. 39
610 OF THE COMPLETION OF THE CONTRACT.
seen (d), where the property sold is a reversion expect-
ant on a leasehold interest yielding- rent, the piirchaser
should ascertain that the tenant is paying his rent to
the vendor. And where land is sold with vacant
possession to be given on completion of the purchase,
the pui'chaser should ascertain that the vendor himself,
or some person who makes no claim advei'se to the
vendor's title and will undertake to give up possession
according to the contract of sale, is in occupation
thereof (e) . As has been already mentioned (,/') , it is pos-
sible that a person may be in possession of the property
sold by virtue of a writ of o/ec/if actually executed but
not registered, or that a tenant may be paying his rent
to a receiver appointed under an unregistered order
made by way of equitable execution ; and in such cases
the purchaser may be bound by the writ or order if he
Inspection have notice of it. The purchaser should also carefully
and survey of , .
the property, inspect the whole of the property sold and have it
surveyed prior to completion, and should make inquiry
of the tenants or occupiers with respect to the boundaries
or other matters regarding the physical condition of the
property. For if by reason of any material defect of
quantity or otherwise the property sold do not corre-
spond with the description of it given in the contract,
or in any representation which induced the purchaser
to make the contract, and the error be caused by the
innocent misrepresentation of the vendor and not hy
fraud, the purchaser will be entitled to resist the specific
performance of or to rescind the contract, while it
remains uncompleted (g) : but when the contract has
been fully performed, the purchaser will not be entitled
(d) Above, pp. 399, 400. Societi/ v. Bomash, 3.5 Ch D. 390.
\e) As to the duty of the vendor (/) Above, p. ,'584.
to give up vaoant possession on {g) Above, p. 608, and n. [q) ;
completion, see above, pp. 512, Jacobs v. Revell, 1900, 2 Ch. 858 ;
515, 578 ; Em/eU v. Fitch, L. R. 4 Re Puckett and Smith's Contract,
Q. B. G59 : ' Roijal Bristol, S^c. 1902, 2 Ch. 258,
OF THE COMPLETION OF THE CONTRACT. 611
to any relief in respect thereof {h), except (1) by virtue
of an express agreement contained in the contract to
make compensation for such errors (/), or (2) if the | ^
defect be really a defect of title and compensation be
recoverable under the covenants for title contained in
the conveyance (/•), or (3) if the representation amounted
to a warranty, collateral to the contract for sale, of the
trutli of the fact stated (/). Here it may be mentioned Purrhaser
that if a man buy land without inspecting it, he does ouUnfpectinii
so at his own risk and must accept without compen- must atcept
TP,.., 1-1 T- Pii patent, but
sation any detects m the physical condition oi the not latent
property which are patent to any one who views it and 'l^*^''*^-
are not inconsistent with the description contained in
the contract for sale ; as where a meadow sold is ob-
viously crossed by a public footpath (m), or a house sold
is plainly out of repair (>/). But a man may decline to
perform the contract on account of defects which
are latent, or not discoverable by inspection, if they
interfere materially with the enjoyment promised to
him by the contract ; as where a pathway across a field
adjoining a private dwelling-house is subject to an ease-
ment of way, not disclosed by the contract, in favour
of an adjoining landowner (o) ; and this is the case
whether the purchaser actually inspect the property
sold or not, and notwithstanding that the contract
provide that, the property being open to inspection, the
purchaser shall be deemed to buy with full knowledge
(A) Wilde \. Gibson, 1 H. L. C. bridge, ubi sup.; bolow. Chap.
605, 632, 633 : Jolifr v. Baker, XIX. ij ").
11 Q. B. D. 25;)'; Claiiton v. (/) Le Lassalle v. Guildford,
Leech, 41 Ch. D. 103 ; Seddoti v. 1901, 2 K. B. 215.
North Eastern Salt Co., 1905, 1 (in) Jiorv/e.sv. Hound, oYes. 508.
Ch. 326 ; above, pp. 66, 608, n. (;/) Gran/ v. Mioit, G. Coop.
(q); below, Chap. XIV. y^ 1. 173. 177; Kea/es v. Cadogan, 10
{i) l'alnur\.Jnlniso)i.UQ..'R.T>. C. B. 591; Cool; v. Waugh, 2
361 ; above, pp. 65, 66 ; see Deben- Giff. 201.
ham\. S78.
OF THE COMPLETION OF THE CONTRACT. 613
on the investigation of title. Every person in whom is
vested any portion of the legal and equitable estate con-
tracted for in the land sold, or any interest therein,
mnst concm- in the conveyance to the purchaser, unless
his interest be such that it will be conveyed or defeated
by the execution of some paramount trust or power
intended to be exercised by the instrument of convey-
ance. Thus, where an unincumbered estate in fee simple
is sold, all persons entitled for a vested estate either for
life, in tail, or in fee, and either in possession or in
remainder, to the whole or any fraction of the fi*eehold
in fee, all persons entitled to any contingent or execu-
tory interest which will or may displace or defeat any
present vested estate, all mortgagees, portioners, join-
tresses and doweresses, all persons entitled to any term
of years, continuing tenancy, rent-charge, yjyo^^ d prendre
or easement, and all persons interested in the property
sold under any trust or equity of or by which the pur-
(ihaser has notice or is bound {u), are necessary parties
to the conveyance {jc) ; unless the assurance to the pur-
chaser is to be effected, for example, by the exercise of
a power of appointment operating under the Statute of
Uses or created by will, of a statutory power, such as
that given by the Settled Land Act, 1882 (//), or of a
trust for or power of sale on the part of trustees liaving
the legal estate (~). And where the conveyance is to be
carried out by virtue of an authority paramount to the
estate or interest of some person entitled, who is not,
therefore, to be made a party thereto, care must be taken
that all persons, whose estates or interests are not bound
by the execution of the authority, shall concur to convey
the same. Thus we have seen that on a sale under the
powers given by the Settled Land Acts, there may be
(m) Alxjve, pp. KW, 'I'M s,j. 594, .595 and elsewhere, "J 1st ed.
(j-) See Wins. Real Prop. 452. (//) Above, p. 306.
463 and elsewhere, 13th ed. : (:) Above, p. 256.
614 OF THE COMPLETION OF THE CONTRACT.
various estates and interests, which will not be displaced
or defeated by the conveyance of the tenant for life {a) ;
and the owners of all such estates and interests, as para-
mount mortgagees of the fee, mortgagees for securing
money actually raised under some power or trust for
the purj)ose contained in the settlement or assignees
for value of the estate of the tenant for life (unless
these last by some separate document consent to
the exercise of the tenant for life's power {b) ),
must be required to assure by their own conveyance
their estates or interests to the purchaser. So also,
where the purchaser has bought at a sale made by
order of a Court of Equity, he need not require the
concurrence in the conveyance of any persons having
equitahle estates or interests, which are bound by the
order for sale : but he must obtain a conveyance of the
interests of all persons entitled to the legal estate in the
property, or to any equitable estate or interest therein
Intermediate not bound by the order (r). Where the title to any
land sold is such that intermediate trustees are inter-
posed between trustees seised or possessed of the legal
estate and the persons beneficially entitled, as where
land has been assured to the use of A. in fee on trust
for B., who is a trustee for C, the intermediate trustees
are not necessary parties to the conveyance of the land,
which may well be made by the trustees holding the
legal estate and the persons beneficially entitled ((/).
The intermediate trustees, however, may possibly have
acquired a lien on the land for their costs or expenses,
so that their coucuiTence may, it seems, be required by
a purchaser in order to release or acknowledge the non-
existence of any such lien [e). And if it be proposed in
(«) Above, pp. 307, 317 sq. Cox, 57 ; v. Walfurd, 4Russ.
{b) See above, pp. 318, 319, 372 ; Gramge v. Wilhcrforcc, 5
321—325. Times L. R. 436.
(c) Above, pp. 471, 472. (e) See above, p. 3()6, aud u. {x).
trustees.
\d) See ilead v. Teynham, 1
OF THE COMPLETION OF THE CONTRACT. 615
such cases to dispense with their concurrence, inquiry
should be made of them if they claim any such lien.
Here we may notice that if any necessary party to the Incapacity of
conveyance be under any incapacity, such as that of thJcon^ev^
infancy, coverture on the part of a woman, or lunacy, ance.
all due steps must be taken to secure the proper assur-
ance of his or her estate to the purchaser, either by
vesting order (./"), concurrence of the husband and
acknowledgment of the deed in the case of a married
woman not entitled to the land as her separate property,
or otherwise.
On the side of the grantee or grantees under the Parties to the
conveyance, the piu'chaser himself is in general the thel^antee'°°
only necessary party. But as we have seen (), the side,
vendor's obligation is to execute a conveyance of the
land sold to the purchaser, or as he shall direct. The Conveyance
purchaser is therefore entitled to require the conveyance chaser's
to be made to some other person or persons than him- nominee,
self, or to himself and others, and for such estates and
interests as he shall direct ; and the vendor is bound to
assure the lands sold accordingly. It appears that in
such case the vendor may in general demand that the
purchaser, with whom alone he has contracted, shall be
made a party to the conveyance in order to testify that
ho has directed the conve3'ance to be made to a stranger
to the contract and that the vendor has duly performed
his part of the contract by complying witli this direc-
tion (A) . But if the purchaser should have made an
absolute assignment of all his interest in the contract,
and the assignee have given notice of the assignment
(/) Above, pp. 530, .561. ti'act by the vendor, the pur-
Iff) Above, p. 46. chaser should be made a party to
(h) This appears to follow from the action (above, p. .")(i8j, and
the fact that, if the purchaser's would be a proper party to a
assijjuoe seek to enforce the conveyance ordered in such
specific performance of the con- action.
^16 OF THE COMPLETION OF THE CONTRACT.
and be willing to take upon himself the whole burden of
the original contract and prove his title by assignment
from the purchaser, then it seems that the vendor ought
to complete the contract with the assignee alone, without
requiring any further concurrence of the purchaser (/).
In this event, however, it is thought that the assignee
could not insist on the vendor executing a conveyance
which took no notice of the original contract and the
assignment ; for the vendor would be entitled to have
the payment and receipt of the original price mentioned,
and could not be made to accept any recital or statement
alleging, contrary to the truth, that he had contracted
with the assignee for the sale of the land (k). If the
purchaser before completion re-sell the land to another,
it is to the sub-piu"chaser's interest to obtain a conveyance
direct from the vendor and taking no notice of the
original contract, as this will prevent the raising in the
future of any question whether the original purchaser
incumbered his interest before the re-sale and the sub-
purchaser had notice thereof (/). Where there is no
(«) Above, pp. 568 — 570. ance of the legal estate from the
(k) Hartley y. Burton, L. R. 3 vendor in order to avoid all
Ch. 365. question of the first purchaser
[I ) It is thought that, where a having incumbered his equitable
purchaser re-selling before com- interest under the contract for
pietion discloses to the sub-pur- sale ; see below, p. 619, and
chaser the fact that he is himself n. («). Having regard to this
a purchaser under an uncompleted liability, it is advisable for a
contract of sale and in effect sells purchaser of land re-selling before
the interest so acquired by him, completion to sell his interest
the sub-purchaser cannot oblige under the contract for sale, as
him to take a conveyance from such, and to stipulate expressly
the original vendor ; as that that the sub-contract shall be
course would apparently involve completed by a conveyance from
the payment by the first pur- the original vendor to the sub-
chaser of ad valorem stamp duty purchaser by the fii'st purchaser's
on such conveyance. But if the direction. Where a purchaser of
first purchaser so re-sell as if he land re-sells before completion, he
were the full owner of the land, is bound to furnish, at the sub-
without disclosing that he is only purchaser's request, an abstract
entitled under an uncompleted of the original contract for sale
contract of sale, it is submitted and of his dealings, if any,
that the sub -purchaser's strict with his interest thereunder ; Re
right would be to require the Htickerby and Atkinson'' s Contract,
first purchaser to take a convey- 102 L. T. 214, where note that
OF THE COMPLETION OF THE CONTRACT. 617
increase of price on the re-sale, the vendor may
well agree to this if the original purchaser sign a
memorandum authorising him to convey the land direct
to and to receive payment of the price from the sub-
purchaser (tn). But if the purchaser re-sell at an
increased price, he must be a party to the conveyance
in order to acknowledge the receipt of his profit on the
transaction (n) ; for the sub-purchaser is only entitled
to a conveyance on payment of the price fixed by the
re-sale to the person entitled to receive it (o) , and cannot
of course require the vendor to accept the whole of this
and pay over part of it to the original purchaser. And
the price fixed by the re-sale must be stated in the
conveyance, as it is on that price that the stamp duty
is payable (yj). Where the vendor will remain after
the conveyance under some liability in connexion with
the property sold, as where leasehold land subject to
payment of a rent and performance of onerous covenants
is sold, and the purchaser is therefore bound to enter
into a covenant of indemnity (q), it is thought that the
vendor is not obliged to accept the liability of the
purchaser's assignee as a substitute, but may insist on
having the covenant of the person, with whom alone he
himself has contracted (r).
Subject to the question discussed below (.«,), whether Form of the
outstanding estates or incumbrances should be got in by ^'o^veyance.
deeds separate from the conveyance, the conveyance of
the sub - purchaser expressly (p) Stat. 54 & 55 Vict. c. 39,
waived all objectiou to accepting s. 58 (4), (5).
a conveyance direct from the [q] See above, p. 80 ; and see
original vendor (see p. 215). bolow in the present section of
(m) See 1 Dart, V. & P. oil, this chapter as to the (rases in
5th ed.; 581, Gth ed. ; 536, 7th ed. which the purchaser is bouud to
The memorandum shimld be in give a covenant of indemnity,
duplicate, one part being given (r) This appears clearly to
to the sub-puroliaser. follow from the rule that the
(;/) See Davidson, Prec. Conv. burthen of a contract cannot be
vol. ii. pt. i. 319, 4th ed. assigned over; above, p. 570.
[o'j Above, p. 57.S (s) Page GIS).
618
OF THE COMPLETION OF THE CONTRACT.
the property sold will, as a rule, be effected by one deed.
But it is for the pui-chaser to decide in what form he
will take his conveyance, provided that the burden laid
on the vendor, in respect of expense and otherwise, be
not materially increased by the purchaser's choice (/).
Thus, where properties of different kinds or held under
different titles are sold by one contract, the purchaser
may require the same to be conveyed by separate
assurances and apportion the purchase money as he
may think fit (n). For example, where freeholds and
copyholds are sold together, the conveyance cannot of
course be effected by one deed, the copyholds requiring
to be assured by surrender and admittance. So where
freeholds and leaseholds are included in one contract of
sale, the purchaser may require that his title to the
freeholds shall not be incumbered with the assignment of
the leaseholds, and as to the leaseholds themselves, that
his title under one lease shall not be complicated with
the assurance of land held under another. And where
lands sold together lie far apart, as in different counties
not adjoining each other, he may demand that they
shall be assured by separate deeds. But it is question-
able whether the vendor can be compelled, in the absence
of special stipulation, to execute a great number of
separate conveyances in different parcels of a lot of land
lying near together and sold by one contract ; for that
would sensibly increase the vendor's trouble of perusing
and executing the assiu-ance completing, the contract ;
and in any case he could only be requii-ed to do so on
the terms of being paid the extra expense so occasioned,
and also, it is thought, on condition that he were not
asked to assure lands accurately described as one
entire property in the contract by several new descrip-
{t) See Clark v. 3Lii/, 16 Bwiv. G79, 685 ; Ef/munt v. Smith, 6
•273; Cooper v. Cartiv'ri(jht, John. Ch. D. 469, 474.
{i() Clark V. May, 16 Beav. 27o.
OF THE COMPLETION OF THE CONTRACT. (J19
tions of the particular parts thereof (x). If a purclmser
desire to take a conveyance in lots of lands offered to
him for purchase by private contract as one entire estate,
he should certainly insert an express stipidation to that
effect in the contract (//) .
Where the whole estate in the land sold is not vested Sale of laudi*
in the vendor, as where it is subiect to mortg-affes or '^"^Jf^* *■" i""
' _ •* _ o o cuuibrautx's.
other charges or incumbrances, which lia\ e to be paid
off, discharged, or released, to enable the vendor to
convey such an estate as he contracted to sell (z), it
appears that, if by the contract the vendor piu'ported to
sell the whole estate as vested in himself without dis-
closing- the state of the title, and in the absence of any
stipulation to the contrary, the purchaser is in strict
right entitled to requii'e the vendor at his own expense
to get in all the outstanding estates and interests and
vest them in himself or in a trustee for himself, in
order that the conveyance to the purcliaser may be one
simple deed of assurance fi'om the vendor, or from him
and Ids trustee, to the purchaser (a). But it has never
{x) See Sug. V. ic P. .ji59 ; 1 ivit/i that of tchich /jox.HSxioii t.v
Dart, V. & P. 503, 5th ed. ; 573, ofend (above, pp. 4:{, 94). it ap-
6th ed. ; 531. 7th ed. It is sub- pears that the vendor cannot be
niitted that the dictum of Jessel, obliged to convej- and to coven.int
M. R., in Egmont v. Stiiith, (i for title b}^ t)thcr dcMcriptious
Ch. D. 469, 474, that in no case than those mider which he sold,
can a vendor object to convey But land.s sold as one entire pru-
the .sold property in piu-cels on perty can seldom be conveyeyenfi,60 the purchaser does literally undor-
L. T. 73;'), explained and dis- take to bear the expense of w<^/.//i
tiuguished in Ite Samler and the assui'ance to himself.
Il'aiford'.s Contract, 83 L. T. 316; (i) Sag. V". & P. 561 ; 2 Dart,
1000, W. N. 183. Ee Willett V. & P. 707, 5th ed. ; 798, 6th
and Argent i appears to have given ed. ; 7 H, 7th ed.
to the usual condition of sale a (/•) Re Adams^ Trustees and
greater effect than it wa.s pre- Fronton Contract, 1907, 1 Ch. 695,
viously supposed to have : see 703 ; above, p. 73, n. {a).
Davidson, Prec. Couv. vol. i. (/) Stat. 44 & 45 Vict. c. 41,
p. 612, 4th ed. s. 5 ; see s. '2 (viii.).
((/) Re If'onds and Lewis's Von- {m) Sec Patching v. Bull .30
tract, IS'.IS, 1 Ch. 433, 437, W. R. 244 ; Dickin v. Dickin, ib
affirmed, 1S'.»8, 2 Ch. 211. 387.
(//) It should be noted, how- (/i) See Milford, ijV. Co. v.
ever, that, a, 8 L. J.
etteet ; for instance, a recital Ch. 85 ; Jliff/if d. Jefferya v. Buck-
that he was seised of or otherwise uell, 2 B. & Ad. 278 ; Doe d.
well entitled to the lands, for he Gaixfurd v. S/om, 3 C. B. I7G ;
might well 1)0 entitled in equity Mentli v. Vrealock, L. R. 10 Ch.
though not at law. Neither 22; General Finance, i^c. Co. v.
would any such estoppel result l-^herator,S;c. Socy.,\ij Qh.Ti.Xh;
from a mere conveyance of lands, Onward, Sge. Soci/. v. Umif/ison
without any recitals, by \ene-e 1893, 1 Ch. 1.
and release or grant; for these (.v) Alx)ve, pp. 480, 4S.3, '>6r,
are innocent conveyances, passing 5lJ7.
only the assuror's actual estate {t) Above, pp. 504 sq., 512.
or interest, if any. Nor would («) Above, p. 518,
.my such estoppel arise from the
624
OF THE COMPLETION OF THE CONTRACT.
is entitled to take his conveyance in what form he
pleases and to keep alive any mortgage for his own
benefit, if he desire to do so (./■) , the purchaser is entitled
to insist that any outstanding legal estate shall be con-
veyed direct to himself, or to a trustee for him, and
shall not, pending completion, be got in by and assured
to the vendor. But compliance with such a requirement
can only be ensured where the mortgage is to be paid
off out of the purchase money. If the vendor propose
to pay off the mortgage out of his own resources before
completion and take a reconveyance to himself, it does
not appear that the purchaser can prevent him from
doing so ; for if the purchaser were to bring an action
for specific performance of the contract, he would be
obliged to accept the title so offered, if in other respects
good according to the contract (//) .
Purchase
followed by
an immediate
mortgag-e.
It constantly happens that a purchaser completes the
sale with the assistance of some other person, who
advances part of the purchase money and takes a mort-
gage of the lands sold to secure the repayment of his
loan. In such cases it is a common practice for the
whole estate in the lands purchased to be conveyed to
the purchaser, and to be mortgaged by him to the
lender by a deed executed immediately after the
execution of the conveyance, the conveyance and the
other title deeds being transferred directly from the
vendor's into the new mortgagee's custody. It was pro-
nounced by a late learned judge (s), that if in a case
like this the property sold were in mortgage at the time
of the sale, the new mortgagee should never allow the
legal estate to get into the purchaser's hands. There is
no doubt that it is always preferable for an intending
' {x) Cooper v. Cartivright, Joh.
679, 685.
(«/) See above, p. 88 ; below.
Chap. XIX. ^ 3.
{z) Jessel, M. R., General Fin-
ance, ^-e. Co. V. Liberator, <|'C. 8ocy.,
10 Ch. D. 15, 20.
OF THE COMPLETION OF THE CONTRACT. 62o
purchaser or mortgagee of lands, which are already in
mortgage, to take a convej'ance of the legal estate direct
from the former mortgagee, as that secures the same
priority over mesne incumbrances as the former mort-
gagee had. But in the case of a purchase followed
immediately by a mortgage, the risk run by the new
mortgagee allowing the legal estate to be conveyed to
the purcJiaac)' is very different from and far less than
that incurred by a purchaser allowing an outstanding
legal estate to be got in by the vendor. In the latter
case the vendor has presumably been in possession of the
land, and has had both the right and the opportunity of
creating mesne incumbrances. In the former instance
the purchaser has never been in possession either of the
land or of the title deeds ; and it is only by fraud that
he can have executed, prior to the new mortgage, such
a conveyance as would estop the new mortgagee from
claiming the legal estate. A fraudulent mortgage of
this kind, induced by false title deeds, was in fact made
by an intending purchaser of land in the case, which
called forth the learned judge's remarks: but as the
mortgage deed contained no recitals at all, there was no
estoppel as against the mortgagee from the pm-chaser.
He suffered, however, the inconvenience of defending
an action brought against him by the prior mortgagee.
This shows that the only quite safe course is to follow
the learned judge's advice. But the common practice
is still pursued in many such cases, partly on account of
its convenience, and partly because the only risk run
is that of fraud, which is an exceptional occurrence.
In connexion with the subject of getting in the legal Purchaser
estate direct from a first mortgagee as a protection ^^^\^q^^
against mesne incumbrances, the reader may be reminded mesne iiuum-
that, if the purchaser receive notice, actual or construc-
tive, before the purchase money be fully paid, of some
w. 40
626 OF THE COMPLETION OF THE CONTRACT.
mesne equitable incumbrance, he cannot safely complete
without the incumbrancer's concurrence in the convey-
ance to him {(i) ; and further that, if after the receipt of
such notice the purchase should be completed with the
concurrence only of the first mortgagee, who on being
paid ofE out of the purchase money conveyed the legal
estate and released his security, the purchaser would not
be able to avail himself of the priority, which was
enjoyed by the first mortgagee, as a protection against
the mesne incumbrance, unless the intention appeared
to keep alive for his own benefit the charge created by
the first mortgage ((6). In such a case, therefore, this
intention should be clearly expressed in the deed of
conveyance, though it would not be necessary to take an
actual transfer of the first mortgage to a trustee for the
purchaser (r) . As we have seen (r/), the purchaser is
entitled, if he think fit, to keep alive for his own use
any mortgage existing on the property sold either by
express declaration or by having the same transferred
to a trustee for him, or to a new mortgagee advancing
part of the purchase money, provided always that he
pay any increased expense thereby caused to the vendor.
It may be thought that, where a mortgage is paid ofi^
out of the purchase money, it would always be desirable
to keep alive the charge, in order to protect the purchaser
against any mesne incumbrance of which he might,
without knowing it, have received constructive notice (e) .
But it never was, and is not now, the practice to do
this, the risk run being too small to counterbalance tlie
inconvenience of always maintaining the charge (/').
(«) Above, pp. 565, 566 ; Jared (/) See Davidson. Prec. Conv.
V. Clements, 1903, 1 Ch. 42f<. vol. ii. pt. i. 290, 324, 327, 4tli
(b) Above, p. 481. ed., from whicli it is obvious that
(c) Above, p. 481. it was uot the practice to keep
(d) Above, pp. 481, 624. alive a mortgage paid off out of
le) This was the case in Toul- the purchase money unless there
mill V. Steere, 3 Mer. 210 ; above, were reasou to suspect the exis-
p. 480. tence of some mesne iucumbrauce :
OF THE COMPLETION OF THE CONTRACT. 627
And under the present law a.s to constructive notice, the
purchaser is no longer in danger of being affected with
any notice acquired by his solicitor in some previous
transaction of an equitable charge on the proj)erty (//).
Where part of the purchase money is to be advanced by
a new mortgagee, who requires that the legal estate
shall be conveyed direct from some already existing
mortgagee to himself (A), the purchaser must take care
that the whole estate in the lands sold be conveyed to
the new mortgagee by the deed of conveyance completing
the sale and a new equity of redemption limited to him-
self by the same deed. He will then be as well pro-
tected against unknown prior equities as the new mort-
gagee himself, for he will claim as piu"chaser under the
same conveyance of the legal estate. But if he were to
allow the new mortgagee to take a simple transfer of
the old mortgage and himself take a conveyance from
the vendor alone, he woidd be exposing himself to all
the risks attendant on the purchase of an equity of
redemption (/).
It is beyond the scope of the present work to give a Framing the
complete account of all the principles and rules which ''"^^^^y^"^^-
ought to be observed in framing conveyances on sale.
A few points must, however, be noted. And first, as to Recitals,
the extent to which the vendor's title should be recited
or noticed. This will depend on the state of tlie title :
but the general principle to he observed is that any
recitals or statements inserted in the conveyance should
not carry tbe history of the title any further back than
is necessary in order to explain the assurance thereb}'
made (/r). Thus, where on investigation of the title,
the vendor has proved that lie is himself absolutely
1 Key & Elph. Prec. Conv. 483, (i) Above, pp. 47(i nq.
490, 4t.h ed. ; 481. 486, 8th ed. (/) See 1 Dart, V. &: P. .'ilS.
(^) Above, pp. 246—254. 5th ed. ; n90, 6th cd. ; .')4.'). Tth
(h) A»>ove, p. 625. ed.
40(2)
628
OF THE COMPLETION OF THE CONTRACT.
entitled to the whole estate contracted for in the land
sold, it is in general unnecessary to show in the con-
veyance how he became so entitled. In such cases
recitals may he dispensed with altogether {/■). The old
conveyancing practice, however, was to recite the con-
ve3^ance to the vendor (m) : although, as we have seen {n),
if any recital at all be made, it is best for the purchaser
that it should be a precise recital (as of the vendor's
seisin in fee, in the case of freeholds) sufficient to estop
the vendor and all claiming under him from setting up
a legal estate, which they have not at tlie time of con-
veyance, but may subsequently acquire (o). But it is
thought to be permissible to depart from this principle
where the vendor's title depends on proof of facts, as
distinguished from deeds or other assurances (j)). Tn
such cases it is often convenient to recite the facts in
order that on any resale of the land to be made after
twenty years' time, the recitals may be used as jyrt'md
facie evidence of the facts (q). For example, where the
vendor became entitled to the land sold as the heir of
an intestate, it is very useful to recite the various
matters of pedigree which establish the heirship (r) ;
and this is particularly tlie case where the fact material
to the title is negative, as that one had or left no
issue (s). The utility of similar recitals is equally
obvious where the vendor's title depends on the deter-
mination of an estate tail or of successive estates tail.
Where land sold is subject to outstanding estates or
incumbrances, which are all got in or released by the
deed of conveyance {i), it will, as a rule, be necessary to
(1) See Davidson's Prec. Conv. (p) See 1 Dart, V. & P. 619,
vol. i. p. 44 ; vol. ii. pt. i. pp. '229 5th ed. ; 591, 6th ed. ; above,
sq., 4th ed. p. 116.
(w.) Wins. Real Prop. 140, 363, (q) See above, p. 136.
1st ed. ; 192, 514, 13th ed. (r) Above, pp. 131, 153 ; see
(«) Above, p. 622. also, p. 138.
(o) Sug. V. & P. 558. («) Above, p. 132.
(t) Above, p. 620.
^i
OP THE COMPLETION OF THE CONTRACT.
recite the assurances under which the various conveying
parties claim ; and this may of course involve the state-
ment of the title prior to the acqmsition of the land by
the vendor : but in these cases also the same principle
should be observed of not carrying the title further back
than is necessary to explain the operative part of the
deed. The draftsman's aim should be to frame a deed
which shall be capable of serving as a good root of
title {/() in time to come. For this reason it is desirable
that the conveyance should show clearly the origin of
every outstanding estate or interest assured, but should
contain no reference to any documents or matters which
it would be inconvenient to produce or explain on any
futui-e dealing with the land, when the present convey-
ance might be treated as the root of title. For this
reason also no assurance or other document, which is
not a necessary part of the title, should ever be recited
or noticed. Thus contracts for the sale of land, which
are in general superseded by the conveyances made in
pursuance thereof, should never be stated in recital as
being entered into by some particular document, unless
in exceptional circumstances making that document an
essential part of the title (j) . The agreement only to
sell is commonly referred to in conveyances on sale, the
written memorandum of the contract not being men-
tioned (y). As we have seen (s), the vendor cannot be
required to execute a deed containing any recital, which
is contrary to the truth : but he cannot object to execute
an assurance, which will duly carry out his obligation
of conveying the propeity sold, but contains no
recitals {a).
With respect to the parcels or description of the pro- Parcels
perty sold, it up]»ears that the purchaser is entitled to
(«) Above, p. 100. ed. ; above, p. G28, un. (/), (w).
\x) See above, p. 531. [z) Above, p. 616.
\ij) 1 Dart. V. & P. .V24, .Hli (a) Harthij v. Burton, L. R. 3
ed. ; 595, 5ii6, 6lh ed. ; 550, 7th Ch. 365.
629
630
OF THE COMPLETION OF THE CONTRACT.
have inserted in the conveyance such a description of
the property sold as will clearly identify the land
intended to be assured. If, therefore, the description of
the property sold contained in the contract be mislead-
ing, inadequate or obsolete, the purchaser should insert
in the draft conveyance an accurate description of the
land, according to its present condition, prepared from
his own surveyor's report ; and it is thought that in
these eircumstances the vendor could not refuse to
convej^ the land by the new description (/>»). It is,
however, questionable whether a vendor, who has sold
lands by a description accurately applying to them, and
has completely discharged the obligations imposed on
him of proving the identity of tlie lands described in
the contract with those described in the muniments of
title and with those of which possession is offered (r),
can be required to convey and to covenant for title by a
different description from that by which he sold. If he
has satisfactorily proved title and identity, his only
remaining obligation seems to be to convey what he has
contracted to sell, that is, the land described in the
contract ; and it is thought that in such case he cannot
be compelled to undertake the burden of verifying a
new description of the lands [d). We have seen that
the vendor lies under a double duty in respect of proving
identity ; he is bound, first, to identify the land
described in the contract with that described in the
title deeds, and secondly, to identify the actual land
offered by him in fulfilment of the contract with that
described in the contract (e). It is thought that, where
the vendor's second duty cannot be performed without
extrinsic evidence explanatory of the description in the
{b) See Davidson, Prec. Couv. beth's (Joidrnrt, 1910, 1 Ch. 741,
i. b2 nq., 4tli ed. The above 749.
passage in the text (p. 557, Ist (f) Above, pp. 43, 144, 171.
ed.) was approved of by Swinfen {d) Above, p. 619, and n. {x).
Eady, J., in lie Sansoni unci Kur- {e) Above, pp. 33, 41, 43.
OF THE COMPLETION OF THE CONTRACT. ^'"^l
contract (/'), the purchaser is entitled to have such a
description inserted in the conveyance as will on the
face of it identify the land thereby conveyed with that
of which he is to be put in possession. But if the
description contained in the contract be of itself com-
pletely sufficient to identify the land sold with that
offered in fulfilment of the contract, it is submitted that
the purchaser is not entitled to require any other or
further description to be inserted in the conveyance.
The important question, in what cases is the purchaser Wheu is the
entitled to have the property conveyed by reference to entitled to a
a plan, can only rightly be solved by applying these couveyance
principles. This question arose in two recent cases : to a plan r
but in each of them the judge evaded the necessity of
deciding- it(r/). In Re Sparrmc and Jamca^ Contyacf, iic Sparrow
° ^-^^ ^ . and James'
Harwell, J. (after remarking that it was unnecessary to Contract.
determine the general question whether the purchaser
is in all cases entitled to have a description of the
property conveyed by reference to a plan), considered
that, where the description contained in the contract is
insufficient or unsatisfactory as a means of identifying
the land sold with that proposed to be conveyed in
fulfilment of the contract, the purchaser is entitled to
have the property more precisely described; and in the
circumstances of the case the learned judge decided that
the purchaser was entitled to have the description in the
contra(!t su])i)leniented ( without any restriction) by a
plan (//). In Re Sonsoni and Narbetli's Contract,
(/) See abovf, p. 0. with a statement to the ettect
((/) Me H/J'irrvir and James' Con- that it was for reference only and
tract, 1910, '2 Ch. 60, 62 ; Ee its accuracy was not guaranteed.
iSanaom and Narhetk'n Contract, The purchaser proposed to take a
U)10, 1 Ch. 741, 7oO, 7ol. conveyance by a general deserip-
[h) See the judgment in lie tion referring to more particular
i'^parrow and James' Contract, 1910, descriptions in a schedule and a
2 Ch. 60, tii, 6.3. Note however plan. The vendor desired to
that in that case a plan was have the words "by way of
attached to the conditions of sale, elucidation and not of warranty"
()32
OF THE COMPLETION OF THE CONTRACT.
^ Samom and Swinfen Eady, J. (after citing with approval the above-
Contract. Doted passage in this book (/) ), hiid down that m all
simple cases, in which a plan would assist the description,
the purchaser has a right to have a plan on the convey-
ance, and that this follows as part of the rule that the
purchaser is entitled to take a conveyance in his own
form : though the learned judge declined to say that in
every case the purchaser is entitled to have a description
by plan {h) . It is respectfully submitted that this pro-
nouncement is unsatisfactory in principle ; and that a
sounder rule is suggested in the judgment of Farwell, J.,
viz., that, where the description in the contract is without
a plan insufficient to identify the property sold, the pur-
chaser may require it to be supplemented by a plan. It
seems to be implied from this that no plan can be
required where the description in the contract affords a
sufficient and satisfactory identification of the land
sold. The question remains however whether, when
the description in the contract is - of itself (without
extrinsic evidence) insufficient to identify the land sold,
the }3urchaser is entitled to insist that this description
shall be elucidated by a plan and not merely by a
further and better verbal description. On this point
the above-mentioned decisions are authorities in favour
of the purchaser s right to a conveyance by reference to
inserted before the reference to
the plan ; and the point actually-
decided was that, the fact being
that the verbal description w;ts of
itself idone insufficient to identify
the land, the vendor was not
entitled to insist on the insertion
of those words.
(i) Above, p. 630, n. (6).
(k) He Sansoin and Narbeth\'<
Contract, 1910, 1 Ch. 741, 749,
750. In that case the contract
contained only a general descrip-
tion of the property sold not
defining the measurements or
boundaries thereof ; and it seems
clear that the purchaser (unless
precluded by the fact that the
vendors sold as trustees ; see
below, pp. 634, 635) was entitled
to a more detailed description
than was contained in the con-
tract. In the latest title deed
under which the vendors claimed
the property was described by
reference to a plan ; it was agreed
before the summons came on for
hearing that the purchaser should
have a copy of this plan on his
conveyance ; and the suimnons
was only heard to determine the
question of costs. It was decided
that the vendors must pay them.
OF THE COMPLETION OF THE CONTRACT. 633
a plan. But it is respectfully submitted that, where the
land sold can be satisfactorily identified by a further or
better verbal description than is contained in the con-
tract, and the vendor offers to convey by such a
description, it does in trutli subject the vendor to an
additional burthen if he be required also to convey by
reference to a plan, which he must necessarily employ
(and pay) his own surveyor to check. x\.nd it is fm'ther
submitted that the rule, that the purchaser may take
his conveyance in what form he pleases, is qualified by
the proviso that the bm-then laid on the vendor by the
purchaser's choice be not materially increased, in respect
of expense or otherwise (/). With great respect for
Mr. Justice Swinfen Eady, it is thought that he did
not make sufficient allowance for this limitation of the
rule. In the present state of the authorities, vendors
of land should be particularly careful, where they desire
not to convey by reference to a plan, to describe the
property sold in the contract with complete verbal
accuracy, or to sti])ulate expressly that they shall not
be requii'ed to convey by reference to a plan or at least
that any reference in the conveyance to a plan shall be
made solely by way of illustration of the verbal descrip-
tion of the property sold and not so as to make the
plan any part of the description by which the vendor
conveys.
It is always desirable, in the purchaser's interest, Descriptiou
that the conveyance should contain a complete verbal of or by
description, independent of any plan, of the property reference to
(/) Above, p. 620. See au cient certainty to make tho con-
article on the subject above dis- tract specifically enforceable,
ciiHsed in -6 L. Q. R. 2()8 : but it although the vendor may be
is respoctfully submitted that the obliged to resort to extrinsic
learned author has overlonkcjd the evidence to prove that the actual
vendor's double duty of identiti- land offered in fulfilment of the
cation, and the fact that in a contract is the same as tiiat sold ;
contract to sell land the property above, pp. 6, 630, 631.
sold may be described with suffi-
634
OF THE COMPLETION OF THE CONTRACT.
Coimectiug' a
new descrip-
tiou with the
old.
Mortgag'ees
and trustees
convey by the
description
under which
they took.
sold and that any plan of the land referred to or drawn
on the deed should be auxiliary only {m). If, as is
sometimes unavoidable, the property is so described by
reference to a plan that the plan is made a material
part of the description (//), extreme care should be taken
in checking the accuracy of the plan (o). AVhen lands
are conveyed by a nevv^ description not contained in any
of the title deeds, it is always desirable in framing the
deed of conveyance to connect the new description with
the old by stating that the lands were formerly known
by the old description (giving it) (p). Such a state-
ment will in twentj' years become priuid facie evidence
of identity on sales {q). When mortgagees, who are
paid off, or trustees join in a conveyance on sale, they
are not, as a rule, bound to convey by any other
desciiption than that by which the land was conveyed
to them (r). If in such eases a new description be
desirable for and can be required by the purchaser,
and the mortgagees or trustees will not abate any-
thing of their strict rights, the conveyance must be
so framed that the mortgagees or trustees convey by
the old description, and that any conveyance of the
[ih) 1 Dart, V. & P. 530, 5th
ed. ; 601, 6th ed. ; 554, 7th ed. ;
Davidson, Prec. Conv. i. 85, 86,
4th ed. ; i. 65, 66, 5th ed. It
may be noted that the converse
of the question above discussed
may arise, viz. whether the pur-
chaser can require a verbal de-
scription by measurements and
boundaries to be inserted in the
conveyance, when the land sold
is described in the contract by
reference to a plan. The writer
is not aware of any authority on
this point, but it can only be de-
cided by applying the principles
above stated ; see pp. 'iSO sq.
{h) See above, p. 115.
(o) For instances of the effect
of a conveyance of lands described
by reference to a plan, which was
inaccurate, see Llewellynv. Jer.seij,
11 M. & W. 183; Lylev. Richurds,
L. R. 1 H. L. 222 ; May v. Flutt,
191)0, 1 Ch. 616 ; Home v. Sti-u-
hen, 1902, A. C. 454 ; Melhr v.
Walniedey, 1904, 2 Ch. 525, 1^05,
2 Ch. 165. For an example of a
reference to a schedule of parcels
and a plan controlling a general
description, see Barton v. JJawes,
10 C. B. 261 ; Ec Brocket, 1908,
1 Ch. 185, 195, 196. For a case
of an ambiguous general descrip-
tion being controlled by recitals,
see Walsh v. Trevanion, 15 Q. B.
733.
{p) Davidson, Prec. Conv. i. 83,
4th ed. ; i. 63, 5th ed.
{q) Above, p. 136.
{r) Goodson v. Elitsson, 3 Russ.
583, 594 ; see Mostyn v. llostyn,
1893, 3 Ch. 376.
OF THE COMPLETION OF THE CONTRACT.
land by the new description or any statement that
the land conveyed by the old description is now more
accurately described by the new is the conveyance or
statement of the vendor only. Trustees of lands under
a simple trust are, however, bound to ccecutc fJie estate (-s) ;
and if the eqiutable interest therein become vested by
assignment or otherwise in several persons, of whom
each is entitled in severalty to a particular parcel of the
lands, the trustees must at the request of all conve}' to
each the legal estate in his own part ; and this may of
course involve theii- conveying by a new description [t).
But there is an oft-cited dictum of Lord Eldon (jt) that
a trustee cannot be compelled to divest himself of his
trust by different parcels at different times. It appears,
however, that an assignee from the cestid-quc-tnist of a
part of the trust property is entitled, on proving to the
trustee that the whole equitable estate or interest in
that part is now vested absolutely in himself, to require
the trustee to convey to liim the legal estate or interest
therein {ii). Where trustees are themselves vendors of
land, it does not appear that they are exonerated from
the duties of identifying the land ottered in fulfilment
of the contract with that described therein and of con-
veying the land sold by a description sufficient to
establish such identitj', even though they sold as trus-
tees (/•). Mortgagees cannot of course be required to
release from their security any part of the land
charged without the whole amount due to them being
(») Wins. Rful I'rop. 171, 181, recognised by Lord Eldoii in
2l8t ed. Goodson v. Elli^sott, ;5 Ru8s. o9(j,
{t) Goodmn v. EHinnoii, 3 Russ. subject to the trust^n^'s ri [v] See Re Samoni and Narheth''s
Madd. 10; Lenaghnii v. Smith, Contract, 1910, 1 Ch. 741, 749;
■1 Ph. 301, 302; Ite Radcliffe, above, p. 032, n. (X) ; though in
1892, 1 Ch. 227 ; Re Pabnir, that case it was considered that
1907. 1 Ch. 48() : and it .seems the tru.stees themselves took under
from the decree ultimately made a conveyance referring to a plan,
tiiat this principle was really
635
636
OF thp: completion of the contract.
Trustee -
mortgagees
gratuitously
releasing part
of their
security.
paid (./•). But it sometimes happens, where a small
portion of lands in mortgage is sold, that the mort-
gagees, being satisfied that the remainder of the
lands is an ample security for the money due to
them, concur in the conveyance to the purchaser to
convey the legal estate and release their charge with-
out receiving any part of the purchase money. No
difficulty can arise when this course is taken, if the
mortgagees be beneficially entitled to the mortgage
money, or if the purchaser have no notice that they
are not so entitled {(/). In either ease he takes as a
purchaser for value from the mortgagees, they con-
veying to him at the mortgagor's request in considera-
tion of his paying the purchase money to the mort-
gagor; and there is no question of the adeqiiacy of
this consideration as regards the mortgagees, where
they are apparently entitled for then- own use. But
if the purchaser should have notice that the mort-
gagees are trustees of the mortgage money, the
question arises whether they have power, as against
their cedui-qtic-tnish, to release gratuitously any part
of their security. It is said that, at least where the
trustees have the usual power of varying investments,
they are justified in so releasing a portion of the
property charged, provided that their security is not
substantially'' impaired (the transaction being equivalent
(,i) The rule was that the only
right enforceable by a mortgagor,
and those claiming under him,
against a mortgagee, whose estate
had become absolute at law, was
the equity of redemption on re-
payment of principal, interest
and costs : Buit.stan v. FatU-rson,
2 Ph. 341, 345 ; Chivhentvr v.
Dvntgall, L. R. 5 Ch. 497, 502.
This rule has been modified by
enactments in the Conveyancing
Act of 1881 obliging mortgagees
to execute a transfer of their
mortgages, instead of reconvey-
ing, on the terms on which they
would be bound to reconvey, and
giving to mortgagors under
mortgages made after that year
the right to inspect the title
deeds of the mortgaged property :
but otherwise it remains in full
force. See stats. 44 & 45 Vict,
c. 41, ss. 15, 16 ; 45 & 46 Vict,
c. 39, s. 12 ; Teevan v. Smith, 20
Cli. D. 724 ; above, pp. 124, 125,
and notes.
(y) Above, p. 238.
OF THE COMPLETION OF THE CONTRACT. ^^'*
to the calling-in and re-investment of the raonej'^
seoured), and tliat the purchaser is entitled to assume
that their power has been properly exercised (s). But
it must not be forgotten that trustees advancing money
on mortgage of land have no right to release any part
of the land charged for the mere convenience of the
mortgagor (n) ; even in exercising an express power
to release or compromise a claim, they are bound to act
reasonably and in good faith for the advantage of their
rf.shn'-qxr-fr/isf.s [h). It seems, therefore, that wliere
mortgagees, being to the knowledge of the purchaser
trustees, release part of tlie mortgaged lands to a
purchaser without any valuable consideration given to
them, they act, prima faclo, to the disadvantage of their
rt'.sfiii-qiif'-frnxf-s, and the purchaser appears to take the
risk of proving that the transaction was proper ; failing
which the release would be invalid against the
beneficiaries (r) . And it is certainly advisable for a
purchaser, proposing to accept such a conveyance from
trustee -mortgagees, to satisfy himself that their security
will not be impaired in any substantial degree by the
release, and to obtain evidence of this fact, which he
can produce on any future sale or mortgage of the land.
As is well known, before the year 1882 it was the General
practice in drawing conveyances of land to add to the
pnirol-s, or desci'iptiou of the property to be assured, a
number of (jcno-dl wordu, comprehending all easements,
rights, privileges or advantages appertaining or reputed
to appertain thereto or therewitli used and enjoyed {(/).
(r) Davidson, Free. Couv. vol. ii. (c) See Pell v. /><- lllnton, 2
pt. i. 347, n., 4th ed. ; see Dart, De G. & J. 13; Dart. V. & P.
V. & P. 612, 'r)th ed. ; 689, 6th 612, 613, 5th ed. ; 689, 690, 6th
ed. ; 630, 7th ed. ed. ; 630, 631, 7th ed.
(rt) See Lewin on Trusts, 49;'), (rf) Wms. Real Prop. 193, 331,
fith ed. ; 706, 10th ed. .)15, 13th ed. ; 427. 613, 623,
(A) See J{lm- v. Maishall, 3 21st ed. ; Da\adsou. Preo. Couv.
P. W. 381 ; Prniiiiu/ton v. Ifialei/, vol. i. 91 m/. ; vol. ii. pt. i. 231,
1 C. & M. 402, 407 ; Re AUxand'r, 4th ed.
13 Ir. Ch. 137.
638 OF THE COMPLETION OF THE CONTRACT.
This addition was unnecessary and of no effect as
regards any rights legally appendant or appurtenant to
the land conveyed ; for all such rights pass by a con-
veyance of the land without being mentioned {e). But
so far as the general words comprised any privileges or
advantages nserl or onjoi/ed with the land conveyed, they
might have the effect of an express grant by the con-
veying party, as a legal easement or right, of some
privilege or advantage previouslj' used or enjoyed, for
the benefit of or in connexion with the land conveyed,
over some other land of his OAvn (./'). Since the Con-
veyancing Act of 1881 {g) took effect, it has been the
practice to omit general words from conveyances in
reliance on the provisions contained in the 6th section
of that Act. These provisions resemble the general
words formerly in use, not only in including in con-
veyances a superfluous assurance of all easements and
rights appertaining to the land conveyed, but also in
incorporating therein an express conveyance of all
privileges or advantages enjoyed with the land conveyed
at the time of conveyance {h) ; and this conveyance may
operate, in the same manner as general words, to grant,
as a legal easement or right, some privilege or advantage
enjoyed in fact at the time of conveyance for the benefit
of the land assured over other land belonging to the
grantor (/). It is therefore necessary to consider what
(e) Litt. 8. 183; Co.Litt. 121b: (A) This does not exactly
Williams on Commons, 315; follow the usual form of general
Bcddingfon v. AtJee, 35 Ch. D. words, which mentioned all
317, 326. rights, kc. now or heretofore en-
(/■) Wfiftfi V. Kehon, L. R. 6 joyed with the land. As to the
Ch. 166 ; Ka)i v. Oxlry, L. R. !» effect of this difference, see Hall
Q. B. 360 ; 'Barkshirc v. Grubh, v. Byron, 4 Ch. D. 667, 671, 672 ;
18 Ch. D. 616 ; Williams on Wms. Conv. Stat. 68.
Commons, 170, 315—319, 323,
324; Wms. Conv. Stat. 64—66. (') Brooniftcld v . Wdliams, 189<,
{a) Stat. 44 & 45 Vict. c. 41. 1 Ch. 602 ; International Tea Stores
wh'ich canle into operation imme- C'o. v. Hohbs, 1903. 2 Ch. 165 ; see
diatelv after the 31st December, Q''>«'''« v. Chapman, 1903, 1 Cli.
1881 ;■ see Wms. Conv. Stat. 659.
60 sq.
OF THE COMPLETION OF THE CONTRACT. 639
easements or like privileges a purchaser of land ma}^
require to be conveyed to him.
A contract for the sale of a piece of land, either with What ease-
•,i - • p iL j-i J 55 inents or other
or without mention oi the appurtenances, passes privileges the
(equally with a conveyance at common law of the leffal P^^rcliaser cari
^ ^ "^ , . . . ~ require to be
estate therein (/») ) only such rights, privileges or ease- conveyed to
ments as are legally appendant or appurtenant thereto ; ^"^'
and does not, in absence of special stipulation, entitle
the purchaser to have conveyed to him any privileges or
advantages which were used by the vendor in connexion
with the land sold over adjoiniug or other land of his
own, but are not necessary for the enjoyment of the
property as sold (/). And the (ith section of the Con-
veyancing Act of 1881 {m) affects only conveyances of
land made by deed and does not apply to contracts for
the sale of land [ii). It follows, therefore, that if the
conveyance, as drawn on the purchaser's behalf, incor-
porate tacitly, according to the present practice, the
provisions of this enactment, and these provisions would,
if uncontrolled, operate to graut to the purchaser as an
easement or a right some advantage previously enjoyed
in fact by the vendor, but not included in the contract
(/.•) Wms. Real Prop. 427. 21st Burnms v. Lang, 1901, 2 Ch. 502 ;
ed. ; Wins. Conv. Stut. 64, 65 ; Godwin v. ^chwtppes, Ld., 1902,
above, p. 638. 1 Ch. 926 ; above, pp. 429.
(/) Jiotton V. Bolton, 11 Ch. D. 430. So the sale of a house
968; linikshire v. Gntbh, 18 Ch. having windows overlooking land
D. (ilO. 620 ; Jte Vvck and Londrm not belonginsr to the vendor im-
Sc/iool Board, 1893, 2 Ch. 31;") ; jjlies no warranty that the vendor
]{<■ Hui/hrs (iiid Ashhifs (Jiititravt, has a riglit to the access of light
1900, 2 Ch. 09.'). But, of course, through those windows: Orern-
ifth(> vendor iudu the contract by a 324 ; but if the vendor were to
representation that he shall have represent (contrary to the fact)
some privilege over other land of that he had such right, he coulil
the vendor's, the vendor cannot not enforce the contract,
enforce the contract without [m Stat. 44 i: 4.') Vict, c 41
granting the same as a legal (see sect. 2 (v) ) ; above, p. 63.S.
right: seethe last mentioned case. {;<) Itr Prck and Lniiilun Srlianl
See also Bumingham, ^r. Banking Board, 1893, 2 Cli. 31.'), 318.
Co. V. Ross, 38 Ch. D. 296 ;
I
640 OF THE COMPLETION OF THE CONTRACT.
for Ksale, the vendor is entitled to require that words
shall be inserted modifying the statutory provisions to
the extent necessary to give to the contract for sale its
true efPect (o). And in such cases the vendor should
be most careful to have the effect of the enactment in
question duly limited by express words, or he may find,
after conveyance, that he has subjected the land retained
by him to some easement or other right which he did
not intend to grant when he made the contract for
sale (p). If so, he will have no remedy but to bring an
action for the rectification of the conveyance ; and this
relief (apart from fraud) will be granted only in case of
common and not of unilateral mistake (q). If, how-
ever, the use of some privilege or advantage over adjoin-
ing land retained by the vendor be necessary to the
proper enjoyment, as contemplated by the contract (r),
of the property sold, the purchaser will be entitled
to have that privilege or advantage granted to him by
the conveyance as a legal easement or right. Indeed,
\\'liere the easement would be necessary and continuous,
as in the case of a right to the access of light, or even
necessary only, such as a way of necessity (.s), a grant
thereof would be implied from the mere conveyance of
the land to which it was necessarily accessory. But in
such cases the purchaser is not obliged to rest content
with such grant as would be implied in law from the
conveyance of the land. He is certainly entitled to
(o) lie Peck and London School (r) See Bmjleij v. Great Western
Board, 1893, 2 Ch. 31o, and Re Rail. Co., 26 Ch. D. 434, 441,
Hughes and Ashley'' s Contract, 442, 452, 453 ; above, pp. 429,
1900, 2 Ch. 595. ' 430.
{p) See Broomfieldv. Williams, (.s) See Wheeldon v. Burrows,
1897, 1 Ch. 602 ; Pollard v. Gare, 12 Ch. D. 31 ; Broomfield v.
1901, 1 Ch. 834 ; Internafionnl Williams, 1897, 1 Ch. 602, 610,
Tea Stores Co. v. Hobbs, 1903, 2 612; Pollard v. Gare, 1901, 1 Ch.
Ch. 165. 834 ; Cable v. Bryant, 1908, 1
(q) 2 Dart, V. & P. 744, 5th Ch. 259 ; and consider the case
ed. ; 838, 839, 6th ed. ; 742, 743, cited in the previous note. As to
7th ed. ; Maij v. Piatt, 1900, 1 drains, see Ewart v. Cochrane, 7
Ch. 616; see below. Chap. XIII. Jur. N. S. 925, 4 Macq. 117;
§ '2. Williams on Commons, 319, 324.
OF THE COMPLETION OF THE CONTRACT. ^^^
have such an express grant of the privilege or advantage
in question as would he made hy incorporating in the
conveyance, without any restriction, the statutory
general words. And since the object of the conveyance
is to carry out with certainty the intention of the parties
to the contract, it is thought that, if the conveyance as
drawn on the purchaser's behalf contain a grant defining
accui'ately in express words some privilege or advantage
impliedly sold b}^ the contract and to be enjoyed
over some land retained by the vendor, the vendor
cannot object to execute the conveyance in that form.
As the vendor may, where necessary, exclude or restrict
the operation of the statutory general words and, in
place thereof, define his liabilities in express and un-
ambiguous terms (f), so the purchaser -is not obliged to
accept the general description of his rights which would
be given by such general words (a description which
cannot be reduced to certainty without proof of the
facts existing at the time of conveyance (ii) ), but is
entitled to have such rights particularly and exactly
defined (.r). An}' easements or other accessor}^ rights
expressly mentioned in the contract as being included
in the sale should of course be expressly granted in the
conveyance.
Wliere the vendor has stipulated in the contract for Reservations
the reservation in his own favour of any easement or dor's favour,
other right over the land sold, care must be taken that
due effect is given to such stipulation in the conveyance ;
otherwise the vendor will have no remedy to assert his
right but to sue for rectification of the conveyance (//).
it) Above, p. 640. Cotitract, 1900, '2 Ch. .")95 ; and
{t^) See th(> cases cited above, consider Re Birmingham, S^c. Co.
p. 688, nn. (/), (h), (i). and AHday, 1893, 1 Ch. 342.
(.r) See Jlolfon v. Bollon, 11 (//) See Terbai/ v. Manchestci-,
Ch. D. 968 ; Iia,/,s/,irr v. GnM, ^-r.' Rail. Co., '24 Ch. D. .'J72 ;
18 Ch. D. 616, 620 : 7iV /Vr/awrf Williains on Commons, 322:
London School lioanl, 1893. 2 Ch. below, Chap. XIII. § 2.
31 A ; /'' lliiiihes mill Ashleii's
w. 41
642
OF THE COMPLETION OF THE CONTRACT.
The vendor may be entitled to some reservation over
the property sold, not only hy express agreement, bnt
by implication from the circumstances surrounding the
contract ; as where the purchaser buys with notice of the
fact that the adjoining property of the vendor is laid
out for building, and access thereto across the land sold
will obviously be necessary (s) . And a vendor may by
the like implication, as well as by express contract, be
entitled to reserve to himself the unrestricted use of
some adjoining land of his, which would otherwise have
become subject to an easement or right (as to access of
light) in the purchaser's favour {a) ; as where the pur-
chaser of a house with windows overlooking land
adjoining and retained by the vendor has notice that
the land is laid out for building in a manner ob\dously
inconsistent with the acquisition by the purchaser of
any such right {b). But except by virtue of such
express or implied contract, the vendor has no claim to
the reservation in his own favour of any right over the
land sold, or, where the exercise of some easement or
privilege over any adjoining land of his would other-
wise be necessary to the enjoyment of the property
sold, to the reservation in his own favour of such right
of free use of the adjoining land as will exclude the
acquisition of such privilege or easement (c). For
example, if a vendor offer for sale by auction in
different lots a house and land adjoining, which the
windows of the house overlook, and the land be sold
at the auction, but not the house, the purchaser of
the land will be entitled to build thereon so as to
obstruct the access of light to the windows (d).
(z) Baviex v. Scar, L. R. 7 Eq. (c) See above, pp. 639, 640,
427. and cases there cited.
[a) See above, p. 6o9. {d) Ellis v. Manchester Carriage
[b) See Birmitu/ham, 4-c. Bank- Co., 2 C. P. D. 13 ; JTheeldon v.
ing Co. v. Ross, 38 Ch. D. 295 ; Burrows, 12 Ch. D. 31 ; Bcddtm/-
Godivin v. Schivcppes, LfL. 1902, ton v. Atlee, 35 Ch. D. 317 ;
1 Ch. 926. Rayv. Hazeldine, 1904, 2 Ch. 17.
643
OF THE COMPLETION OF THE CONTRACT.
Wliereas, if the house were sold but not the land, the
purcliasor would acquire by implication an oasoment of
access of light over the land and the vendor would not
be entitled to build so as to obstruct such access (p) ;
unless, as we have seen, the purchaser bought wi.th
notice of the vendor's intention to build thereon in a
manner inconsistent with the acquisition of such an
easement ( /*). And if both lots were sold at the same
time, the purchaser of the house would acquire an ease-
ment of the access of light over the land ; for on a sale
or conveyance at one and the same time to different
persons of two tenements belonging to the same owner,
there is implied, unless a contrary intention appear, a
grant of all easements over one tenement which are
necessary for the enjoyment of the other (). Where
two tenements belonging to one owner exercise each
over the other some privilege necessary to their proper
enjoyment, as where two houses are built together and
supported by one party wall, then, on a sale or convey-
ance of one of the tenements, there will be implied, not
only a grant of an easement of support in favour of
the purchaser or other alienee, but also a reservation of
the like easement to the owner retaining the other
tenement (A) .
If the property were sold subject to some particular "Where the
incumbrance, which is to remain undischarged, such as solTsuWect
a mortgage, restrictive covenants, an easement, or a ?» «o'°f^
subsisting tenancy for any term, the vendor is of course
[e) Palmer v. Fletcher, I Lev. (^) Swannborotigk v. Coventry, 9
122 ; Holt, C. J., Tenant v. Bing. 305 ; Barnes v. Loach, 4
Goldwin, 2 Ld. Raym. 1089, Q. B. D. 494 ; All>'^i v. Tai/lor,
1093 : Thesigcr, L. J., Wheeldon 16 Ch. D. .lah.
V. liurroHs, 12 Ch. D. 31, .')1 ; (/() Jiirhards v. Rose, 9 Ex.
Je8.sel, M. R., Allen v. Ttn/lor, IC 21K ; Tliosigor, L. J., IflieeUhn v.
Ch. D. 3.^/), 3.'>7. 3;)S; (Jahle v. Ji>nrow>, 12 Ch. D. 31. r).» ; and
Itri/aut, 1908. 1 Ch. 2.')9. see Jones v. I'ritchard, 1908, 1
(/) Above, pp. 641, 642. Ch. 630, 635, 636.
41 (2)
incumbrance.
644
OF THE COMPLETION OF THE CONTRACT.
entitled to require that it shall be expressed in the
conveyance that he conveys the land sold subject to the
incumbrance in question. And the conveyancer acting
for him should be particularly careful to see that this is
done ; as the statutory covenants for title, which are
now usually incorporated in conveyances on sale, include
covenants for right to convey and quiet enjoy meut,
subject only as expressed in .the conveyance, and for
freedom from incumbrances other than those subject to
which the conve3^ance is e.rptrss/// made (/). So that if
the vendor omit to specify in the conveyance the incum-
brance, subject to which he sold, and convey as beneficial
owner, he lays himself open to an action on his covenants
for title, to which his only defence would be to plead
the terms of the contract for sale and counterclaim for
rectifif'ation of the conveyance (/.•). Where the contract
for sale contains the common stipulation (/) that the
property is sold subject to all chief and other rents,
rights of way and water and other easements (if any)
charged or subsisting thereon, and to all leases, tenancies
and occupations, whether mentioned in the particulars
of sale or not, and to all rights and claims of lessees,
tenants and occupiers, it may perhaps be argued that the
vendor is in strict law entitled to insist that he shall
convey according as he contracted to sell, namely, sub-
ject to these incumbrances ; and that none the less,
where the purchaser has inquired whether there are any
such incumbrances (/;/) and received the reply that the
vendor is not aware of any {n). For as we have
(i) Stat. 44 & 45 Vict. c. 41, Stt(dlei/,Fmch,90 ■ Sug-. V. & P.
s. 7 (1a). 609 ; 2 Dart, V. & P. 786, 5th
(A) See Ftiqe v. Midland Sail. ed. ; 886, 6th ed. ; 794, 795, 7th
Co., 1894, l' Ch. 11 ; May v. ed.
Piatt, 1900, 1 Ch. 616; Great (/) Above, p. 73, and n. (/).
Western Ry. Co. v. Fi.sker, 1905, {in) Above, p. 175.
1 Ch. 316 ; below. Chap. XIII. (h) It is submitted that if the
^2. Astoobtainiagrectiiieation vendor has answered positively
on this ground, see Coldcot v. that there are not any such in-
HiU, 1 Ch, Ca. 15 ; Feildvr v. cunibrauces, he cannot insist on
OF THE COMPLETION OF THE CONTRACT. 645
seen (o) , it is onlj' against such incumbrances as the vendor
was not aware of that this stipulation has any force ;
and the vendor certainly appears to be entitled to limit
his liability under the statutory covenants for title, so
that he shall not be sued for any defects of title so
arising. But it is not, and has never been, the practice
of conveyancers to insert in conveyances on sale any
words qualifying, by reference to possible incumbrances
of this kind, either the assurance made or the covenants
for title entered into by the vendor [p) ; for it is under-
stood that the stipulation in question is merely intended
to protect the vendor against any objection to the title
on account of incumbrances of the kind mentioned,
which may exist without the vendor's knowledge, and
may be discovered in the eoui^se of the investigation of
title, and that the purposes of the clause are exhausted
when the title has been investigated without the dis-
covery of any such incumbrance {q). And it would be
a great hardship on the purchaser for such words to be
inserted in the conveyance, as they would put everyone
taking under the conveyance upon inquiry, whether
there were such incumbrances or not {>•). It is thought,
therefore, that the Court would not oblige a purchaser,
who bought under such a stipulation, to accept a con-
veyance, in which the assurance made by the vendor was
qualified by such words, especially when it is considered
that under an innocent conveyance (s) the vendor
assures the land described for such estate or interest only
as he really has therein and subject to all legal liabilities
having the same mentioned in Ibid. i. 611, 4th ed. ; i. 521 and
tlie conveyance. n., 5th ed. Sec also 1 Key &
{») Above, pp. 73, u. (<). 17."). Elph. Prec. Conv. 260, n. (c),
{/j) This appears from an ox- 4th ed. : 248, n. [), 8th id.
ainiuation nf the precedents con- {(/) Dart, V. & P. 156, 5th ed. ;
tained in Davidson, Prec. Conv. 176, 6th ed. ; 172, 7th ed.
vol. ii. pt. i. 4th ed., con.sidered (;) Re Alms Corn Charity, 1901,
with reference tt) the fact that 2 Ch. 750.
the stipiUation in question is one (») Above, p. 623, n. (»■).
of the general conditions of sale :
646 OF THE COMPLETION OF THE CONTRACT.
actually affecting the same {t) . But it is thought that
the vendor would be entitled to insist on limiting the
statutory covenants for title so that they should not
extend to indemnify the purchaser against any incum-
brance, whether known or unknown, subject to which
the sale was expressly made. It is not, however, the
practice to insist on such a limitation with regard to the
possible incumbrances specified in the above-mentioned
common condition of sale. If in any particular case it
were desired to insist on this limitation of the covenants,
it should be carried out by a clause expressly modifying
the effect of the statutory covenants and not by
expressing that the conveyance is made subject to the
incumbrances mentioned in the condition. If it be
stipulated in the contract for sale that the property is
sold and shall be conveyed subject to the incumbrances
above mentioned {u), the purchaser cannot object to the
insertion in the conveyance of the same words as are
contained in the contract [x] . The vendor cannot oblige
the purchaser to take a conveyance of the land sold
subject to any other incumbrances than those subject
to which the purchaser expressly or impliedly (//) agreed
to buy (s).
Sale of such If the vendor should have sold only such estate or
estate as the ., . ■, ■, . i'liii-c
vendor has. interest as he has m some particular land, he is oi
course entitled to require that he shall convey the same
thing only and in the same words. But if land were
sold by a particular description, with a stipulation that
{t) Hardman V. Child, 'IS Ch. J). not expressly contract to show a
712,717. good title ; above, p 203.
(m) Above, p. 642. (s) Re Monckton arid Gilzean,
{x) Gale V. Sqiiier, 4 Ch. D. -11 Cb..T>. bob \ Ilnrdman \. Child,
226, 5 Ch. D. 625. 28 Ch. D. 712 ; Musti/n v. Mostyn,
{y) As where the purchaser 1893, 3 Ch. 376 ; Re Wallls and
buys with notice that the land is Barnard's Contract, 1899, 2 Ch.
subject to some irremovable in- .tI;').
cumbrance, and the vendor does
OF THE COMPLKTION OF THE CONTRACT. ^'^^
the purchaser shall accept such title as the vendor
has(rt), the case is dilfereut, and the vendor would be
obliged to convey tlie laud as described in the contract,
Avithout any words limiting the assurance to his actual
interest therein (b) . In such case, however, it is thought
that the contract is equivalent to an agreement to buy
subject to such incumbrances or defects of title as may
appear upon investigation to exist, and that the vendor
would therefore be entitled to limit his covenants for
title so as to prevent any action thereon being brought
against him by reason of such incumbrances or
defects (c). It may be observed that the usual vendor's
qualified covenants for title, whether given in express
terms or incorporated in the conveyance by statute,
do not confer any indemnity against the purchaser's
eviction by title paramount to that of the vendor's own
predecessors in title ; they extend only to the purchaser's
disturbance by reason of some act, omission or incum-
brance, of the vendor himself or any person through
whom he derives title, otherwise than by purchase for
value {(l) . A disseisor, therefore, or even a man having
no title at all, not so much as a disseisor's estate (e), if
he sold and conveyed (t-s hcurficia/ owner the land, into
which he had wrongfully entered or which he had
wi'ongfuUy assumed was his, would incur no liability
on the statutory covenants for title in case of the eject-
ment of the purchaser by the rightful owner.
If one sell a single piece of land on the terms that Sale of land
the purchaser shall enter into covenants restrictive of restrictive
covenants.
(o) Above, p. -202. k P. 602, 603, 605—609 ; Houfird
(h) See above, p. 646. v. Maitland, 11 Q. B. D. 696;
(f) See the caseH cited, above, and we below, Chap. XIX. ^ S.
p. G44, u. (/.). [e) This is an estate in fee
(rf) Jiroirnvuff V. Wri(//if,'2B.ii simple: see Litt. ss. 519, 520;
P. 13; Hesse v. Sleveunoti, '.i B. Williamson Seisin, 7, 10; Leach
\- P. 56.0. 574 ; Ntnd v. Marshall, v. Ja,j, 9 Ch. D. 42, 44 ; 51 Sol. J.
1 Brod. & B. :U9 : Stuiniard v. 143.
l'„ybes, 6 A. & E. 572 ; Sug. V.
648
OF TifE COMPLETION OF THE CONTRACT.
the use of the land, the vendor is of course not bound,
in the absence of express or implied stipulation or of
representation to the contrary, to enter into any similar
covenants or to observe the like restrictions with regard
to any adjoining land retained by him (./'). If lands be
offered for sale in lots, either at one sale by auction or in
a series of consecutive private sales, on the terms that
each purchaser shall enter into restrictive covenants as
to the lot bought by him, it is, in the absence of express
stipulation, a question to be decided on consideration of
all the circumstances and conditions of the sale whether
there is implied in the contract for the sale of any lot
an agreement that the vendor shall be bound by the
restrictive covenants as to any lot remaining unsold (//).
If it appear that the offer made by the vendor was in
effect that each purchaser should have a lot forming-
part of an estate subject to a general scheme of restric-
tive covenants enforceable by as well as against all
owners of any part thereof, the vendor will be bound to
enter into like restrictive covenants with the purchaser,
as regards any lot remaining unsold ; and will be
bound in equity to observe the restrictions, though he
do not enter into any such express covenant (A). But
if it appear that the vendor merely offered each lot
to be sold subject to restrictive covenants to be entered
into with himself by each purchaser, and did not offer,
as part of the contract or as an inducement to buy, the
advantage of the whole property put up for sale being-
subject to the same covenants, then the purchaser of
(/) See Tucker v. Voivlcs, 1893,
1 Ch. 195 ; Roivcll v. Satchell,
1903, -2 Ch. 2\-2 ; Osborne v. Brad-
ley, 1903, 2 Ch. 446 ; above,
p. 497, n. (s).
ig) Above, p. 494, aud n. [a) ;
Nottingham Patent Brick, ^-c. Co.
V. B/itler, 16 Q. B. D. 778, 784,
785 ; CoUhis v. Castle, 36 Ch. D.
243.
(/() See cases cited iu previous
note ; lie Birminq/iajii, ^^c. Co. and
Allday, 1893, 1 Ch. 342 ; Davis
V. Leicester, 1894, 2 Ch. 208, 219,
227, 232 ; Hoi ford v. Acton Urban
Council, 1898, "2 Ch. 240 ; Rowell
V. Satchell, 1903, 2 Ch. 212 ;
Elliston V. Reacher, 1908, 2 Ch.
374, 384, 385, 665.
OF THE COMPLETION OF THE CONTRACT. 649
any lot will have no claim to enforce any restriction
over any lot remaining unsold, or to require the vendor
to enter into any covenant in respect thereof (/). In
any case in which it is either an express or an implied
term of the contract for sale that any land retained by
the vendor shall be subject to any restriction in the
purchaser's favour, the purchaser is entitled to require
the vendor on completion to enter into a covenant with
him to that effect (/.•). The case is exactly parallel to
that of an express or implied contract to grant an
easement over land retained by the vendor (/).
The estate clause always inserted in conveyances of Estate clause.
land before the year 1882, and piu'porting to assure all
the conveying party's estate or interest in the land
conveyed (m), went out of use after the commencement
of tlie Conveyancing Act of 1881 [n) ; the 6'3rd sei-tion
of that Act providing that every conveyance shall by
virtue of that Act be effectual to pass all the conveying
party's estate or interest in the property conveyed, but
this enactment shall apply only if and as far as a
contrary intention is not expressed in the conveyance
and have effect subject to the terms of the conveyance
and the provisions therein contained. Having regard
to this express saving and to the construction placed on
the estate clause formerly usual (o), it is thouglit to bo
unnecessary expressly to exclude the operation of that
enactment upon conveyances assuring in proper terras
less than the whole estate of the party conveying, such
(») Tucker v. rowles, 1««J3, 1 Stat. 242 ; Wms. Real Prop. G2o,
Ch. IQ.") ; Holfoid v. Avion Urban 21 at ed.
Council, 1898, 2 Ch. 240 ; Reid v. (w) Stat. 44 & 4.) Vict. c. 41.
Hickcrstaff, 1905 5.
OF THE COMPLETION OF THE CONTRACT. 655
act to incumber the property sold (.s) . But if a trustee
enter into a contract to sell land, without disclosing his .
fiduniarj^ character, the purchaser will, it is thought, he
entitled to the same covenants as if the vendor were
the beneficial owner (/) . This should not be forgotten
when it is desired to effect a sale by trustees without
disclosing the trust. So a mortgagee selling as such By mortfrim-co
under his power of sale is only bound to covenant that ^'* ^"''''•
he has not incumbered (x), but would, it is thought, be
liable to give the usual vendor's coAenants as to title if
he sold under an open contract. Where land held on a By ces/ ;,{-(, iir.
simple trust or in mortgage is sold by or by the direction mortgagor,
of the rof). But where such
person is tenant for life only and his covenants for title
extend to the acts, &c. of any of his predecessors in
title (e) , it is the regular practice to limit these covenants
bj^ a proviso saving him from liability, as regards the
remainder or reversion expectant on his life estate, for
any other acts or defaults than those of himself or his
own heirs or persons claiming under or in trust for him
or them (d) . And it would probably be held, where the
nature of the interest of a tenant for life so selling or
consenting to aTsale appears from the contract, that he
is entitled to insist on this restriction of his liability.
But it is thought that this is not the case where he has
sold as absolute owner. Thus, if one so entitled sold
by an open contract, which he proposed to carry out by
a conveyance by himself under the Settled Land Act,
1882, or by trustees under a power of appointment
exercisable with his consent (c), it is submitted that he
would be bound to give vendor's covenants for title
imrestricted by any such proviso. The case is analogous
to a sale made by a trustee without disclosing his
fiduciary character (/). If lands be vested in trustees
and n., 4th ed. ; 1 Key & Elph.
Free. Conv. 533 and n.. 4th ed. ;
526 and n., Sth ed.
(a) Above, pp. 300 xq.
[b) Re London Bridr/e jicts, 13
Sim. 176, 179; Poiikit v. Hood,
L. R. 5 Eq. 115 ; i2e Sawyer and
I!trri)/(/''ft Contract, 53 L. J. Ch.
1104; Sug. V. &P. 575.
(c) Above, pp. 652, 653.
{d) 1 Dart, V. & P. 548, Sth
ed. ; 619. 620, 6th ed. ; 571,
7th ed. ; Davidson, Prec. Conv.
vol. ii. pt. i. 261, n. (o), 262, 4th
ed. ; 1 Key & Elph. Prec. Conv.
453, n., 4th ed. ; 449, n.. Sth ed.
{e) Above, pp. 165, 282, 300 .?y.
(/) Above, p. 655.
OF THE COMPLETION OF THE CONTRACT. 657
on a special trust for sale, and they sell as such trustees,
their receipts being good discharges {q), it does not
appear that the purchaser is in strict right entitled to
require the persons beneficially interested in the purchase
money to join in the conveyance or to covenant for
title (/c) : but it has been the practice of conveyancers
to insist, if such persons were absolutely entitled and
sni JHrix, that they should give the usual vendor's
covenants for title as regards their shares (/). It is,
however, usual on sales by trustees to stipulate expressly
that the concurrence of the beneficiaries shall not be
required and the purchaser shall be entitled to no other
covenant than the trustees' covenant against incum-
brances (/). Where lands belonging to one absolutely Sale by order
are sold by order of the Court, he must enter into the
same covenants for title as if he himself had sold them ;
but where on such a sale the legal estate is in trustees
and a good title to the equitable interest is given by
virtue of the order for sale (/), the piu'chaser cannot
require the concurrence in the conveyance of the persons
beneficially entitled, or oblige them to covenant for
title {)n).
The present practice is t(j incorporate the requisite The statutory
covenants for title or covenant against incumbrances (w) ^?y^°^°t'* ^^^
in conveyances on sale by using the expressions which
cause such covenants to be " deemed to be included and
to be implied " therein by virtue of the Conveyancing
{ij) Above, p. 288. Prec. Couv. 264, u., 4th etl. ;
(A) See C'vitrellv. Cottrcll, L. R. 252, n., 8th ed. ; above, p. 76.
2 J5q. 330 ; abiive, p. (55.5 ; and (/) Above, p. 472.
next note. (/») Sng. V. & P. 574 ; Cottrell
{i^ Suff. V. & P. 574 ; 1 Dart, v. Cottrell, L. R. 2 Eq. 330 •
V. k P. 545, 540, 5th ed. ; 617, 1 Dart, V. & P. 54.i. .')th ed. ;
618, 6th ed. ; 568, 569, 7th ed. ; 617, 6th ed. ; 568. 7th ed. ;
Davidson, Prec. Cimv. vol. ii. Davidson, Prec. Conv. vol. ii!
pt i. 275, n., 4th ed. ; Wins. pt. i. 270— 275 and notes, 4th ed.
Real Prop. 449, 13th ed. ; 6U9, It is usual, however, so to stipu-
2l8t ed. late: 1 Davidson, Prec. Conv.
(/r) 1 Davidson, Prec. Conv. 661, 4th ed. ; 593, 5th ed.
613, 4th ed. ; 1 Key & Elph. {«] Above, pp. 652 — 655.
w. 42
658
OF THE COMPLETION OF THE CONTRACT.
Act of 1881. By this Act (o), in a conveyance (p) for
valuable consideration, other than a mortgage (y), there
are implied on the part of anyone, who conveys and is
expressed to convey as beneficial owner, as regards the
property expressed to be conveyed by him, and with the
person or persons to whom the conveyance is made,
covenants for right to convey, quiet enjoyment, freedom
from incumbrances and further assurance, and in the
case of leaseholds, for validity of the lease ; all limited
to the acts, omissions and sufferances of the person who
so conveys, anyone conveying by his direction and any-
one through whom he derives title otherwise than by
purchase for value (not here including a conveyance in
consideration of marriage), and j^ersons claiming under
him or thera (r). And the like covenants are implied in
a similar conveyance, in which it is expressed that one
conveys by direction of another directing as beneficial
owner, on the part of the person so directing (.s). And
in any conveyance there is implied a covenant against
(o) Stat. t4 & 45 Vict. c. 41.
s. 7 (1) (a), (b). This section
applies only to conveyances made
after the year 1881 : sect. 7 (8).
(p) In this section "convey-
ance " includes a deed conferring
the right to admittance to copy-
hold or customary land ; hut does
not include any other customary
assurance, or a demise by way of
lease at a rent; sect. 7 (5).
" Conveyance "' in the Act is
confined to assurances made by
deed on some dealing with or for
property; sect. "2 (v).
(q) In a conveyance by way of
mortgage, absolute covenants for
title are implied on the part of
any one, who conveys and is ex-
pressed to coTivey as beneficial
owner: sect. 7 (1) (c), (d). And
in a conveyance by way of
settlement there is implied on the
part of any one who couve}\s and
is expressed to convey as settlor
a covenant for further assurance
linuted to liimself and every per-
son deriving title under him sub-
sequently to that conveyance :
sect. 7 (1) (e).
((■) Due exceptions are made
with I'egard to any estates, in-
terests, or incumbrances, subject
whereto the conveyance is ex-
pres.shj made, and the acts, &c. of
persons claiming in respect
thereof ; see above, p. 644.
(i) Sect. 7 (2). And by
sect. 7 (3), where a wife conveys
and is expressed to convey as
beneficial owner and her husband
also conveys and is expressed to
convey as beneficial owner, there
are implied, besides the covenants
implied as above mentioned by
the use of these expressions, the
same covenants as if the wife
conveyed by the dii-ection of the
husband directing as beneficial
owner, and also covenants by the
husband in the same terms as the
covenants implied on the part of
the wife : see Wms. Conv. Stat.
87—91.
OF THE COMPLETION OF THE CONTRACT.
incumbrances by anyone who conveys and is expressed
to convey as trustee or mortgagee, or as personal repre-
sentative of a deceased person, or as committee of a
lunatic so found by inquisition or under an order of
the Com-t, such covenant extending to the conveying
party's own acts only (t). But no covenant is implied
in any conveyance by virtue of this Act where it is not
expressed that some person conveys in one of the
characters particularly mentioned in the Act ; for
instance, as beneficial owner or as trustee (ti). The
covenants implied by virtue of this Act may be varied
or extended by deed (^). They may therefore, it is
considered, be limited in any manner which will not
altogether destroy the covenantor's personal liability,
A'proviso destroying altogether a covenantor's personal
liability on the covenant is held to be repugnant and
void (//). An instance of the limitation of the statutory
covenants for title occurs in the proviso usually inserted
in convej'ances where the party covenanting for title is
a tenant for life onlj;{3). The benefit of a covenant
implied l)y virtue of this Act shall be annexed and
incident to and go with the estate or interest of the
implied covenantee, and shall be capable of being
enforced by every person in whom that estate or interest
is, for the whole or any part thereof, from time to time
vested (a). This is analogous to the law laid down
with respect to express covenants for title. These run
with the land ; that is to say, they are enforceable by
every one, wlio takes the covenantee's estate therein (/>),
or any part thereof (r). But they are not enforceable
{i) Sect. 7 (1) (f). 503; Campbell v. Lncis, 3 B. &
(m) Sect. 7 (4). A. 392 ; Susr. V. & P. 576 sq.
(x) Sect. 7 (7). {c) Farwell, J.. RogerK v. Hose-
\y) Williams v. Ilathmrmj, 6 go(^, 1900, 2 Ch. :<88, 396 ;
Ch. D. 544, .'',46. " Jarm. Conv. by Sweet, 366, 404 :
(:) Above, p. 6.')C. 2 Dart, V. & P. 779, 5th ed. :
[a) Sect. 7 (6). Tu'1/nam v. Picknrd, 1 B. & A.
\b) Co. Litt. 314 b, 385 a ; lOrj.
Afidfllniinrf v. Gnndale, Cro. Car.
42 (2)
659
660
OF THE COMPLETION OF THE CONTRACT.
by one who acquires the land, but does not take the
covenantee's estate therein. Thus if A. conveyed land
to B. and his heirs to such uses as C. should appoint
and in default of appointment to the use of C. and his
heirs and covenanted with C. for title, and C. after-
wards appointed the land to the use of D. and his heirs,
D. could not sue on the covenants for title, for he took
an estate which defeated C.'s estate in the land (r/).
Although if C. had conveyed to D. his estate in the
land, D. could have sued on the covenants for title. D.
could also have sued on the covenants, if they had been
made (as they should have been) with B., the grantee
to uses ; because then D. would, by virtue of the
Statute of Uses {e), have taken the covenantee's estate
in the land ; and this would be the case, whether he
had taken by appointment or grant from C. (./').
Where the statutory covenants for title are employed,
the implied covenantee is the person to whom the
conveyance is made {g). This, in cases where the
conveyance is made to uses intended to be executed
by the Statute of Uses (e), is the grantee to uses ; so
that if the limitations of the conveyance include a
power of appointment, an appointee thereunder will
take the implied covenantee's estate and so be enabled
to sue upon the covenants for title. But it appears
equally true in principle of the statutory as of tlie
express covenants for title that one cannot sue thereon,
as assignee of the land to which they relate, unless he
take the implied covenantee's estate therein.
Covenants for If covenants for title were given upon the sale of an
title on sale of •- i i - j. e -i. e \ l-
an eqviitable equitable estate, as oi an equity ot redemption, an
estate. assignee of the pui'chaser's estate could not maintain an
[d) Roach v. Wadham, 6 East,
289 ; Sug. V. & P. 578—580.
{e) Stat. 27 Hen. VIII. c. 10.
(/) Sug. V. & P. 578 ; Spoor
V. G)-ee)i, L. R. 9 Ex. 99, 105.
113.
(/•/) Above, p. 658.
OF THE COMPLETION OF THE CONTRACT, 661
action at law upon the covenants in his own name, for
there beings no legal estate with which the covenant
could run, he was regarded in law as a stranger to the
covenant (//). It appears however that he might main-
tain an action at law in the name of the original
covenantee, or his representatives, who would in equity
be bound to allow his or their name to be used for the
purpose. For in equity the benefit of the covenants for
title would, in accordance with the manifest intention of
the parties, run with the purchaser's estate in the
land {ij. But where tlie statutory covenants for title
are given in the conveyance on sale of an equitable
estate, it appears that an assignee of the purchaser's
estate may well maintain an action at law in his own
name upon the covenants, since the right of action
thereon is by force of the above-mentioned provisions of
the Conveyancing Act (/.•) annexed to the implied
covenantee's estate or interest in the land conveyed to
him ; and it is thought that the right of action on the
covenants is effectually so annexed to the covenantee's
estate, whether his interest be legal or equitable.
If on a conveyance of land covenants for title, express Covenants for
or statutory, be obtained by fraud, the covenantor may ^'t^e obtained
well plead the fraud, in avoidance of the contract,
in any action brought against him on the covenants
by the original covenantee. But if the covenantee
assign over his estate in the land to a purchaser for
value mthout notice of the fraud, the assignee will be
entitled, as such, to enforce the covenants ; and the
covenantor will no longer be enabled to set up the plea
of fraud (/).
[h) Sug. V. &P. oHl ; 9 Jann. ijood, 1900, 2 Ch. .388, 404 ; Sug.
Conv. by Sweet. 36G ; Onward V. & P. .592, .'iQS.
Buildiiiff Sociefi/v. Smilhso»,\S9:i, (A) Stat. 44 & 4.5 Vict. c. 41,
1 Ch. 1, 12. 8. 7 (6) ; above, p. (i.59.
(i) See ^pcncn- v. lioi/es, 4 Ves. (/) David \. Sabin, 1893, 1 Ch.
370 ; Riddell v. Kiddell, 7 Sim. .523, overruling the dUtiim to
529, 533, 535 ; Rogers v. Hom- the contrary in Onward Building
662
OF THE COMPLETION OF THE CONTRACT.
Purchaser
may take
either express
or the statu-
tory covenants
for title.
It seems to lie in the purchaser's option whether the
covenants for title, which he is entitled to demand,
shall be given by express words in the old form or by
incorporation in the conveyance of the statutory cove-
nants ; for the purchaser is in general the arbiter of the
form of the conveyance (;») . But, as we have seen {ii) ,
the practice is to take the statutory covenants. If,
however, the statutory covenants implied by the vendor's
conveyance as beneficial owner would impose upon him
any more extensive covenant than the contract obliges
him to give, he will of course be entitled to have the
operation of the statute duly restricted (o) . Thus it has
been already mentioned that a tenant for life not bound
to covenant against the acts^of the remaindermen or
fevefsioiiers ihay so'lirnit his liability (/j). Again, we
have seen (q) that a vendor is bound to covenant for
title against his own acts and the acts of all his pre-
decessors in title subsequent to the last sale of the land
or other dealing therewith for value whereon proper
covenants for title were given. But the statutory
covenants are against the conveying party's own acts
and the acts of all persons through whom he derives
title otherwise than by purchase for value not including
the consideration of marriage (r). If, therefore, the
vendor derive title under a marriage settlement whereon
proper covenants for title were given (s), it appears that
Society V. Smithson, 1893, 1 Ch. 1,
13; see below, Chap. XIX. § 5.
(»«) Above, pp. 617, 622 — 624.
The same principle appears ap-
plicable in determining whether
any other rights, to which the
purchaser is entitled, shall be
assured to him in expi-ess terms
or by some statutory form ; r.g. ,
whether express general words
shall be inserted, or recourse had
to the statute ; above, pp. 037, 638.
(w) Above, p. 658.
(o) Above, p. 640.
Ip) Above, p. 656.
[q) Above, p. 652.
(r) Above, p. 658.
(.s) It was the practice before
the year 1882 for the i?ettlor in a
marriage or family settlement to
give covenants for title qualified
in the same manner as upon a
sale : Davidson, Prec. Couv.
vol. iii. 59, 275, 634, 861, 1027,
1120, 3rd ed. ; Williams on
Settlements, 126, 226. But since
the Conveyancing Act of 1881
took effect, settlors have in many
cases given only the covenant for
further assurance implied under
that Act by their conveying as
settlor : above, p. 658, n. (r) ;
OF THE COMPLETION OF THE CONTRACT. 663
in strict law he will not be bound to covenant for title
against the acts of the settlor, and will be entitled to
have the statutory covenants modified accordingly (^).
In practice, however, vendors claiming under marriage
settlements whereon proper covenants for title were
given have frequently submitted to covenant against
their settlors' acts {ii).
On the sale of a legal estate in copyholds, the Covenants for
covenants for title must be given by a deed separate of*^cop" ^olds.
from the conveyance of the land, which will of course
be by surrender and admittance {x) ; as the covenants
cannot be entered on the court rolls. This may be
accomplished by a deed either preceding or following
the surrender. In the former case the deed takes the
form of a covenant by the vendor to surrender the
copyholds to the purchaser's use and the covenants for
title are added ; in the latter case the deed contains
only the covenants for title. The latter course was
formerly considered preferable, because it was doubted
whether in the former case the covenants would run
with the land, the covenantee having no legal interest
therein previously to the surrender {//) . It should be
noted that the statutory covenants for title can only be
incorporated in a deed conferring the right to admit-
tance to copyhold land (z) ; so that if it be preferred to
take the surrender before the covenants for title are
entered into, they must be given by express words in
the old form. As the right of action on the statutory
2 Key & Elph. Tree. Conv. .5th ed. ; 616, 6th ed. ; 568,
461, u., 562, o(i:5, 704, 710, 4th 7th ed.
ed. ; 4o7, n., o.')3, oo4, 67 i, 680, {x) Wms. Real Prop. 484 sq.,
8th ed. ; Da\ndsou's Concise Pre- 21st ed.
cedents, oil and n., .rll, 17th ed. (y) Above, pp. 659 — 661; ifiW-
{t; Sug. V. & P. o74 ; S Jann. de/f v. liiddtU, 7 Sim. 529; David-
Conv. by Sweet, :{7o ; Davidson, son, Prec. Couv. vol. ii. pt. i.
Prec. Conv. vol. ii. pt. i. 192, 205—207, 364, 367, 4th ed.
237, n., 243, n., 254, u., 261, n., (;) Stat. 44 & 45 Vict. c. 41,
4th ed. ». 7 (5) ; above, p. 658, and
(«) See 1 Dart, V. ic P. 545, n. {q).
664 OF THE COMPLETION OF THE CONTRACT.
covenants for title is expressly given to every person in
whom is vested the whole or any part of the estate or
interest of the implied covenantee, and it appears
immaterial whether that estate were legal or equit-
able (a), there seems to be no doubt that, where such
covenants are given by a deed of covenant to surrender
copyholds upon a sale thereof, the purchaser's assigns
will be enabled to sue at law upon the covenants. For
this reason the usual course now is for the purchaser
to take the statutory covenants for title upon the sale
of copyholds, incorporating them in a deed of covenant
Paym<). If the parties intend that the benefit of
any such restrictive covenant shall run with some par-
ticular land retained by the vendor, he should be careful
that the covenant is so expressed that no doubt can
arise as to the persons who will be entitled to enforce
the covenant. It is, as we have seen hi), a question to
be decided on consideration of all the circumstances and
conditions of the sale whether the intention of the con-
tracting parties was that the benefit of such a covenant
should run with some particular land belonging to the
vendor, or whether this benefit was meant to be confined
{/c) Sug. V. & P. 573 ; David-
son, Prec. Conv. vol. ii. pt. i.
pp. 379, n., 381, 4th ed.
{1} See above, pp. 493, 648.
(m) See Pollock v. Rabbits, 21
Ch. D. 466, decided on an express
condition ; but it is thought
that the stipulation implied by
law is the same.
(«) Above, pp. 491—493, 648.
OF THE COMPLETION OF THE CONTRACT. ^67
to the vendor himself, his personal representatives, and
his assigns of the benefit of the covenant. The pur-
chaser can of course only be called upon to covenant as
intended by tlie contract. If the contract do not in
effect provide that the benefit of the covenant shall run
with some particular land of the vendor's, the purchaser
cannot be obliged to covenant in such a manner that
the vendor's heirs and assigns of that land will be
entitled as such, and not merely as assignees from the
vendor of the benefit of the covenant, to enforce the
covenant (o) .
When the vendor is bound under any covenant or In wliat .asfs
contract to pay any money or do or observe any other \^>„f "^'i'','^'"^^'
act or thing in respect of the land sold or as the iuik-nmifv
condition of retaining his interest therein, and the land
is sold to be held by the purchaser on the same terms as
the vendor held it, but the vendor Avill remain personally
liable for any future breach of the covenant or contract,
which may occur after the sale and conveyance of the
land, the purchaser is bound on completion to enter into
a covenant with the vendor promising to observe all the
conditions on which it is intended that he shall hold the
land and to indemnify the vendor against all liability
in respect of any future breach of these conditions ; and
it is not necessary for the vendor to stipulate expressly
in the contract for sale that the purchaser shall enter
into such a covenant {p). For example, on the sale of Ou salo ..f
leaseholds, which are subject to the payment of rent
and the performance of onerous covenants, the purchaser
must, if the vendor will remain under any liability in
(o) See limalx v. C'otvlisAaw, 9 Morri-., 1 V. Jc B. S : JFi//,i/is v.
Ch. D. V2b, 129, 11 Ch. D. 86G ; Fri/, 1 Mer. 244, 26:3—266; J/ox--
Spicer v. Martiti, 14 App. Cas. hay v. Indrnric/i, 1 De G. i: S.
12, 24 : Iioi/er.s v. lluseguod, 1900, 70S ; Sag. V. & P. 37, 3», 198 ;
2 Ch. 388, 396, 403—408. 1 Dart, V. A: P. 557 nq., 5th ed. ;
{p) See Pembcr v. Mut/iers, 1 628 .<(), it is thought that the purchaser cannot be
required to enter into such a covenant as would extend
to indemnify the vendor against past breaches of cove-
nant (r). And it is submitted that in such case the
purchaser cannot safely enter into a covenant of indem-
nity in the common form, which has been hitherto
usual (//) ; for this, it sterns, might be held to oblige
him to indemnify the vendor against past breaches of
covenant {z) : but he should insist on his liability being
expressly limited to indemnity against future omission
to pay the rent and keep the covenants. If, however,
the purchaser bought with notice of some breach of
covenant and agreed to take the property subject to the
breach, then, it is thought, his covenant to indemnify
the vendor o\ight to include indemnity against the con-
630, 6th ed. ; 581, 7th ed. : covenant was not exactly in the
Davidson, Prec. Couv. vol. ii. common form : but the construc-
pt. i. 217, 4th ed. Note that the tion placed upon it certainly
assignee' .s liability independent throws doubt upon tlie construc-
of express contract to indemnify tion of the common form, which
the original lessee (as to which is not expressed with unraistak-
see Buriiclt v. Ltpich, 5 B. & C. able accuracy. Some of the
.589 ; Moule v. Garretl, L. R. o reasons given for the decision in
Ex. 132, 7 Ex. 101) extends only this case appear questionable:
to omission to pay the rent or but it may be supported on the
keep the covenauis during his ground that the breach of the
own tenancy, and not to any such covenant to repair was a con-
omission occurring after he has tiuuiug breach and the assignee
assigned over: Sug. V. & P. 38. covenanting to perform the cove-
(m) Above, pp. 350 *
W. R. 253 ; Sug. V. & P. 198 ;
1 Dart, V. & P. 557, 5th ed. ;
629, 6th ed. ; 579, 7th ed. ;
Davidson, Prec. Conv. vol. ii.
pt. i. 453 aud n. (r/), 4th ed.
The purchaser is liable in equity
to indenmify the vendor with-
out such covenant ; Waring v.
Ward, ubi sup. ; Re Law Courts
Chambers Co., 61 L. T. 669, 671.
{i) 1 Dart, V. & P. 559, 5th
ed. ; 631, 6th ed ; 582. 7th ed. ;
see above, p. 435.
{k) Re Repington. 1904, 1 Ch.
811, 814; Dart, V. & P. 557,
593, 5th ed. ; 629, 668, 6th ed. ;
580, 1234, 7th ed. ; see above,
p. 407.
OF THE COMPLETION OF THE CONTKACT. 67'-'^)
him, not only by charging the same on the land sold,
but also by the purchaser's personal covenant for pay-
ment (/) . The vendor is also entitled to have an
express power of distress limited to him, that being
of the essence of a rent-charge {ni). It is questionable,
however, whether he is entitled, in the absence of
express stipulation, to have the rent-charge further
secured by a power in default of payment to re-enter
and hold the land until the arrears of tlie rent and
all costs be satisfied (u) : although it has long been
usual, on conveyance of land in consideration of a rent-
charge, to reserve such a power (o). But a stipulation
that the rent-charge should be secured by ''proper
provisions " would certainly entitle the vendor to have
the same secured by such a right of entry {p). The
vendor is not entitled, without express stipulation, to
liave reserved to him a power in default of payment of
tlie rent to limit a term to a trustee on trust to raise the
arrears by sale or otherwise (7). And if no such express
stipulation were made in the contract of sale, and the
remedies for recovering the rent-charge are to be
reserved, as is now usual, by tacit incorporation in the
conveyance of the 44th section of the Convej'ancing
Act of 1881 (r), the purchaser should be careful to
insert a proviso modifying the operation of tliat enact-
ment in accordance with his rights under the contract,
and excluding the power to limit a term, which the
statute would otherwise confer (s) . The vendor is not
(/) Bower v. Cooper, 2 Harp, vol. ii. pt. i. 508 and n., 4th ed. ;
408; 1 Dart, V. & P. oG'J, .5th Wms. Real Prop. 337, 13th ed. ;
ed. ; 634, 6th ed. ; 08'), 7th ed. ; 42o, 20th ed.
Davidson, Prec. Conv. vol. ii. {p) Jupte. Italph, De G. 219.
pt. i. 50'.), n., 4th ed. {>/) See K.vple. Ralph, De G.
{m) Sec Wms. Real Prop. 432, 219; Davidson's Concise Prece-
21st ed. This is none the less so dents, 207, n. {a), 18th (h1.
that a remedy by distress was {r) Stat. 4 4 «5c 45 Vict. e. 41 ;
g'iven for rent seek by stat. 4 see Wms. Real Prop. 433, 436,
Geo. II. c. 2», s. 5. 21st ed. ; "Wms. Conv. Stat. 216,
(w) See Ex pie. Ralph, De G. 217.
210. (v) David.son's Coneise Prero-
{()) Davidson, Prec. Conv. dents, 207, n. (), 18th ed.
w. 43
674
OF THE COMPLETIO^■ OF Till-: CONTKACT.
entitled, in tlie absence of express stipulation, to liave a
power limited to him in default of payment of the rent
to re-enter on the land and hold the same as his own.
Sale partly in Where land is sold partly in consideration of an agroe-
of an ajj-ree- ment by the purchaser to erect buildings thereon, it is
mont by the thous'ht that, uulcss the contract otherwise provide, tlie
purc.ha.ser to ° _ r '
build. vendor is only entitled to have the purchaser's covenant
to erect the buildings (/). It is therefore desirable for
the vendor to insert in such a contract an express stipu-
lation that ho shall, in default of due performance of
the covenant, have a power of re-entry and liolding the
land until the covenant be performed, sucli power to be
exercisable within a period not exceeding the limits of
the rule against perpetuities ; and it is sometimes
advisable to make such a stipulation where it is agreed
that the purchaser shall observe restrictions on the
use of the land sold {it). But it seems that a stipu-
lation that the performance of the covenants shall be
secured " by proper provisions " will entitle the vendor
to have.such a power of re-entry reserved to liim (.r).
Whether the
usual reme-
dies for
securing a
rent-charge
in fee are void
for remote-
ness.
An express power of distress granted either in terms
or by the operation of the 44 th section of the Convey-
ancing Act of 1881 (//) is certainly not obnoxious to the
rule against perpetuities. Such a power is, as Ave have
seen, of the essence of a rent-charge ; it merely confers
by express grant the same remedy as is annexed to rent
service at common law and now b}^ statute to rent
seek (z) ; it creates no separate future interest in the
land apart from the rent ; and it has been known to the
(t) See above, pp. 648, 666.
(?() It is not equally necessarj-^
in all cases, as the burden of re-
strictive covenants will in equity
run with the land, and they may
be enforced by action for injunc-
tion against any one acquiring
the land with notice thereof ;
while covenants to build are only
enforceable by action at law on
the covenant against the cove-
nantor personally and hi.s repre-
sentatives in law ; see above,
pp. 491 sq.
{x) See Rrpfe. Halp/i, De G.
21!).
(y) Stat. 44 & 4.") Vict. c. 41.
(;) Above, p. 673, n. (m).
OF THE COMPLETIOX OF THE CONTRACT. 675
Law and always treated as unquestionably valid from
Ijittleton's time (a) onward (/>). It is submitted tliat
the better opinion is that a riglit reserved on the erea- Power of
tion of a rent-cliarge in fee for the owner of the rent, g^tisfy
his heirs and assigns to enter on the land charged in fir^ars.
default of payment of the rent at any time and to liold
the same until the arrears of the rent and all expenses
shall be satisfied out of the rents and profits is not void
for remoteness, although its exercise be not confined to
the duration of existing lives and twenty-one years
after ; and that this is the case whether such right of
re-entry be created by direct reservation or by means of
the Statute of Uses. For it has alway^s been considered
that such a power of entry, being given by way of
remedy only for recovery of the rent, is merely a part
of the estate which the grantee of the rent has in the
rent limited to him ; the power passes bj^ a grant of the
rent as incident thereto, whereas if it had been an inde-
pendent interest or condition it would have been in-
alienable at common law, and the heir alone and no
assign of the grantee could have made use of it (c) ; and
it gives only a right of seizure and temporary occupa-
tion, which does not divest the estate of the terre-
tenant {(I), and confers no more than an interest to take
the profits in the nature of a distress (e). The right
created by such a power appears, therefore, not to be an
interest, independent of the rent, to arise at a future
(«) Litt. 8S. 216—218. 30.S, 402, 21st od. : Suir. Tow.
(//) The writer Ls not aware 4'. (»•) Sec tli(), 'M . Their opiuioii
Co. Liu. -01, 214, 21.) ; Butler's was aud it whs louj^ eoiisidend
notes to Co. Litt. 203 a, b ; by very eminent lawyers that the
above, p. 07"), and n. (<•). rule ajrainst perpetuities related
[ii) Third Kop. of Real Prop. only to future interest.s created
Commrs. 37 ; Jt'' UoIUs' IloK/Atal by way of shifting use or execu-
a)i(t Hai/>ir,l8W. 2 Ch.oiO, bid. tory devise: see Wnis. R.al
(o) Above, p. G71. Prop. 27(3, 277, 319 .s,j., 13th ed. :
(p) See above, p. G7o. Davidson, Pree. Conv. vol. iii.
() Litt. s. 32.5 ; Co. Litt. 201, pt. i. 336, 3rd ed.
202.
678 OF THE COMPLKl'lON OF THE CONTRACT.
judicially expressed that a common law condition of re-
entry annexed to a grant of land in fee is invalid unless
the event, in which the power of entry is to arise, must
occur within the time allowed by the rule against per-
petuities (.s). If, then, on sale of land in consideration
(s) N(n-th, J., BiniH v. Flood, 25 Ch. D. G29 ; Baggallay, L. J.,
S. C, 28 Ch. D. 592: Ee IloUi.f' jrosjAtnl and Haijur, 1890, 2 Ch.
5i0. In the former ca.se the opinions expressed Avere vh'Ucr divld ;
and iuic'ording to the report the power of entry was created by cove-
iiMUt only and in favour of the vendors, without mentioning- their
heirs and assigns. If this be correct there could have been no objec-
tion on the score of perpetuity : for the power of entry would only
have been exercisable by the vendors themselves in their lifetime.
In the latter case the point was not precisely determined. It was a
vendor and purchaser summons raising the question whether it was
an objection to title that the land sold was subject to a common law
condition of reverter to a former owner's heir in an event which might
occur at an unlimited time after the creation of the condition.
Byrne, J., expressed the opinion that the condition was void, but
decided that the title was too doubtful to be forced on an unwilling
purchaser, since the person who would be entitled under the condition
(which if valid w ould have come into effect on the conveyance com-
pleting: the sale) was no party to the proceedings and threatened
litigation against the purchaser. The learned judge must therefoie
have considered that it was reasonably open to doubt whether the
person entitled in cuse of the validity of the condition had not a good
cause of action. It should be noted that the opinion of the Real
Property Commissioners (3rd Rep. p. 37) was not cited iu either of
these cases. Byrne, J., in the latter case, admitted that there was no
authority on the point and simply adojJted the view maintained in
Lewis on Perpetuities, 61G, saying that, except in Challis on Real
Property, 174 — 177, 2nd ed., he could find no definite statement of a
contrary opinion. It is submitted that on such a question the opinion
of the Real Property Commissioners is of greater weight than that of
Mr. Lewis. But of course, as Mr. Justice Byrne well pointed out,
instancing the analogous progress of the law as to contracts in
restraint of trade, the boundaries of the rule against perpetuities
have been of late considerably extended, and sever*! interests which
formerly were only within the policy of the rule have been drawn
definitely within the ambit of the rule itself : see London and Sunth
Western Rail. Co. v. Goiiiw, 20 Ch. D. 562 ; Itc Front, 43 Ch. D. 246 ;
Wms. Real Pi-op. 4flG — 417, 21st ed. If, however, covenants for the
perpetual renewal of leases are to ba considered as outside the rule
because their validity was established before the modern development
of the perpetuity rule (and it is submitted that their exception cannot
be well founded on any other principle : see an article by the writer
in 42 Sol. J. ()28), surely common law conditions, which are of much
great, r antiquity, might be allowed a similar immunity. One very
strong argument in favoiu- of the validity of common law conditions
of re-entry, though unrestricted as to time, is that by the common
law, if an estate be given to a man and his heirs upon some conditiou
subsequent, a right of re-entry on breach of the condition is implied in
favour of the donor and his heirs ; Litt. ss. 328, 329, 331. It does not
appear that the law has been altered in this respect. But if common
OF THE COMPLETION OF THE CONTKACT. 679
of a rent-charg-e and a covenant to build or to observe
restrictive covenants, the vendor stipulate for the
reservation of a right of re-entry by way of forfoitiu'c
on non-payment of the rent or breach of covenant, such
right of entry must, if it is to be extended to the
vendor's assigns, be created by way of shifting use and
must therefore be limited to arise within some lives or
life in being and twenty-one years after {f). And in
the present state of the law it would be unwise to create
a common law condition of re-entry without limiting the
time of its possible exercise in the same way (^0- And I'ower uu
^ . . . breach of
it is thought that this is equally the case where land is ooveuunt, to
sold partly in consideration of the performance of u"tUnorforni-
building or restrictive covenants and it is stipulated hucc thereof.
that the performance of the covenants shall be secured
by a power of re-entry and holding till performance of
the covenants (.<■). In this case also it appears that a
right for the vendor's assigns to re-enter can only be
secured by a shifting use (//) ; and as the riglit to
enforce a building covenant can confer no interest iu
the land to be built on, and the right to enforce a
restrictive covenant is merely an equitable interest in
the land thereby affected (~), it does not appear to be
maintainable that a right of re-entry of this kind is a
part of the estate of the person entitled to enforce the
covenant ; which is, as we have seen {a), the ground on
which a like power of entry annexed to a rent is asserted
to be valid, lliough unlimited as to time.
Another matter wliicli may be conveniently discussed
hiw coudilious .sliould bo suV)ject {xj Above, p. 07;"). See David-
to the rule against perpetxiitios, soii.Prec.Conv. vol. ii. pt. i.p. ol I
it wouUl apparently follow that and u., 4th ed. ; 1 Key & Ei])li.
such an implied condition of re- Tree. Conv. 33.), n., 467. G04,
entry would be voll. as being- 1th ed. ; 338, n., 4()4, r)<)4, 8th
exercisable at mi;/ future time. ed. ; Davidson's Concise Prcee-
i,\ \K.. ., ,-- dentfi -210 and n. 1 («), ISth ed.
{() Above, p. Om. /no 1 -■->
* ' ' (i/j See above, p. 0<5.
(it) See above, p. 37'J and n. \:) Above, pji. 41)1 «y.
(/). {(I) Above, p. G75.
680
OF THE COMPLETION OF THE CONTRACT.
Delivery of ill coiiuectioii with tliG preparation of the conveyance is
oncompletioii^ ^^® delivery to the purchaser of the title deeds or other
muniments of title, and the vendor's duty to give or
procure proper statutory acknowledgments of right to
production and undertakings for safe custody of any
documents of title lawfully retained in the possession
of the vendor himself or any other person. The
general rules governing this matter upon a sale by open
contract have been already stated (b). The vendor is
bound, ill the absence of special stipulation, to deliver
over to the purchaser on completion all documents of
title, which are or should rightly be in his own
possession and relate solely to the property purchased,
whatever be their date and whether abstracted or
not {(•). The documents, which must be so handed
over, include not only the title deeds and such other
muniments of title as will pass without express mention
by a conveyance of the land itself (r/), but also all
documents produced for the purpose of verifying the
abstract in proof of any fact stated therein ; such as
certificates of baptism, marriage or burial, statutory
declarations as to matters of pedigree or as to the
identity of the property sold, or certificates of the result
of an official search for judgments or other matters {e).
But of coiu'se documents, such as a marriage settlement,
merely produced to show that they do not affect the
land sold (,/') cannot be required to be given up to the
purchaser. It appears that in general the vendor is not
obliged to hand over the receipts for payments made on
account of any of the death duties {[/) ; for although
these may be evidence (especially in the case of
(b) See above, pp. 34, 47, 48.
(c) Sug. V. & P. 407; Dart,
V. & P. 673, 5th ed. ; 7G2, 6th
ed. ; 693, 7th ed.
{d) See Harrbigton v. Trice, o
B. & Ad. 170 ; Fhilips v. Jlobin-
son, 4 Bing. 106 ; i?e WiUiams
and Newcastle' s Contract, 1897, 2
Ch. 144, 148 ; Wms. Pers. Prop.
126, 16th ed.
(e) See above, pp. 144, 153 —
155, 604.
( /') See above, p. 134.
(()) See below, Chap. XXI.
OF THE COMPLETION OF THE CONTRACT. 681
succession duty) tliat a charge of duty on tlie land
sold has been satisfied, they are principally evidence
of the discharge of the person who made the payment
from a personal liability or accountability to the Crown,
and on this ground lie appears to be entitled to retain
them. But it seems that any written statement or
certificate (such as may be given in the case of estate
duty (//) ) of the Inland Revenue Authorities, which
merely purports to show that the land sold is discharged
or free from any lien or claim for some particular death
duty, ought to be delivered up to the purchaser. As
we have seen (/), the Vendor and Purchaser Act, 1874,
provides that, in the absence of stipulation to the
contrary, where the vendor retains any part of an estate
to which any documents of title relate, he shall be
entitled to retain such documents {k) . It has been held
that, as this Act relates onl}^ to sales of land, this
enactment only applies where the vendor retains some
land or interest in land, to wliich the documents of
title relate ; so tliat where a mortgage had been made Av Wiiiiums
of land together with policies of insurance on the raort- "',','^tf/J^'
gagor's life, and the mortgagee sold the land imder his (^outruci.
power of sale, but not the policies, it was decided that
the mortgagee was bound to hand over the mortgage
deed to the purchaser (/). This case appears to have
been argued and decided solely upon the construction
of the enactment quoted : but it is submitted that the
matter ought rather to have been referred to the
principle contended for before the Vendor and Purchaser
Act was passed, namely, tliat where a title deed of any
land sold relates also to other property of th(! vendor,
he should be at liberty to retain it {in) ; and that the
intention of the Act was merely to declare the law in
{h) See below, Chiip. XXI. (/) lie WiUiuni" aiid Xcwcastlc^s
,.. ., ,- C'oM-w<, 1897, 2 Ch. 144.
(t) Above, p. 4.. ^^^. -2 Dart, V. & P. 618, 4th
(A) Stat. 37 & 38 Vict. c. 78, ed. ; AVms. Pers. Prop. 11, 11th
8. 2, nile 5. cd. ; 127, IGth ed.
(582
OF THE COMPLETION OF THE CONTRACT.
cases wliere the vendor retained some land and not
to legislate for eases in wliieli he retains some personal
chattels to wliicli the deed in question is also a title
deed. Suppose that land and personalty were vested
in trustees by one deed of settlement, the land being
settled on trust for sale, would the trustees be obliged
on a sale of the land to hand over the deed of settle-
ment to the purchaser? It is thought not. But if
this opinion be right, it must rest on the above-
mentioned principle ; as it does not appear that the
fact, tliat the trustees have duties to perform under the
deed, is of itself sufficient to justify their retaining it.
For where land alone is settled on trust for sale and the
trusts of the piu'chase money are declared by the same
deed, it is considered that the trustees are not entitled
to retain the deed of settlement on a sale of all tlie
land {n) ; and for this reason it is the practice to declare
the trusts of the purchase money by a deed separate
from the conveyance on trust for sale [p). But in any
case where land has been settled along witli personal
chattels by the same deed either upon trust for or with
power of sale, and in any other case in which some title
deed of land sold relates also to personal chattels
retained by the vendor, he should be careful, so long as
the decision in lie WUJlaiitt< (uul NviccaHfle is not overruled,
Vendor, whu to stipulate cxpressly tliat he shall retain it. It does
nantcd to ^^^^ appear that a vendor, who is not retaining any land
produce tlio to whicli the title deeds relate, is entitled to retain them
on the ground that he has entered into a covenant to
produce them : but in such case, as the vendor will
remain under a personal liability, the purchaser must
covenant to perform the obligations which were so
undertaken by the vendor and to indemnify him
[ii) 2 Dart, V. i!c P. G7o, oth (o) Davidson, Prec. Couv.
od. ; 7G3, Gth cd. ; 094, 7th cd. vol. iii. 59, 8o7, 3id ud. ; Williaui.-
on Settlements, 125.
OF THE COMPLKTION OF THE CON'l'KACT. 'Ji^'i
agai7i.st their non-performance {}>). If tlie vendor Voudor wlio
should prior to the sale have given a statutory .statiTtory '
aekuowledo-ment and undertakinsr with regard to any acknowlwlg-
c' _ _ o o -^ ment and
document of title, that is of course no reason tor uudeitaking.
retaining it ; as the acknowledgmeut imposes no personal
liability and the undertaking imposes no liability on
the undertaker after he has parted with tlie possession
or control of tlio document (y). The vendor is of
course not bound to obtain and hand over any documents
of title lawfully remaining in tlie possession of any
other person tlian himself; as whore he himself lias no
more than a right to their production under a statutory
acknowledgment or a covenant, or where the documents
are in the possession of a mortgagee of other land, or a
mortgagee who is not to be paid off.
Where lands held under one title are put up for sale Sale ut" laml
in lots, without any special stipulation as to the custody
of the title deeds, it is considered that, if all the lots be
sold, the title deeds should be delivered to the purchaser
of the largest part in value of the lands (whether that
part be contained in one lot or several lots), and that lie
should give statutory acknowledgments and undertakings
to the otlier ])urchasers (y). If and so long as any lot
remain unsold, the vendor will be entitled to retain the
deeds (.s). But it is usual and proper on a sale by
auction of land in lots to make s[)ecial stipulations to
the like effect ; and these generally provide that the
deeds shall, after all the lots shall have been sold,
whether at the auction or afterwards, be delivered to the
{l>) Su",'. V. & r. 431, 435; (>•) See Griffi(h.s v. H.ileluinl,
Dart, V. & P. 561, 675, 5th cd. : 1 K. & J. 17", 18; Sag. V. & P.
6;{:;, 76:5, 6th ed. ; 584, 6 subject of an acknowledgment
{") Above, p. 48, and n. {a). until he has fully ;uliiiinistorcil :
't\ n !• ^ -ox, oQo '-f- above, p. 682.
\h) Cooper \. J: men/, I Fh. .iSS. /i\ au i^i i/^o
^ ' '^ •" (it) Above, pp. 161, 162.
(r) It is submitted that, on a ,/■ Above, p. 161, n. (.)•) ;
sale of land by the executor of a Taylor on Evideuee, vS^ 420, 1;')S!),
will, oi- by au administrator, he Uth ed. ; 2 Wms. Exors. ISSO,
is entitled to retain the pmbate 7th ed.
orlettersof administration, which (/) Above, pp. 226, 232.
it is necessary that he should have (;/) Above, p. 161, n. {.r\
^86 OF THE COMPLETION OF THE CONTRACT.
and undertaking, where it forms part of the title and is
retained. As we have seen (/<), however, ofhce copies of
wills and letters of administration are accepted as good
evidence on a sale ; and office copies of wills may he put
in evidence in Court to prove a devise of realty under
the same conditions as the probates may {i). For these
reasons, perhaps, it has not been the general practice to
include probates or letters of administration in a covenant
or an acknowledgment for production of documents of
title : but it is submitted that a claim for their inclusion
could not be successfully resisted (/.•) . And it is not
usual in practice to include in acknowledgments copies
(whether attested, certified, official or otherwise) of any
documents, or certificates of baptism, marriage or burial,
or receipts of payment of any death duties (/.•) ; although,
as regards office copies and receipts for succession or
estate duty retained by the vendor, this seems hardly to
conform with tlie principle laid down by the Court (/).
St'itutory Statutory declarations, which the vendor would be bound
' ' to hand over if the}' related solely to the land bouglit,
should, if retained by liim, be the sabjeet of an
acknowledgment. Tlie purchaser cannot require any
(//) Above, pp. 150, IGl. receipts remain in the vendor's
,-\ a i. i .TA r ,n T7- i. -T possession or power, on what
(i) See stat. 20 & 21 Vict. e. /7, • • i i, j i- i.
,J^(, principle can ne decline to give
■ "' ■ an acknowledgment for their pro-
{k) See Cooper v. Ejiier!/, 1 Ph. duction 'r" The usual practice cer-
S88 ; Davidson, Prec. Conv. taiuly appears unjustifiable on
vol. ii. pt. i. 66;i, 664. n., 4th ed. ; principle iu the case of receipts
1 Key & Elph. Prec. Conv. 457, n. , for succession duty or certificates
4th ed. ; 464, n. (c), 8th ed. of discharge of estate duty ; for
(/) Cooper V. Emery, 1 Ph. 388. these are good original evidence
Of documents of which office of the discharge of a lien on
copies are issued, a purchaser the land and remain in private
can of course obtain as good and not official custody. It is
evidence himself, and copies of submitted that any official .state-
receipts for J aymeuts of death ment in writiDg, or certificate
duties will be issued by the purporting solely to declare tliat
authoritie.-to persons applying in the land sold together with other
good faith and in proper circuin- land is free or discharged from
stances : Davidson, Prec. Conv. all claim of duty (see above,
vol. ii. pt. i. GG2, n., 4th ed. p. 681), ought certainly to be
But where .such office copies or included iu an acknowledgment.
OF THE COMPLETION OF THE CONTRACT. 687
aoknowledo-mont for production of a document prodncod
moroly to prove that it does not affect the property sold,
unless it be in the vendor's own possession or power (/>/).
Sepondly, where any documents forming part of the wIkiv tlio
title contracted for are not in the vendor's possession, h^4 the ^le-'al
but he is entitled at law to the benefit of a covenant or rifrht to
statutory acknowledgment for their production, and the existing' cove-
leffal riarht to enforce this covenant or acknowledgment "'V^* "^, ,
will pass to the purchaser on completion, the purchaser ment for
is not entitled to demand that a fresh covenant or ^"° miction.
acknoAvledgment shall be procured for him from the
person in possession of the documents ; for that would
confer upon him no better right than he will have
AN'ithout it : but he is entitled, if the deed of covenant
or the acknowledgment hy which this right is conferred
may be withheld from him, to have a statutory acknow-
ledgment for the production of that document (i/).
Hero it may be observed that the benefit of a covenant
to produce title deeds will run at law with the
covenantee's lands, to which the deeds relate : but it is
now considered that the burden thereof does not run at
law with the lands retained by the covenantor (o). It
is thought, however, that in equity the covenantor's
successors in title to the deeds (other than purchasei-s
for value without notice of the covenant) would be
affected by the duty of production ; for this seems to
resemble a restriction on the free use of the deeds rather
than an obligation positively affirmative, such as a
(«/) Sug. V. & p. 436 ; Dart, which he had not and th(> piir-
V. & P. 676, ')th cd. ; 761, (ith chaser would not have the benefit
ed. ; 69"), 7tli ed. of a coveuant for production.
(w) See Sug. V. & P. 4r>3, n. ;
Gabriel v. Smith, 16 Q. B. .S47, (o) See Anolrrbrrn/ v. Old/mm,
8,52—854, S61, where note that 29 Ch. D. 7oO, 773. 775— 7^8,
the vendor had only the benefit 7M— 784 ; Farwell. J., J!of/rix v.
of covenants for jiroduction of Jloicf/ond, 1900, 2 Ch. 3S!S, 3s)4 —
the bulk of the fitle lUeds, but :<5)6 ; 1 Davidson, Prec. Conv.
that the objection made was that Ivi., ;>th ed. ; 1 Key A: Elpli.
there were two title deed.s of Prec. Conv. •'» 11, n., 4th ed.
H88
OF THE COMPLETION OF THE CONTRACT.
liability to lay out money {p). And it appears that,
where the ownership of any land held under one title is
divided, whether by sale, settlement or otherwise, and
the title deeds remain in the possession of the owners
of a part, the owners of the rest of the land have an
equitable right, independently of any covenant, to
enforce production of the title deeds in order to defend
their title or effect any sale or like disposition of their
lands {q) . It is thought, however, that this right, like
any other equity, may be lost, if the deeds come to the
liands of a purchaser for value who has acquired a legal
interest in them in good faith without notice of the
right. But the fact that the purchaser will on com-
pletion have this equitable right to production of the
title deeds does not prevent him from claiming an
acknowledgment for their production ; he is entitled to
have secured to him either the ler/a/ right to enforce
a covenant for production or the benefit of an acknow-
ledgment (;■). The vendor is therefore bound to
procure such covenant or acknowledgment for the pur-
chaser, if he can ; and must, it is thought, use his best
endeavours to do so (-s). But if these fail, then by the
Vendor and Purchaser Act, 1874 (/), the inability of
the vendor to furnish such covenant or acknowledgment
will not be an objection to the title, if the purchaser
will, on the completion of the contract, have an equit-
able right to the production of the documents. Where
{p) See An.sterbern/ V. Oldham,
29 Ch. D. 750; Sug. V. & P.
453 and n. ; 2 Dart, V. & P.
775, 5th ed.
(f/) See as to a purchaser of
jiart, Fain v. Ai/ers, 2 S. & S.
533 ; as to joint tenants, tenants
in common, and co- parceners,
Sug. V. & P. 443 ; Lambert v.
Roffcru, 2 Mer. 489 ; Elton v.
El'lou, 6 Jur. N. S. 13G ; Shore v.
CoUett, G. Coop. 234 (after parti-
tion) ; as to remaindermen,
Lempster v. Tomfret, 1 Dick. 238 ;
Davis V. Dy.wrt, 20 Beav. 405 ;
and see Sug. V. & P. 442—445,
453 and n.
(r) See Barclay v. Baine, 1 S.
& S. 449; Sug. V. & P. 452,
453, n. ; Gabriel v. Smith, 16
Q. B. 847, 861.
(s) See Bay v. Sinqleton, 1899,
2 Ch. 320.
{t) Stat. 37 & 38 Vict. c. 78,
s. 2, rule 3.
OF THE COMPLETION OF THE COSTRACT. 689
the purchaser will have neither the benefit of a good
statutory acknowledgment or legal covenant for the
production of the title deeds, nor any equitable right to
obtain their production, it is thought that he may
decline to complete the contract ; unless of course the
case has been duly pro^-ided for by special stipulation.
It is considered that in any case in which a vendor Vendor must,
would, according to the law in force before the Con- botli ack'uow-
veyancing Act, 1881 (n), be bound to give an unqualified ^^'^?'"':",V^°'^
covenant for the production and safe custody of title
deeds (.r), he is now bound to give a statutory acknow-
ledgment and undertaking for the same purposes. And
if he pr(jpose to do tliis, he is not bound to enter into a
covenant in the old form ; for by that Act (//) an
acknowledgment shall satisfy any liability to give a
covenant for production and delivery of copies of any
documents, and an undertaking shall satisfy any liability
to give a covenant for safe custody of documents (~).
If, therefore, a man sell laud under an open contract or
apparently as beneficial owner, lie is bound to furnish
tlie purchaser not only with proper statutory acknow-
ledgments, but also with proper statutory undertakings
with regard to any documents of title (exeei)t as above
mentioned (a) ) which may rightly be withheld from the
purchaser. But if a man sell as trustee or as mortgagee,
[tt) Stat. 44 i: 4.') Vict. c. 41. acknowledgment and nndertak-
U-) See Sucr. V. & P. 4.V2 ; 1 j"^'" ^f the .tatulory aekn.nv-
Dart V & P 55:> othed • li'^gmei'ts and undortakings are
1 T»' J T>' ]•> .).!>' better for botli parties than the
1 Davidson, Pree. Couv. 221, , . ^ . ^i u
„ /t\ ooj e.i\-> ifv. „,i . \\T.. . covenants in use under the old
n. (0, 226, 092, 4th ed. ; Wnis. . _,i • i» • i
n ct 1 i>- !/>.» practice. Iho "ivcr obtaiu.s the
Conv. Stat. 9<, 102. {• .. .. - , .^ ,. . .,. . .,
' limitation of his liability to the
(y) Sect, i) (9), (11). time during wliieli he has posses-
(;) A vendor is apparently at siou or control of the documents:
liberty to covenant absolutely for and the receiver gets the benefit
production and safe custody in of the statutory obligation run-
the old form, if he will; for his ning with the documents at lnw:
liahUilii is to give such a cove- see .stat. 44 & 4.') Vict. c. 41.
nant, though that liability may s. 9 (2), (9); above, p. GS7.
be satisfied by his giving an (") Above, pp. G84 — 6.S(j.
w. 44
690
OF THE COMPLETION OF THE CONTRACT.
Proper
acknowledg-
ment and
undertaking
can only be
given by the
person retain-
ing possession
of the docu-
ments.
Sale by mort-
gagor with
mortgagee's
concurrence.
it is tliouglit that lie will be bound to give an acknow-
ledgment only (b) : although it is advisable {r^ for
trustees and mortgagees selling as such to stipulate
expressly that they shall not be required to give the
statutory undertaking. It should be particularly noted
that only the person who refdinn possession of documents
is capable of giving a proper acknowledgment for their
production and undertaking for their safe custody, which
will have the right statutory eifect (d). Thus, if a
mortgagor sell part of the mortgaged lands, proposing
to convey the same with the concurrence of the mort-
gagee, who will of course retain possession of the title
deeds, the mortgagee is the only person who can give a
valid statutory acknowledgment and undertaking with
respect to them, and the mortgagor cannot do so. The
mortgagee does not, as a rule, object to give the
acknowledgment ; but it is objectionable to him to give
the undertaking, which involves a joersonal liability.
The mortgagor's liability to covenant or undertake for
safe custody is therefore properly satisfied, not by his
purporting to give a statutory undertaking {c), but by
his covenanting that he will give a statutory undertaking
when the documents shall come into his possession, and
that in the meantime, until such undertaking shall be
given, the possessor of the documents shall keep them
safe, whole, uncancelled and undefaced, unless prevented
{/,) Be Agn-nunlner, 25 Gh. D.
GOO ; Davidson's Concise Prece-
dents, 30, 090, n., 18th ed.
(<■) The reason is that, imder
the old practice, trustees used to
covenant for safe custody : though
it was considered doubtful whether
they were obliged to do so; see
Davidson, Prec. Conv. vol. i.
222, n. {t), 223, r)92, GI3; vol. ii.
pt. i. 667, and n. {a), 670, 4th ed.
{d) See Stat. 44 & 45 Vict.
0. 41, s. y ; Ite Piirsdl mid
Dt'dlui's Cull met, IS!)3, W. N.
15.'.
[e] If ho were to do so, tliat
would apparently create a con-
tract at common law fixing him
with an absolute liability for the
safe custody of the deeds, with-
out the exception of fire and
inevitable accident : see Expte.
lSf20,
his own terms or on being paid n. [/i], 9th ed.
off altogether. It is submitted i Above, pp. 687— 689; David-
thut the suggestion made in son, Prec. Conv. vol. ii. pt. i.
1 Key .% Elph. Prec. Conv. 461, 321, n. (<•), 4th ed.
44(2)
692
OF THE COMPLETION OF THE CONTRACT.
Person iu
constructive
possession of
documents.
require the vendor to covenant that he will give a proper
statutory acknowledgment, as well as undertaking, with
regard to the title deeds, when they shall come into his
possession, and also for production and safe custody of the
deeds in the meantime (/r). Here it may be observed that
a person in constructive possession of documents of title
appears capable of giving an effectual acknowledgment
and undertaking with regard to them ; so that where title
deeds remain in the possession of solicitors as bailees
for safe custody only, their owner can nevertheless enter
into a statutory acknowledgment and undertaking for
their production and safe custody. It is not equally
clear that this is the case where the documents are in
the possession of solicitors who have a lien upon them
for their charges : but it is submitted that a man retains
possession of documents within the meaning of the
9th section of the Convej^ancing Act of 1881 (/), where
the documents are in the custody of his solicitors as
bailees for him, notwithstanding that his solicitors have
the usual solicitors' lien thereon for their charges. And
having regard to the nature of solicitors' lien on their
clients' title deeds (iii), it certainly appears that where a
vendor's solicitors, who act for him generallj^ in the
matter of the sale, have the custody of the title deeds,
apparently on his behalf alone, and produce them for
the purchaser's inspection and approve on the vendor's
behalf of a conveyance or an agreement containing a
statutor}^ acknowledgment and undertaking by the
vendor with regard to them, without insisting on or
giving notice of any lien thereon, they must be taken
to have waived their lien as regards the creation of the
rights conferred by the acknowledgment and under-
taking (/O- The regular practice is to take acknowledg-
(A) Above, p. GOO.
(/) Stat. 11 & 4o Vict. c. 41.
(ill) See above, pp. 128 — 130;
Wms. Pers. Prop. Gl- 63, 16th ed.
{ii) It is thouo^ht that they
would be estopped by their con-
duct from settiuy- up any lien
thei'eon.
OF THE COMPLETION OF THF CONTRACT. 693
nients and undCTtakiogs from the owners of any
documents retained, and not from tlieir solicitors (o).
According- to the okl practice, a covenant for pro- Acknowledg-
duction of title deeds was usually taken by a separate to be O-iven
deed and not contained in the conveyance, unless the ^y separate
,.,,,. . . , . document,
deeds to be included therein were recited or noticed in
the conveyance {p). And it is thought that this practice
may still be usefully followed as regards statutory
acknowledgments and undertakings (q). Where these
relate only to documents recited or noticed in the
conveyance, it appears more convenient that they should
be contained therein. It was always desirable under Endorsement
the old practice, where title deeds were retained and randum on
covenanted to be produced, to obtain an endorsement conveyance,
on the leading title deed of a memorandum of the
covenant in order to affect all persons claiming there-
under with notice thereof (r) : but it was considered
that this could not be insisted on, if not provided for
by special stipulation (.v). There is not the same
necessity for tliis in the case of a statutory acknowledg-
ment and undertaking, as tliese are by force of the
statute enforceable at law against all persons wlio have
or may come into j)ossession or control of the docu-
('/) There appears to be no bility deeds.
ertectual statutory acknowled^'- ( ^,) Susf. V. & P. 4-50 ; 1 Dart,
m(!Dt and undertaking, if autho- y. A: P. '>.J4, .5th ed. ; Davidson,
rized to do so by the bailor. l>^.^,^. Conv. vol. ii. pt. i. 2SS,
Wli.ther he can do so without „. (/,)^ 319^ „. {ri), 4th ed.
the bailor's authority and whether / \ , n t ir id s-i .-.u
. , r 1 ('/) 1 l-Jart, V . & r. o.)4, .)tn
a wr.»n'''iiil possessor ot (i(«'u- j u.>r r,\ j — -.i j
■^ , * . ed. ; 6'2G, Clli ed. ; ;>( <, lUi ed. ;
ments can do so are nice (lues- t-» • 1 ' /^ ■ t> 1 ^
, ^ ^, ^ ^ ^ • XV JJavid.son s Concise I'rci cdetits,
tions : but the statute, in trie ,., , „ ,, ,0., , ax- 1 .
, J X 1 • i. 1 i. I''''. 1- ('';> lot" ed. ; \\ olsteii-
case of an undertakiu": at least. i. 1 ' r> • * » m
. . , ^ " holme 8 Conveyancinff Acts, VJ,
certainly appears to empower q.v j j o > >
one who has tlie lawful posses-
sion, but only a limited owiu-rship (''^ See above, pp. G.S7, OSS.
of title deeds isucli as a tenant (v David.s(m, Prec. Conv. vol. i.
for life), to inipo.se a greater lia- VJl ; vol. ii. pt. i. GGIi n., 4th ed.
694
OF THE COMPLETION OF 'JHE CONTKACT.
nients {f), whether they have or have not notice thereof.
Where, however, a purchaser is obUged to rely on his
equitable right to the production of any documents of
title {i(), it is very material for him to obtain, if he can,
the endorsement of a memorandum of the conveyance
to himself on the leading title deed withheld from him ;
for he might lose this right if the legal riglit to the
documents were to come to a purchaser for value taking
in good faith without notice of the equity {x). But it
is considered that, in the absence of special stipulation,
a purchaser has no right to require such an endorse-
ment to be made (//).
Expenses of
acknowledg-
ment and
undertakiny.
By the Vendor and Purchaser Act, 1874 (;;), such
covenants for production as the purchaser can and shall
require shall be furnished at his expense, and the
vendor shall bear the expense of perusal and execution
on behalf of and by himself and all necessary parties
other than the purchaser. This enactment is now
aj)plicable where statutory acknowledgments and under-
takings are given instead of covenants.
Liability
created by
acknowledg-
ment or
undertakinsf.
A statutory acknowledgment only imposes the
obligation defined in the Act of producing and deliver-
ing copies of the documents included therein ; it does
not confer any right to damages for loss or destruction
of or injury to the documents, from whatever cause
arising (fr). But a statutory undertaking imposes the
liability to pay damages for any breach thereof {b).
It appears that a person entitled to the benefit of a
statutory undertaking cannot obtain compensation for
(t) Stat. 44 & 45 Vict. c. 41,
H. 9 (2), (9).
(») Above, p. G.ScS.
(.(■) Above, p. G88.
(y) Dart, V. & P. 69-2, 5th ed. :
783, 6th ed. ; 712, 7th ed. ;
Davidson, Prec. Conv. vol. ii.
pt. i. G63 n., 4th ed.
[z) Stat. 37 & 38 Vict. c. 78,
s. 2. rule 4.
(ff) Stat. 44 & 45 Vict. c. 41,
s. 9(4)-(6).
(/>] Sect. 9 (9), (10) ; see above,
I). 689, and n. (z).
OF THE COMPLETION OF THE CONTKACT,
695
any depreciation of the market value of his hmd, which
might be supposed to arise from the loss of or injury to
the title deeds {a). But he may obtain compensation
for the expense of additional documents of title,
rendered necessary by such loss or injury {(/).
Since the Conveyancing Act of 1881 (c) took effect, Eudorsemeut
it has no longer been the practice to endorse on purchase ^^eceipt.
or other deeds a receipt for any purchase, mortgage or
other consideration money therein expressed to have
been paid and received : but the receipt clause usually
inserted in the body of such deeds is treated as a
sufficient acknowledgment of such paj^ment (/").
The draft of the conveyance is prepared, as we Settling the
have seen {(/), by the purchaser's solicitors. It is then conveyance,
sent to the vendor's solicitors for approval on his
behalf ; and if there be any other necessary parties
to the conveyance besides the vendor (//), the draft is of
course forwarded to their solicitors also to bo settled on
their behalf. Here it may be mentioned that wlieu an Cuuveyaiiciu-'-
instrument of assurance drawn by one conveyancer, eti(]uettea.s
T • • 1 1 *o altering
whether counsel or solicitor, is sent to another to be
(f) Jiivicii V. Sciicll, 11 Hare,
■li).
(//) Jforithij V. Midclidin, IG Sim.
oi').
(c) Stat 44 & 4.) Vict. c. 11,
s. a.), making a reeeipt in the
liiidy r)f a deed or indmscd tlierecn
siitticient evidence of payment in
favour of a purcliaser without
m>tice of non-payment.
(./") For some time prior to tliat
Act it was tlic practici' to indorse
such a receipt ; and tlie absence
of on indorsed receipt was con-
•sidered sufficient to put a pur-
chaser npon iiupiiry wlietlier the
money had in fact been paid, and
to entitle him to furtlier t'vidence
of payment. U is thought that
at the present time, where a title
deed dated before 18S2 ha« a
receipt for considerutiou money
in the body thereof but not in-
dorsed thereon, and comes from
the custody in which it would
naturally be if th(> money had
been duly paid, it may, in the
absence of any other fact tending
to prove the contrary, be pre-
sumed tbat the money was paid
as state\ 1902, •2»Ch. 16.3, 173,
174; Wms. Real Prop. 193, 194
and n. (.c), 13th ed. : 61.). 627,
628, 21st ed. ; Wms. Conv. Stat.
228—230 : above, pp. 114, 118,
134, 144, 304.
(//) Above, p. 578.
(/() Above, p. 61S.
696
OF THE COMPLETION OF THE CONTRACT.
by other
pructitioucrs.
drafts settled settled on belialf of some party, whom the framer of
the draft did not represent, the other should of course
make all such alterations as he considers necessary
to safeguard the interests of his client : but he should
not alter the draft further or otherwise than is
necessary to effect this end. In short, his alterations
should be directed to matters of substance only and not
of form ; and it is a grave breach of conveyancing
etiquette for one practitioner to amend another's draft
in any point, on whicli his client's interests would not
really be affected if the instrument were to stand
as originally drawn (/). When the parties are agreed
as to the form of the draft, the purchaser procures
it to be engrossed at his own expense (/.) .
Engro
iiieut.
Stamps on
couveyauce.
Iiioremeiit
value duty
stamp.
Stamp duty
on convey-
ances on
sale.
The deed of conveyance must of course be duly
stamped according to the ad ralorvin duty charged
on conveyances on sale by the Stamp Act, 1801 (/),
as amended by the Finance (1909-10) Act, 1910 {m) ;
and unless the convej^ance be executed in pursuance of
some contract made before the 29th of April, 1910, or
be made for transferring on sale a lease of some separate
tenement, flat or dwelling being part of a building
used for the purpose of separate tenements, flats or
dwellings, either the contract or the conveyance must
bear the appropriate increment value duty stamp (;/).
Let us first consider the stamping of the deed with
the amount of duty charged on conveyances on sale
as such. This is the concern of the purchaser; the
vendor is under no duty to see that it be done ; and the
deed ma}^ well be stamped after its execution (o). The
[l] See 1 Diy-t, V. & P. 564,
r)th ed. ; 6:37, 6th ed. ; 589, 7th ed.
{k) Ibid. 565, 5th ed. ; 638,
6th ed. ; 590, 7th ed.
{!) See stats. 54 & 55 Vict,
c. o9, ss. 14, 54—61, and First
Schedule ; 58 Vict. c. 16, Pt. II.;
Wms. Real Prop. 615, andu. (/>),
21st ed. ; above, p. 28, aiidn. {/■).
()») Stat. 10 Edw. VII. c. 8,'
s. 73.
(«) Stat. 10 Edw. VII. c. 8,
ss. 1, 4, 11.
[u) Conveyances on sale may
be stamped, without penalty,
within thirty days after their
OF THE COMPLETION OF THE CONTRACT.
vendor and his solicitor and conveyancing counsel are,
however, concerned to see that all the facts and circum-
stances affecting the liability of the instrument of
conveyance to duty, or the amount of the duty with
which it is chargeable, are fully and truly set forth
therein ; for every person who, with intent to defraud
the Crown, executes any instrument in which all such
facts and circumstances are not so set forth, or being
employed or concerned in or about the preparation of
any instrument neglects or omits so to set forth therein
all such facts and circumstances, incurs a fine of ten
pounds {])). Under the Stamp Act, 1891, as now
amended by the Act of 1910, the duty on conveyances
on sale is charged at the rate of one per cent, of the
amount or value of the consideration ; except where the
amount or value of the consideration for the sale does
not exceed five hundred pounds and the instrument
contains a statement certifying that the transaction
thereby effected does not form part of a larger trans-
action or of a series of transactions in respect of whicli
the amount or value, or the aggregate amount or value,
of the consideration exceeds five himdred pounds (y).
It is thought that, to bring a case within the terms of
this exception, the statement required must be contained
in the body of the instrument and not merely endorsed
thereon. This is a point of great importance, and must
be kept in mind in drafting conveyances on sales for
first executiou; or if first executed (//) Stat. 10 Edw. VII. <•. S,
out of the United Kingdom, s. "Jii, doubling (save in tlie ex-
within thirty days after they ecpted cases' the stamp duties
have been first received in tlie imposed on conveyances on sale
United Kingdom ; or if the Com- by the Stamp Act, 1891, stat.
missioners have been required to 54 & .ii) Vict. c. S'J, First Schedule,
adjudicate upon the stamp, within These were CtfL for every f)/. or
foiirteen days after notice of the fraction thereof up to '2.')/. ;
adjudication ; see stat. .') 1 & o/i '2s. Gd. for every 'lb/, or fraction
Vict c. li'J, 8.S. 12, lo, IT), amended thereof up to 300/.; and abovi'
by o.S Vict. c. IG, s. 15. '300/. .Vv. for every -oO/. or fraction
(p) Stat. 64 & 5o Vict. c. '69, thereof; and they are still ap-
s. 6. plicable iu the excepted cases.
697
698
OF THE COMPLETION OF THE CONTKAC'l'.
Meaniiiy of
conveyance
on Kale.
How (id
ruliifciii duty
to be calcu-
lated in
respect of
stock and
securities.
five hundred pounds or less ; as it apjiears that a deed
purporting to carry out such a sale, and stamped at the
rate of one-half per cent only (>•), may be objected to on
some subsequent investigation of the title, as insuffi-
ciently stamped (.s), unless it comply exactly with the
terms of the exception. The conveyances chargeable
with (id vdlorciH duty under the 8tamp Act, 1891,
as above amended, include not only conveyances on
>i((Ie in the strict sense of the word {t), but also all
absolute conveyances of any property {ii) in con-
sideration of the transfer of stock, shares, securities or
other cliattels personal (.r), or of a covenant to pay
and indemnify against some mortgage or charge on the
property (//) or to pay a debt or other sum not charged
on tlie property, or of the release of a debt {z), or of
the grant of a rent-charge or an annuity. That Act
contains (besides sect. 59 set out above {a) ) the follow-
ing special provisions as to conveyances on sale : —
(Sect. 54.) For the purposes of this Act the expression " conveyance
on sale" includes every instrument, and every decree or order of any
Court or of any commissioners, whereby any property, or any estate
or interest in any property, upon the sale [b) thereof is transferred to
or vested in a purchaser, or any olher person on his behalf or by his
direction.
(Sect. ;5."> (1).) Where the consideration, or any part of the conside-
ration, for a conveyance on sale consists of any stock or marketable
security, the conveyance is to be charged with (id valorem duty in
respect of the value of the stock or security.
(2.) Where the consideration, or any part of the consideration, for
(r) See previous note.
(v) See above, pp. 4o, 40, loO,
174.
{t) Above, pp. 1, '26(1.
(«) See Great Northern Hail. Vu.
V. Inland Mevmiie Comiiirs., 1901,
1 K. B. 416, 417.
[x) G. W. Rail. Co. v. Inland
lievenue Commrs., 1894, 1 Q. B.
507 ; Fester v. Inland Eercnue
Coiinnr.s., ibid. 516 ; J. iS' i'- Coata
V. Inland lievenue Coinmrx., 1897,
2 Q,. B. 4'23 ; Chesterjield Brewer ij
Co. v. Inland liccvnue Coiiiinrs.,
1899, 2 Q. B. 7. As to the stamp
duty upon an exchange of lands,
see stat. .)4 & 55 Vict. c. o9,
s. 'I'A, and First Schedule.
[ij] Bristol V. Inland lievenue
Commrs., 1901, 2 K. B. 836.
(~) Ilantinffton v. Inland lie-
venue Commrs., 1896, 1 Q. B. 422 ;
Bristol V. Inland liiveime Commrs.,
ubi sup.
(,/) r. 28, u. («').
{I/} See notes («), (.*-■), above.
OF THE COMPLETION OF THE CONTRACT. t)99
a CLUiveyaiicc on sale cousists of auy Hocurity nut being a marketable
security, the conveyance is to be charged with ad valorem duty iu
respect of the amount due on the day of the date thereof for principal
and interest upon the security.
(Sect. 56 (1).) Where the consideration, or auy part of the couside- How conside-
ration, for a conveyance on sale consists of money paj'able periodically ration con-
for a definite period not exceeding twenty years, so that the total T)ei.iQ5j(.al
amount to be paid can be previously ascertained, the conveyance is to payments to
be charged in respect of that consideration with ad ralurciii duty on be charged,
such total amount.
(2.) Where the cousideration, or any part of the cousideratiuu, for
a conveyance on sale consists of money payable periodically for a
definite period exceeding twenty years, or in perpetuity, or for any
indefinite period not terminable with life, the conveyance is to be
charged in respect of that consideration with ad valorem duty on the
total amount which will or may, according to the terms of sale, be
payable during the period of twenty years next after the day of the
date of the instrument (c).
(3.) Where the consideration, or auy part of tlie consideration, for
a conveyance on sale consists of money payable periodically during
any life or lives, the conveyance is to be charged in respect of that
consideration with ad ralnrem duty on the amount whicli will or may,
according to the terms of sale, be payable during the period of twelve
years next after the day of the date of the instrunreut.
(4.) Provided that no conveyance on sale chargeable with a l ralorrm
duty in respect of any periodical payments, and containing also pro-
vision for seeming the payments, is to be charged with auy duty in
respect of such provision, and no separate instrument made in that
case for securing the payments is to be eh irged with any higher duty
than ten shillings.
(Sect. .')7.) Where any property is cjnveycd to any persou in con- How convey -
sideration, wholly or in part, of any debt due to him, or subject either "•"^c ^'i (;ou-
certainly or contingently to the payment or transfer of auy money or j . . u .
stock, whether being or constituting a charge or incumbrance upon be chan'-cd.
the property or not, the debt, money, or stock is to be deemed the
whole or part, as the case may be, of the consideration in respect
whereof the conveyance is chargeable with nd valorem duty {d).
^Sect. r)8 (1).) Where i)roperty contracted to be sold for one con- Duty on con-
sideration for the whole is conveyed to the purchaser in separate parts veyauce in
or parcels by different instruments (e), the consideration is to be ^^P*'^ **
• 1 • 1 1 . , . , parcels ot
apportioned m such manner as the parties think fit, so that a distinct propertv sold
for one con-
sideration.
((•) See UndenjroKiid KUclricliys. , [d) See liiutol v. Inland Rrcenuv
SfC. , Ltd. \. Inland Revenue Commrs., Commin-siuncrs, I'JOl, '2 K. B. 33(5.
1905, 1 K. B. 174, 1900, A. C.
'11. (t) See above, p. G18.
roo
OF 'i'lIE COMPLETION OF THE CONTRACT.
On couvey-
ance iu sepa-
rate parcels of
pre )pert.y
boiight for
one considera-
tion by or for
several
persons.
Where there
are several
instruments
of conveyance
for completing
one sale.
Sub-sale by
purchaser
before con-
veyance.
Conveyance
in separate
parcels after
a sub- sale.
Where sub-
purchaser has
taken a con-
veyance of the
purchaser's
interest.
As to sale of
annuity or
right not
before in
existence.
consickTation for each separate part or parcel is set forth in the con-
veyance relating- thereto, and such con\eyance is to be charged with
ltd valorem duty in respect of such distinct consideration.
(2.) Where property contracted to be purchased for one considera-
tion for the whole by two or more persons jointly, or by any person
for himself and others, or wholly for others, is conveyed in parts or
parcels by separate instruments to the persons by or for whom the
same was purchased for distinct parts of the consideration, the con-
veyance of each separate part or parcel is to be charged with ud
valureni duty in respect of the distinct part of the consideration therein
specified.
(o.) Where there are several instruments of conveyance for com-
pleting the purchaser's title to property sold (/), the principal instru-
ment of conveyance only is charged with ad valorem duty, and the
other instruments are to be respectively charged with such other duty
as they may be liable to, but the last-mentioned duty shall not exceed
the ad valorem duty payable in respect of the principal instrument.
(4.) Where a person having contracted for the purchase of any
property, but not having obtained a conveyance thereof, contracts to
sell the same to any other person, and the property is in consequence
conveyed immediately to the sub-purchaser (f?), the conveyance is to
be charged with ad valorem duty in respect of the consideration moving
from the sub -purchaser.
(5.) Where a person having contracted for the purchase of any
property but not having obtained a conveyance contracts to sell the
whole, or any purt or parts thereof, to any other person or persons,
and the property is in consequence conveyed by the original seller to
dift'erent persons in parts or parcels, the conveyance of each part in*
parcel is to be charged with ad valorem, duty in respect only of the
consideration moving from the sub-purchaser thereof, without regard
to the amount or value of the original consit^eration.
(6.) Where a sub-i^urchaser takes an actual conveyance of the
interest of the person immediately selling to him, which is chargeable
with ad valorem duty in respect of the consideration moving from
him (//), and is duly stamped accordingly, any conveyance to be
afterwards made to him of the same property by the original seller
shall be chargeable only with such other duty as it may be liable to,
but the last-mentioned duty shall not exceed the ad valorem duty.
(Sect. 60.) Where upon the sale of any annuity or other right not
before in existence {i) such annuity or other right is not created by
actual gi'anfc or conveyance, but is only secured by bond, warrant of
attorney, covenant, contract, or otherwise, the bond or other instru-
ment, or some one of such instruments, if there be more than one, is
(_/') See above, pp. 618
(y) See above, p. CI6.
62 U.
(/() See above, p. 28, n. (r).
(t) Sec above, p. 434.
OF THE COMPLETION OF THE CONTRACT. 701
to be charged with the same duty as an actual grant or conveyance,
and is for the purposes of this Act to be deemed an instrument of
conveyancs on sale.
(Sect. 61 (1).) In the cases hereinafter specified the principal Conveyance
instrument is to be ascertained in the following manner : — by several
(a) Where any copyhold or customary estate is conveyed by a ,, , , , '
■,-,,, 1 , • ,■,•,., Copyholds
deed(/), no surrender being necessary, the deed is to be (;ouveved
deemed the principal instrument : by deed.
(b) In other cases of copyhold or customary estates (/.), the sur- By surrender.
render or grant, if made out of Court, or the memorandum
thereof, and the copy of court roll of the surrender or grant,
if made in ('ourt, is to be deemed the principal instru-
ment (/) :
{(•) Where in Scotland there is a disposition or assignation executed
by the seller, and any other instrument is e.) lie Lniell and ColhnrV.^ Con- piinter's copy of the Act or some
/rart 1907 1 Ch. 249. instrument relating to the vest-
/ \' o i'ni 1, cno T) ing, and in the latter an instru-
(.i) Sect. 54, above, p. 698. By '^ \ c ■ +^ i «
^ ',,,,,. '. in • 11 ment oi conveyance, is to be
sect. 122, instrument includes . j-i.ii.ij; j i.
'. , J , stamped with the ff'T iff fo>Y;« duty
every written document. f , „ ■'
■^ payjible upon a convej'ance on
(//) See above, pp. 5;'.6, 561. sale of the property and "produced
(r) See G. W. Hail. ('v.. v. //(- to the Inland Revenue Commis-
land llevenne Commrs., lSi)4, 1 sioners.
OF THE COMPJ.KTION OF THE CONTRACT. ~0-i
on sale is chargeable on the value of all property assurofl
by the conveyance ; so that where on a sale of land the
timber or fixtures is or are sold by valuation {o), the
amount of the valuation must be stated in tlie con-
veyance (fj). So must the value of tlie goodwill of a
business, where separately valued and assigned by the
conveyance of any land or chattels forming part of the
assets of tlie business, and also where it is separately
assigned (n). A conveyance of land in cf)nsideration CoDveyanoo
of a rent-charge to issue thereout (''/) is chargeable as tion of a
])rescribed above in the case of periodical payments (c) ; I'fut-f'liajgf'.
and if a lump sum bo further payable immediately as
part of the consideration, "d ra/or/'iN duty is chargeable
on that also. But on a sale of land subject to an
existing rent-charge or any kind of rent, as rent service
on the sale of leaseholds, the payment of the rent is
held not to form any part of the consideration for the
purposes of stamp duty, notwithstanding that the
purchaser covenant to indemnify the vendor against
such payment (./') ; and this is so where part of land
subject to one entire rent is sold and the rent is appor-
tioned as between the parties to the sale (r/). By the
Finance Act, 1900 (//), a conveyance of sale made for
any consideration in respect whereof it is chargeable
with fK/ ra/orriii duty, and in further consideration of a
covenant by the purchaser to make, or of his having
previously made, any substantial improvement of or
addition to the property conveyed to him, or of any
covenant relating to the subject-matter of the con-
veyance, is not chargeable, and shall be deemed not to
have been chargeable, with any duty in respect of such
further consideration. So where land is conveyed in
(a) Altovo. p. GO. 'tl) Aliovp, pp. (!72 v/.
(//) 2 Dart, V. k P. (JO?, 'itli ir) Al.ov,., p. (i9<).
od. ; 78S, Otli ed. {/) Ah„vt\ pp. G67, 672.
(f) Seo I'littir V. Iiihiiid Rrniiiir (;/) .Suiii/iie v. Iiihititl lievriiiic
Commrs., 10 Ex. 117; msps fitf-d f'nmnns., i. (/,) Stat. b:j Vict. c. 7, s. 10.
704
OF THE COMPLETION OF THE CONTRACT.
consideration of a rent-charge, and of a covenant to
build tliereon (/), or of the previous erection of
buildings thereon, no stamp duty is chargeable in
respect of the covenant or improvement.
Where several
transactions
are carried
out by one
instrument.
By the Stamp Act, 1891 (/.), except where express
provision to the contrary is made by this or any other
Act, an instrument containing or relating to several
distinct matters is to be separately and distinctly
charged, as if it were a separate instrument, with duty
in respect of each of the matters ; and an instrument
made for any consideration in respect whereof it is
chargeable with ad ra/oreni duty, and also for any
further or other valuable consideration or considerations,
is to be separately and distinctly charged, as if it were
a separate instrument, with duty in respect of each of
tlie considerations. So that where a conveyance takes
effect as upon sale and also as a mortgage (/), it is
chargeable with stamp duty on each of these transac-
tions (>;?). Where one holding land subject to any
kind of incumbrance {ii) sells the same free from incum-
brances and on completion of the sale the land is
conveyed to the purchaser by one deed, in which the
vendor and the incumbrancers concur to assure their
respective interests (o), stamp duty is only chargeable
as upon a conveyance on sale, notwithstanding that the
incumbrancers were no parties to the contract of sale
and receive no part of the consideration ; for, although
as between the incumbrancers and the vendor their
conveyance be voluntary, yet as between the conveying
parties and the purchaser, the assurance is for one
valuable consideration (p), and is nothing more than the
(i) Above, p. G74.
(/.) ?tat. 54 & ")5 Vict. c. 39,
s. 4.
(/) See above, pp. 624 — 627.
(ill) 2 Dart, V. & P. 70.5, ,5th
ed. ; 796, 6th ed.
(w) See above, p. 619.
{(>) See above, p. 620.
(p) Above, p. 636.
OF THE COMPLHTTOX OF THE CONTRACT. 705
conveyance on sale to him of the whole estate contracted
for('7). But if in a deed of conveyance on sale some
interest is also assured, which is outside the transaction
of sale, as if an estate in remainder or reversion or
subject to some incumbrance were sold, and after the
sale but before completion the purchaser were to induce
tlie owner of the particular estate or incumbrance either
gratuitously or for value to concur in the conveyance,
then the deed would be chargeable with stamp duty,
not only as a conveyance on sale, but also in respect of
the assurance of the estate or interest not included in
the sale (/•). AVhere incumbrances are got in by a
vendor prior to conveyance to the purchaser (.s), the
deeds of reconveyance, release or other assurance are
chargeable with tlie stamp duty payable on such
transactions under the Stamp Act, 1891 (f), and the
duty must of course be borne by the vendor (-s) . Where
any instrument is duly stamped, as for its leading and
principal object, this stamp covers everything accessory
to that object (ii). The inclusion in a deed of convey-
ance of an acknowledgment or undertaking for pro-
duction or safe custody of any of the title deeds
does not therefore involve the payment of any
additional stamp duty (.r) . The purchaser must bear Expense of
the expense of stamping the conveyance with the *' ''"^P'"o-
amount of duty charged in respect of conveyances on
sale, as such (//) .
By the Finance (1009-10) Act, 1910 (-), a stamp Increment
duty (a) , called Increment Value Dut}', and levied on ^ "^"*' I>nty.
(q) See Sujf. V. & P. riTO ; 2 Revenue Commrs.. L. R. 7 Ex.
Dart, V. & P. 70ii, Sth ed. ; 79;"), 211, 217.
0th ed. (.i) See Sutrument, the abstract and t)ie form I. V. D. (A s when
presented, will be ret.-iined by the proptr officer of the (,^oinniissioiu>rs
lor examination, a ticket being given by way of receipt to rlie per.son
pre.sentmg tliem. By Regulation o, assuming that the various docu-
ments or papers are found on examinarion to cont;iin the particulars
necessary for the purpose of enabling tlie Commissioners to assess tlic
duty, and that if security has been re.|uired (see Regulation 14), such
security has been jjiven, the instrument will be imjiressed witli one of
45 (2)
ro8
OF THE COMPLETION OF THE CONTRACT.
The Incre-
ment Value
Duty stamps.
Increment
value duty-
stamp, when
required.
not to be deemed duly stamped vmless it is stamped
either (1) with a stamp denoting that the Increment
Value Duty has been assessed and paid, or (2) a stamp
denoting that the necessary particulars have been de-
livered to the Commissioners and security given, where
required, for payment of the duty, or (3) with a stamp
denoting that no Increment Value Duty was payable on
the occasion : but where an instrument is so stamped,
it is, notwithstanding any objection relating to the In-
crement Value Duty, to be deemed to be duly stamped
as respects that duty (/) . Where any agreement for a
transfer is so stamped, it is not necessary to stamp any
conveyance or assignment made subsequently and in
conformity with the agreement, but the Commissioners
are required, on application made to them for the pur-
pose, to denote on the conveyance or assignment the
amount of duty paid {di). If an agreement for a transfer
is intended to be followed shortly by an actual con-
veyance, the Commissioners will not require the agree-
ment, or particulars thereof, to be presented under the
Regulations, but will accept the presentation in due
course of the actual conveyance, or particulars thereof,
as a compliance with the provisions of the Act {)i).
It appears from these enactments and regulations that,
after a sale of the fee simple or any interest in land as
the Increment Value Duty stamps, and will be returned on presentation
of the ticket after the expiration of the time mentioned therein. By
Regulation 11, if the instrument itself be not presented by the trans-
feror for tlie purpose of the assessment of Inirement Value Duty
thereon, reasonable particulars thereof in the form of the various
documents mentioned in Regulation 3 must be furnished by him ;
and a receipt will be given therefor. The form I. V. D. (A) duly
filled up should be lodged at the same time. And by Regulation 12,
provided the necessary particulars as above have been furnished by
the transferor, the appropriate stainp will be impressed at auy future
date, if the instrument and the receipt for the particulars are lodged
for the requisite length of time at tlie Head Office.
(I) Sect. 4 (3) ; and see above, {//) Commissioners' Regula-
p. 28, and n. {e). tions, No. 7.
(m) Sect. 4 (7).
OF Tilt: COMPLETION OF 1 IIE CONTRACT. 709
defined in the Act (o), either tlie contract or the con-
veyance must be stamped with the a[>propriate Incre-
ment Value Duty stamp whenever the making of the
conveyance is a)t orcasio)i on which Increment Value
Duty is, or would but for the nature of the property
conveyed be, payable : but that the contract or convey-
ance need bot be so stamped where the conveyance does
not give rise to such an occasion, that is to say, where
it is made in pursuance of a contract made before the
commencement of the Act {p) or to effect the transfer
on sale of a lease of some such separate tenement, flat
or dwelling as above mentioned {q). But it appears
that, on sale after the Act of some property, which is
merely exempted from being charged with the duty,
such as agricultural land or small houses or properties
in their owners' occupation (/), the contract or convey-
ance must be stamped with the Increment Value Duty
stamp appropriate to the cftse (s). The vendor is liable The vendor's
to pay the Increment Value Duty ; and he is bound to respect,
present to the Commissioners either the contract or the
conveyance (accom[)anied in each case with the further in-
formation required) or else reasonable particulars thereof
in the required form for the purpose of the assessment of
the duty (7). But it lies in his option which of these alter-
natives he will select. The most convenient course for him
to choose seems to be to present the required particulars,
instead of parting with the possession of the contract or
the engrossment of the conveyance ; as this will enable
him to tender to the purchaser at the time for comple-
tion tlie conveyanci! executed l)y all necessary parties,
together with the ofKcial receipt for the particulars
presented (0- If he do this, it appears that he will
(o) See above, p. TOti, n. (r). Commissioners' Regulations,
(p) Abi>ve, p. 7(>'), and n. (:). No. 10.
(y) See above, p. 706 ; Com- (v) See above, p. 708.
mis.sioners' Kejrul;iti(ins, No. 1. (t) Above, p. 707, and u. (A).
{>■) See above, p. 70(1, n. (c) ;
710
OF THE COMPLKTION OF THE CONTRACT,
The pur-
chaser's
joncern.
Whether the
contract or
the couvej-
ance should
be stamped
with the
above stamp.
Where it
seems advis-
able to stamp
the contract.
have discharged his duty to the purchaser under the
contract, and it will be the purchaser's concern to see
that the contract or the conveyance he duly impressed
with the appropriate Increment Value Duty stamp {ii).
But the purchaser is in no way concerned to see that
the duty in question be paid, for it does not appear to
be charged, if not paid, on the land sold (./•). It appears
that in the ordinary case of a contract of sale of land to
be followed by a conveyance, either the contract or the
conveyance alone may be stamped with the Increment
Value Duty stamp, or the contract may be so stamped
and the conveyance may. be stamped with a stamp
denoting the amount of duty paid (//). For the pur-
chaser, the most convenient coarse will usually be to
have the conveyance alone stamped with the Increment
Value Duty stamp ; since it is generally desired, as we
have seen {z), to avoid all reference on the face of con-
veyances to any written contract which preceded them.
If however the contract should contain any stipulation
giving rise to some obligation which will not be dis-
charged by conveyance and pajnient of the price {a) —
for example, an express stipulation providing for com-
pensation for errors of description (/>), or a stipulation
that the vendor shall build a wall on adjoining land of
his own — it would seem advisable to have the contract
impressed with the appropriate Increment Value Duty
stamp ; for it is at least a question whether the contract
would, alter the execution of the couveyanco, bo suffi-
ciently stamped without it {<■).
{■i) See above, pp. GOC, TOo.
(.i) See stat. !•) Edw. VII.
c. 8, s. 4 (4), making the duty
assessed a Crown debt due from
the transferor. But where In-
crement Value Duty is payable on
the death of any person, it sef-ms
to be charged like estate dutv on
any property liable to the duty
and not pas.sitjg to the e.Kei'utor
or administrator as such ; see
s. 5 ; below, chapter on the Death
Duties in Vol. II.
(y) See above, p. 708.
(-) Above, p. 629.
{(t) See below, Chap. XVIII.
§1.
{/>) Above, p. C6.
((■) See stat. 10 Edw. VII. c. 8, s. 4 (3), stated above, |>. 7(18; and
note that " such instrument " refers to the inslrument by means of
OF THE COMPLETION OF THE CONTRACT. 711
It does not appear to be strictly necessary, on a sale Conditions of
l>y auction, to make any stipulation for the vendor's incTement ^
protection in respect of the Increment Value Duty Value Duty
stamp. If he present to the Commissioners the neces-
sary particulars for assessment of the duty, and tender
to the purchaser at the time for completion the convey-
ance executed by all necessary parties and the official
receipt for the particulars presented (d), it is thought
that the purchaser will have no right to reject such
tender and to refuse payment of the price on the ground
that the contract or the conveyance bears no Increment
Value Duty stamp (r). To avoid all misunderstanding^
however, it seems advisable in ordinary cases to stipulate
expressly that the vendor will, on or before delivery to
which the transfer is effected or tu/reed lo be effected; sec sect. 4 (2),
stated above, p. 707. Note also that the Aft does not precisely say
that the contract need not be stamped with an Increment Value Duty
stamp, where the conveyan<;e is so stamped, though it makes express
jtrovisi( in for the converse case; above, p. 708. On tlie other hand,
where there is a contnut of siile followeil by ;i conveyau'C, it appears
that the Act will be satisfied if the conveyance alone be stamped with
such a .stamp ; and Regulation 7 assumes that this is the c:ise ; above,
\>. 708. It is submitted tliat a contract for the sale of land is iu its
inception sufticientlj' stamped, if stamped as required by the Stamp
Act, 1891 ; above, p. 28, and n. [e) ; airl further that, whci'c the con-
tract has not been completed by conveyatice, an Ini;remeut Value Duly
stamp is not necessary to mal). As to the outofoiiif^s, Appurtiou-
• 1 1 1 -1 meiit i)f
where these are apportionable between the parties and outgoiugs.
payable in advance, as rates and taxes usually are (/>),
(/>■, AIhjvi', p. ol.'). CuTiv. C)6(). 4tli cd.. wIrtc tho
(/) Above, pp. oO, (17. .> 2.3. Before the
And it is thought that the same year ID 10, the t)nly taxes (other
law applies where the contract of than the death duties payable in
.sale contaiTis ati express stipula- res|)ect of land were land tax.
tion for apportionment of the property or income tax and iu-
reuta : see 1 Davidson, Prec. habited house duty ; Steph.
714
OF THE COMPLETION OF THE CONTRACT.
the vendor having paid any such outgoings before the
time for completion is entitled to be recouj)ed bv the
purchaser to the extent of the proportion attributable to
the latter. And of apportionable outgoings, which are
not payable in advance (such as ground rent or tithe
rent-charge), and will become pa3'able after the proper
time for completion, it is thought that the purchaser is
entitled to claim that the proportion, which ought to be
Coinm. ii. 589—595, 60S-()10,
6th e;l. These are all amiual
charges aud, if payable pending-
completion of a sale of the pro-
perty, ill respect of which they
ari,»e, they are apportionable
between the vendor and the pur-
chaser under the usual stipulation
f(jr apportionment of the out-
iroings ; see above, p. 523 and
note (.v). The Finance (1909-10)
Act, 1910 (stat. 10 Edw. VII.
<^ 8), besides imposing Increment
Value Duty on the occasions above
mentioned (pp.70r),706,andn.(rf) ),
imposed thiee other new taxes in
respect of land, called Rever.-ion
IJuty (above, p. 40 1 ) , Undeveloped
Land Duty and Mineral Rights
Duty. Reversion Duty is payable
by the person, who is entitled to
the reversion at the time of the
determination of a- lease, on the
cesser of which the duty becomes
payable; see ss. lU — 15, 41. And
it is thought that, where the re-
version on such a leai-e is sold and
the lease determines at any time
before completion, the purchaser
ought ill all cases to bear the
whole of the Reversion Duty as
being the person actually entitled
to the benefit aci ruing from such
determination ; see above, pp. 401,
.')(I4- 508. If this be the right
rule, it follows tliHt on a sale of
the revei.sion to the lessee, the
Reversion Duty, which will arise
on the merger of the term (see
;ibove, pp. 367, 368), should be
paid by the purchaser. Un-
developed Land Duty is a yearly
ta.x in re.-pect of the site value of
undeveloped laud (see ss. 16 — 19,
25) : but it appears to be payable
by the person, who is the owner,
meaniug the person entitled iu
possession to the rents and profits,
of the land at the time when the
duty becomes payable, and it is
to be borne by that owner not-
withstanding any contract to the
contrary; see ss. 19, 41. It
seems therefore that, if such duty
become payable pending comple-
tion of a contract of sale of the
land, in respect whereof it is
charged, it will fall entirely upon
the party then entitled to the
profits aud bound to discharge
the outgoinsrs, and will not be
apportionable under any express
stipulation in the contract; s' e
above, pp. 49, 50, 520— 52:{.
Mineral Rights Duty is a yearly
tax on the rental value of all
rights to work miuerals and of
all mineral wayleaves, and is
payable by the proprietor of the
minerals, where he is working
them, and in any other case by
the immediate lessor of the work-
ing lessee. As between sucli
lessor and lessee, the duty is to
be borne by the lessor, notwith-
standing any contract to the con-
trary, wliether made before or
after the Act ; see ss. 20 -24.41.
It appears that if any such duty
should become payable pending
completion of a sale of the land,
in respect whereof it arises, it
would be apportionable between
the vendor and the purchaser
under the usual stipulation for
apportionment of the outgoings ;
see above, p. 523, and n. (.v).
OF TIIK COMPLETION OF THE CONTKACT.
borne by the vendor, f-hall be allowed in account and
deducted from the purchase money on completion. This
certainly appears to be so, where the vendor has ex-
pressly agreed to discharge or to clear the outgoings (q).
And it is thought that upon a sale by open contract the
vendor incurs the like liability to discharge the out-
goings (/•), and must equally clear off on completion his
lu'oportion of anj' outgoings which are apportionable by
law and not payable until after the time for completion.
As we have seen (.s), where any outgoings, which are
not apportionable, become charged upon the property
sold before the time for completion, the vendor is bound,
in the absence of stipulation to the contrary, to dis-
charge them before completion, although they may not
become payable nntil after completion. In such eases,
if the amount of the vendor's liability be exactly ascer-
tained before the date of actual completion, he must
either discharge the outgoing himself or allow the
amount to be set off' against an equal part of the pur-
chase money (f). If the liability be not exactly ascer-
tained before the time for completion, as whore a charge
has been created under the Private Street Works Act,
1S92, but no final apportioument of expenses made,
then, as the vendor cannot make a good title to the
property sold as being free from incumbrances while
the charge continues to subsist (»), the purchaser may.
it is thought, refuse to complete without some sub-
stantial guarantee that the vendor will duly perform his
obligation in this behalf ; as that part of the jiurchase
money sufficient to satisfy the incumbrance siiall be
deposited in their joint names until the charge shall
have been paid off.
[I/] See La ires V. Gi/mii,!,. R. (<) Jlr Bcltc.stvorlh an I liulur,
1 Eq. 135 ; above, pp. C7, 74, 523. 37 Ch. D. 535.
{)■) Above, p. 50. („^ See !Stock v. Mi;,l,u,, 1 -»()(•,
(») Above, pp. 60, 520 .wy. 1 Oh. G83 ; iibove, p. 521.
15
7J6
OF THE COMPLETION OF THE CONTRACT.
Apportion- Here it may be mentioned that when a part of lands
tax and tithe I'^'^ed or charged together for the })urposes of land tax
rent-charge, or titlie rent charge is sold, the tax or rent-charge may
be apjiortioned {x) : but as land tax and tithe rent-
charge are not incumbrances [//), it does not appear that
it is the vendor's duty to procure this to be done ; the
purcliaser must see to it himself after completion {z).
So also the purchaser must see for himself after com-
pletion that tlie property sold is separately rated for the
purposes of imperial or local taxation. But when the
land sold is subject to some incumbrance charged
thereon and on other lands as well, such as a rent
reserved out of the entirety of leaseholds sold in lots or
Of rent-charge issuing out of the land sold and other
land, the charge is of course, in the absence of stipulation
to the contrary, an objection to the title {a) ; and if the
vendor should have sold the land as being subject only
to a jiart, proportionate to its value, of the rent or other
charge, he must procure the same to be legally appor-
tioned {h), or he cannot enforce the contract. In such
cases, therefore, as a legal apportionment cannot
generally be made by consent of the vendor and
purchaser alone, it is usual for the vendor to inake
special stipulations exonerating him from the obligation
of procuring a legal apportionment and providing for
the incidence of the charge as between the parties to the
Sale of land
subject to a
rent attaching
thereon and
on other laud.
(.(■) See stats. 42 Geo. III.
0. 116, s. 3o, as to land tax;
5 & () Vict. c. .')4, s. 14 ; 23 & ■-'4
Vict. c. W.i, a. 11, as to tithe
rent-charge.
(//) Above, p. 170.
(r) ^eo I{r Ehstcorlh and Tidij,
42 Ch. D. 23. If this were not
so, special stipulations would be
required on every sale of free-
holds in lot.s : but it is not con-
sidered that these are necessary,
except where the vendor repre-
sents ill the particulars or iigree-
ment for sale that the lots sold
are each subject to particular
sums payable in respect thereof
for land tax and tithe rent-charire.
In this case, he would, in the
absence of stipulation to the con-
trary, be bound to procure a
legal apportionment, if the whole
of the lots were rated or charged
together for these purposes. See
1 Davidson, Free. Conv. 616,
622, 689, 4th ed. ; 1 Key & Elph.
Free. Conv. 310, 8th ed.
(«) Above, pp. 167, 176, 177.
301-363.
(/)) Above, pp. 363, 405, n. («).
OF THE COMPl.l-niON OF THE CONTRACT.
7i:
sale (c) . Where the reversion of part of lands let on Sale of rever-
1 • i- ^ T \^ 1 i-ij sioii of part ot
lease at one entire rent is sold, the vendor snoiua land let at one
stii)ulate that the purchaser will be entitled to a certain ^'^'^*-
yearly rent (stating the amount) as an apportioned part
of the entire rent, and tliat the consent of the tenant to
this apportionment (d) shall not be required (c). If the
vendor should represent tliat the land sold were let at
the rent stated, witliout mentioning that tliis was only
an estimated part of a larger rent intended to be
apportioned, he would be bound to procure a legal
apportionment of the rent ; and further, if in such case
the land were sold with the benefit of a condition of re-
entry on breach of covenant, and this condition would
be destroyed by severance of the reversion ( /), he would
not be enabled to enforce the contract for sale {(j).
The rules respecting the purchaser's liability to pay Purchaser's
interest on the unpaid purchase money have been '^ interest.
already stated. As we have seen (//), this obligation
arises either by implication of law or express stipulation
at the time when the purchaser acquires the right to
enter into possession or receipt of the rents and profits
of the property sold ; the principle being that enjoy-
ment of the fruits of the contract by the purchaser
ought only to be had on condition of payment of the
price, and that if payment be deferred, interest should
be chargeable (/). In this respect the provisicms
implied by law in an open contract are far more Under an
equitable than tliose of the usual express stipulation
made on I^ondon sales by auction, whicli is grossl}'
[c) See 1 Dart, V. & P. 130, ed. ; 147, Gth ed. ; 148, 7th ed. ;
131, 6th ed. ; 147, 6th ed. ; 143, 1 Davidson. Prec. Conv. 540, 547,
7th ed. ; 1 Davidson, Prec. Conv. 4th ed. ; above, p. 81.
:'.44, (iSt .s7., GOlt SI/., 4th ed. ; (/) Above, p. 405.
1 K.y A: Elph. Pre.
[d) See above, p. 405, n. (n). (i) Above, p. 50, n. {n).
[e) I Dart, V. & P. 131, 5th
'18
OF THE COMPLETION OF THE CONTRACT.
unfair to purchasers and frequently works great hard-
ship (A). Thus, under an open contract, where the
vendor is in possession, the purchaser is only liable to
pay interest, if there he delay in completion, from the
time when he may safely take possession, that is, when
a good title has been shown (/) ; and this is the case,
although a day be fixed for completion, and owing to
delay attributable to the state of the title, or otherwise
to the vendor, a good title is not shown until after that
day (w). And if the purchaser be in possession at the
time of the contract for sale, or actually enter into
possession afterwards, but before completion, or if the
property sold be of such a nature that the enjoyment
thereof necessarily runs from the time of sale, as in the
case of a remainder expectant on a life estate returning
no rent {n), then interest is payable from the time when
actual possession or enjoyment by the purchaser as such
so commenced, that is, from the date of the contract for
sale or actual entry into possession (o). Then under an
open contract, if there be delay in completion which is
attributable to the vendor, the purchaser may, by
appropriating his money to the purchase and giving to
the vendor notice of such appropriation, relieve himself
of the liability to pay any greater interest thereon than
such, if any, as is allowed upon such appropriation.
Though he cannot escape his regular liability to pay
interest by making such appropriation, if there be delay
in completion which is attributable to himself {])). But
under the usual stipulation for payment of interest iu
London sales, ^g^g file contract shall not be completpd on the appointed
Under the
stipulation
usual on
(/.•) See above, pp. 07, G8, 75,
and n. {h), 8b.
{/) Above, pp. 26, 40, 50.
{w) Jones y. Aludd, 4 Russ. 118 ;
above, p. 00 ; Rr Hnihctt cnid
Bird's Contract, \WI, 2 Ch. 214,
217 (which appeiiiH to be quir.e
right in this respect ; see above,
p. 354).
(«) Above, pp. 408, 576.
[o) Expte. Manning, 2 P. AV.
410; Vltidyer v. Cocker, 12 Ves.
25; J.-O. V. Chrinlchiirch, VA
Sim. 214 ; 2 Part, V. & P. 029,
630, 5th ed ; 711, 0th ed. ; 652.
653, 7th ed.
( p) Above, p. 51.
OF THE COMPLETrON OF THE CONTRACT. 719
day from any cause wliatever, or from any cause what-
ever other than the wilful default of the vendor [q], the
purchaser must pay interest at the rate agreed upon
(though far exceeding the return derived from tlie rents
and profits), if there be delay in completion arising from
the state of the title, a cause which would otherwise be
attributable to the vendor (r). And the purchaser can-
not, according to the better opinion, divest himself of
this liability by appropriating his money to the pur-
chase (.v). The ground on which the law has been so
established is that the purchaser having chosen to enter
into such a stringent agreement must abide by its terms,
and that owing to the difficulties attendant on making-
out a title to land, delays so caused cannot be ascribed
to the vendor's wilful default. Where the contract is
to pay interest, if from any cause whatever the contract
be not completed on the appointed day, it is considered
that the purchaser cannot escape the express obligation
so undertaken unless the delay be caused by the vendor's
vexatious conduct, dealing in bad faith, or gross negli-
gence (^). Where the purchaser has agreed to pay Contract to
interest if completion be delayed from any cause what- except s' rontnir/, 1891, i Cli.
Miti/of of Ln,tii:ii mil Tii/i/x, IS!)|, oM ; /{ninif/ v. S/o>i<: lilt):!. I Ch.
2 Ch. ;V2» ; ISeiinitl v. Sloiif, :')()'.); lie /li(i//ii/- ll'iDt/iith/fuii ,ii,'l
liK):;. I Ch. .')(!.), ;')lti, .)•_»(). .')2.) ; Cohni's (;„„inirt, 1!) ID, I ("h. (i4S.
Uk liaijleij- II 'iiVthiiigloii and (.'ohni'.i M-i .
Cuntriict', lyoy, I Cli. G4S, G;J4. (./) Above, p. G8, and n. (■<).
720 OF THE COMPLETION OF THE CONTRACT.
ascribed to each of these words a particular meaning.
And his explanation of this term has been religiously
adopted in subsequent cases, but has hardly proved a
satisfactory guide (//). The particular acts or omissions
which have been held to fall within or without the
expression "wilful default" have been already stated (;:) ;
and as we have seen, in the last of these cases four
judges were divided equally in opinion upon the
question, whether it is wilful default for a vendor to
insist mistakenly, but in apparent honesty, upon an
unreasonable contention with respect to the form of the
conveyance {a). The further point above alluded to,
that the purchaser must prove that the vendor's wilful
default (where it exists) is the effective cause of the
delay, is illustrated by the cases of Re Mayor of LomJon
and Tahhi<' Couiract and Betuieti v. Stone already cited [h).
In the first of these, it was considered by the whole
Court that, even if there were wilful default by the
vendor — as to which they differed in opinion — the
purchaser coidd not escape liability to pay interest, if
the delay were in truth caused by his own conduct in
making voluntary requisitions and his inability to find
the purchase money. And in the latter case, three
judges out of four held that, if the vendor were in
wilful default, yet the purchaser was not on that
account released from his obligation to pay interest,
where the real cause of the delay was his own inability
{y) See Re Ben/ley- W 1 n • 1 • interest.
" the purchaser in default shall pay interest, he is not
obliged to pay interest if there be delay arising from
the state of the title or otherwise attributable to the
vendor (r) . Where there was in effect an express con-
tract to pay interest in the case of delay in completion,
unless it should arise from some other cause than the
neglect or default of the purchaser, and delay was
caused by the purchaser making a requisition, which on
appeal to the House of Lords was held to be untenable,
it was considered that the purchaser was in default in
insisting on such a requisition, and must pay interest
accordingly (,/').
The various items which may be charged in account Items charge-
against or in favour of a vendor remaining in possession ^j. for^^ndor
after the time when interest on the purchase money has
become payable, have been stated in the preceding
chapter (//) ; where we have also explained what claims
(c) Above, p. 68, n. («). De G. & Sm. 689; Jomx v.
(d) Re iroods and Lewis's Cow Gardiner, 1P02, 1 Ch. 191.
tract, 1898, 1 Ch. 433, 2 Ch. {/) Re Bayley-WorthinQton and
211. Cohen's Contract, 1909, 1 Ch. 648.
(c) Denning v. Henderson, I (g) Above, pp. 515, 517 — 523.
W. 46
722 OF THE COMPLETION OP THE CONTRACT.
Deterioration may be made against the vendor for deterioration of
perty. the property sold (//) .
Compensation The Only case in which the adjustment of a claim for
for errors of -• • - i • a L^ j. j.
description. compensation IS an act done m pursuance oi the contract
for sale is where an express agreement to make or allow
compensation for errors of description forms part of that
contract (/) . In all other cases a party claiming com-
pensation is really seeking, not to carry out the contract
as it stands, but to enforce its performance with a
variation. It will be convenient, however, to treat in
this place of these cases as well ; since any claim for
compensation will usually be allowed and adjusted
before completion and without litigation, if the claimant
can establish a clear right to enforce specific performance
of the contract with compensation. And in all cases of
innocent misdescription it is essential that the claim for
compensation should be made before completion, if the
contract contain no express agreement to make com-
pensation ; for, except in the case of such an express
agreement, the claim cannot afterwards be enforced (/•).
Claims to The position of the parties to an open contract with
compensation i.j.i*i? j.'ii ^ i
under an open respect to claims lor compensation has been already
contract. indicated (/). Any misdescription of the property sold
must result in a breach of the contract at law ; for in
such case the vendor cannot discharge his obligation of
producing a property corresponding with tliat which he
has purported to sell (/) ; and he is bound at law to
produce a property answering exactly to that described
in the contract, no difference between substantial and
insubstantial errors being admitted (m). But in equity
(A) Above, pp. 512—515. {iii) See Mortlock v. Buller, 10
(«) Above, p. 65. Ves. 292, 306 ; Hakey v. Grant,
{k) Above, pp. 65. 610. 13 Ves. 73, 77 ; Clermont v. Tan-
{l) Above, p. 43, bmyh, 1 J. & W. 112, 120; 2
OF THE COMPLETION OF THE CONTRACT. 723
it is held that, where there is an insubstantial error
innocently mado in the description of the property sold,
the vendor may nevertheless enforce the specific per-
formance of the contract, giving compensation for the
deficiency ; and this is the case whether the deficiency
be of acreage or quantity, or be of right, as in the case
of a quit rent not mentioned in the particulars, or where
a very small part of a property described as freehold is
copyhold or leasehold {)i). This relief, however, will
only be afforded in the case of an error made in entire
innocence and good faith. It will be refused if the
misdescription amount to a wrongful misrepresenta-
tion (o). And if the mistake occurred in any point
really material to the enjoyment promised by the
description in the contract, the vendor cannot oblige
the purchaser to perform the contract, whether the
misdescription were innocently made or not, and
whether it related to the quantity or situation of the
land sold, or to the vendor's tenui'e, estate or right (p).
As we have seen (), compensation is not payable for
patent defects — those which are discoverable by an
inspection of the property sold — but may well be
claimed for defects which are latent and interfere with
the enjoyment promised by the contract; and will not
be allowed for defects, of which the purchaser had
notice when he bought. It is thought that the doctrine
Dart, V. & r. 9/56, 957. 5th ed. ; 32 Ch. D. 14, 29.
1083, 1084, Gth ed. ; 998, 7th ed. ; (p) Seo Breue v. Ramon, G
above, pp. 43, 44. Ves. 675, 679 ; Hakei/ v. Grant,
(w) Calcraft v. Roebuck, 1 Ves. 13 Ves. 73, 78, 79 ; Binkn v.
jun. 221 ; Hal.tey v. Grant, 13 Jiokrbi/, 2 Swanst. 222, 225 ;
Ves. 73 ; F.xdailc v. Stephenson, Peers v. Lambert, 7 Beav. 546 ;'
1 S. & S. 122; Svi.tt V. Hanson, Fry, Sp. Perf. 548— 557, 3rd ed. ;
1 R. & M. 128; Kiiiffv. in/son. Re Arnold, 14 Ch. D. 270; Jacobs
6 Beav. 124; Powelf v. Elliot, v. Rerell, 1900, 2 Ch. 858; Re
L. R. 10 Ch. 424 ; above, p. 170. I'uckett and Smith's Contract, 1902,
(o) (;iermont v. Tasburgh, 1 J. & 2 Ch. 258. (In the last three
W. 112, 120; Price v. Macaulaij, cases there was a condition ex-
2 De G. M. & (t. 339 ; Dimmock chiding compensation.)
V. Hallett, L. R. 2 Ch. 21, 28, 31 ; {q) Above, pp. 611. 612 ; Dyer
Re Terry and White's Contract, v. Hargrave, 10 Ves. 605.
46(2)
724 OF THE COMPLETION OF THE CONTKACT.
euabling the vendor to enforce specific performance witli
compensation is only applicable where there is a dcficienrn
in the property offered in fulfilment of the contract as
compared with tliat described therein ; and does not
permit a vendor to enforce specific performance wdth
compensation in his own favour. Thus, if a man sell
for a particular price "" my house and lands called
Broadlands, containing 100 acres," and Broadlands
contain a little less than that quantit3% he may enforce
specific performance with compensation : but if Broad-
lands contain rather more than 100 acres, it is thought
that the vendor cannot oblige the purchaser to perform
the contract specifically on payment of a proportionately
increased price (r). But where a vendor makes in-
advertently and in good faith a serious error to liis own
disadvantage in the description of the property sold or
the price to be paid for it, the Coiu't will not compel
him to perform the contract specifically at suit of the
purchaser ; but will leave the latter to his remedy at
law, unless he elect to take "without compensation what
the vendor really intended to sell or to paj' the price
the vendor meant to ask. The Court will not, however,
rescind the contract at the vendor's instance in such a
ease (-s).
The pur- So far we have dealt with the vendor's case. The
chaser's right i i i i i • •
to specific purchaser under an open contract contammg a mis-
performance description of the property sold is in a different
with com- . / 11., 1 1 1 .
pensation. position. l" or the rule IS that the vendor, having
represented himself to be the owner of or to be entitled
(r) See il/fl'><*«' V. 2?«cX:. 6 Hare, 448; Leslie v. Tompson, 9 Hare,
443, 447, 448; 2 Dart, V. & P. 268 ; Alvtaiiei/ v. Einnatrd, 2 ^ac.
645, 5th ed. ; 729, 6th ed. ; 670, & G. 1. 7 ; ' Scott v. Littlednle, 8
7th ed. E. & B. 81.5; Webster v. Cecil,
(a) See Neap v. Abhutt, C. P. 30 Beav. 62 ; North v. Percival,
Coop. (1837-8), 333; He/sham y. 1898,2 Ch. 128; 2 Dart, V. & P.
Langley, 1 Y. & C. C. C. 175; 645, 5th ed. ; 729, bth ed. ; 670,
^anser v. Back, 6 Hare, 443, 447, 7th ed. ; above, p. 45.
OF THK COMPLETION OF THE CONTRACT. 725
to sell a particular property, is estopped from showing
ill avoidance of the contract that he has the right to
convey a part only and not the whole of what he
purjoorted to sell(/'). The purchaser therefore is, as a
rule, entitled, if it turn out that there is a mere
di'fciennj, whether of area, estate or right, and wliether
substantial or not, between the property described in
the contract and tliat' offered in fulfilment thereof, to
enforce the specific performance of the contract, taking
such interest in the property sold as the vendor i has and
receiving compensation for the deficiency. For example,
where a vendor described the land sold as containing a
much greater quantity than its actual area (m), where
a vendor could make no title to a considerable part of
the land sold (./), and where a vendor who purported to
sell the fee simple of certain land was entitled as tenant
for life (//), tenant in remainder subject to a life
estate (2), tenant pnr dutrc vie (a), or to an undivided
moiety only (b), he was obliged at the purchaser's suit
to convey what estate he had and to allow compensation
for the deficiency. The exceptions to this rule appear
to be the following : — The Court will not enforce
specific performance with compensation at the pur-
cliaser's suit, where sueli an order would be prejudicial
to the rights or interests of third parties {c) ; or where
the only property which the vendor can convey is an
entirely different kind of thing from that described
(I) Mutlluck V. Biillcr, 10 Vcs. (y) Chaton v. Gotcer, Fincli,
2\)2, 315 : 6Vm//« v. mikinson, 1(J4.
L. R. 5 Cti. .)34, o36 ; Rudil v. (r) Jioluifibroke'x caxr, I Sch. i:
/,ff,sw//A'.s. 1900, 1 Ch. 81.5. SIS. Lef. 19. n., cited 2 Ph. 605;
(«) Hill V. liuckliij, 17 W's. Nelthorpev. Holg•) Above, p. 6G.
728
OF THE COMPLETION OF THE CONTRACT.
He Fau'cett
and Holmes.
The rule in
Flight V.
Booth.
the property sold .ind tliat offered to be conveyed,
provided that this be not something substantially
different in kind from what was described in the con-
tract (s). Thus, where property sold as "a messuage
situate in T. Street, with the builder's yard, stables and
premises, as lately in the occupation of F., and contain-
ing 1,372 square yards" really comprised 1,033 only,
but otherwise answered the description, it was held that
the vendor was entitled to enforce specific performance
with compensation {f). And where the stipulation is
that compensation for errors of description shall be
allowed on either side, the vendor is entitled at law
to claim compensation for an error innocently made to
his own disadvantage {n). It is thought, however, that
as regards the specific performance of the contract, the
vendor could only enforce this with compensation in
his own favour in the case of small errors and could not
oblige the purchaser to take a property misdescribed by
the vendor's own fault at a substantial increase on the
price agreed upon {x) . But it is considered that the pur-
chaser could not in such case insist on specific perform-
ance by the vendor without allowing him compensation
according to the agreement (y) . It is established that,
under a contract containing an agreement to give com-
pensation for errors of description, the purchaser is not
bound, either at law or in equity, to accept in fulfilment
of the contract a substantially different sort of property
from what he agreed to buy ; the rule being that the
agreement in question has no application if there be a
misdescription which, •' although not proceeding from
fraud, is in a material and substantial point, so far
(s) Price v. Macanlay, 2 De G.
M. & G-. 339 ; Be Fawcett and
Holmes, 42 Ch. D. 1 50 ; Re Brewer
and HanMns, 80 L. T. 127.
[t) Re Faivcett and Holmes, ubi
sup.
(«) Leslie \. Tompson, 9 Hare,
268 ; cf. above, p. 724.
(.r) See 2 Dart, V. & P. 61;')—
647, 5th ed. ; 729, 730, 6th ed. ;
669, 670, 7th ed. ; Price v. North,
2 T. & C. 620, 626.
(y) 2 Dart, V. & P. 646, 5th
ed. ; 730, 6th ed. : 670, 7th ed.
OF THE COMPLETION OF THE CONTRACT. 729
affecting the subject-matter of the contract that it may
reasonably be supposed that, but for such misdescrip-
tion, the purchaser might never have entered into
the contract at all" (z). Thus, where leaseholds were
put up for sale as being subject to certain particular
restrictive conditions, and under an agreement provid-
ing that compensation should be made for en-ors of
description, and the restrictive covenants contained in
the lease were of a more onerous nature than was so
represented, it was held that the purchaser was entitled
to rescind the contract and recover his deposit (~ ) . The
same law was applied where an essential part of pro-
perty described as held for a term of twenty-three years
was held from year to year only [a] ; where land sold as
copyhold turned out to be freehold (b) ; where lands
sold as leasehold were held by underlease (c) ; and where
property described as a freehold ground rent was really
a sum payable yearly under a covenant and not rent
reserved on a demise of land {(I). It appears, too, that
where the deficiency is incapable of estimation at a
pecuniary value, the condition in question is not applic-
able {e). And it is not applicable where the misdescrip-
tion amounts to a Avrongful misrepresentation ; and this
is the case although the error might well be the subject
of compensation, if the misrepresentation had been
innocent (./').
In the cases above mentioned (g) , where it was held Extent of the
that the agreement to give compensation was not compensation.
[zj Flu//il V. B00//1, 1 Biujr. C. A. 39 Ch. D. 110; above.
N. C. 370. pp. 101, n. (i), 350.
(a) Dobtll V. Hutehinxoti, 3 A. [d) Eranx v. Robins, S Jur.
& E. 355. N. S. 846 ; see above, p. 398.
(/') Aijlcs V. ('ujr, 1() Beav. 23. (/•) Brooke v. Itoiiufhwuili , o
{■) Mddclei/ v. Hoot /i, 2 De G. Ilai-e, "298; Ridfiicau v. f'i■) Hanson v. Luke, 2 Y. & C. 41 ; Sanderson v. Chadtvick, 2
C. C. 328; Hinder v. Strceten, 10 N. R. 414; Williams v. Glenton,
Hare, 18; Bannerman v. Clarke, L. R. 1 Ch. 200, 207, 211.
I
OF THE COMPLETION OF THE CONTRACT. 737
at the office of the vendor's solicitors (x) ; and the con-
veyance is either executed there and then, or else, having
been previously executed by the vendor and all other
necessary parties, if any, it is then handed over to the
pui'cliaser in excliange for payment by him of the
amount due for the price and otherwise on the adjust-
ment of accounts between the parties (.r) . And at the
same time all the title deeds and other documents of
title, which were in the vendor's possession and which
he has no claim to retain (t/), are delivered over to the
purchaser. The purchaser must take care that he
receives a conveyance duly executed by all the convey-
ing parties and that he pays the purchase money
to such person or persons only as are entitled to receive
the same and can give a good discharge therefor. He
must also ascertain, as we have seen (z), that there is
no obstacle to his entering, immediately after comple-
tion, into actual possession or enjoyment of the property
sold ; and of course this shoidd be done before payment
of the purchase money. The vendor must see that he
gets proper payment of the price.
As regards the execution of the conveyance, it is Attestation of
enacted by the Conveyancing Act of 1881 (a) that on a a^^e byT'
sale the purchaser shall not be entitled to require that witness of the
the conveyance to him be executed in his presence or in choosina-.
tliat of his solicitor, as such, but sliall bo entitled to
have, at his own cost, tlie execution of the conveyance
(ii) Above, p. 73. presence of himself or his solici-
(x) Above, pp. 713 "'j. tor: but in special circumstances
(y) Above, pp. 6S0 ,s/y. he mi^ht require the vendor to do
(?) Above, pp. 609, 610. so, and the vendor was obliged to
(«) Stat. 44 & 4o Vict. c. 41, comply with such a requisition,
s. 8. applying only to sales made if it were reasonable to make it.
after the year IMSl. Before this Whether this were .so wa.s a quea-
enactment, the law was that, tion of fact. See J'iiiri/ v. Chap-
prima fecit', n purchaser had no lin, 2 De G. ic J. 468, 478 ; Efiser
right to require the vendor to v. Dauiell, L. R. 10 C. P. 5.38.
execute the conveyance in the
w. 47
738
OF THE COMPLETION OF THE CONTRACT.
attested by some person appointed by him, who may, if
he thinks fit, be his solicitor. It is thouglit that this
enactment extends to the execntion of the conveyance,
not only by the vendor, but also by all other neeessar}^
parties. And where the conveying parties and their
solicitors are unknown to the purchaser or his solicitors,
it is a prudent precaution to insist on the exercise of the
right so conferred, in order to avoid all risk of forgery
or fraud {b). The vendor is bound, as a rule, to convey
the land sold in person, and the piu'chaser cannot be
required to accept the execution of the conveyance, on
behalf of any necessary party, by attorney, except where
circumstances make this course absolutely necessary [c).
The objection to the execution of any document by
revoked^ ^^^^" attorney is of course that a power of attorney is in
general revoked by the death (d), bankruptcy {e), or (it
is said) insanity (,/') of the donor of the power. Even
if given for valuable consideration, such a power is
revoked at common law by the donor's death (g), though
not by his bankruptcy (A) or insanity (i) , or if the donor
were a woman, by her marriage (/.) : but it appears that
equitable relief would be afforded against the revocation
of such a power by death (/). And if the power were
given for valuable consideration and expressly made
exercisable after the donor's death in the names of his
Vendor must
convey in
person.
Power of
(*) See Kviff v. Smith, 1900, 2
Ch. 425, where a landowner's
solicitor fraudulently procured
liim to execute a mortgage of his
land ; Jared v. Clements, 1903, 1
Ch. 428, a case of the forgery by
a solicitor of a receipt for the
money due on an equitable mort-
gage.
(c) Mitchely. ISeaJe, 2 Ves. sen.
679 ; Noel v. Weston, 6 Madd. 50 ;
Sug. V. & P. 563 ; Dart, V. & P.
569. 570, 5th ed. ; 641, 642, 6th
ed. ; 592, 593, 7th ed.
[d) Wallace \. Cook, 5 Esp. 117 ;
Watson V. King, 4 Camp. 272.
((?) Hovill V. Lethwaite, 5 Esp.
158 ; Dawson v. Sexton, 1 L. J.
Ch. 185.
(/) Story on Agency, § 481.
{g) Watson v. King, 4 Camp.
272.
(A) Winch v. Keeleij, 1 T. R. 619 ;
Alley V. Hotson, 4 Camp. 325.
(i) Story on Agency, § 483.
{k) Parnham v. Hurst, 8 M. &
W. 743.
(/) See Bromley v. Holland, 7
Ves. 3, 28 ; Brasier v. Hudson, 9
Sim. 1, 10; Spoonerv. Sandilands,
1 Y. & C. C. C. 390.
OP THE COMPLETION OF THE CONTRACT. 739
legal representatives, it appears that it would remain
valid, both at law and in equity, after his death (n/). By
tlie Conveyancing Act, 1.S82 in), a power of attorney
given after tliat year for valuable consideration and
expressed in the instrument creating the power to be
irrevocable, is not revoked, invalidated or affected, in
favour of a purchaser (o), by anything done by the
donor of the power without the concurrence of the donee
of the power, or by the death, man-iage, lunacy, un-
soundness of mind, or bankruptcy of the donor of the
power, or by notice of any of these things. And by
the same Act (p), a power of attorney given after that
year and expressed in the instrument creating the power
to be irrevocable for a fixed time therein specified, not
exceeding one year from the date of the instrument, is
not revoked, invalidated or affected, in favour of a j)ur-
chaser [r/), by the same events or notice of them. When Execution of
a purchaser accepts the execution of the conveyance by ance iiy
attorney on behalf of any necessary party, he should »^tto™fy-
not allow^ the purchase money to be paid over into the
entire control of the vendor's agent until he has received
satisfactory proof of the validity of the power at the
time at which it was acted on (r). And the best course
appears to be to stipulate for the investment of the
purchase money in the meantime in the names of trus-
tees, but at the vendor's risk (s). This course is unne-
cessary where the power of attorney is at the time of
execution of the conveyance irrevocable and extends to
authorize the purchase money to bo paid to the donee
of the power, and tlie purchaser is satisfied of the due
execution by the vendor of the power of attorney. But
(m) Pearson v. Amicable Asmir- as to the incauiii ^ r ./ giyg a receipt.
partly payable to incumbrancers, the piu-chaser should
not, it is thought, pay over the whole of "the purchase
money to the vendor's solicitor producing the deed of
conveyance duly executed (ii), without good independent
evidence that he was authorised to act in this respect on
the incumbrancers' behalf. But, of course, payment of
the amount due to the incumbrancers may be paid to
their solicitor on his producing the conveyance executed
by them. Where a solicitor, who produces such a deed Payment to
as is mentioned in that section (o), is ostensibly acting glbly act^u^'^"
for the person entitled to give a receipt for the con- for a con-
sideration money, it appears that the purchaser, in the
absence of any ground for suspicion, is not entitled to
requii'e any independent proof that the solicitor is
indeed authorised to act and is rightly acting as solicitor
(A) Re HetlitK) and Merlonis Con- («i) Bat/ v. Woolwich, S^c. Socy.,
tract, 1893, 3 Ch. 269, 280. 10 Ch. D. 491 ; Re Hetlhig and
(t) Above, p. 741. Merton's Contract, 1893,3 Ch. 269,
(k) Re Bellamy and Metropolitun 280.
Board of Works, 24 Cli. D. 387, («) Above, p. 741.
394, 400, 403, 404. \o) Above, p. 741.
(J) Above, p. 741.
744
OF THE COMPLETION OF THE CONTRACT.
for that person (7;). And if that person in any way
held out the solicitor as his agent, he wonld be estopped
from proving that he did not in fact authorise the
solicitor to receive the money on production of the deed.
Kitir/v. Smith. Thus, where a solicitor fi'audulently induced a client to
execute a mortgage of his land and obtained the mort-
gage money by producing the mortgage deed so executed
and made away with the money, but it was proved that
the client placed such confidence in the solicitor that he
would execute any deed on the solicitor's recommenda-
tion without insisting that the transaction should be
explained to him, it was held that he was estopped from
showing that the solicitor was not in truth empowered
to act as his solicitor in the matter of receiving the
money (q). But it does not appear that a purchaser
would be protected in paying money to a solicitor
ostensibly acting under the authority conferred by
section 56 of the Conveyancing Act, 1881, if the solicitor
had no real authority so to act, and the person to whom
the money was payable had not by his conduct or
otherwise held out the solicitor to be his agent (r). In
all cases where money is paid to a solicitor in reliance
on this enactment, the deed must be actually produced
at the time of payment to justify the purchaser in
making payment to the solicitor (s). Where a creditor
or other person entitled to receive money authorises
payment to be made to his soUcitor, it appears that
payment to the solicitor's managing clerk is, as a rule,
a good payment (t) ; and this rule seems applicable
The deed
must be pro-
duced at the
time of pay-
ment.
Payment to
the solicitor's
clerk.
[p) See Ec Hetling and Mertoyi'.s
Contract, 1893, 3 Ch. 269, 280 ;
King v. Smith, 1900, 2 Ch. 425,
432.
iq) Kmg v. Smith, 1900, 2 Ch.
425.
{r) See Re Hetling and Mertoti'ii
Contract, 1893, 3 Ch. 269, 280 ;
above, p. 743.
(s) iJay V. Woolwich, ^-c. Socy.,
40 Ch. D. 491.
[t) See Moffat v. Parsonx, 5
Taunt. 307 ; Wilmot v. Smith, 3
Car. & P. 453 ; Bingham v. All-
port, 1 N. & M. 398 ; Kirton v.
Braithwaite, 1 M. & W. 310 ;
Watmn v. Hethcrington, 1 Car. &
K. 36 ; Hemming v. Hale, 29 L/. J.
(N. S.) C. P. 137 ; Finch v. Boning,
4 C. P. L>. 143.
OF THE COMPLETION OF THE CONTRACT. 745
where the authority to pay to the solicitor is given by
virtue of the enactment above cited (u).
With respect to the vendor's securing for himself What i» a
proper payment, he is of course only bound to accept pl^y^'j^.^t
banknotes or coins, which are legal tender {x) ; he may
object to take a cheque or any other negotiable
security (//). At the present time sales of land are
frequently completed by means of bankers' drafts (s),
to avoid the risk and inconvenience of carrying about
banknotes of large amount ; but the vendor is not
obliged to accept this mode of payment, and it should
be ascertained before the time fixed for actual comple-
tion that he will make no objection to it. Where a
solicitor is authorised to receive the purchase money or
any part of it on behalf of the vendor or any other con-
veying party (a), he is not at liberty to accept payment
otherwise than in cash or notes being legal tender (i).
This is another reason for ascertaining beforehand that
no objection will be made to a banker's draft, if it be
desired to tender such a draft in payment.
The execution of the conveyance gives to the pur- Eftoot of the
cliaser, in the case of freeholds the legal seisin, and in tj^^*]"*'"" ^
the case of leaseholds the like possession of the land i^^*^-
sold (6") ; and he is thenceforth free to enter into actual
(h) Above, p. 7H. ou themselves or branches of their
(x) Cun'eut gold coiu i.s legal office,
tender for any fimouut ; Bank of («) Above, p. 741.
England notes for all sums above (b) Fape v. WmtacoU, 1894, 1
5/., except by the BiiTik itself, but Q. B. 27L'.
not in Ireland ; current silver {c) See Copextake v. Uoper,
coiu for not more than 40*. ; 1908, 2 Ch. 10 ; articles by the
bronze ior not more than Is. : author in 51 Sol. J. 478, 40fi,
stats. 3 & 4 Will. IV. c. 98, s. 6 ; and b'l Sol. J. 510, .527 ; Wms.
8 & 9 Vict. c. 37, 8. (i; 3J Vict. Real Prop. 206, 551, 2l!st ed. ;
c. 10, .S.S. 4, 20. Williams on Seisin, 5, 54. On
(y) HI II III be i(/ V. l.tje Interenln, the (juestiou whether the pur-
i;c. (Jorpn., 1897, 1 Ch. 171 ; chaser obtains a seisin in law or
Juhiixton \. lifti/rx, 18'.)0. 2Ch. 7"5. an actual seisin where he is i«
(c) i.e. ,diuftsdi"awn by bankers under the Statute of Uses and
convey-
746 OF THE COMPLETION OF THE CONTKACT.
possession or receipt of the rents and profits of the
property purchased (d). On the sale of copyholds,
admittance is necessary to vest in the purchaser the k(jal
title to possession : but on admittance being obtained,
the purchaser's legal title will relate back to the
surrender {c^.
not at common law, see Williams {d) Above, pp. 515, 516, 578.
on Settlements, 11—16; Wms. (e) Doe d. BemibKjton \. Ball,
Real Prop. 175 and n. [l], 178, 16 East, 208 ; 1 Wat. Cop. 125,
n. [z], 21st ed. 128, 4th ed.
CHAPTER XIII.
OF MISTAKE.
§ 1. Of Mistake as precluding true Consent.
§ 2. Of Mistake in the expression of Consent,
and its Rectification.
In the previous part of this book the noi*mal course of
a contract for the sale of land has been traced from its
formation down to its completion. We will now treat
of the avoidance of the contract. This may take place
either because the consent of a party thereto is in some
way impeachable, as on the ground of mistake, fraud,
misrepresentation, duress or undue influence ; or because
the contract is tainted with illegality ; or because the
parties or one of them are or is not of full capacity to
buy or sell land (n) . We will consider these grounds
of avoiding the contract in the order in which they are
named. And first, of Mistake.
$^ I. — Of 3Ii.sta/ii' ((.s jjirrl/tdintj true Comcnt.
We have seen (//) that, in order to make a valid
contract, it is necessary that there should be true, full
and free consent of tlie parties ; that is, consent unim-
peachable as liaving been induced by mistake, mis-
representation, fraud, duress or undue influence. In
dealing \vith mistake, as the cause of the want of
{aj Above, pp. I, 1. {b) Above, p. 2.
'48
OF MISTAKE.
consent, let us first eliminate the case where the pai-ties
are really agreed but there is an error in the expression
of their consent. In that case the error may generally
be rectified. And we will discuss the subject of mistake
as a ground for the rectification of the agreement, after
we have considered it as giving rise to a claim for
obtaining the avoidance or resisting the specific per-
formance of the contract.
Where the
contract is
impeachable
for mistake,
misrepreseu-
tatioii, fraud,
&c., there is
always an
apparent
consent.
No real
assent in the
case of
mistake.
In the case of
misrepresen-
tation, fraud,
&c., there is
real consent
induced by
belief in non-
existent facts
oi' by coercive
influence.
Averrable
mistake
makes the
contract void
from the
besrinninif.
Now in all cases where the validity of a contract is
impeachable on the ground of mistake, misrepresenta-
tion, fraud, duress or undue influence, there is an
apparent consent of the parties. At fu'st sight, their
minds are met. But the case of mistake appears to
differ from the other grounds above mentioned for
setting aside the contract in this, that where there is
mistake there never has been an intention common to
both parties — the one has never given any real assent
to what has been proposed b}^ the other. Apparently,
the one did an act which amounted in the law to
contract : but his mind did not accompany his overt act ;
he never intended to do what, to all outward appear-
ance, he did. But in the case of misrepresentation,
fraud, duress or undue influence, a consent, which is to
a certain extent a true consent, accompanies the act,
which is outwardly manifested. The party misled by
misrepresentation or fraud, or coerced or influenced,
really means to agree -with the other in the terms
expressed ; he truly intends to contract : only he would
not have been willing to do so, if he had known the
truth with regard to the fact, as to which he was misled
by the other, either innocently or fraudulently, or if he
had not been forced or influenced. The consequence of
this distinction is very marked. Contracts induced by
any mistake, which the mistaken party is not estopped
from asserting, are altogether void from the beginning ;
there never has been from the outset any agreement
OF MISTAKE.
749
between the parties. But contracts induced by mis- Contracts
representation, fraud, &c., are voidable only. This ^isrepresen-
contrast is perhaps best illustrated in the case of nego- tatiou, fraud.
tiable instruments. A bill of exchange or promissory able only,
note, which was given or made by some averrable
mistake, excluding true consent, is void, and is there-
fore of no more avail in the hands of a holder in due
course than a forged bill or note {(■). But a bill or note
procured to be made by fraud, though voidable by the
giver or maker as against the party who misled liim, is
valid in the hands of a holder in due course, against
wliom the plea of fraud cannot prevail (d).
With regard to mistake as a ground for avoiding a The rule is
contract altogether, the rule of the common law appears „„^in<7to^'^
to be that, in order to make a valid contract, there must mistake the
be true consent of the parties ; so that, Avhere owing to are not at one,
a mistake the parties' minds are not at one, the contract ^^^{^ ^\^°
^ ^ ' contract.
is void; that is to say, there is no agreement at all (e).
(c) Foster v. Mtw/chiiio/i, L. R. law) the alienor i.s estopped from
4 C. P. 704 ; Lewis v. ('/(i>/, (57 disputing the assurance. Tims
L. J. Q. B. 224. As to forged if one disclaim a conveyance of
instruments, see next Chapter. lauds or goods made to him, the
§ 1 , at end. conveyance is thenceforth void
(rf) Stat. 4o & 46 Vict. c. 61, as from the time of its executioiv:
ss. 29, 30, 38 ; Ttiltiiii v. inm/ar, but until disclaimer the estate or
23 Q. B. D. 345 ; Clutton v. Atte»- property passes to the alienee.
l,orou(/h, 1895, 2 Q. B. 306, 707; See Bract, fo. 15 b, 16; Y. B.
1897^ A. C. 90. 7 Eiw. IV. 20 (pi. 21), 29 (pi. 14);
(r) Siitith V. IliKjhvx, L. R. (i Litt. ss. 684, 685 : Thorotujhiimd' x
Q. B. .597, 607, 609; Benjamin nixe, 2 Rep. 9 ; liiitltr and Baker's
on Sale, 42, 2nd ed. The same case, 3 Rep. 25a, 26b ; Shep.
rule appears to hold good as re- Touch. 229, 267, 285 ; Thompson
gards the conveyance of any v. Leech, 2 Vent. 198, 202, 208 ;
property : if there be no true 2 Brest. Abst. 226 —228 ; Sigyers
a.ssent of the parties in parting v. Finns, 5 E. & B. 367, 380 .vi/. ;
with and accepting the thing Peacock v. East land, L. R. 10 Va[.
assured, the conveyance is void. 17 ; Exple. Cote, L. R. 9 Ch. 27,
But as regards the conveyance oi 32 ; Standing v. Bowring, iil Ch.
lands or goods, this rule is sub- D. 282 ; Mallott v. TTihon, 1903,
ject to the qualification that the 2 Ch. 494 ; Edmunds v. Edmunds,
assent uf the alienee is presumed 1904, P. 362, 374 ; JIuualson v.
until the loutrary be shown, and Jf'tbl/, 1907, I Ch. 537, 543 — 548,
in the meantime (if the convey- affirmed, 1908, 1 Ch. I ; li'ii/nl v.
ance were duly made in accord- Chapmm, 1907, 2 Ch. 222.
ance with the f ormfl prescribed by
'50
OF MISTAKE.
Unilateral
mistake.
If one
mail if est
a certain
intention, he
is estopped
from proving
that his real
intention was
different.
And it seems that this rule may in some cases hold
good, notwithstanding that the mistake he that of one
party only, the other truly intending to contract in the
terms expressed (,/'). The rule is, however, subject to
the qualification, that " whatever he a man's real inten-
tion, if he manifest an intention to another party, so as
to induce the latter to act upon it in making a contract,
he will he estopped from denying that the intention as
manifested was his real intention " {[/). In other words,
the rule requiring true consent of the parties to a con-
tract is modified by the operation of the general rule of
law that every man is taken to intend the natural and
reasonable consequences of his own overt acts, including
his spoken or written words ; he is estopped from showing
that what he really intended was something different
from what a man of ordinary intelligence would natu-
rally and reasonably infer from those acts or words {//).
And this qualification is of enormous importance ;
indeed in practice the qualification overshadows the
rule. For the instances, in which a person truly mis-
taken is estopped from proving his real intention, are so
much more common than those in which there is no
such estoppel, that when we come upon a case where a
man's real intention may be set up to defeat an apparent
expression of his consent, we are apt to regard it as
exceptional (?').
(/) See Thoroughgood' s case, 2
Rep. 9 ; below, pp. 753 — 755.
(g) BenjaminonSale, 45, 2nded.
(A) Freeman v. Cooke, 2 Ex. 654,
()63 ; Cornish v. Abingtoii, 4 H. &
N. 549, 555, 556; Smith v. Hughes,
L. R. 6 Q. B. 597, 607, 609 ;
Smith V. Chadwick, 9 App. Cas.
187, 190; Little v. Spreadburij,
1910, 2 K. B. 658, 664, 665.
(i) The writer is aware that it is contended by eminent jurists that
the law has no concern at all with the real intentions of the parties to
a contract, but can only regard the intention which they have out-
wardly manifested ; O. W. Hohnes, The Common Law, 309 ; Holland,
Jurisprudence, 246 — 252, 9th ed. It is nevertheless submitted that
the common law of England is as stated in the text, and recognises,
as a rul(^ of pure law (so pure that it rarely emerges from the region
of abstract theory into concrete shape), that the true consent of the
parties is necessary to make a valid contract. This precept of per-
fection is almost always obscured by the operation of the qualifying
OF MISTAKE.
751
Subject to tliis qualification then the rule is that
contracts purported to be made by spoken or written
law of estoppel by outward maiiifestatiou of consent. But it is con-
tended that the iirinciple, that true consent is necessai'y to make a
contract, is exhibited in the case where the terms of a written con-
tract contain a latent ambiguity with regard to the subject matter
thereof. Thus in the well-known case of Rajflis v. tVichelhcKs,
2 H. & C. 906, where the plaintiff sued for breach of a contract for
the sale of goods "to arrive ex Peerless," it was pleaded that the
defendant meant a ship so called which sailed from Bombay in
October, but the plaintilf had not oflfered any goods arriving by this
ship in f ulfilmeut of the contract, and had only offered goods arriving
by another ship of the same name ; and this was held upon the
plaiutitf's demurrer to be a good plea. This decision shows that
where there is no true consent, there is no contract. But if the plea
had been set up fraudulently, it would have been competent to the
plaintiff to join issue thereon and to give evidence that the defen-
dant really meant the same ship as the plaintiff ; see cases cited,
below, pp. 760, n. (.v), 782, n. («) ; Smith v. Thoinpson, 8 C. B. 14, oi),
60 ; Britffw Cunybcare, 13 C. B. N. S. 263, 274, 275. It thus appears
that ultimately the law does regard the parties' real intention. If
this were not so, and the law were never concerned with anything but
what the parties have said, every contract expressed in terms similar
to that in Raffles v. WiehelhuuH would be void for uncertainty so soon
as it appeared that the description could be applied to more than one
object, and no further evidence would be admissible. But that is not
the law; see Re lluhhmk, 190'), P. 129, 132—134. If I have two
estates called Blackacre, one in Hampshire and the other in North-
umberhmd, and I contract with J. S., who knows nothing of my
estate in Northumberland, but whom I have shown over my estate in
Hampshire as an intending piu'chaser, to sell to him " my estate
called Blackacre," this contract is not rendered void for uncertainty
on my proving that 1 have another Blackacre in Northumberland,
but J. S. is at liberty to give oral evidence that I took him over
Blackacre in Hampshire and offered to sell that property to him, and
so to prove that that property is what was really referred to or
meant by both parties in the written memorandum under the de-
scription of "my estate called Blackacre." It must be admitted,
however, that there is authority for the tlieory that, in such cases,
the question is not what did the parties intend, but is, what is the
signification of the words they have used ; Parke, J., Richardson v.
U'lilmn, 4 B. & Ad. 787, 800 ; and see L. Q. R. xx. 24.). This view
is upheld by Mr. Justice O. W. Holmes, The Common Law, p. 309,
where he maintains that tlie true ground of the decision in Raffles v.
IFieh'lhaus was, not that each party nuaiil, but that each said a
different thing ; see idso Harvard Law Review, xii. 417. But con-
sidering that each party, in so far as he said auytliing at all, u.sed
the very same wt)rils, it could only be established that they said
a different thing by showing that tlie word used signified to the mind
of the plaintiff one ship and to the mind of the defendaut another, or
held out to the defendant's mind one meaning and to the i^laintiff's
another. Tlie difference between proving what was in the parties'
minds as to the signification of the word used, and proving what was
their intention, secMiis to be ver}- fine. And uj)ou either view of the
matter, the plaintitf was at liberty to prove, if he could, that the
parties' minds were at one as regards the meaning of the word Peerless.
Mistake on
some point
going to the
whole subject
of the
contract.
Raffles V.
Wiehelhaiis
752 OF MISTAKE.
words apparently expressing a true consent are void if
there be no real agreement of the parties' minds in
It seems therefore that the law dncn sometimes take account of what
passes in men's minds, and does in this instance require that the
parties' minds shall be at one. And it is submitted that, if the
(lutward manifestation were alone to be regarded, there could be
but one conclusion in all such cases, namely, that the parties
have said what is ambiguous and therefore void for uncertainty.
Again, where A. is induced by the fraud of B. to sign a contract
for the sale of his land to C. in the belief that he is signing an agree-
ment for a lease, A. would surely be bound, if the outward manifesta-
tion of his intention could alone be considered. But he is at liberty
to prove that his intention did not accompany his apparent act, and
is not bound, unless he be estopped by his negligence : see below,
pp. Irt'?, — 7''i5. It may perhaps be more readily maintained in this case
that A. is not bound because he and C have not really said the same
thing, have not in truth joined in the expression of consent ; see
O. W. Holmes, The Common Law, 308, 309. But it may be replied
that to all outward appearance A. and C. have said the same thing,
for A. has himself affixed his own signature to the document : but A.
did not mean to do so ; and in the particular circumstances he is not
precluded from giving evidence as to the state of his own mind at the
time when he signed the writing. It is further submitted that, upon
a general view of the law of England, taking in the rules of equity as
well as of common law, we can hardly fail to recognise the principle,
that there ought to be true consent to make a contract. It was on
this principle that Courts of Equity would refuse to enforce specific
performance of a contract wanting in the element of true consent,
though valid, on the ground of manifested consent, at law. Not until
the year 1880 was it decided that the law of estoppel through mani-
festation of consent may prevail over this principle in the matter of
enforcing specific performance of the contract as it may in determining
the validity of the agreement at law : TanipUn v. James, 15 Ch. D. 215.
And though the rule requiring true consent is now so qtialified, it is
nevertheless still open to Courts of Equity to give effect to it by
refusing specific performance where there is a want of true consent
and it would work great hardship on the mistaken party to apply the
law of estoppel. See below, pp. 774 — 776 and n. (:*), andabove, p. 724.
The case of Re Meyer, 1908, P. 353, appears to support the author's
position. In that case a lady executed by mistake a document intended
to be signed by her sister as a codicil to the sister's will ; and it was
held that the document was void for want of any true intention to exe-
cute it. Consider also i/^oorf v. McKinmm, 1909, 1 Ch. 476, where a deed
exercising voluntarily and without agreement with any other person
a power of appointment was set aside at the appointor's instance on
proof that she had executed it in forgetfulness uf a prior appointment
in favour of the same appointee and so under a mistake of fact. These
cases prove that, as regards any purely unilateral act affecting a man's
legal position or relations and purported to be evidenced by some
document, the rule is that execution of the document must be accom-
panied with true intention to do the act evidenced. But if this be the
law, it follows that the validity of a contract made by the unilateral
mistake of one party only must depend, where the mistake is not
averrable, on the principle of his not being allowed to depart from the
consent or intention manifested or held out to the other party, that is,
on the principle of estoppel.
OF MISTAKE. , 753
some point which goes to the whole substance of the
contract (k). Thus on an apparent agreement for the
sale of land, if the parties' minds be not at one, owing
to an averrable mistake made on either side with
regard to the nature of the transaction, the personality
of the other contractor or the property to be sold, there is
no contract between them. But if the party mistaken Estoppel by
1 1 ^ • M! • ji'i J! £ manifestation
have expressed himselr m words which are tree trom of a particular
ambiguity and are apt to constitute a valid contract if intention.
taken in the meaning which they would naturally con-
vey to a man of ordinary intelligence, then he is estopped
from showing that his mental intention was not in
accordance with his overt act (/). To give examples, Mistake in
first, as to mistake in the nature of the transaction. If *!'^ nature of
' _ tne trans -
one sign a contract for the sale of land under the action,
impression that he is executing an instrument giving
effect to some transaction of an entirely different cha-
racter, for instance, a mortgage, a lease or a power of
attorney, the contract may be void, because the man's
intention did not accompany his act (m). It seems
impossible to put a concrete ease of this kind in which
the mistake has not been caused by the fraud of the
other party to the alleged agreement, or by the fraud,
negligence or unauthorised interference of a third person,
nnd yet the party mistaken is not estopped from proving
his mistake ; for if a man of sound understanding sign
a legal document without reading it or having it read
to him, lie is bound by its contents («) ; and, as we
(k) Kennedy v. Panama, ^c. Mail Hoivatson v. Wcbh, 1907, 1 Ch.
Co., L. R. 2 Q. B. .080, 088 ; 537, 543—049, affirmed, 1008, 1
Honatson v. Webb, 1907, 1 Ch. Ch. 1 : Bagot v. V/iapinan, 1907,
•')37, 543—549, affirmed, 1908, 2 Ch. 222. The law is the same
1 Ch. 1 ; Layof v. Chapman, 1907, as regards the execution under a
2 Ch. 222; above, p. 749. mistake of a deed of conveyance
(/) Above, p. 750. or any other deed ; Thoronghgoocrs
\m) T/ioroug/igood'Kcase,2'Rep. case, ubi sup.; Pigot's case, 11
9 ; Simons v. Orad Western Ity. Rep. 26b, 27b ; see below,
Co., 2 C. B. N. S. 020 ; Foster v. pp. 756, 757.
3fa<;kinnon, L. R. 4 C. P. 704 ; («) T/ioroughgood's case, 2 Rep.
Lewis V. C/ai/, 67 L. J. Q. B. 224 : 9 a. b ; MaunrrVK fa»e, Moore
W. 4b
754
OF MISTAKE.
Letter of
acceptance
sent without
the writer's
authority.
shall see, the party mistaken nidy be estopped by
reason of his negligence where a third person wrong-
fully misled him. But the rule is clearly estab-
lished where the mistake Avas made in consequence of
the other party's or by a third person's fraud. Thus if
a blind or an illiterate man, or even a man free from
any physical defect and of ordinary understanding, be
induced by the fraud of some person minded to entrap
him into a contract, or by the fraud of his own solicitor
or servant or some stranger (without any negligence or
carelessness on his own part), to sign a contract for sale of
his. land under the impression that he is executing some
document of an entirely different nature, the document
is altogether void. It is not his act, for he never
intended to utter such a document, and the case is
exactly the same as if his signature had beeu forged [o] .
Or it may be likened to the case where a man, who has
received an offer of sale or purchase of land, writes a
letter of acceptance, but, being in doubt whether he will
send it, places the letter in a drawer to remaiu there
until he shall reconsider the matter {p), and a third
party without the writer's authority takes the letter
from tlie drawer and sends it to the person who made
the offer ; in which case it is submitted that no contract
is concluded between the parties {q). In these instances
(K. B.), 182, 184 ; Shep. Touch.
56 ; Anon., Skin 159, pi. 6; Albe-
marle V. Bath, Freem. Ch. 193,
194; S.C. nom. Bath v. Moioi-
tague, 3 Ch. Ca. 55, 56, 59, 75,
76 : R. V. Lovfinor, 4 B. & Ad.
647; Mellish," L.J., Hunter v.
Walters, L. R. 7 Ch. 75, 87 ;
Tamplin v. James, 15 Ch. D. 215;
Farwell, L.J., Hoicotson v. IVebb,
1908, 1 Ch. 1,3,4; Chnplb, S; Co.,
Ltd. V. Brammall, 1908, 1 K. B.
233, 234, 235; Alliance Credit
Bank of London v. Oiren, Times
Newspaper, 27th May, 1908.
(o) See previous note. As to
foro-ery, see next Chapter, J 1,
at end.
(;?) See above, p. 16.
{(j) See Phillips v. Edwards, 33
Beav. 440, 445 ; HenJcel v. Pape,
L. R. 6 Ex. 7 ; Baxendnle v.
Bennett, 3 Q. B. D. 525 ; Chitton v.
Attenlmrniigh . 1897, A. C. 90, 96.
The offer appears to be ostensibly
accepted through the agency of
a third person acting without tlie
authority of the party purported
to be bound ; and the writer of
the letter is, it is submitted, no
more bound than he would be if
the third person had, without his
OF mi!=;take.
755
there is no reason why the party mistaken should be
estopped from proving that liis intention did not aceom-
pany his apparent act ; he has not held himself out as
expressing a contractual intention, nor has he been
guilty of negligence (>•). And it will be observed that Unilateral
in the cases where the mistake was caused, not by the °"^ ^ ^"
other contractor's fraud but by the wrongful or improper
intervention of a third person, the party mistaken is at
liberty to prove that his intention did not accompany
his outward act, notwithstanding that the mistake was
on his side only, the other party truly intending to
contract as expressed in the apparent agreement. But Estoppel
where a man makes a mistake of this kind solely b}'' a man's own
his 0"vvn inadvertence, he ^\ill in general be precluded carelessness,
fi'om alleging it. Thus we have seen that, where a
man executes a deed or signs a contract without reading
it, he cannot avoid it ; and it is submitted that if one in
absence of mind sign and send a letter accepting an
offf^r of sale or purchase, in the belief that he is accept-
ing an invitation to dinner, he is bound (.s). So also it is
contended that, where a man, who has written a letter
accepting an offer, but intends not to send it until he
has reconsidered the matter, by his own inadvertence
posts tlie letter or gives it to another to post, he would
be estopped, after the letter had been posted {t), from
authority, written a letter of and valid on the face of it, and
acceptance in his name ; see the same is taken out of his pos-
Ilollins V. Fowler, L. R. 7 H. L. session against his will, and put
TT)?. So where a deed or a similar into circulation, it appears that,
legal instrument is executed as as against a holder in duo course,
an escrow, ;ind entrusted to a he cannot avoid his liability on
solicitor to keep until perform- the ground that, owing to the
ance of the required condition, want of any consent between
and he fraudulently delivers the himself and the other party to
same without exacting perform- the instrument, there was no
ance of the condition, the person contract at all between them ;
who executed the deed is not see Cltittcm v. Atteiihorongh, 1897,
estopped from showing that it A. C. 90, 93, 96 ; and cf . Smith
was not his act ; LloiiiVs Bunh, v. Prosser, 1907. 2 K. B. 73o.
Lot. V. Hiillocl;, 1896. '2 Ch. 192, ()) See previous note.
191. It may be noted that where («) See above, p. 753, n. [)i).
one has signed, but not issued, a (/) Above, p. 16.
negotiable instrument complete
48 (2)
756
OF MISTAKE.
Executing,
without
inquiry, a
document
presented
by one's
solicitor.
Misunder-
standing as to
effect of a
legal docu-
ment.
Difference
between
transactions
void and
voidable.
showing that he did not intend to contract as expressed
in the letter {ii) . Similarly, when a man knows that he
is executing at his solicitor's instance a document which
will have some legal consequence — which will he an act
on his part affecting his legal position or relations —
but he does not ask what will he its exact effect,
and has such confidence in his solicitor that he is
content to execute it in ignorance, then the document
is not mid; though it may be imdahle for fraud, if
his solicitor fraudulently misled him(.r). And in this
case the validity of the document, where it binds
the party to some transaction into which he did not
intend to enter, appears to depend on estoppel ; the
man's intention did not really accompany his act, but
he is precluded by his own negligence from setting-up
this objection. So also, if a man execute a document
intended to carry out some legal transaction, of the
general nature of which he is well aware, such as the
sale of his land, he cannot be heard to say that he did
not understand the legal effect of the words used, or
that he did not mean to enter into the legal obligations
or do the legal acts, which according to the proper legal
construction of those words are thereby expressed to be
undertaken or done (//). As we have seen {z), the case,
where a man executes a legal instrument by mistake
under the impression that he is entering into some
I
(m) See H. T. Chitty, argneyido,
Henhl v. Tape, L. R. 6 Ex. 7, 8 ;
Anson on Contract, 159, 160,
8th ed. It is submitted that the
remark of Collins, M. E,., in V((ii
Praagh v. Everidge, 1903, 1 Ch.
434, 436, that it was not clear to
him, whether the parties w^ere ad
idem, must not be taken in a
sense adverse to the above con-
clusion. In that case the parties'
minds were most certainly not in
truth at one : but the question
whether the defendant was not
estopped at law from proving the
truth was not argued or decided
in the Court of Appeal.
(.*■) See Mellish, L. J., Hunter
V. iraltcrs, L. R. 7 Ch. 75, 88 ;
King V. Smith, 1900, 2 Ch. 425,
430 ; Hoiiatson v. Webb, 1907,
1 Ch. 537, 1908, 1 Ch. 1 : above,
p. 743.
(y) Poirell V. Siiiitli, L. E. 14
Eq. 85 ; Tumplin v. Jatticx, 15
Ch. D. 215 ; Stewart v. Kennedij,
15 App. Cas. 108 ; Howalson v.
Jl'ebb, ubi sup.
(;) Above, p. 748.
OF MISTAKE. 757
transaction entirely different from that evidenced by
the instrument, must be carefully distinguished fi'om
that where he is induced to make a contract or con-
veyance by a fraudulent misrepresentation as to some
fact, other than the nature of the transaction contem-
plated. In the one case, if the man is not estopped
from proving that his intention did not accompany his
overt act, the instrument is void (a). In the other, he
did really intend, at the time of executing the docu-
ment, to make the contract or conveyance tlierein
exj)ressed : but he would not have had this intention if
he had known the truth as to the fact misrepresented (6).
The document is therefore voidable by him, but it is
not altogether void from the outset (b). Attached to Couveyauce
this distinction is the very important consequence, as misrepresen-
regards the concei/ancc induced by such fraudident mis- tation, fraud,
. . t((rr, 2 My. & K. li)o ; rhillips
WaHers, L. R. 7 Ch. 7o, 82 ; v. PhiUips, 4 De G. F. & J. 208,
Onward litiUdiitg Socicfi/ v. Smith- 218 ; Hunter v. IFaltcrs, L. E..
son, 189:5, 1 Ch. 1, 15; Lloyd's 7 Ch. 75 ; Lindley, L. J., J\rt. 2ud fraud, but might, it seems, have
ed. ; Smilh v. Whtatcyuft, 'J Oh. D. alleged that it was void on the
223, 230 ; X) See Sinit/i \. Hughes, 1,. R.
H. L. 7o7 ; C'uitdi/ v. Limliai/, 6 Q. B. 597 ; see below, pp. 773,
3 App. CaM. 459 ; Ke Cooper, 20 774.
Ch. D. 611 ; and see Gordon v.
760
OF MISTAKE.
Smith V.
Wheatcroft.
the latter be not a material element in determining his
intention, he cannot avoid the contract on the ground
of his mistake. Thus, where B. bought land of A.,
ostensibly on his own account but really as agent for
C, and it appeared that A., provided he got his price,
would have been equally willing to sell to any other
person, it was held that A. could not resist the specific
performance of the contract {q) .
Mistake as to
the property
sold or the
price.
The same rule holds, subject to the same qualifica-
tion, with regard to mistake in respect of the property
to be sold or the price to be paid, if the mistake go to
the whole substance of the consideration (r) . Thus, if
A. sell to B. his farm called The Grrange, and A. have
two farms of that name, one in Essex and one in
Hampshire, and A. intended to sell his farm in Essex,
but B. meant to buy the farm in Hampshire, there is
no true consent and no contract between the parties.
In this case there is a latent ambiguity in the descrip-
tion of the land pm-ported to be sold, and so parol
evidence is admissible to prove what land the parties
intended to sell, and it may be shown that they meant
different things and their minds were not at one (s).
But if one sign a contract for the purchase of a piece of
land, of which the description in the contract is free
from ambiguity and completely identifies it, he will be
estopped from proving that he really intended to buy a
different plot, if his mistake were due to his own inad-
vertence, and his outward acts and demeanom- would
naturally and reasonably lead the other party to suppose
{q) Smith V. Wheatcroft, 9 Ch.
D. 223 ; Nash v. Bix, 78 L. T.
445, 448, 449 ; Gordon v. Street,
1899, 2 Q. B. 641, 647.
()-) Above, pp. 748—753.
(s) Raffles V. Wichelhaus, 2 H.
& C. 906 (sale of goods ex Peer-
less, there being two ships of
that name) ; above, n. H) to p. 750.
See Althani's case, 8 Rep. 150b,
155 ; Miller v. Travers, 8 Bing.
244, 248 ; Doe d. Gord v. Needs, 2
M. & W. 129, 139, 140 ; Doe d.
Hiscocks V. Miscocks, 5 M. & W.
363, 368, 369 ; below, p. 782,
n. («).
OF MISTAKE. 761
that he meant to buy the land described (f). On this
point, as affecting the validity of the contract at law,
the (Ik'tion of Collins, M. R., in the case of Van Praagh v. '"«« P'-wyi'
^(!.r>vV/^(' (//), is, it is submitted, misleading. The defen-
dant in that case, purely through his own inadvertence,
bid at an auction for Lot 1 under the impression that
he was bidding for Lot 2, and Lot 1 was knocked down
to him accordingly. He afterwards declined to sign a
memorandum of the contract : but the auctioneer signed
it for him (.r). The memorandum so signed ascribed a
wrong date to the contract. The vendor sued for
specific performance of the contract, which was granted
by Kekewich, J. This involved the decision that there
was a contract valid at law, as the Court has no jm-is-
diction to grant specific performance of a void agree-
ment (//). In the Court of Appeal, however, the judg-
ment of Kekewich, J., was reversed purely on the
ground that, as the wi-ong date had been inserted in the
contract, there was no sufficient memorandum to satisfy
the Statute of Frauds (;:) . But it had also been argued
that there was no true consent of the parties, their
minds being directed to different things. On this
point, Collins, M. R., said : " It is not clear to my mind
that the parties ever were ). But it is submitted
Latent defect
knowni to the
vendor.
Sale of a
thing with all
its faults.
The rule in
equity as to
mere silence
about a defect
of qualitj-.
418 : see Hope v. Jf'a/ter, 1899,
1 Ch. 879, 883, reversed, 1900,
1 Ch. 2o7 : below, p. 770.
(o) See Fiii/.hixon v. Ler, 2 East,
314, 322, 323, 324; Hi/xater v.
Jtichardsot), 1 A. tt E. 508 ; Chanter
V. Hop/.liK, 4 M. .*e W. 399 ; Con/-
fuot V. FowLe, 6 M. \- W. 358
(the correctness of the decision in
this case is discussed in the next
Chapter : but it sei-ins clear that
if there had been no reprosunta-
tion at all. there would have been
no (tause of action; ; (iomprrlz v.
liartlett 2 E. & B. 849, 8.")o ;
Jo)i,s V. Just, L. R. 3 Q. B. 197,
202 ; Ward v. Jfol,l>s, { App. Cas.
13, 21, 2.'), 26, 29. It is respect-
fully submitted that the dictum of
.loyee. J., in Curlish v. Suft, WHU).
1 Ch. 33.'), 341, as to the vendor's
duty of disclosure, is not well
founded; see the writer's cuticisni
in 50 Sol. .1 611. Note that the
statement in llornfull v. Thomas,
I H. & ('. 9'), 100, as to a maiin-
Jartiircr's duty to disclose a defect
known to him and not discover-
able by inspection applies only to
a contract to make a particular
thing- to order, when there is an
implied warranty that it shall be
reasonably fit for the purpose for
which it i.s ordinarily used or
specially ordered ; Jcjies v. Juxt^
L. R. 3 Q. B. 197, 203 ; Ben-
jamin on Sale, 525, 2nd ed.
HorsfnU V. Ttiamax does not there-
fore support the proposition in
Fry, Sp. Perf. ^^ 708, 3rd ed., for
which it is vouched.
( v) Baf/lchvliyf. Jf"ulters,3Cdm^.
154 ; Pickfrbifi v. Dow.snn, 4 Taunt.
779 ; JFard v. Hobbs, 4 App. Cas.
13 ; Benjamin on Sale, 384, 2nd
ed. : Sug. V. & P. 333, where
note that the proposition stated
at the beginning of § 21 cannot
be maintained ; see n. (r), below.
('/) Jiroirii/ir V. Cuiiipbe/t, 5 App.
Cas. 925.
{r) Lucas V. James, 7 Hare, 410,
118; Hopry. Walfrr, 1899, 1 Ch.
879, 883. Note that the rule
there stated is qualified with
" perhaps " ; and that the state-
ment of the law in Sug. V. & P.
2, 333, which the rule purports to
follow, was apparently founded
on a case of Mcllish v. Molteux,
766
OF MISTAKE.
Lucas v.
James.
that this rule is too broadly stated, and is properly
suBject to the qualification that the defect must be
such as will materially interfere with the enjoyment
jjro/iiiscd 1)1/ the contraci or the vendor's representation,
or the concealment must be fraudulent. Thus in Lncan
V. Jamosi. (.s'), where the"" rule is stated, a gentleman
entered into negotiations for taking a lease of a house,
the lessor being aware that he wanted it for his own
residence. He broke off the negotiations on the ground
that the street, in which the house was situated, was of
so disreputable a character that the house was unfit for
the purpose of a gentleman's private residence. The
lessor brought a suit for specific performance, alleging
that a contract had been concluded. Wigram, V.-C,
dismissed the bill with costs on tlie ground that no
contract had been formed: but incidentally he suggested
the rule as above mentioned. But it appears that in
that case the lessor was clearly promising a house fit
for the required purpose. If one sell a house situate
next door to a house known to the vendor but not
generally known to be a disorderly house, without
promising that the house sold is fit for a gentleman's
residence, and without making any promise or repre-
sentation at all as to the character of the neighbourhood
or the street, why should specific i)erformance be
refused at the vendor's suit ? Lord St. Leonards main-
tained that the vendor's silence as to a known latent
defect of quality could hardly be distinguished from his
active concealment of a defect which would otherwise
be patent (f). But it is held at law that this is not
so {iC). The active concealment alone is a fraud; mere
silence is no breach of any legal duty, unless tlie vendor
Peake, 115, expressly overniled
in Baf/lcholc v. IVaUcrx, 3 Camp.
154 ; aDcl Fxclcv'mq v Doicson,
4 Taunt. 779. 1 Dart, V. & P.
93, 5th ed. ; 103, 6th ed. ; 101,
7th ed., simply follows Sugden's
statement.
(s) 7 Hare, 410.
[t) Sug. V. & P. 333, 334 : but
see p. 335.
{ii) Above, p. 765, and n. (o) ;
below, p. 77'2,
OF MISTAKE.
767
promised somo quality inoompatihle with tlio oxistpneo
of tlie defect, or were uiidor a particular obligation to
tMScIose defects, such as arises iu the case of a coutract
of insurance, which is a contract iilx'rrhmc fidei {x).
And it is stated by Sir Edward Fry in his treatise on
Specific Performance that mere silence as regards a
material fact, which one party is not under an obliga-
tion to disclose to the other, cannot be a ground for
rescission of a contract or a defence to specific per-
formance (//). And this rule has been lately followed
in equity, specific performance having been decreed at
suit of one, who kept silence as to a latent defect,
which was known to liim, but which he had not war-
ranted or represented not to exist (s). So also it is Silence of the
considered that mere silence on the purchaser's part as about 'a fact
to some fact known to Idm alone and enhancing the enhancinor the
value of the property sold (such as the existence of
valuable minerals) is no ground in equity for the
vendor to avoid or resist specific performance of the
contract (a). At the same time, it must be remembered
(.(•) See F.rpfe. irhi(tal:n\ L. R. access of light by the stranger's
10 Ch. 44H ; liii>w)iHc V. Cumpbell, licence : see above, p. 639, n. (/) ;
5 App. (Jas. 02o, 932. 937, 938, Be Ward ami Jordnn'x Coutrnct,
9H, 9.')0, 9.')4. As t<» the (/«•/?<;« 19()-2, I. R. Ch. 73; Seddvu v.
of Joyce. J., in (Jarlish v. Salt, North Eastern Salt Co., Ltd., 1905,
190G, 1 Ch. 335, 340, see above, 1 Ch. 326, 334, 33o.
p. 765, n. (o). (f/1 For \ . Maircumstances wliich would be of no accoiuit at law
and would not affect the question of the rescission of
the contract {h) . Thus the Coiu-t may refuse specific
performance at suit of a party whose conduct has been
wanting in good faith or fairness {b), or against a party
on whom the specific performance of the contract would
inflict a great hardship (c) ; and it seems that on these
grounds the Court wat/ poH.nb/// decline to grant specific
performance at suit of either vendor or purchaser, who
has concealed a fact known to him and material to the
value of the property sold, notwithstanding that such
concealment may not amount to positive fraud {d). In
a recent case, however, where a vendor kept silence in a
manner which the Court considered to be unfair, that
was not allowed to stand in the way of his obtaining
tlie remedy of specific performance, though it was made
a ground for depriving him of costs (r). But it should
be noted that non-disclosure, on the sale of land, of a
fact material to the tit/c of the property sold stands on
a different footing from non-disclosure of a fact relating
to its quaUti/. The vendor's title is a matter which is
exclusively within his own knowledge, and he is bound
to state it fairly ; and his suppression of a fact material
to the title may, according to the degree in which it
(*) Above, pp. 37, 38 ; below,
n. (rf), and pp. 777, n. {c), 778,
(c) See Wedgwood v. Adams,
6 Beav. COO ; WatKon v. Marston,
4 De G. M. & a. '230 ; Falck'e v.
Gray, 4 Drew. 651, 659 ; Webster
V. Cecil, 30 Beav. 62 ; Durham v.
Legard, 34 Beav. 611 ; Freston v.
Lnc/c, 27 Ch. D. 497, 506 : Fi'dd
X. Ltiscelks, 1900, 1 Ch. 815, 820;
Goddard v. Jeffreys, 30 W. R. 269,
270 ; Van traagh v. Everidge,
1902, 2 Ch. 266, 271, reversed on
other grounds, 1903, 1 Ch. 434 ;
above, p. 39 ; below, p. 776.
{d) See EUurd v. Llandaff, 1
Ball & B. 241, where a lessee for
a life negotiating for a new lease
concealed the fact that cestui que
vie was at the point of death :
this decision is, however, adversely-
criticised in Turner \. Green, 1895,
2 Ch. 205 : FothcrgiU v. PhiUips,
L. R. 6 Ch. 770, where a pur-
chaser concealed the fact that he
had wrongfully abstracted a large
quantity of minerals from under
the laud sold ; Fry, Sp. Perf.
^ 402, 715, 717, 3rd ed.
[e) Greeuhalgh v. Frindlcy, 1901,
2 Ch. 324.
OF MISTAKE.
769
affects the title, be a ground for rescinding the contract
or for resisting its specific performance (,/').
On the other hand, if the vendor represent that a
house is in good repair {y), or is not damp (/<), or that
the drains are in good order (/), or the cellars dry (A-),
or that a farm is in a high state of cultivation (/), or
sell land as being fit for building purposes [m), or as
business preinises (//), then any latent defect, which
prevents this representation from being fulfilled, will be
a good ground of objection by the purchaser to his
completing the contract (o). If, however, the defect
Avere patent or obvious, then the purchaser may be
obliged to perform the contract, notwithstanding tlie
representation, on the ground that he must be taken to
liave bought with notice of the defect {p). But any
(ictirc concealmont of defects which would otherwise be
discoverable by inspection is a fraud {q) ; and if a pur-
chaser be deceived tliereby (>•) he may avoid the contract
Representa-
tion that land
is fit for a
particular
purpose.
Representa-
tion obviously
inapplicable.
Active con-
cealment of
defects.
(/) Eihvards v. TViclnrar, L. R.
1 Piq. 68 ; Monti/n v. Vest Jfosti/ii
<'oal and Iron' Co., 1 C. P. D.
145 ; lie Marsh and Earl Gran-
ville, 24 Ch. D. 11 ; Hey wood
V. MalMieu, 25 Ch. D. 357 ;
Nottingham Brick and Tile Co.
V. Butler, 16 Q. B. D. 778 ;
Rene v. Berridge, 20 Q. B. D.
52.3, 528 ; Re Jhirin and Cavei), 40
Ch. D. 001 : Re While and Smith's
Contract, 189'.), 1 Ch. 637 ; Re
Haedicke and Lipski\'! Contract,
1901, 2 Ch. 66G : tJarlish v. Salt,
1906, 1 Ch. .'135, a.s to which case
SCO the writer's criticism in 50 Sol.
J. 611 ; above, pp. 73, n. [l), 77,
78. 196—198, 205, 351, 608, n. (q).
if/) Grant v. Mnnl, Gr. Coop.
173 ; Dyer v. Ifargrare, 10 Vos.
505 ; Cree v. Stone, Times News-
paper, 10th May, 1907.
(A) Strangicays v. Bishop, 29
L. T. O. S. 120.
(J) I)e Lassalle v. Guildford,
1901, 2 K. B. 215 : free v. Stone,
W.
Times New.spaper, 10th May,
1907.
{k) Lamare v. Dixon, !>. R.
6 H. L. 414.
{I) Dyer v. Hargrave, 10 Ves.
505.
(>/») Re Pitckett and Smith\t Con-
tract, 1902, 2 Ch. 258; Dongherti/
v. Gates, 45 Sol. J. 119.
(«) Re Davis and Carey, iOCh.T).
601 ; above, p. 205.
(o) Above, pp. 610—612.
(p) Above, p. 612 ; Di/cr v.
Ilaryrave, 10 Ves. .505. 508 \ Grant
v. Munt, G. Coop. 173, 177 ; Siig.
V. & P. 331, 332.
{q) Pickering V. l)oHson,4Tnuut.
779, 785 ; Schneider v. Heath, 3
Camp. 506, 508.
(r) See Horsfall v. Thomas, 1 H.
& C. 90, dissented from by Cock-
burn, C. J., Smith V. Hughes,
L. R. 6 Q. B. 597, 605, and
doubted in Benjamin on Sale,
385, 2nd ed. The decision seems,
however, to be in accordance with
49
770
OF MISTAKE.
Misleading
conduct.
Specific
I^erformance
may be
resisted in
some cases
where the
contract
cannot be
rescinded.
Hopr V.
iralter.
accordingly. Tims if craclcs in the walls of a honso
be papered or painted over witli intent to conceal them,
and the house be then sold, thoug-h without any war-
ranty or verbal representation as to its state of repair, to
a purchaser, who has inspected it, the contract is void-
able for fraud (.s). And any conduct calculated to
mislead a purchaser with respect to some material fact,
or to divert him from inspection or inquiry, which
woidd discover a defect known to the vendor, is equally
fraudulent, and may be a ground for avoiding the
contract at law as well as resisting its specific per-
formance {t). It should be noted that an innocent
misrepresentation as to the quality of land sold may
be a good ground for the purchaser to resist the specific
performance of the contract, notwithstanding that it be
insufficient to procure the contract to be rescinded {u).
Tims Avhere a house let on a quarterly tenancy was
sold as an eligible freehold property for investment,
but was being used, unknown to the vendor, as a
brothel, the Court of Appeal refused to oblige the
purchaser to perform the contract specifically, but also
declined to rescind the contract (.r). Tlie reason given
by the Court was that the purchaser, if forced to com-
plete, would be liable under the Criminal Law Amend-
ment Act, 1885, to be fined unless he evicted the tenant.
It is submitted that this decision must be referred, in
principle, to tlie ground that the defect was incompatible
with the enjoyment proniiHed hi/ the coi/fracf, coupled,
possibly, with that of great hardship on the purchaser (//) .
A property, from which the rent-paying occupier must be
the law laid down in the cases
cited above, p. 7C5, nn. (o), {p),
and by Selborne, C, in Coaks v.
Hosirell, U App. Cas. 232,230.
And see Pollock on Torts, 285,
;jth ed.
(.s) See Sug. V. & P. 333—335.
{t) IFalfem v. Moir/an, 3 De G.
F. & J. 718, 724 ; Coaks v. Bot-
well 1 1 App. Gas. 232, 235, 2.;6.
(«) See Kennedy v. Faneima, S;e.
Mall Co., L. R. 2 Q. B. 580 ; Re
Ben/isier, Jlrond v. Mutiton, 12
Ch. D. 131 ; above, pp. 199, 204
—210.
[x) Hope V. IValfrr, 1900, 1
Ch. 257, reversintr the decision of
Cozens-Hardy, J., 1899, 1 Ch.
879, as to specific performmice,
and affirming it ou the other
point.
{y) Above, pp. 764, 769.
OF MISTAKE. 771
immodiately ejocted, on pain of the purohasor becoming
liable to criminal proceedings, hardly fulfils the expec-
tation of enjoyment, which is raised by the description
of an eligible freehold property for investment (s) . Or Specific
perhaps the principle may be put in this way — that the nof ?™nt°d^
Court will not enforce the specific performance of a where the
contract to purchase a thing, which is positivehj noxious positively
in quality, notwithstanding that there were no warranty noxious in
of quality, and that in other respects the thing answer
the description. For example, a house may be so ill-
drained that it is dangerous to live in it ; the vendor
may be aware that illness has been actually caused by
the state of the drains and maintain silence in this
respect ; and yet the purchaser may be unable to avoid
performance of the contract. He buys at his own risk ;
he ought to have the drains tested for himself; and
drains may be tested and put right without any extra-
ordinary danger to the workmen [a). If, however, a
house were infected witli the germs of disease, such as
plague or smallpox, so that any person entering it must
incur the danger of catching the malady, and the vendor
concealed this fact, it is thought that he could not
enforce specific performance ; for the thing sold was
actively harmful (/>). The house might indeed be dis-
infected, but only at the risk of the health and life of
those who entered it to do so. It appears therefore
that where one has bought land or a house imder a Purcliaso
mistaken impression as to its quality, he must in general ,'^'^taken
abide by the consequences of his own mistake, unless impression as
the vendor made by warranty or representation some ^^^ ^'
promise as to the quality, or actively concealed some
defect which was known to him.
[z) See Hope v. Walter, 1900. apparoutly this fact would not
1 Ch. '2;)9. be sufficient jjrrouud for rescinding'
( Vcs. 328, 311.
as is applied in holding thai a
74
OF ISILSTAKE.
treating the acceptance as an assent to a contract, of the
real terms of which the acceptor had notice, and claim-
ing to have the written agreement rectified on acconnt
of a mistake comuion to both partie-s in the expression of
its terms. And if he choose this alternative, the acceptor
will be estopped \ij his condnct from setting up the
want of true consent as a ground for avoiding the con-
tract, or from objecting to rectification on the ground
that the mistake was made bj the other party alone,
and was not common to both of them (/).
Mistake as
avoiding true
consent in
equity.
Unilateral
mistake in
equity.
So far, in discussing the subject of mistake as ex-
cluding any true consent between the parties, and so
avoiding the contract altogether, we have dealt mainly
with the rules of the common law (/.•). Where the
contract is void on this ground, the parties are in the
same position in equity as at law. I'here can be no
question of any order for specific performance of the
contract, for this remedy is, as we have seen(/), only
granted to enforce a valid contract. But where one
party has entered into the contract under a mistake,
which is not shared by the other, and the one is
estopped at law from setting up his mistake and proving
his true intention, the parties are not always in the
same position, as regards the equitable remedies to
enforce the contract, as they are at law. Thus where
the vendor makes a mistake in the preparation of the
particulars of sale, and includes therein more than he
really meant to sell {m), but the description is precise,
so that a man would naturally and reasonably suppose
that the vendor meant to sell what he actually offered,
(i) See Garrard v. Fninkcl, 30
Beav. 445 ; Harris v. Pcppcrell,
L. Ti. f) Eq. 1 ; liloomrr v. Spittle,
L. R. i:^ Eq. 427 ; ragrt v. Mar-
kIkiII. '28 Ch. D. 'l'>h ; as explained
in .1/r/// V. I'latt, 1900, 1 Cli. OUi,
6Jo ; roUock on Contract, 495,
7th cd. : below, pp. 794 sq.
(/•) Above, pp. 749 sq.
{!) Above, p. 761.
[ill) See Rr Fairrr'tt (Did Hulmrs^
42 Ch. IJ. 150: above, p. 728;
Maj V. I'liilL, V.m), I Ch. 016.
OF MISTAKE.
tho contract is enforceable against the vendor at law,
since he would be estopped from proving his mistake (ii).
The vendor is also estopped from setting up his mis-
take in equity to this extent, that he is not entitled to
claim the rescission of the contract (o), or to insist
himself on its specific performance, except on the terms
of conveying the whole of the property described,
if he be able to do so { p). If he be not, he may, as we
have seen (7), enforce specific performance with an abate-
ment of the purchase money, where the deficiency is
insubstantial or the contract contained an exjjress sti]»u-
lation as to compensation for misdescription. But if
the purchaser sue for specific performance of the contract,
then the vendor may in certain circumstances be entitled
to set up his mistake as a defence to the action. This
is owing to the discretionary nature of the remedy of
specific performance, and to the fact that in granting
or withholding such relief the Court will have regard to
circumstances outside the contract and especially to the
conduct of the parties, and may refuse specific perform-
ance on the ground of great hardship (r). But it is not
in every case that a party sut^d for s[)ecific performance
may avail himself of his own mi^take as a defence to
the action. If the mistake were entirely due to the
defendant's own carelessness or inadvertence, the plaintiff
having done nothing to induce or contribute to the error,
nor having sought knowingly to take advantage of it,
and if it will inflict no great hardship on the defendant
to enforce him to perform the contract specifically,
then it appears that the defendant will be equally
precluded from resisting specific performance in etiuit}'
as from avoiding his liability at law (s). Thus
(m) Above, pp. 7o(),7o-{,7.')-'),7o9. nairU, 2 ilai-. \- CI. 1, S.
(o) ^lliiiiilei/ V. Kiiiiiiiini, '1 //) Aln)V(\ pp. ~T,i, 727—720.
Ma<-.. tc tJ. 1. 7. 8 ; Srof( v. (V) Abnv<>. pp. 39, 7('S.
Littlcdoh', 8 E. & B. 81."). (v) Taniplm v. Jumcs, \h C\\. J).
(p) Miiiisrr \. Kack, 6 Hare, IXr^; G<>.id T • admissible to
applied equally in Courts of Law and Equity (»), that explain or
extrinsic evidence of the intention of the parties to a i^uJt"^i]^ents^
written instrument is not admissible to explain or vary
the terms of the writing (,r) . In other words, the
general principle is that the parties are not at liberty to
prove by evidence outside the instrument that thn in-
tention expressed therein was not their intention ; or
more briefly, tliat they are bound by the words which
tliey have used in the writing, no matter what they (the
parties) u/caiif (//). The result of this general principle
is that some matters, which are really errors in the
expression of consent, are dealt with by tlie Courts in
the course of their construction or interpretation of
written instruments which they are prayed to enforce.
Thus the Court will correct all errors which are apparent Correction of
on the face of any written instrument as a matter of the errors!^
construction or interpretation of its terms and without
admitting extrinsic evidence to explain them (s). So
{.«() Above, p. 3. W. 374 ; Dnrd. Norton v. Webster,
(/) Ball V. Storic, 1 Sim. & Stu. 12 A. cfc E. 442 ; linrlon v. Dawes,
210,211); sf>c Wms. Real Prop. 10 C. B. 261 ; Abro/ v. Cru.r,
107, 21st ed. L. R. 5 C. P. 37 : Er'aris v. Ro, ,
{it) Parteric/iev. Poir/rl, 2 Atk. L. R. 7 C. P. H'.S : Henderson
383, 384; Rir/i v. Jar/.son, 4 Bro. v. Arthur, 1907, 1 K. B. 10; see
C. C. r)14, 6 Ves. 334, n. ; Jlall above, pp. G40, G41, 6()0.
V. Storii, 1 Sim. A: Stu. 210, 218, (y) J>oed. Templcmaxx. Marthi,
21!); Itrailfordw Rimniei/,:^ Beav. 4 B. & Ad. 771, 783, 786 ; Doe d.
431. (iwillim v. Gaillim, b B. & Ad.
(.r) Rat land's rase, .i Rep. 26 ; 122, 129 ; Ricknian v. Carstairs,
Vrestonv. Mermia,'! W. Bl. 1249 ; ib. 6.')1, 663 ; above, p. 750.
Ooss V. Xufient, o B. & Ad. .)8, 64, {:) foles y. Halme, 8 B. & C.
65 ; Adams v. Jf'urdlc;/, 1 M. & .'>68 ; Ifilson v. Jnison, r, H. L.
782
OF ISriSTAKE.
also where the terms of some agreement embodied in a
written instrument are upon the face of it ambiguously
or inexactly expressed, the Court will not, as a rule,
admit extrinsic evidence of what the parties' intention
was, but will gather their intention from the written
instrument alone, and decide, on consideration of the
words used therein, what interpretation shall be given
to them, or whether they bear any meaning at all {a).
Eectification Having thus adverted to the rule, to which rectifica-
™med*Avhe're ^^'^'^ forms an exception, let us pass on to rectification
a written itself. Courts of Equity have jurisdiction to rectify a
instrument
C. 40, 66, 67 ; Sug. V. & P. 171,
note (1) ; lir DnnieVx Setf/ciiinif,
1 Ch. D. 375 ; Greenimod v.
Gnetmood, T) Ch. D. 951 ; Moiir-
ninndx. Le Clair, 1903, 2 K. B.
2 Hi; Be Dayrell 1904, 2 Cli.
lOT) ; R<' Alexander'' s Sfiltlrinoit,
1910, 2 Ch. 225 ; Norton on
Deeds, pp. 82 tq.
(a) AHham's case, 8 Rep. loOb,
155 ; Cronmc v. Lediard, 2 My. &
K. 251 ; Sanndersov v. Pijjcr, 5
Bing. N. C. 425 ; Norton on
Deeds, p. 98 ; see also Hic/j/yno)/
V. C/oices, 15 Ves. 516 : Cloues
V. Mic/ffiiisoii, I V. & B. 524 ;
Sug. V. & P. 161 ; Jfarshall v.
Berridf/e, 19 Ch. D. 233. This
is hardly the place to state in
full the rules, with their ex-
ceptions, as to the admission of
extrinsic evidence in interpreta-
tion of written instruments. The
reader is referred to Stephen on
Evidence, Arts. 90—92 ; Norton
on Deeds, Chaps. VI., VIII. ;
Wiu'ram on Wills; L. Q. R. xx.
245. But it may be pointed out
that, whilst extrinsic evidence of
external facts, of her than the fact
of what the parties actually in-
tended, is admissible to elucidate
descriptions, apparently capable
of being reduced to certainty by
such evidence, of persons or
thing.s mentioned in the writing,
evideuco of the actual intention
of the parties is onli/ admi.s.sible
where it turns out, after attempt-
ing to elucidate a desci'iption of
the above character by proof of
xi/ch exteniHl facts, that the de-
scription is equally applicable to
several objects. Sef above, p. 760 ;
aiifit/neii'' a ciine, 5 Rep. 68 ; Alt-
hani's case, 8 Rep. 155 ; Jones v.
Xeu-man, 1 W. Bl. QQ\ Miller v.
Travers, 8 Bing. 244. 248 ; Doe d.
Mor'/an v. Morgan, 1 C. & M. 235 ;
Boedi. Gord v. Needs, 2 M. & W.
129, 139, 140; Doe d. Bibcocks v.
Hiseocks, 5 M. & W. 303, 368,
369; Be Hahbuck, 1905, P. 129;
NortononDeeds, p. 104. We may
also mention here that the rule in
question does not prohibit the
proof by oral evidence of some
stipulation collateral and addi-
tional to a written contract and
not inconsistent with the terms
expressed in the writing; Zindlei/
V. Lacei/, 17 C. B N. S. 578";
Jfalpas V. London (S,- South Western
Bl/. Co.,!.. R. 1 C. P. 336; Morffan
V." Griffith, L. R. 6 Ex. 70 ;
Erskine v. Adeane, L. R. 8 Ch.
756 ; Lamarc v. Dixon, L. R. 6
H. L. 414 ; Angellv. Duke, L. R.
10 Q. B. 174"; De La.<) Uvidiife V. Hiilfpetiny, 2 P. C. C. 02 ; rurtinorr v. Morris, 2
W. 151; Mottciix y.' J.o),th,)i As- Bn.. C. C. 219; Toini-^hni'l v.
snrance Co., 1 Atk. .54.); llexkle StiDttjroom, 6 Ves. 328, X\'l, ;};j3 ;
V. Jlui/(il Kxchiiixjc Axsurame (Jo.. Voiii/lon v. Staifs, 2;i L. J. Cl».
1 Ves. sen. 317; Baker v. I'liinc, ib. 87o.
4.")6 ; Ball v. Sinrif, \ Sim. & Stu. (/) Stat. 29 Car. II. c. 3, s. 4 ;
210; Cowen v. Truefitt, Lil., 1899, above, p. 3.
2 Ch. 309; above, p. 644, n. {k). [q) Mortimer v. Shorlall, 2 Dru.
{c) Mnrkeiizie v. (Joiihou, L. K. & War. 363, in which ra.sc a loaso
8 E(j. 368 of land for life cxccutetl in jiur-
{dj See T'nultr v. I-'otrkr, 4 Do suanco of a jiarol atrrponu-iit was
(j. & J. 2.')0, 26-5. rt'otiticd : ('owr/i v. Triafiti. I.,l.,
(<-) Pitcnini v. Oi/hoiirnf, 2 Ves. ISdO. 2 Ch. 309.
sou. 37-'); Irnhainw (.'hilil, 1 Bro.
784
OF MISTAKE.
antecedent contract was one wliicli the Statute of
Frauds (/-•) requires to be in writing, and that it was
made b}' word of mouth only (i). For if made by-
word of mouth, the contract was not void, but
only not enforceable (/.•) ; and if the parties really
assented to such a contract and had also a common
intention of reducing or giving effect to all the terms
of that contract to or by writing, and this intention
were frustrated owing to the omission or mis-statement
by mistake of some material term of the contract, it
would be giving countenance to fraud to allow the
defendant to repel proof of the mistake under cover
of the statute (/). If, however, the writing purport to
contain the contract, but omit some material part thereof,
and there were no common intention to put the whole
contract into writing, the document cannot be rectified.
If this were not so, the Statute of Frauds could never
be enforced. But, as we have seen (/>?), a person charged
upon such a contract evidenced by a written memoran-
dum is at liberty to plead in defence tliat tlie memo-
randum is insufficient to satisfy the statute by reason
of its not containing the parties' Avhole agreement ; and
it does not appear that this defence can be met by a
claim for rectification, unless it can be shown that there
was a common intention of signing a perfect memo-
randum and that the omitted terms were left out by
mutual mistake. Thirdly, the antecedent contract and
the common intention of embodying it or carrying it
out by tlie writing must be proved by very clear evi-
(//) Stat. 29 Car. II. c. 3, s. 4 ;
above, p. 3.
(i) Thomas v. Darix, 1 Dick.
301, 303 ; Johnson v. Brayge, 1901,
1 r;h. 28, 3G, 37.
(Z-) Above, p. 11.
(/) See Fitcairn v. Of/bourne, 2
Ve8. sen. 37o ; Tvmher v. Mathcm, 1
Bro. C. C. 52, :^\ ; Clarkex. Grant,
14 Ves. r)19, 524 ; Fry, Sp. Perf.
\\ 567. 814, Srded. ; above, p. 12.
It is submitted that the dictum to
the contrary of Alderson, B., in
A.-G. V. Situ-ell, 1 Y. & C. Ex.
559, 583, takes no account of the
earlier authorities cited in this
and the preceding notes and is
not good law.
[in) Above, pp. 4, 8, 9.
OF MISTAKE.
V »o
denoe ; for, as we have seen (n) , the rule is that, when
several persons have joined in embodying some legal
agreement or act in writing, they are bound by the
intention expressed in the writing ; and the whole
burthen of proof lies on the person who asserts that
the writing does not express the parties' real inten-
tion (o). For this reason the Court attaches great
weight to the denial by the party, against whom rec-
tification is claimed, of an}' intention at variance ^\ith
that expr.-ssed in the writing : though it does not allow
such denial to be a bar to the relief claimed, if overcome
by clear evidence to the contrary ( p) . And for this
reason also, where it is shown that the instrument
sought to be rectified was executed in pursuance of and
actually carries out at all points a j^rior agreement in
HTifing, extremely strong evidence is required to induce
the Court to believe that a mistake has occurred in
drawing up the subsequent instrument. In such cir-
cumstances it is obvious that there could have been no
mistake in the subsequent instrument unless the parties
had come to a new agreement after they had made the
agreement in writing, or had made a mistake in the
(w) Above, p. 7S1.
(o) Htnkh V. Royal K.rchnHffv
AxHurancf Co., I Ves. sen. 817,319;
Townxhetvl v. Stangronm, (J Ves.
3i8, 333 ; Fouler v. Fouler, 4 De
G. & J. 2oO, 264 ; T>icker v. Ben-
nett, 38 Ch. D. 1,9.
( p) I'itrairn v. Of/bourne, 2 Ves.
sen. 37o, 379 ; Toicnuhend v.
SluHf/room, (5 Ves. 328, 334 ;
Bloom-r v. Spittle, L. R. 13 Eq.
422, stated below, p. 796. It is
submitted that there is no rule,
as sug-gested by the dicta of Lord
St. Leonards in Morfinnr v.
Shoriall, 2 \)r. & War. 363, 374,
and AJderson, B., in A.-G. v.
SUwell, 1 Y. & C. 0.59, .5S3 (ac-
cepted in Pollock on Contract.
.513, 7th ed.). that if the alleged
niLstake be denied by one of the
parties to the written instniment,
V/.
jiarol eNadence alone is inadmis-
sible to prove it. Such a rule
would obviou.sly be an inducement
to fraud ; and the weight of
authority is against Lord St.
Leonards' dictum. Parol evidence
was admitted and prevailed in
face of the defendant's denial in
Pitcairn v. Oyhonruf, 2Ves. sen. 37'),
379; Garrard \ Fran/,rl,,iOBt'll\.
445 ; and I'aaet v .Marshall, 2S
Ch. D. 2,55 ' And Baron Alder-
son's true meaning appears to
have been that the Statute of
Frauds prohibits the admission
of parol evidenc>.>ition can-
not be upheld ; al><)ve. pp. 7S3, n.
(.), 784, n. (i).
50
786
OF MISTAKE.
prior agreerapnt in writing as well as in the instrument
purporting to give effect to it. In the former case
the plaintiff, who would scarcely be claiming rectifica-
tion except to obtain the inclusion of some term in his
own favour, is in this difficulty, that if tlie new term
were gratuitously agreed to by the other party, there
is for want of a consideration no contract between them
to execute the subsequent instrument as alleged {q) :
though if there were a consideration for the new term,
it appears on principle that he ought to be admitted to
prove the contract so constituted. In the case of an
alleged mistake, both in the antecedent agreement in
wi'iting and in the instrument giving effect to it, the
plaintiff is in truth claiming the specific performance
with a parol variation of the antecedent contract in
writing ; and in this case the authorities regarding his
right to obtain relief are conflicting. These authorities
it is now proposed to examine.
It has ever
been held that
one may claim
rectification
as plaintiff.
Now it has been clearly established from the earliest
times of modern equitable jurisdiction that a man may
well claim, as plaintiff, the rectification of a Aviitten
instrument on the ground of a mistake common to all
parties thereto in the terms of the writing, and may
prove by extrinsic evidence that they entered into some
antecedent contract at variance with the terms of the
instrument and had a common intention of embodying
or carrying out that contract in or by the \vi-iting (r) .
And it is, as we have seen (s) , equally clear that the
(Statute of Frauds is no bar to obtaining such relief,
notwithstanding that the antecedent contract were one
of those required by that Act to be put into writing,
but were made by word of mouth. It is also perfectly
(q) Price v. Dyer, 17 Ves. 356, 364; above, p. 783.
{r) Above, pp. 783, 784, and notes {b), {g), (t).
(s) Above, p. 783.
OF MISTAKE. TS"!
well settled that rectification will be granted in equity Rectification
not only of written instruments in the nature of executed fnstruments
contracts, those which are meant to give effect to some embodying
p . . 1 . 1 executory-
antecedent agreement, out also of writings which are as well as
merely intended to embody an agreement of an execu- ^^^eem t
tory nature {f). For example, a written contract to sell
land may certainly be rectified just as well as a convey-
ance of land upon sale(/0- Fvu-thermore, it appears Claim for
that under the old Chancery practice a claim for the ^JJJ^jft'ifJ''"
rectification of a written instrument, which embodied joinod with
an agreement of an executory nature, might Avell be relief under
ioined with a claim for equitable relief in respect of the the writing
A 1 1 1 1 roctined.
enforcement of the agreement (x) . And under the rules
of practice introduced by the Judicature Act of 187'i (//),
the Supreme Court is required, in every cause pending
before it, to grant all such remedies whatsoever as any
of the parties thereto may appear to be entitled to in
respect of any and every legal or equitable claim pro-
perly brought forward by them respectively in such
cause ; so that, as far as possible, all matters in con-
troversy between the said parties respectively may be
completely and finally determined, and all multiplicity
of legal proceedings concerning any of such matters
avoided. Now it would appear to be a necessary con-
sequence of these rules that a man may first apply as
plaintiff for the rectification of a written contract for
the sale of land, and may afterwards sue for the specific
performance of that contract, as rectified ; and further,
tliat he may well combine these claims in one action {z).
[f) Henkley.Roijal EichfDigr Ak- 18 Vos. o4().
snra)icpCo.,\Ye».fKen.Z\'t\B(tke)- (.r) See the last three oases
V. I'ahif. ib. 406; IJodykiiisoii v. cited in note (/), above.
U'liutt, 9 Beav. 566 ; Strdmau v. (//) Stat. 36 & :{7 Vict. c. 6G,
CollHl, 17 Beav. 608. s. 24 (7).
(m) OUey V. Fisha; 34 Ch. D. (c) Fry, Sp. Perf . ^ ;J17, p. 227.
367, 369; see also Fife v. Clayton, Ist ed. ; ^ 7S1, p. 346, 2nd ed.
50 (2)
788
OF MISTAKE.
On this point, however, the law is at present uncertain.
The reason of this is as follows : —
Rule that
specific per-
formance of
a written
contract with
a parol varia-
tion cannot
be enforced by
a plaintiff.
Hich V.
Jackson ;
Woollnm V.
Hearn.
Davies v.
Fitton.
The defendant
in specific
performance
may set up a
parol
variation.
It was decided before the commencement of the
Judicature Acts, that a man is not entitled to enforce,
as plaintiff, the specific performance of a written agree-
ment with a parol variation. This decision was placed
on the ground of the general principle above stated {<()
that, if one seek to enforce a written contract, he is
bound by the words used in the -writing in which it is
expressed, and extrinsic evidence is not admissible to
show that the parties' real intention is different from
that expressed in the writing {h). It is true that in the
principal cases so det?iding no express claim for rectifi-
cation of the agreement appears to have been made :
but as the bill was for the specific performance of a
written agreement to grant a lease alleging a mistake
in the amount of rent therein stated to be reserved and
claiming to have a lease at the rent really agreed upon,
it is obvious that rectification of the written agreement
w^as incidental!}' or at least substantially claimed (c).
Besides this, the same rule was applied by Lord St.
Leonards in a case where rectification was claimed of a
lease, which had been executed in strict accordance with
an antecedent written agreement, on the ground of a
common mistake in the lease and in the written agree-
ment {(l). A distinction was, however, taken with
respect to the assertion of a parol variation of a written
(!imtract as a defence to proceedings for specific per-
formance of the agreement (^). And it has been clearly
{a) Above, p. 781.
[b) Rich V. Jackson, 4 Bro. C. C.
ol4, 6 Ves. 334, ii. ; Woollam v.
Hearn, 7 Ves. 211, 218, 219;
Davies v. Fiction, 2 Dru. & War.
225, 232 ; see also Squire v.
Campbell 1 My. & Cr. 459, 480 ;
Manser v. Back, 6 Hare, 443, 447 ;
Thompson v. Hickman, 1907, 1
Ch. 550, 561.
(c) See liich v. Jackson, 4 Bro.
C. C. 514; Woollam v. Hearn, 7
Ves. 211.
(d) Davies v. Fitton, 2 Dru. &
War. 225, 232.
{e) Above, p. 778 and n. (d). At
law the defendant is bound by
the writing and cannot allege any
OF MISTAKE. 789
establislied that a dofendant to such proceedings may
insist that the written contract does not contain the
parties' real agreement, but that some stipulation made
orally in his favour has by mistake or inadvertence been
omitted from the writing, and that it would therefore be
inequitable for the plaintiff to enforce against him the
extraordinary remedy of specific performance, except on
the terms of submitting to the parol variation. And
the defendant may adduce extrinsic evidence in support
of this contention (/'). And the further distinction has
been admitted, that if the parol variation be to one
party's disadvantage, he may submit to it, even though
he claim specific performance as plaintiff ; for he is
allowed to waive a right given to him by the written
agreement, or to claim performance of that agreement
as it stands, but with the addition of some extraneous
act or promise which he offers to do or fulfil to his own
detriment {(j). But although the decisions were precise
which refused specific performance at the plaintiff's suit
of a written contract with a parol variation, there were
not wanting expressions of judicial opinion that it was
equally inequitable to deny at the defendant's instance
the specific performance of a written agreement with
the addition of some stipulation to his detriment, which
luid by a common mistake been left out, as to enforce
the same remedy against him without a term so omitted
aud enuring to his advantage (//). As we have seen(/),
the general principles established in equity with respect
parol vai-iatioii ; above, pp. TM — ;/) -Uartiii v. F;/erofl, 2 De G.
IS'i ; I'orvill V. Edmtoids, 12 East, M. & G. 78o ; cf. PresUm v. Luck,
6 ; Ford v. Yalcs, 1 Man. & Gr. 27 Ch. D 497.
549. (A) See Walker v. Walker, 2
(/) Joytics V. iStathaiii, 3 Atk. Atk. 98, 100 ; Joynes v. iStatham,
388 ; llamsholtom v. Gusdon, 1 V. 3 Atk. 388, 389 ; Pembrr v.
* B. 16o; Witich V. Wuichester, Malhrrs, 1 Bro. C. C. 52, ;)4 ;
ib. 37') ; London and Birniinyhain Townslwnd v. Stanyroom, 6 Ves.
Jiy. Co. V. Winfer, Cr. & Ph. 57, 328, 339 ; Fry. Sp. Porf. 232 .sq.,
6'i ; Jfnnsrr v. Hark, 6 Hare, 443 ; 1st ed. ; 350 sq., 2iid pd.
Smith V. Whcateroft, 9 Ch. D. (i) Above, pp. 786, 787.
223.
790
OF MISTAKE.
Olley V.
Fisher.
May V. Piatt.
Thompson v.
Hickman.
to the rectification of written instruments appear to lead
us to a conclusion exactly opposed to the rule in ques-
tion. This view prevailed with the great American
jurists, Mr. Justice Story and Chancellor Kent (/.■)•
And the same opinion was maintained by Sir Edward
Fry (/), who also suggested that, since the enactment
of the above-mentioned provision of the Judicature
Act (>w), the rule was no longer applicable. This sug-
gestion was followed by North, J., in OUei/ v. Fisher {n),
who considered that the plaintiff's claims for rectifica-
tion of an agreement to grant a lease and for specific
performance of the agreement as rectified might well
be enforced where (as in the case before him) the
Statute of Frauds was not pleaded {o). An agreement
to sell land of course stands exactly on the same
footing (/j). The rule against granting specific per-
formance with a parol variation at the plaintiff's suit
was, however, followed by Farwell, J., in Mai/ v.
Plaft {q^ : but in that case neither Olki/ v. Msher nor
Sir Edward Fry's opinion was cited. And more recently
the decisions in Baviea v. Fifton (/■) and Ma// v. P/aff
were followed by Neville, J., who considered that he
was bound by them, but declared that he had great
difficulty in following the reasoning on which they
appear to be based, and pointed out that to refuse
relief to a plaintiff claiming specific performance with
rectification of a written agreement is exactly contrary
to the principles of equity on which the entire doctrine
of rectification is founded (.s). In this case again,
neither 0/lei/ v. Fisher nor Sir Edward Fry's opinion
{k) 1 Story, Eq. Jur. § 161 ;
Gillespie v. Moon, 2 John. Ch. N.
Y. 58.5 ; Keis.selback v. Livingston,
4 John. Ch. N. T. 144.
(J) Specific Performance, pp.
227 sq., Isted. ; 346 «/., 2nd ed. ;
§§ 811 sq., 3rd and 4th ed.
(/») Above, p. 787.
[n] 34 Ch. D. 367.
(o) See above, pp. 11, 12.
{p) Above, p. 764, n. [l).
(-7) 1900, 1 Uh. 616; see below,
p. 797.
{}■) Above, p. 788.
(*•) Thompson v. Hickman, 1907,
1 Ch. joO, 561, 562.
OF MISTAKE. ~91
was eited. Having regard to these omissions and to
Mr. Justice Neville's pronouncement on the point of
l)rinciple, it is submitted that the decision in Ollci/ v.
Fisher is to be preferred ; and further that, if that
decision be right, there is no reason for not extending
it to a case where the Statute of Frauds /s- pleaded.
For as we liave seen {t), it is settled that that statute
can afford no defence to an action for rectification, if
otherwise well founded.
Care must be taken to distinguish the cases in which Distinction
a defendant to proceedings for specific performance variation is
effectually sets ui) a parol variation of the written agree- proved, and
•^ i ^ _ ^ where the
ment from those in which, though pJeadhuj the same defendant's
in 1 ii v- • A 1 1 • own mistakeis
defence, he proves no more than nis own mistake and is ^^^^^^ proved,
really obliged to resist the plaintiff's claim on the
ground of some njisrepresentation or conduct contri-
buting to his mistake, or of hardship [v). In the former
case the defendant is really relying on a mistake common
to both parties ; he insists that their minds were in
truth at one, but their real intention is not found in the
writing. In the latter, his real defence is that the
paiiies were not in truth agreed, though at Jmc he is
estopped fi'om saying so, and he seeks to escape the
application of the same rule of estoppel in equity also
ou the plea of misrepresentation or hardship {x). Hence Where a parol
it is that wliere a parol variation is pleaded as a defence pleaded in
to specific performance, the nature of the relief granted ^^^ence, the
may vary according to the facts established by the vary acrord-
evid(mce, and that it depends on the particular circum- facts^proved
stanches of each case whether the defence will merely
defeat the plaintiff's claim, or whether the Court will
order the performance of the contract according to the
variation so set up (//). Thus if the alleged i)arol varia-
(0 Above, pp. 783, 78G. iij) London S; Birmxnqham Jiy.
(«) Above, pp. 776, 777. Co. v. Winter, Cr. & Ph. 57, 02.
[x) See above, pp. 776, 777.
792 OF MISTAKE.
tion be plainly proved, so that the Court is satisfied that
the agreement so varied was the parties' real agreement
entered into with their true consent, it -svill not only-
reject the plaintiff's claim but will in the same action
order, at the defendiOifx. instance, the specific performance
of the agreement as so varied {%). But as a rule the
Court will not make an order in the same action upon
the plaintiff^ H application for specific performance with
the variation set up against him, unless he have by his
pleading or (it seems) at the opening of the trial
abandoned his claim to enforce the agreement as con-
tained in the writing alone and submitted to perform it
with the modification alleged. If the plaintiff maintain
his own original contention to the end and fail to establish
his claim, and the defendant do not ask for specific per-
formance with the variation, then the Court will simply
dismiss the plaintiff's action, but without prejudice, in
general, to his suing for such specific performance in
another action {a). It seems, however, that, if the
defendant do not object, the Court may give the
plaintiff the option of having his action dismissed or
accepting an order for specific performance with the
variation claimed {h). On the other hand, if the defen-
dant do not establish by the extrinsic evidence admitted
a true agreement between the parties as to some supple-
mental terra omitted by mistake from the writing, but
merely show that lie was under a mistake in making
the written contract, and that the plaintiff's conduct
• contributed to this mistake or that it would be a hard-
ship on him (the defendant) to have to perform the
written contract, the Court will in general leave the
(z) Juynex v. Utathum, 3 Atk. crufl, 9 Ch. D. 223 ; Marshall v.
3H8 ; Fife v. Clayton, 13 Ves. Berridye, 19 Cli. D. 233; Preston
546. V. Luck, 27 Ch. D. 497.
(«) Leyal v. Miller, 2 Ves. sen. {b) See Clarke v. Grant, 14 Ves.
299 ; Clowes v. Miyyinson, 1 V. & 019 ; liamsbottom v. Gosdon, 1 V.
B. 524, 534 ; Lindsay v. Lynch, 2 & B. 165.
Sch. & Let". 1 ; ISinith v. Wheat-
I
OF MISTAKE. 793
plaiutiit" to his remedy at law, but may, it seems, give
him the option of having his action dismissed or of
having an order for specific performance of the contract
as claimed to be varied by the defendant (c) . And as
we have seen {d), where the defendant has by mistake
innocently made a misrepresentation to his own detri-
ment in the written contract and fails to prove the
plaintiff's real assent to a parol variation, the (Jourt
may give the plaintiff the option of rescinding the
contract or of completing it according to the defendant's
contention. If the defendant fail both to establish his
claim, and to show any misleading conduct by the
pLdntilf or any hardship in his being obliged to per-
form the contract, the Court will order the specific
performance of the written contract as prayed by the
plaintiff [e).
It follows from the principles explained above (,/) Xo obtain
that, in order to obtain the rectification of a written rectificatiou,
. there must be
instrument, a mistake common to all parties thereto a connw.n
must be proved. As we have seen {cj), there must be ™^'^*'*'^^'-
an antecedent confracf ; this necessarily involves the
true consent of all (//) ; and there must be a common
intention of embodying that contract in or carrying it
out by some writing (/). It follows that it is in general
(c) See Hig(j'in.\ijn v. Cloicea, lo and one of tlieiu undertake to
Ves. 51b ; Gordon v. Hertford, prepare the inxtrunieut ou behalf
'1 Madd. 106 ; Fry, Sp. Perf. of all, it is his duty to prepare
^^ 773 •%■(/., 3rd ed. ; above, pp. what is in all respects a proper
776, 777. instrument, and if the instrument
() Above, p. 720, and n. (/). prepared fall short of this, but
[e) Above, pp. 775, 77*5, and be executed by the others in the
notes («), {x). belief that it was an in.strument
(/) Pp. 78 i xq. proper to effect their intention,
((/) Above, pp. 7S3, 7.S(). it may be rectified at their suit ;
(A) Above, p. 749. Corleii v. Stafford, 1 De G. & J.
{!■) Here it may be noted th.it, 228 ; (,'lark v. Girdirood, 7 Ch. D.
if several persons agree generally 9 ; Lovesy v. Smith, 15 Ch. D.
upon some act in the law to bo 655 ; cf . Tucker v. Bennett, 38
embodied in a written instrument Cii. D. 1.
794
OF MISTAKE.
Cases where
rectification
witli the
alternative,
at the defen-
dant's option,
of rescission,
has been
i)i-dered on
the ground
of unilateral
mistake.
Gurrard v.
Frankcl.
a good defence to a claim for rectification to prove that
the written instrument carries out the real intention of
the defendant and the intention manifhsfcd (/.•) by the
phiintiff ; in other word«, that unilateral mistake, the
error of the plaintiff alone, is not sufficient ground for
rectification (/). There are certain cases, however, in
which an exception to this rule has been admitted.
Thus in Garrard v. Fraiiliel {ni), the parties signed a
memorandum endorsed upon a draft lease and express-
ing that the plaintiff would let, and the defendant would
take, the premises within described at the rent of 230/.,
and upon the terms of the within lease. It appears
that at that time the amount of the rent was left in
blank in the draft lease. Afterwards the plaintiff filled
up the blank, inserting the figures 130/. by mistake ;
and the lease was thus engrossed and executed, without
the plaintiff's observing his error. On discovering the
mistake he sued for rectification. The defendant
strenuously contended that the rent of 130/. was the
rent really agreed upon. Romilly, M. E,., however,
entirely declined to credit the defendant's evidence on
this point ; he found in effect that at the time of sign-
ing the memorandum both parties really intended the
rent to be 230/., and that the defendant was aware of
the discrepancy between the lease and the agreement.
But he treated the memorandvmi as if it had been
signed after the figures 130/. had been inserted in the
draft, and held that the case was one where the docu-
ment which constitutes the whole agreement contains in
itself contradictory statements as to the amount of rent.
And he further considered that the defendant executed
the lease, not fraudulently, but in the innocent belief
(/■) Above, p. 7oO.
(/) Exeter V. Exeter, 3 My. &
Cr. 321 ; Walsh v. Trcvannion, 16
Sim. 178 ; Roolce v. Kensington, 2
K. & J. 753, 763, 764 ; Eowlev v.
Fowler, 4 De G. & J. 250, 264,
265, 273 : Sells v. Sells, 1 Dr. &
Sm. 42 ; Thompson v. Whitmore,
1 J. & H. 268 ; Bradford v.
Ronmeij, 30 Beav. 431, 438 ; May
V. Flatt, 1900, 1 Ch. 616.
(«») 30 Beav. 445.
\
OF MISTAKE. 795
that the plaintifiF was gratuitously granting her (n) a
lease at about half the rent which ho had asked I In
this state of affairs the learned judge cut the knot by
deciding that he could neither permit- the defendant
to derive any advantage from the mistake, nor oblige
her to accept a lease different from that which she
supposed slie was executing. He therefore gave her
tlie option of accepting the lease with the rectification
claimed or having it set aside altogether. In Harria Hants v.
V. Pcppcrcll {o), a memorandum was signed for the ^^^^'^
sale of " two houses in Teddington." The purchaser's
solicitor inquired what property was comprised in the
sale, and sent a plan showing wliat he supposed the
defendant was buj'ing. In reply, the vendor's solicitor
sent a correct plan of what the vendor intended to
convey : but the defendant's solicitor had the convey-
ance engrossed referring to a different [)lan, whieli
comprised more, and sent the deed for execution with-
out calling attention to the fact that he liad not
accepted the [)laintiff 's contention as to the parcels ;
and the vendor executed the conveyance without dis-
covering the discrepanc3^ He afterwards sued for
rectification of the conveyance. The defendant pleaded
that Ilia intention was carried out by the conveyance,
and that the mistake, of the plaintiff alone was no
ground for rectification. Romilly, M. E,., said that, as
the Court will not enforce specific performance of a
contract which one party has made under a mis-
take [})), so the Court may interfere where rectification
is claimed on the ground of uuilateral mistake, if tlio
parties can be placed in statu quo ; and on this ground
lie gave the defendant the option of accepting the
rectification claimed or of annulling the contract. At
(m) The defendant was a lady. the face of the decision in Tampliii
[o) L. R. ;') Eq. 1. ' v. James, l.i Oh. D. 'llh, cannot
< p) It is mibmitted that tliis now be upheld; .see above,
statement is far too wide, and in pp. 77o, 770. and n. (j).
796
OF MISTAKE.
Bloomer v.
Spittle.
Paget v.
Marshal/.
the same time, lie intimated pretty clearly that he
thought that the defendant had behaved dishonestly.
In Bloonwr v. iSpiff/e {q), the parties entered into an
agreement in writing for sale of certain land, not
excepting the mines thereunder, but the mines were
excepted from the conveyance. Four years afterwards
the purchaser sued for rectification on the ground of
common mistake. The vendor by his answer denied
the mistake, and alleged that the conveyance carried
out the parties' real agreement. The vendor died
before he could be cross-examined. Romilly, M. R.,
expressed the opinion that there had been a common
mistake, and that the defence was not honest : but on
account of the lapse of time since the execution of the
conveyance, he gave the defendant's representatives
the option of accepting the rectification claimed or of
having the transaction set aside. In Pcifjef v. M(tr>9
th« (lef<^nd:mt contenrling that both the contract and
the subsequent wi-itinf2^ expressed his true intention.
This was what occurred in the cases of Paget v. Mar-
xhall {c) and Mdi/ v. Pl(tff{(l). Now the whole burthen
of proof is on the plaintiH' claiming rectification {c),
and if in such circumstances he fail to prove that the
contract and subsequent Avi-iting did not express the
defendant's true intention, it is submitted that liis
(ilaim for rectification ought to be rejected. He him-
self manifested an intention in accordance with that
expressed and earned out. What equity tlien has he
to be relieved against the writing binding him at law,
if he cannot show that the defendant was equally in
error? On the other hand, if the plaintiff can by
extrinsic evidence prove a mistake common to both
parties and occurring in the contract as well as the
subsequent writing, it is questionable whether this
evidence ought to be rejected. On principle, the better
opinion seems to be that there is no objection to com-
bining a claim for rectification of a written agreement
with a claim for its specific performance (./'). But on
what ground can such an order as was made in Paget v.
Mtirsltdll [) See above, pp. 784— 786. (.v) L. R. .) Eq. 1; above,
\q) L. R. 1:5 Eq. 427. p. 795.
(V) 30Bcav.44.'); abovo,p. 794. (/) Above, p. 794.
w. 61
802
OF MISTAKE.
autecedent agreement in writing- to buy " two houses at
Teddington " was either void for uncertainty (ii) or
contained such a latent ambiguity as allowed of the
admission of parol evidence to explain the parties' real
intention (.r). In the latter case, if the parties' minds
were not at one as to the property sold, the contract was
equally void(//). Consequently, the plaintiff could not
substantiate liis claim for rectification without disproving
the truth of the defendant's assertion that the convey-
ance was in accordance Avith his intention. If the judge
believed the defendant, he ought to have given judg-
ment in his favour. If he considered that the defendant
was wrongfully seeking to take advantage of the
plaintiff's mistake, the option of rectification or rescis-
Frand. gion should have been the plaintiff's. (5) It may be
shown that the defendant knew of the plaintiff's mistake,
and yet accepted his oifer according to the literal terms
thereof, well knowing that the plaintiff would believe
him to be accepting tlie offer which the plaintiff sup-
posed that he had made and not that which lie //rid
made. Such a state of mind would certainly be frau-
dulent ; the defendant would have been wrongfully
attempting to take advantage of the other's mistake.
Tlie cases above mentioned (z), especially Garranl v.
Fni)i];rl [a) and Paget v. Mar-'/(i// {/)), may all serve for
examples of this state of things, if we assume that tlie
fraudulent intention so strongly suspected by the Court
did in truth exist. If, however, the defendant's fraud
be proved, it is submitted that the plaintiff has estab-
lished his claim for rectification. The defendant's
fraudulent acceptance of his offer left two courses
open to him. He might treat tlie contract as
(h) Above, pp. G, and n. (f), (s) Above, pp. 794 — 70G.
'^^^^ Av -p« -co f ^ («) 30 Beav. 445.
(.r) Above, pp. /bO, ), or an exception
or a reservation has been left out(«7), or proper words
of limitation have not been iised (r), or the expressions
importing the statutory covenants for title have not
been put in or have not been restricted as they ought
to have been (.s), or any covenant not intended to be
made has been inserted (/), the conveyance may be
rectified ; except to the prejudice of a purchaser for
value claiming thereunder in good faith and without
notice of the error (n). If in any of these cases the legal
estate in any hereditaments failed, by reason of the
error, to be assured as agreed, and an order of the
Court for rectification of the conveyance be obtained,
there is no need of any further express assurance of
such legal estate ; for it will pass by the effect of tlie
order in the manner in which it is limited by the con-
veyance as so rectified (r).
{/) See Bcaiotwnt v. Bramlcy,
T. & E. 41, rvi ; and cases cited
above, pp. 644, n. (/), 787, nn.
[t), («), and in notes (w), (/;), (<■/),
(>•), below.
(;«) Above, pp. 611, 6o3, 6.')4,
730.
{u) Wlnir V. White, L. R. 15
Eq. 247.
(o) Brale v. Ki/tv, 1907, 1 Ch.
564.
(p) Cuweiiv. TrHc/itf,TAL,l899,
2 Ch. 309.
[q) Exeter v. Exeter, 3 My. &
Cr. 321 : Mortimer v. Short all, 2
Dru. & War. 363; above, pp. 040,
641.
(/•) Re BlriVs Tntsts, 3 Ch. D.
214 ; Jie Ethel and Mitehells and
Butler^'' Contract, 1901, 1 Ch. 945,
948; Re Tringhnm's Trtixts, 1904.
2 Ch. 487, 495 ; above, p. 650.
(.«) See above, pp. 644, 665.
[t) Rob V. Butteririck, 2 Price,
190.
(«) Above, p. 803.
[x] White V. White, L. R. 15
Eq. 247; Hanle>i v. Feursoi/, 13
Ch. D. 545.
805
CHAPTER XIV.
OF FRAUD, MISKEPKESENTATIOX, DIJUE.SS AND
UNDUE INFLUENCE.
^1. Of Fraud tiud Misrepresentatiou.
^2. Of Duress and Undue Influence.
§ t. — Of Fnaid and MkrepreHentatioH.
LiKK otlier contracts, a contract for the sale of land C'^"*'*''^''^ ,
. voidable for
may be avoided by either party, if he were induced to fraud or
ent(!r into it by fraud or misrepresentation, that is to ["t-o^,^'*^^^*"'"'
say, by a false representation made to him by the other
}»arty, either fraudulently or innocently. A representa- Represen-
tion is a statement made by one party to a proposed
contract to the otlier, before or at the time of entering
into the contract, with regard to some fact relating
thereto (^/). But in order that a false representation The represcu-
may give rise to a riglit to avoid a contract, it must have induced
liave induced the party, to whom it was addressed, to *^^ contract.
enter into the contract ; that is to say, that he would
not have given Ins assent to the contract at all, but for
his belief that tlie statement was triu' {l>). A statement
ol" ihis kind may be made cither outside the contract or
withiu it ('■). Thus the vendor of a liousi; may state
orall}^ to a purchaser about to sign a contract to buy it
(rt) Jiehn V. liuinvss, \i 15. & S. luttj. 7 H. L. C. 7.')0, 775. 776 ;
7r)l, 753. Smith V. /.and ami House Proprtlij
(/;) See Fliqhl v. Itnnth, 1 Pin-r. Corp., -JS Ch. D. 7.
N.O. 070. :{77 : All,v<,<,d\. Smull, (,) Mm x. /ItinirKs, S B. A: S.
G CI. A: Fin. '^32, 444 ; Hmtt/i v. 751, 753, 754.
806 OF FRAUD, miski-:pkesentation,
that the drains are in good order or the coUars dry {>/),
or he may make the same statement in tlie particalars
of sale ; and in either case the representation may
induce the purchaser's consent to the sale {c). The ^
presint law as to the effect of misrepresentation, frau- ■
dulent or innocent, in giving to the party misled the -S
right to avoid the contract is a compound of the prin-
ciples of common law and equity. It seems necessary,
therefore, in order to arrive at a right understanding of
the suhjeet, to explain how false representations inducing
a contract were treated in courts of common law and
equity before their jurisdictions were united in the High
Court of Justice.
Fraudulent At coiumou law, if an untrue representation inducing
a?coramoii'"" ^ contract were made fraudulently, that is to say, either
law. with the knowledge that it was untrue or in reckless
ignorance whether it was true or false ( /"), the party so
misled might at his election adopt one of two alternative
courses. He might, where the parties could be restored
to their former position, avoid the contract, not only
pending its completion, but also after it had been com-
pletely performed (//), and sue for the recovery of any
money paid or property conveyei thereunder, he on his
part surrendering any benefit received thereby ; or he
miffht affirm the contract and bring an action of deceit
to recover any damages caused by the fraudulent mis-
Innocent mis- statement (_ A). And the common law allowed the like
representation • i ^ £ avoiding the Contract, though not the same
and even to ^ p ' o
non-disclosure action of deceit, if a party to some contract of the class
(d) Above, p. 769. Gas. ^37.
{e'j See the cases cited at the {;/) See above, p. 654. ,fl
end of note (n), p. 782, above, as (/() Deposit and General Life
to the admissibility of oral evi- Assurance Co. v. Ayscoitgh, 6 E. &:
deuce in proof of a representation B. 761 ; Oakes v. Tarquand, L. B.
which has induced a written con- 2 H. L. 325 ; Cloujh v. London
tract. iV Xorth IVestern Rij. Co., L. R. 7
[f) Bean v. Barness, 3 B. & S. Ex. 26 ; Benjamin on Sale, 33G,
751, 753 ; Derry v. Peek, 14 Ajjp. 342, 359, 2nd ed.
DURESS AND UNDUE INFLUENCE. 807
dest'i'ibed as /f/v^^'r/V/y/r/'AVA'/ (principally contracts of in- might avoid
SLirauce) wore induced to enter into it by a false repre- Xlril^*^'^ /• /i; •
sentation made innocently or even by the non-disclosure
of some material fact (/). But apart from fraud and Ett'ect of
except in the case of contracts iibern'md' fidci, a i°n"''«nt mi,s-
'■ _ • ' repre.sentatioii
representation, at common law, could only alfect a :it commun
contract if it amounted to a warranty or promise of the care 'of other
truth of the fact stated and so formed a part of the contracts.
whole agreement entered into (/.) : otherwise it had no
ctl'cct at all(/). If it did form part of the contract, it
niiglit cither be an essential term thereof, going to the
whole substance of the contract — that is to say, it might
be a stipulation, on the performance of which the per-
formance of the rest of the contract was conditional ; or
it might be a term independent of the parties' main
agreement — that is to say, a stipulation, on the perform-
aiuic of which the performance of the rest of tlie contract
was not dependent. In other Avords, the representation
might be either a condition or a pure warranty [in) ; and
this question was determined by the parties' intention
to be gathered from all the circumstances of the case [ii).
In the former case the untruth of the representation
amounted to such a breach of contract by the party,
who made the statement, as discharged the other from
the performance of his part of the agreement (>/). In
the latter case, the party misled was not justilied in
repudiating the contract if the statement proved untrue ;
ho was obliged to perform the main agreement : but
he was entitled to damages for the breach of warranty
i() Carter v. Buthiit, \i Burr. /) llopkiii'< v. Tuii'iiu lai/, \'t
\'.)0'): Miirrisoiiv. r/iirj) Street V. Ji/ai/, 2 B. & Ad.
456.
{)■) See last note but one.
DURESS AND UNDUE INFLUENCE.
the dependence or independence of mutual stipulations
contained in a contract. At common law, if the obliga-
tion of one party to a contract be dependent on tlie
fultilment by the other either of his part of the contract
or of some particular stipulation embodied therein, so
that the performnncc of the latter party's duty under
the contract or the particular stipulation is a condition
precedent to his enforcing the obligation incumbent on
the former, then a breach by the latter of his part of
the contract or of the particular stipulation will dis-
charge the former from his obligation under the agree-
ment ; and the former may, if he choose (.s), rescind the
contract and sue independently of the contract (under
the old practice, in ax.Hi{i)qmt) for the recoyery of any
money paid thereunder [t). But in order tliat the breach
of some particular stipulation in a contract may discharge
the party entitled to the benefit thereof from the per-
formance of his part of tlie contract, the stipulation
must sro to the root of the whole consideration ; its
performance must be an essential ccmdition of his in-
curring liability under the agreement {i<). For example,
we have seen that, upon a contract for the sale of land,
the vendor's obligation to convey the land and the
purchaser's (jbligation to pay the price are, as a rule,
dependent on each other, and neither party can enforce
tlie other's liability without performing or having
offered to perform his own duty (.r). 80 on a contract
for the sale of land, the; ])erformance of the particular
W He hHS the option of re- null v. llcimn, 1900. T Ch. 2'J.S,
Hciuding the contract, or attirmin); 'MYi, :J04 ; Klhnger \ . Mutual Life
it and i*uititf midrr the laiilinct for bisurnnfc Co. of Nru- York, 190."),
daniajLre.s for its brcHch ; Miihiiel 1 K. B. '41 \ (iiunal Bill Poslhig
V. Hart. 190-2. 1 K. B. 482. Co. v. Atkni.sou, 1909, A. C. lis':
{() Fliyht V. Booth, 1 Bing. N. see 1 Wms. Saund. 320, n. (4 ;
C. 370. 1 id. 3oL', n. (3) ; 2 Smith, L. C,
((/) Dukr of St. A'batix v. Shore, notes to Cutter v. Poirell.
1 H. Bl. 270; Campbrll v. Juuex, (x) Above, pp. ')7S. o79 : Gluze-
(■) T. R. -MO: lirllnn V. di/c, 1 hruok v. Woodroir. S T. R. 3(i6.
Q. 15. D. is;; : Mrrs,,/, S;c. Co. V. Sue I'oo/c v. ///V/. (i M. I't W. S35 ;
ymjlor, 9 App. Cub. 434 ; (.'oru- Laird v. I'iiii, 7 M. iSc W. 474.
809
810 OF FRAUD, :\II8Kt:PKFSENTATION,
stipulatiou implied therein, that tlie vendor i?liall show
a good title, is an essential condition of the purchaser's
liability ; and if this sti[)idation be broken, he may at
once repudiate the contract and sue for the recovery of
his deposit {//). Similarly, on an executory contract for
the sale of goods with an undertaking that they sliall
be of a particular qualitj^ compliance with tliis under-
taking (;:) is in general an essential condition of the
sale, and the purchaser may, when the property has not
yet passed to him under the contract, reject the goods
on breach of the undertaking and altogether repudiate
the agreement {a). But, although a man bound by a
contract may refuse to perform his promise till the
other party lias complied with a condition precedent,
yet, if lie has received and accepted a substantial part
of that which was to be performed in his favour, the
condition precedent changes its character, and becomes
a- warranty in the strict sense of the word (A), that is, a
collateral agreement independent of the rest of the
contract ; and non-compliance therewith will no longer
aiford a defence to an action to enforce his liability on
the contract, but will only give rise to a counter-claim
for damages (r). Thus where specific goods are sold
with an undertaking that they shall be of a particular
quality, the purchaser cannot return the goods after the
property has passed to him, and he has so enjoyed the
benefit of the contract : but if the goods be not of the
(//) Above, pp. 32, ii. {//}, 167, uu Sale, 748, 2nd ed. ; see stat.
168, 187, 190. o6 Ac o7 Vict. c. 71, .s.s. 11, f)2,
(r) Such au undertaking is ui and note that in the Act the tcriii
course commonly called a war- »vr)vrt«///is(!ontined to cases where
rantj^ of quality : I ut we avoid it is not a condition. Cf. above,
usingihe word "warranty" iu the pp. o2, u. {//), 763.
text on account of the strict sense (A) Above, p. 76'.).
in which the word is used iu the (c) Benjamin on J^ale, 4)2, 2ii(l
Sale of Goods Act, 1893; see next ed. ; K/la/ v. Topp, 6 Ex. i24,
uoto. 441 ; Ilffui V. Jiiniic-s, 3 B. l, 7-3.3 ; and see Jiinlscn v.
4o6, 463 ; llvttbnlt v. Uu-knijii, 2)>ylvr, 1893, 2 Q. B. 274.
L. Ii. 7 C. P. 438, 4 jl ; Benjamin
DURESS AND UNDUE INFLUENCE. 811
quiility promised, lie is entitled to damages (d). In the
same way, if one be induced to sign a contract for pur-
chase of a house by the vendor's oral representation
made untruly but not fraudulently that the drains are
in g(jod order, he may, if he discover the truth before
completion, repudiate the contract at law and sue for
the recovery of his deposit (/') : but if he accept a con-
veyance before he become aware of the defect, he cannot
then rescind the contract (./), though he may sue for
damages for breach of the warranty implied in the
representation {(/).
Let us now turn to the principles of equity. Couiis Equitable
. . ,. . " . , rules as to
of Equity enjoyed a concurrent jurisdiction with the fraud or mis-
Courts of Law in the matter of fraud, but had a [^S;;^^-;"^''^'''"
further exclusive jurisdiction to compel the delivery up contract.
and cancellation of written instruments, which had been
forged or procured to be executed by fraud, duress or
undue influence (//). As regards the avoidance of a Contract
contract induced by a fraudulent representation, the JraudmiHIit
rule of equity was the same as the rule of law ; the be set a«iao
contract was regarded as, not void, but voidable (/) at ^" ^^^ ^'
the option of the party defrauded. He might therefore
])lead the fraud as an absolute bar to proceedings against
him for specific performance of the contract (/•). But,
further, he might sue in equity as plaintiff, either before
completion of the contract, to have the agre<'menl
rescinded and any written instrument (;ontaining it
delivered up to be cancelled ; or after completion, so
long as the parties could be restored to their former
I'rf) Sfyret v. lihii/, 2 B. & Ad. (h] "VVin.s. Real Prop. IGo. n.(«f),
406; Feujamiu on Sale, 741, 744. "Jlst ed. : and oases cited below,
748, 753. 'ind ed. : stat. 56 & 57 p. 812, n. (/).
Vict. c. 51, 8. 11 (1 c). (') (fakcM v. T/'n/iiaiid, L. R. _'
(r) Smith V. /-rtw/ ftiid Hoicr H. L. 325; Jir Duncan, 181)9, I
I'ropert,, Corp., 2S Ch. D. 7. Ch. 387, 3S9. 390.
( /■ Above, pp. ()1 1, 65;;, 654. (/.) Cln-ihont v. Tn.ibiirijh, 1 J.
(11) llr I.'is^ollr V. Uxtldfunl, & W. 112, 120.
1901, 2 K. B. 215.
m
OF FRAUD, MISREPRESENTATION,
|)(jsitiou, to have the whole transaction set aside (/).
Courts of Equity of course had no jurisdiction to enter-
tain an action of damages for deceit {nt) : but they had
jurisdiction to entertain a personal demand against any
one, who had by a fraudulent representation induced
another to act thereon to his detriment ; they would in
such case grant specific relief in the way of compelling
the guilty party to make good his representation ; and
they might order him to recoup any definite pecuniary
loss sustained by the part}' defrauded [n). A person
induced by fraud to make a contract for the sale of
land had therefore the like election in equity as he had
at law ; that is, he might either rescind the contract, or
he might affirm it and claim to have the representation
made good (o) . But if he chose to affirm the contract
and his loss by the representation were not capable of
adjustment by some definite specific relief but could
only be assessed at an uncertain sum of money, then he
could only claim compensation in Courts of Equity
pending the completion of the contract in proceedings
brought either by or against him for its specific per-
formance ( /-i) ; for there was no original jurisdiction in
equity to give damages except as ancillary to some
specific relief. If in such case the defrauded party
chose to complete the contract or did so before he
detected the fraud, and still })roposed to retain the
benefit of the transaction and not to set it aside, lie
(/) Edwards v. McLcoji, G.
Coop. 808, 2 Swanyt. ' l28S) ;
Attwnod V. Smiill, 6 CI. & Fiu.
Ti-l, 330, ;VU, 338, 395, 444 .sy.,
oO'i ; Loicll V. Hkks, 2 Y. & C.
Ex. 46.
[m) Arkicright v. Xcn-bohl, 17
Ch. D. 301 ; Smith v. Chadicirk,
9 App. ('as. 187, 193; Derr;/ v.
rc(l\ 14 App. Cas. 337, 3G0.
(«) Juaits V. JiickncU, Vu.s.
174, 183 ; Iliiiroucti v. Luck, 10
Vos. 470, 475 ; Jlill V. Lane,
L. R. 1 1 E([. 21.) ; T'eck v. Gi•) ; and it was long considered
that to justify an order ff)r rescission of the contract,
even before its completion, tlie misrepresentation must
be fraudulent, that is, made knowingly or recklessly (s).
But this position was not maintained ; and Courts of
Equity afterwards held that, where one was induced
to enter into a contract by a material misrepresentation,
tliough made without fraud, the contract was voidable
at his option, and he might sue to have it set aside and
(if written) delivered up to be cancelled (0- It had. No rescission
liowever, been decided, before the Courts of Equity liad misrepresen-
abandoned their former position with respect to rescis- t"tiou after
^ '■ completion.
(r/) Xruhnm v. Mai/, \?, Price, Fin. "i^-i, 330, 338, 39.), 444 xq.,
749 ; Lviiti) V. Hillas, 2 De G. & oO'i; Lorellv. Hicks, 2 Y. & C. Ex.
J. 110; JolifTe V. Bii/.-rr, 11 Q. 46, ol ; Barthtt \. Salmon, (\ De
B. D. 2io, 267 : Claiiton v. Lerch, G. M. & G. 33 ; (M)ii)hi'ar,- v. Xrw
41 Ch. D. 103 ; Sug. V. & P. 235, Urunswirk, ^-c. Co., I De G. F. &
261; 2 Dart, V. & P. 904, 6th J. 578, 595; Sni V. Vcch, 14 App. Cas. 337. Q. B. D. 2oo. 27J : Cotton. L. J..
34 7. 3.')y; Kmbrni'x case, 1892,3 Sipcr v. Arnold, 37 Ch. D. i'C,
Ch. 1, 13; Jrhittington v. Scale- 102; Clayton v. Lcceh, 41 Ch. D.
7/rti/w, 82 L. T. 49. 103; Laguuas Nitrate Co. v.
(<■) Admittenrv. Gould, 1893,
1 Q. B. 491 ; United Shoe, S;c. Co.
v. Briniet, 1909, A. C. 330, 338.
This law has been altered with
respect to statements made by
directors or promoters of com-
panies in prospectuses inviting
subscriptions for shares or deben-
tures ; stat. 53 k 54 Vict. c. 64.
{)n) See Pollock on Contracts,
561 sq. 7th ed. ; United Shoe, dfr.
Co. V. Brwiet, 1909, A. C. 330,
338.
[n) See Smith v. Chaduick, 20
Ch. D. 27, 9 App. Cas. 187 ;
Bellairs v. Tucker, 13 Q. B. D.
562.
(o) Above, p. 769.
DURESS AND UNDUE INFLUENCE. 817
(as in the case of active concealment of a defect) (p).
As has been already shown, mere silence is not sufficient
to confer the right to rescind {q) ; except in the case of
contracts iiherriime fidci, which may be avoided for non-
disclosure of a material fact (r). And there must be a
definite assertion of some fact as distinguished from a
mere expression of the party's opinion or belief as to
some circumstance relating to the contract, or a vague
affirmation of the excellence of the property to be
sold (.s'). For example, a distinct statement by a vendor
of land that limestone embedded therein is capable of
producing lime of first-rate quality fit for the London
market {f), or that a house erected thereon is not
damp {u) , or that the property is let to a most desirable
tenont (.r), amounts to a representation sufficient, if
false, to avoid the contract (r) . But the incorrect
description of renewable leaseholds as nearly equal to
freehold [y) or of a small liouse as a desirable residence
for a family of distinction (s) has been held not to
amount to 'a representation affecting the contract {a).
With regard to statements, which are ambiguous, being Ambiguous
statements.
{p) Above, p. 769. was barely established ; see above,
{q) Above, pp. 765 — 767. p. 813. There can be no doubt
(r) Above, pp. 768, 807. at the present time that such a
(«) Fcnton v. Browne, 14 Ves. misrepresentation would be suffi-
144 ; Trower v. Ncucoinc, 3 Mer. cient to avoid the contract.
704 ; Scott V. JIanso)/, 1 Sim. 13, (k) Utrangways v. Bishop, 29
lo ; Power v. Barhani, 4 A. & E. L. T. 0. S. 120.
473 ; Benjamin on Sale, 500, 2ud {x) Smith v. Land and House
ed.; Brf/uirsy. Tucker, 13 Q. B.D. Property Corp., 28 Ch. D. 7 ; and
562. ' see Tibbatts v. Boulter, 73 L. T.
(<) Higyins v. Sameh, 2 J. & H. 534, where the representation was
460. The actual decision was that certain licensed property was
that the statement was a misre- subject to mortgages for jiarti-
presentatiou sufficient to bar the cular sums, and that the mort-
vendor from enforcing specific gagees were willing to allow
performance. The question whe- these amounts to remain on the
ther the misrepresentation was security ; cases cited above, p.
.sufficient to avoid the contract 709, iin. (y),(/i), (»),(/•),(/), («(),(/»).
was not decided : though it was (i/) Fenton v. Browne, 14 Ves.
referred to as a difficult point. 144.
But at that time the equitable (s) Magennis v. Fallon, 2 Moll,
jurisdiction to rescind a contract 561, 587.
for innocent misrepresentation (a) See also above, p. 770.
w. 52
818
OF FRAUD, MISREPRESENTATION,
true if accepted in one sense, but false if taken in
another, it must be shown, in order to found a right to
rescission upon them, tliat the party, to whom the}^
were made, understood them in the sense in which the}-
were imtrue(/v). And it may be observed that a
collateral promise to do some act, tliough it may effec-
tivel}^ induce the j^romisee to enter into a contract (c),
is not, properly speaking, a representation at an(^/).
3. Therepro- Thirdly, the false representation must be of some fact (r)
Promise not
properlj' n
represPTita-
tinii.
{/') Siiiif/i V. Chndiricli, 9 App.
Gas. 187.
(c) See cases cited at the end
of note [a) to p. 782. above.
id) Expte. Barren, 1 Ch. D.
537, .5,52. See next note.
R.epresenta- ''") It has been held that a re-
tion of inten- preseutatiou made by a party to a
tion, wliether proposed contract of his intention
a represen- to do some act, but not amounting
tation of fact, to a promise to do the act, may,
if unfulfilled, be a ground for
resisting the specific performance
of the contract ; Mi/frs\. IVatsiOh,
1 Sim. N. S. .523': S. C, nom.
Uone V. TFt^fsoii, 10 H. L. C. 671,
681, 682 ; Lnmnrc v. DUou, L. R.
6 H. L. 414, 428; or even for
avoiding the contract ; Trai/l v.
Sori//fj, 4 De G. J. & S. 318.
These decisions appear inconsis-
tent with the law laid down in
Jovflt-)! V. jrn)iei/, 6 H. L. C. 18.5;
Maddisoii v. Ahlersoii, 8 App. Gas.
4G7, 473 ; and they are criticised
in Pollock on Gontract, 52.5, 718
— 720, 7th cd. ; see also Atkin-
son, L.A., Caralier v. Pope, 190(),
A. G. 428, 432. It certainly ap-
pears that in those cases it would
have been more consistent with
principle to treat the representa-
tion according to the common law
doctrine as a collateral promise.
And indeed it was stated by Lord
Westbury in Eosr v. IVatson, 10
H. L. G. 681, 682, that the re-
presentation was regarded in
equity as a substantial part of
the contract. But it has been
held that a false statement as to
a man's intention may be a re-
presentation of fact, since it is a
representation as to the state of
his mind, and may at least give
rise to liability if made fraudu-
lently. Thus it is considered that
if a man contract to buy goods
with the intention of not paying
for them, that is a fraud sufficient
to justify the avoidance of the
contract on the vendor's part ;
Load V. Green, 15 M. & W. 216 ;
CJoii'/li V. London S; Xorth JVrster)i
llil.'f'o., L. R. 7 Ex. 26; Expte.
IJ'hiftaker, L. R. 10 Gh. 446, 449 ;
7?^' Enstf/afr, 190.5, 1 K. B. 465.
And it has been decided that a
false statement made knowingly
(that is, fraudulently) by the
directors of a company invitiog
subscription to debentures, that
it trail intend/din apply the money
so borrowed to a particular pur-
jiose, was a statement of fa'-t and
a good cause of action of deceit
against them ; Edqington v. Eitz-
manrice, 29 Gh. D. 459. As to a
false statement of a person's
motive in agreeing to buy or sell
at a particular price, see Vernon
V. AV//,v. 12 East, 632, 4 Taunt.
488, criticised in Benjamin on
Sale, 356—358, 2Dd ed., and
Pollock on Gontract, 563, 564.
7th ed. ; LAndsat/ Petrokiim Co. v.
Ifnrd, L. R. 5' P. G. 221, 243.
Statement of belief that some
event will happen in the future
must of course be ciirefulh' dis-
tinguished from statement that
some event has happened in the
past ; B'-Unirs v. Tucker, 13 Q.
B. D. 562. By stat. 6 Edw. VII.
c. 41, s. 20 (3, 5), an untrue re-
presentation as to a matter of
^^
I
DURESS AND UXDi:i: IXFLUEXCE.
819
and not, it appears, of law ( /') . But for this pur- sentation
... ', ii /< • i must be of
pose any repn^sentation as to a matter oi private gome fact,
riglit is a representation of fact ; such as a statement
that one is the owner of some property which he offers
for sale, or is invested with some power or authority
under the particular constitution of some corporation or
compan}' or by virtue of some private Act of Parlia-
ment ({/), or that the property is free from restrictive
covenants (//). And it .-^eems that misrepresentation as
to some proposition of general law may give rise to
a right of action, if made in deliberate fraud (/).
Fourthly, the representation must be of some material ^- The fact
fact, having relation to the proposed contract (/.•). But matonal.
if the fact asserted relate to the contract and did actually
induce the party, to whom the statement was made, to
enter into the contract (/), it is a material fact (m) ;
unless the circumstance alleged were such that no
reasonable person would allow his judgment to be
intluenced by the statement (;/). Fifthly, the represen- ">. The repre-
sentation
oxpcftatinn or belief may avoid A'ifsnn, 13 Q. B. D. 3G0 ; and
a contract of marine insurance. consider Kettleirell v. Refuge
Sucli a contract is, liowever, Atomriinci: <'u., 1908, 1 K. B. .04.'),
iiheniDia; fidei ; see sects. 17 — 19; affirmed 1909, A. C. 'l\'i : cf.
above, p. 807, and n. (i). above, p. 780.
/: Leicis V. Jones, 4 B. & C. (/*) Above, pp. 19G, 197. 728,
506. 'j12 (cf. above, p. 756) ; Rasf,- 729.
da/f V. lord, L. R. 2 Eq. 7.50 : (i) Hirschfield v. London,
Jieattie V. Ehiini, L. R. 7 Ch. Brighton, ic' Ry. Co., 2 Q. B. D.
777, 800. 7 H. L. 102, 130; I, 5, G; Bowen, L. J., IVest
Eaglesjirld v. Londondemi, 4 Ch. D. London Commercial Bank v. Kitson,
693, 7). Where a person has acted
on the faith of a false representation made to him, it is
no defence to any proceedings founded thereon that he
mierht have found out the truth if he had made
in(piiry (e) . Lastly, the pai'ty to whom the represen-
tation was made must not have known that it was false ;
he must reasonably have believed it to be true. We
have seen that he has no cause of action if he were
aware of the true facts of the case (''/).
What is
requisite to
maintain an
action of
deceit for a
false repre-
sentation
inducing a
contract.
Motive, as a
rule, im-
material.
To maintain an action of deceit for a false representa-
tion, which has induced one to enter into a contract, the
same conditions are in general necessary as are required
to confer the right to rescind the contract {<') ; and in
addition to these, it must be shown that the false state-
ment was made, either knowingl}', that is, without
belief in its truth, or recklessly, that is, without caring
whether it were true or false (/'). Where these con-
ditions are fulfilled, it is not necessary to prove that
{z) Smith V. (JhadK-icli, 9 App.
Cas. 187, 195, 196; Nash v.
(Jidthorpe, 190.5, 2 Ch. 237.
[a) Eorsfall v. Thomm, 1 H. &
C. 90 ; see above, p. 769, n. (r),
as to this case.
{b) See above, p. 770.
(c) Dijcr V. Hargrave, 10 Ves.
.50.5, 509, 510; Dohell \. Slevens,
■6 B. & C. G23 ; licynell v. Spryc,
1 De G. M. & G. 6GU, 710 ; Price
V. Macauhiy, 2 De G. M. & G.
339, 346 ; Central lii/. Co. of
Vniezuehi v. Kisch, L. R. 2 H. L.
99, 120 ; Redgrave v. Hitrd, 20
Ch. D. 1.
[({) Above, p. 769.
(e) Above, pp. 816 "fy.
(./■) Above, ijp. 806, 816.
DURESS AND UN'DUK INFLUEN'CK. 823
the false stateiiieut was made with the actual inteutiou
of defraudiug, cheatiag or wrongfully gaining some
advantage over the party so deceived ; for if the state-
ment were made knowingly or recklessly, a fraudulent
intention will be inferred (^). 80 also where an action
of deceit is founded, not on a false statement in words,
but on a fraudulent representation made by conduct (as
in the case of active concealment of a defect (h) ), it
appears that an intention to defraud or cheat the
party misled is of the gist of the action, but such inten-
tion may be inferred from the facts of the case (/). A Pnucipal,
■,.,.,,. ,. p , •, p PI when liable in
principal is liable in an action ot deceit tor a lalse an action of
representation made by his agent, if it were untrue or ^e«eit for a
*• "^ '^ false reprc-
reckless to the knowledge of the jirincijxil and were sentation
c.rpir-s.s/// authorised by him (/i) ; or if it were untrue or ^^raut ^' ^^
reckless to the knowledge of the ((t/oif (though not of
the princi})al) and were made either with the principal's
express authority or without such authority within the
scope of the agent's employment (/). But if the prin-
cipal were aware of the untruth f)r recklessness of the
statement, and the agent were not, and the representa-
tion were made by the agent, without fraud and in the
honest belief that it was true, and without the cj-press
authority of the pnncipal but within the scope of the
(j) lUltill V. iralter, 3 B. A: 289; Parke, B., Com/w/ v. /iy«/r,
Ad. 114, 1L';5 ; Wildr v. Gibson, 1 (5 M. & W. 3o<», 37:? ; U'lnrick v.
H. L. C. (i()'). ()33; I'cekx. diinin/. Kih/IisIi JouU SIocIc Jinn/,; L. R. 2
L. K. H. L. 377, -lOK : Smi't/, Ex. 2.')9 ; Sirl// v. ir,,ili>botliam,
V. ChiifhricI:, 9 App. Cas. 1S7, L. R. S Q. B. '244; Mdcka^/ v.
201 ; Jtemi v. I'lcl:, 14 App. Ca.s. Coiiinurcutl liiiiik of Xtw Jiruiis-
337, 365, 371, 372, 374 ; Le I.icir inrk, L. R. T) P. C. 391 ; Swire
V. Gonld, 1893, 1 Q. B. 491, 498, v. Fntiuis, 3 App. Cas. 106;
jOO. l{rorth V. (Ttfif of O/axt/oir
(/i) Above, p. 769. Ihm/,; fi App. Ca>'. 317 ; Geori/r
(i) Selbome, C, Coaks v. Jiux- WJiitechurvh, Ld. v. (Javunagli,
tce/l, 11 App. Ca«. 232, 236; see 1902, A. C. 117, 140; Gibhn v.
the casets cited below, p. 824, n. Xatioiiiil, ^-c. Cnion, 1903, 2 K. B.
(0), and 00 ; 6'. reaixon 4" Son, Ld. v.
(k) Rolfe, Aldeisou, BB., Tor//- /hdlin Curpn., 1907. A. C. 3.51;
foot V. I-'oirkr, 6 M. & W. 3.)8, .sec also Keith nrll v. Refuge An-
■370,371. mranc, Co., 1908, 1 K.'B. 545,
(/) Hem V. Xichol.s, 1 Salk. 1909, A. C. 243.
824
OF FRAUD, MISREPRESENTATION,
agent's employment, it appears tliat, in order to cTiarge
tlie principal in an action of deceit (m) , the party misled
must prove some conduct positively fraudulent on the
part of the principal ; as for instance, that the principal,
being aware of the agent's ignorance of the true state
of the facts, purposely employed him to transact the
business with the object of avoiding any discovery
which would or might be made by inquiries put to the
principal himself. Such conduct would, it is considered,
amount to an active concealment {)i) by the principal,
for which he would be personally liable (o). But
unless such fraudulent conduct on the part of the prin-
cipal himself could be shown, it is thought that there
would be no cause of action of deceit against him ; for
he could not be liable for his agent's tort, as the agent
did no wrong ; nor would the agent's statement amount
to a tort committed by the principal himself, if the
principal did not expressly authorise it to be made, and
did not in any way wrongfully conceal the truth {p) . The
principal is not liable for a fraudulent representation by
his agent which is not within the scope of the agent's
general authority {q), or is made by the agent for his
own personal advantage and not for the benefit of the
Agent, where principal (r). The agent is himself liable to the party
misled in an action of deceit, if he made the false
liable.
(;h) See above, p. 820, as to the
right of the party misled to re-
scind a contract so induced.
(«) Above, p. 769.
(o) Parke, B., C'ornfootv. Fowke,
6 M. & W. 358, 362, 373, 374 ;
above, p. 770, n. {t) ; Ludgater
V. Love, 44 L. T. 694.
[p) It is submitted that this
particular case is not covered by
the remarks of Lords Loreburn
and Halsbury in S. Pearson ^ Son,
Ld. V. BuhUn Corpn., 1907, A. C.
351, 354, 357—359, Avhere the
representation made was actually
fraudulent on the part of the
agent, who made it.
{q) Burnett v. South London
Trnmivays Co., 18 Q. B. D. 815 ;
George TFhitechurch , Ld. v. Cava-
nagh, 1902, A. C. 117.
(r) British Mutual Banking Co.
V. Charmvood Forest Ry. Co., 18
Q. B. D. 714 ; Thome v. Heard,
1894, 1 Ch. 599, 1895, A. C. 495,
502 ; Georqe TVhitechurch, Ld. v.
Cavanagh,'l^Q2, A. C. 117, 141 ;
and see Ruben v. Great Fingall
Consol. Ld., 1904, 2 K. B. 712,
725, 731, 1906, A. C. 439; and
cf. Hambro v. Burnand, 1904,
2 K. B. 10.
DURESS AND UNDUE INFLUENCE. 825
representation knowingly or recklessly : but other-
wise not (s). If both principal and agent honestly
believed the statement to be true, neither is liable to an
action of deceit (t) . Of course an action of deceit for a Action of
false representation inducing one to enter into a contract a"-ainsroifo '^
may be brouo-ht, not only against a party to the con- "°*^ '^ P^'^ty
1 J 1- 1 . r 1 . .', -^ ,. . , , to the con-
tract or his agent, but also under similar conditions [u) tract.
against any other person, who has fraudulently (.r)
made a false statement with the intent that the party,
to whom the statement was made, should act upon it or
in a manner apparently calculated to induce him to act
upon it (//).
It has already been pointed out (z) that contracts for Contracts for
the sale of land are not, as regards defects in the quality are^uot void-
of the land itself or any building thereon, in the able for non-
class of contracts ?^/>^>v7>«rg ^V/r/ ; the vendor is under no
obligation to disclose any such defect, and if he merely
keep silence regarding it, there is no ground for the
purchaser to avoid the contract, or even, it is thought,
to resist the specific performance thereof. The law is Except in
different, however, witli respect to the suppression of a yreLion^of '
defect of title ; as a man's title to land must necessarily (\efects of
lie within his own knowledge alone, and is not generally
to be ascertained by independent investigation {(().
Thus if a vendor of land suppress the fact that it is Suppression
subject to restrictive covenants, or disclose some only of tence of^^^"
such covenants and keep silence as to tlie rest, that is restrictive
equivalent to a representation that the land is free fi-om
(») Swift \.lFintrrbotl,a,n,L,.'ii. M. & W. al'J, 4 M. \- W. .537;
5 Q. B. 244, affirmed on this see Cann v. ll'i//so)i, .i\) Ch. D. 39,
point, Siri/t v. Jcnshiiry , L. R. 9 oveiTuled on tlie ground that the
Q. B. 301 ; lierrij v. IWh\ 14 representation there made was
App. Cas. 337. not fraudulent ; Lc Lxvvre v.
(t) Varke,B.,('onifoolv.Fou/>/', Gould, 1893. 1 Q. B. 491, 498.
6 M. & W. 3n8, 373. 499— oOl.
(m) Above, pp. 816 sij., 822. (;) Above, pp. 764—768.
{x) Above, pp. 806, 816. (a) Above, pp. 768, 769 and
\y) Polhlll V. JFaltn; 3 B. & u. (/).
Ad. 114 ; Laugriiifte v. Lcrii,
826
OF FKAiri), miski:i'j;ksentation,
Misrepi'esen-
tatiou as a
defence to a
elaini for
specific
perfonriancc.
such covenants or is only subject to those mentioneil (//) ;
unci if this representation induced the purchaser to make
the contract, he may rescind it (c) . And where a vendor
makes a special condition of sale in general terms suffi-
cient to preclude objection to some defect of title, but
omits to disclose the defect or to bring it to the pur-
chaser's notice, the purchaser may nevertheless resist
the specific performance of the contract in equity,
though he may be unable to rescind it {d).
Any misrepresentation, whether fraudulent or inno-
cent, which is sufficient to avoid a contract (r) , is a good
defence to proceedings against the party misled for the
specific performance of the contract ( /). But, further,
the Court may refuse to enforce specific performance
of a contract at suit of a party, who has innocently
made a misrepresentation to the other, in cases where
the party misled would have no right to rescind the
contract {[/). This is owing to the discretionary nature
of the relief of ordering specific performance, and to
the fact that, in granting or withholding this remedy,
the Court may have regard to considerations of unfair-
ness or hardship and as to the parties' conduct, which
could have no weight at law (//). We have already
quoted several instances of innocent misrepresentation
affording a bar to specific performance but not confer-
ring the right to rescind the contract (//). It appears
that an innocent misrepresentation may be a good
{l>) See above, pp. 41, 195, 728,
72nito,i, 12 Ch. D. 131,
142, 147, 149; above, p[.. U»9,
770.
(A) See the cases stated and
cited above, pp. 37, 38, 190 — 199,
204—207, 768, 770, 776.
I
DURESS AND L'NDIJK IXKLUENCK. 827
cause for resisting specific perfornianee, altlioiigli it
may uot have actually induced the party misled to
make the agreement; that is to sa}', where it cauuot
reasonably be supp )sed that lie would not have entered
into the contract except in the faith that the representa-
tion was true (/).
Here we may mention a form of mis-statement in Sale by
connexion with the sale of land, which has not exactly through "^"^
the true characteristics of a misrepresentation inducing fraud of land
the contract, but partakes of the same nature. That is vendor has
where a man bv mistake or inadvertenc:?, or through ^'^ '''*^®-
fraud, sells some property, of which he is not entitled
to dispose (/r). In this cas'3 there will, in the ordinary
coarse of things, be a breach of his obligation to show
a good title. We have seen (/) that such a breach oF
the vendor's obligation under the contract will justify
the purchaser in rescinding it : but in these circum-
stances the right of rescission is founde 1 rather on the
fact that the vendor cannot deliver the article con-
tracted for, than on a false representation inducing the
jturchaser's consent (m). At the same time the vendor,
b}' making the contract of sale, impliedlj^ represents that
he has the property described to dispose of ; and it is
on the ground of his estoppel by this representation
that the Court allows the purchaser to claim specific
performance with compensation, where the vendor has
go(jd right to a part, but not the whole, of the pro[)erty
sold (ii). And if this implied represeuttition were
fraudulently made, the same consequences follow as if
there luul been a positive assertion in words of the
(i) Sec previous note; und cf. Vendor and Purchaser summons,
above, pp. 80.'), 821. a proceedinjr iu which there iH no
(k) Above, pp. 724, 7-S, I'M. jurisdiction t<.> rescind for mis-
(/) Above, p. SI 0. representation us s'nh ; below,
[m) See Re Hair and 0\)f ore's p. S"28, n. (//).
CoiUtact, 11)01, 1 Ch. 93, where n) Above, p. 724 .
the contract was rescinded in a
828
OF FRAUD, MISREPRESENTATION,
Election to
loscind oi"
affirm a con-
ti'iict induced
by misrepre-
sentation.
Purchaser's
right to
specific
performance
with com-
pensation.
Election to
rescind must
be made
within a
reasonable
time.
Must be com-
municated.
vendor's ownership, and that representation had induced
the other to enter into the contract (o).
As before mentioned { p) , a person induced by mis-
representation, whether fraudulent or innocent, to enter
into a contract for tlie sale of land, has the option of
rescinding or affirming it : but the contract is voidable
only, not void, and remains good until set aside (y). If
the party so misled, being the purchaser, elect to affirm
the agreement, he may, as a rule, enforce specific per-
formance with compensation for the deficiency ; and the
limits of his right in this respect have been already
explained (r). If the party misled propose to rescind
the contract, his election to do so must be made within
a reasonable time after the discovery of the misrepre-
sentation ; for long delay in claiming rescission after he
has become aware of the true facts may be evidence of
an intention to affirm the contract (.s) . And his election
to rescind the contract must be communicated to the
other party {t). If he elect to rescind the contract, he
is entitled to take active proceedings under the equitable
jurisdiction of the Court to have the agreement set
aside and cancelled ; he is not obliged to wait for this
relief until he is sued thereon by the other party (t().
{o) Above, pp. 654, 819.
Ip) Above, pp. 80t), 81:i.
(<;') Uiiiled tShoc, ^-c. Cu. v.
Brunct, 1909, A. C. 330, 339.
()•) Above, pp. 724—732, 812.
(s) Clouyh v. London and North
Western Rij. Co., L. K. 7 Ex. 26,
34, 35 ; Morrinon v. Universal
Marine Inmrance Co., L. li. 8
Ex. 197, 203 ; Lindsay Petrotenm
Co. V. Hard, L. R. 6 P. C. 221,
239 nq. ; Erlangcr v. AVw tiomhrtro
Fhoapkate Co., 3 App. Cas. 121S,
1277 ; Me Liuncan, 1899, 1 Ch.
387, 390 ; HedUon v. North Eastern
Salt Co., 1905, 1 Ch. 326; United
Shoe, ^v. Co. V, JSrunct, 1909, A. C.
330, 33y ; and see Charter v. Tre-
relijan, 11 CI. k. Fin. 714, 720;
Lmpertal Ottoman Bank v. Trmtecs,
^■c. Corp., 13 R. 287. If the party
misled point out the misrepresen-
tation, and the other make pro-
posals for removing its eifect, the
right of rescission is only sus-
pended and may be exercised, if
the proposals fall through ; 'Lib-
l/att.s V. Botilter, 73 L. T. 534.
[t) Bwlch-y-iiwm Lead Mining
Co. V. Bai/nes, L. R. 2 Ex. 324 ;
Ashley's case, L. R. 9 Eq. 263 ;
and see lie Duncan, 1899, 1 Ch.
387, 390.
(«) Above, pp. 811, 813—815 ;
Hoarex. Brcmridgc,'L.'R. 8 Ch. 22,
26 ; Londonand Brovmeial Insurance
DURESS AND UNDUE IXFLUENCE.
829
Election to affirm the agreement may not only be
expressly declared, but may be inferred from the acts
of the party cioncerned (.r), as by a purchaser's exer-
cising acts of ownership in respec^t of the property
bought {>/) . When tlie party misled, being aware of
tlie misrepresentation made, has once elected to affirm
the contract, he cannot afterwards rescind it (:;). And
where through the act of the person entitled otherwise
to avoid the contract it has become impossible to restore
the parties to their former position, the contract can no
longer be rescinded (a) ; tliougli a mere deterioration
through use of some property' purchased under a con-
tract voidable for fraud will not prevent the rescission
of the contract, if a payment in money would be an
adequate compensation therefor (A). Thus if one in-
duced to purchase mines by a fraudulent misrepresenta-
tion have entered into possession and worked out the
mines, it appears that he cannot afterwards rescind the
contract {c) ; but if in such circumstances mines or
similar properties be only partially worked, so that tlieir
depreciation would be a proper subject for compensa-
tion, that will be no bar to a claim for rescission, though
Election may
be evidenced
bv acts.
No rescission
after an
election to
aflKrm the
contract.
Nor where
by the act of
the party
claiminir to
rescind
reMitiitio in
integrion has
become
impossible.
''». V. fif'i/inour, Li. R. 17 Eq. 8").
If sued, he may counter-claim for
rescission ; J{<'d(/rar/' v. Jlnrd, "Jd
(Jh. D. 1 ; Siiilth V. Laud mid
lloitsr rrnpnty t'irrp., '2X Ch. ]).
7. But a claim to rescind the
contract for misrepresentation
cannot be made in a vendor and
jjurchaser summons ; /'/■ lliujhi s
(Hid Ashlei/x i'outrart, 1900. 'JOh.
595 ; see "below, C'liMp. XIX. ^\ 4.
(.(•) ('lough V. Lduditn mid Xort/i
fl'i'tfr))) lii/. Co.. L. R. 7 E.\. 2().
:?7 ; Lfiir v. Lmr, 1905, 1 Ch. 140,
158, 1.59.
(y) Kxpti. Jhiffi/s, L. R. 1 Kij.
488 : Sclmle;/ v. r'tiitm/ Idj. (Jo. of
]'e)iizitlii, L. R. t) Eq. "iGO, n. ;
Srddiiu V. Xortli EdKfcrn Salt (Jo.,
1905, 1 Ch. :5J() ; cf. above,
pp. 190, 191.
[z) Clough V. London and North
H'entcrn Ity. Co., L. R. 7 Ex. 26,
34 ; Law v. Law, 1905, 1 Ch.
140, 158, 159; rnitrd Shoe, ^c.
Co. V. Biinict, 1909, A. C. 330,
389.
[a) Clarke v. Didson, E. B. &
E. 148 ; ffesfcrn Bank of Scotland
V. Addic, L. R. 1 Sc. 145, 159,
165 ; Julant/cr v. Xcir Sombrero
I'hos/jhatc Co., 3 App. Cas. 1218,
1278 ; Romer, J., lins v. Di lier-
iiardi/, 1896, 2 Ch. 437, 446.
(A; Erlanger v. Xcic Sombrero
I'hosphate Co., 3 App. Cas. 1218,
1278; Laijunas Xitrate Co. v.
Lai/una.s Si/ndica(r, 1899, 2 Ch.
392, 433, 456.
(r) See Vii/er." v. I'l/.e, 8 CI. A:
Fin. 562, 650.
830
OF FRAUD, MfSREPRESENTATIOX,
No rescission
as against a
purchaser for
in taking the accounts {(f) the purchaser will be charged
with a due allowance for tlie deterioration (r) . These
rules, however, apply only where the act of t/tf pfd'f//
cJ(tii))i))g to rofic'nid has made complete restitution impos-
sible. The defrauding party cannot resist rescission on the
ground that Jn>i act has prevented the possibility of such
restitution ( /'). Thus on a sale of mines voidable at the
vendor's instance, he may set aside the sale, notwith-
standing that the purchaser has worked them {g). As
was pointed out in the previous chapter, the right to set
value without aside a contract of sale or a conveyance of lands induced
by fraud cannot be enforced, either at law or in equity,
as against any person who has acquired the land sold,
or any part thereof or interest therein, as a purchaser
for valuable consideration in good faith and without
notice of the fraud (h). A fort fori, the equity to set aside
a contract for innocent misrepresentation would not
be enforceable against any such purchaser. In the case
of innocent uiisrepresentation, however, this point can
liardly arise ; since it is held that contracts for tlie sale
of land induced by innocent misrepresentation cannot
be set aside after completion (/) ; and the plea of pur-
chase for value without notice cannot be set up by an
assignee of the benefit of the contract, whilst it remains
a mere chose in action (/.•). Subject to the limitations
indicated in this paragraph, a contract to sell land may,
if induced by fraud, be set aside after as well as before
completion (/). And as we have seen, an action can be
maintained, after completion, to recover damages at
law for a false representation innocently made in con-
nexion with the formation of a contract for the sale of
No rescission
for innocent
misrepresen-
tation after
completion.
Id) See below, p. 836.
(«) Above, p. 829, n. {b).
( /") riidsphatf Spu-aqe ('it. v.
llarlmont, T) Ch. D. 394, 448, 449,
452 ; Uces v. Dr Jtmnmbj, 1896, 2
Ch. 437, 446.
((■/) See Gresleii v. M/i'i/ V. Mitiin/ri/. 4 De (Jr. & J. (») Secfir v. Lairsou, 1.) Ch. ]).
78. <):'>; iilxivo, pp. oi" SI/., ry,i'). 42fi: f/m/ v. f'/nnr/ii/l. 40 Cli. I).
((/) Ali'ive, pp. olli, .'t')!. See 4Hi; and Hfo fii I'm/.- d'li/r frui/i/mi
also. p. 004. //'"/•/« *■'".. 17 Cli. D. 284.
{p) Gii-s/iii V. .Mims/ II, \ De G. [s] Above, p. .'>()8.
&J. 78, 9:$.'
832
OF FRAUD, MISREPRESENTATION,
all his rights under the contract, would have the benefit
of the option to rescind or affirm the contract, and of
the right to specific performance with compensation.
But if the assignor were aware of the misrepresentation
when he assigned over the benefit of the contract, then
it seems that the assignment, being the exercise of an
act of ownershi}), would be evidence of an election to
affirm the contract {t) ; and in such ease it appears that
the assignee could no more rescind the contract than
the assignor himself {u). But the assignee would have
the original contractor's right to claim compensation in
proceedings either for specific performance or for breach
of any warranty implied in the representation (.r) .
Against what
persons tlie
right of
rescission is
exercisable.
The right of rescission is exercisable, with the
limitations above mentioned, against the other party's
representatives after his death, his assigns for value or
otherwise of the benefit of the contract so long as it
remains a mere chose in action (//), and in the case of a
j)urchaser, against his assigns, taking by operation of
law (3) or by his own act, but either gratuitously {a) or
on pm'chase ivifh notice of the fraud (h), of the property
purchased or any interest therein.
Action of An action of deceit for a false representation, whereby
tahmble after ^ man's personal estate has sufi'ered damage, is main-
death of party tainable under stat. 4 Edw. III. c. 7 {c), by his
executors or administrators after his death (r/). But an
action to recover damages for deceit cannot, in general,
(t) Above, p. 829.
{11) Above, p. 829.
(.(■) Above, pp. 806—808, 810—
813, 828 ; and see below, p. 833.
(v) Above, p. 758.
(z) Load V. Gree», 15 M. & W.
216, 221 ; Re EmU/afe, 1905, 1
K. B. 465; Tilleij v. Bowman,
Lcl., 1910, 1 K. B. 745.
(a) Bridgeman v. Green, Wilm.
58, 64, 65.
{b) Tnvclya)i v. Whitt, 1 Beav.
588; Charter v. Trevelyan, II CI.
& Fin. 714.
(c) See Wms. Pers. Prop. 148,
16th ed.
{d) Twyvross v. Grant, 4 C. P.
D. 40 ; and see Hatchard v. Jleijfc,
18 Q. B. D. 771 ; Oa/ro/ v. Baffon,
35 Ch. D. 700.
DURESS AND UNDUE INFLUENCE.
833
be maintained after the death of the deceivino' party (e) . ?"* ."?* °*
o ^ v' \ / deceiving
If, however, the wrong were done within six calendar party,
months before the wrongdoer's death (,/'), it is thought
that an action would be maintainable therefor against his
executors or administrators under stat. 3 & 4 Will. lY.
c. 42, s. 2 (g). For as the personal representatives of
the party deceived may sue for the wrong done, as
being an injury to his personal estate (A), it appears
that the cause of action must be a vei-ong done in
respect of liis property within the meaning of that
statute («). The direct assignment of a bare right of
action of deceit appears to be obnoxious to the laws
of maintenance and champerty and to be void on that
account (/.■) . But it may be contended that, where the
whole benefit of a contract induced by fraud has been
assigned over in good faitli and for value, pending
completion and before the discovery of the fraud (/),
the assignee should be entitled, if he elect to affirm the
contract, to succeed by subrogation to all the assignor's
rights to compensation for the fraud ; and should be
enabled to sue the wrongdoer for damages at law in
the assignor's name in the same manner as an insurer,
who has paid compensation for damages caused by a
(e) Peek v. Gurnnj, L. R. 6
H. L. 377, 392 ; Ee Duncan,
1899, 1 Ch. 387. It appears
from the latter case that the
suggestions to the contrary
thrown out in Twycross v. Grant,
4 C. r. D. 40, 42, 46, 47, were
not well founded in law.
(/) See Kirk v. T Q. B.
D. 188 ; Shaw v. I'orr. rhilip
Gold Mhniiy Co., i:{ Q. B. D.
103 ; Shejfield Corp. v. Banlfii/,
1903, •! K. B. 08O ; Ruben \.
Great Ftinjall Con.so/., Ld., 1904,
2 K. B. 712, 1906, A. C. 439.
(«) Bunk of EiKjlund v. Viu/liiiHo,
1891, A. C. 107, IIG.
[x) Junes V. Rjide, Taunt. 488 :
Wilkinson V. John>>ton, 3 B. & 0.
428, 434 ; Gtirneij v. Il'omrr.slei/,
4 E. & B. 133. As to the re-
covery of money paid under a
mistake of fact, see Kclli/ v.
Sohiri, 9 M. i: W. 54 ; Re Bod^ija
Co., Ld., 1904, 1 Ch. 276 ; Baker
V. Conraye, 1910, 1 K. B. 56 ; and
as to the recovery from an agent
of money so paid to him, see
I'oUard v. Bank of Enqland,
L R. 6 Q. B. 623,630; Taylor
V. Metropolitan Ry., 1906, 2 K. B.
55, 63.
(y) CockH V. Master man, 9 B. &
C 902 ; London and Rwcr Plate
Bunk V. Bank of Liverpool, 1896,
1 Q. B. 7.
(;) Starkey v. Bank of Englan/l,
1903, A. C. 1 14 ; Bank of England
V. Cutler, 1908, 2 K. B. 208.
(a) Above, p. 2.
Contracts
induced by
duress or
undue influ-
ence arc
voidable.
840
OF FRAUD, MISREPRESENTATION,
Duress at
common law,
Equitable
doctrine of
undue
influence.
wanting in this element of validity : but in such con-
tracts, as in the case of agreements induced by fraud,
there is not the entire absence of consent which is
characteristic of mistake (/^). The party coerced or
unduly influenced does really consent to the proposed
agreement ; only he would not have done so had he
been a free agent (c). Contracts induced by duress or
undue influence are therefore not void : but they are
voidable at the option of the party whose consent was
so procured {d). The common law did not go beyond
avoiding contracts induced by duress, that is, actual
force or threats of violence. And it is laid do\\Ti that
the duress must be of the person and not of property
(as by wrongfully taking or withholding goods, or
threatening to do so) ; and that if actual force were not
used, there must be the fear of losing life or limb, or of
unlawful imprisonment. Thus battery was duress, but
not the mere threat of battery (e). And the duress
must have been used to the party to the contract him-
self or to his wife, child or parent ( /) . In equity,
however, a far wider jurisdiction was assumed to set
aside contracts made without free consent ; and it was
adjudged to be sufficient to avoid a contract or a con-
veyance if there were such constraint of the will of the
party making it that his consent {g) thereto were not
(Zi) Above, pp. 748, 757.
(c) Cf. above, p. 757.
(d) Bract, fo. 100b (§ 13), 396b
(§ 3) ; 2 Inst. 482 ; TFhelpdalc' s
case, 5 Rep. 119, and cases cited
below. It may be noted that, in
tbe case of the marriage contract,
which is peculiar and of which
the initial validity or invalidity
depends partly on considerations
foreign to the common law, a
consent induced by fraud, force
or fear, may be treated as being
no consent at all ; see Ftilwood's
case, Cro. Car. 488, 493 ; Harford
v. Morris, 2 Hagg. Cons. 423,
425, 436; FieWs 3Iarriagc, 2
H. L. C. 48, 58—62 ; Scott v.
Sebright, 12 P. D. 21 ; Cooper v.
Crane, 1891, P. 369, 376; Ford
V. Stier, 1896, P. 1 ; 1 Black.
Comm. 433 — 436 ; Bishop on
Marriage and Divorce (Chicago,
1891), vol. i. § 548 ; Moss v.
Mos!<, 1897, P. 263, 271 sq.
[e) 2 Inst. 483; Bac. Abr.
Duress (A) ; 1 Black. Comm. 130,
131, 136; Skcate v. Bcale, 11 A.
& E. 983, 990.
(/) Bac. Abr. Duress (B).
{gi See above, p. 749 and n. le).
DURESS AND UNDUE INFLUENCE. 841
free, although the constraint did not amount to duress
at common law (A) . And this doctrine of equity is by
no means confined to the inducement of consent by
outward force or fear ; it extends to every case in which
such influence is exerted by one party to a contract or
conveyance over the mind of another that the other
does not in fact consent thereto of his own free will (/).
The question to be determined in each case is wliether
the party, who alleges that he was unduly influenced,
agreed to the contract or conveyance made as a free
agent exercising his own untrammelled voUtion ; and
if he did not, he may avoid the transaction {i).
The cases, in which a contract or conveyance may Two classes
be avoided for undue influence, are usually divided "q^uT^ ^
into two classes. The first is where the alleged ground influence.
of avoidance simply is that the one party did in fact ^- ^^^^f
'■ '' , L J exercised
actively exercise sucli influence over the other's mind independently
that he was not a free agent, and it is not asserted that relaMon^^^^^^
the one stood in any confidential relation to the other {k). between the
The second is where it is claimed that (oidue influence ., .^,
2. Where
should be implied from the fact that there was a con- implied from
fidential relation between the parties, which invested of^somo ^°^^
the one mth a peculiar authority over the otlier, or confidential
imposed on him a special duty of advising the other (/).
In both classes the question to be determined is the
same ; was such influence exerted as to interfere witli
the freedom of the other's will ? But they differ with
(A) A.-O. V. 'Sot/ion, 2 Vem. licaiis v. Bayley, L. R. I H. L.
497 ; Ifuffurnin v. Buseley, 14 200, 212, 219 ; Lord Penzance,
Vea. 273, 294 ; Peel v. , 16 Parfitt v. Latdess, L. R. 2 P. &
Ves. 157, 159; and (^ Chester- M.' 462, 468, 469; AUcard v.
Jifld V. Janssoi, 2 Vcs. sen. 12-5, S/ciiinn; 36 Ch. D. 145, 183 — 186,
155 — 157, where this jnrisdictiou 190; Morlcij v. Loughnan, 1893,
is alluded to as a branch of the 1 Ch. 736, 751, 752.
equitable jurisdiction to relieve {k) Jfi/liaiiis v. Bayley, L. R. 1
against fraud. H. L. 200.
(t) See previous note; Dent v. (/) Alleard v. Skinner, SGCh.D.
Bennett, 4 My. & Cr. 269, 277, 145, 171, 181 ; Morky v. Loiiffh-
279; Lord Kinirsdown, Smith v. nan, 1893, 1 Ch. 736, 751, 752.
Kay, 7 H. L. C. 750, 779 ; JFil-
842
OF FRAUD, MISREPEESENTATION
Examples of
relations
where
influence is
presumed.
The doctrine
not confined
to any parti -
cidar set of
relations.
respect to the burthen of proof. This lies, in the first
class, entirely on the party who seeks to set the trans-
action aside {m). In the second, the plaintiff must
show that the alleged confidential relation existed : but
when this has been established, it is presumed, until the
contrary be shown, that advantage was taken of it ; and
the obligation then lies on the defendant of proving
that the plaintiff was not unduly influenced and that
his consent was quite free {>/). This class of cases is
exemplified in the relation of solicitor and client (o) ,
parent, or other person in loco pn j-cnf is and child (7;),
guardian and ward {q), confessor or other spiritual
adviser or religious superior and penitent or disciple (/•),
and doctor and patient (s). But the doctrine is not
confined to any particular set of confidential relations.
If any relation be established between the parties,
of which the natural consequence would be that the one
would come under the other's influence, the same rule
applies, and the onus is on the party occupying the
[m) Blackie v. Clark, 15 Beav.
595 ; Toker v. Taker, 31 Beav.
629, 3 De G. J. & S. 487-
(«) Gibson v. Jeycs, 6 Ves. 266,
276 ; Bent v. Bennett, 4 My. &
Cr. 269, 273 ; Archer v. Hudson,
7 Beav. 551, 560 ; Lyon v. Home,
L. R. 6 Eq. 655, 681 ; Parfitt v.
Lcntless, L. R. 2 P. & M. 462,
468, 469 ; AlUard v. Skinner, 36
Ch. D. 145, 171, 181—185.
(o) Gibson V. Jeyes, 6 Ves. 266,
276 — 278 ; Eclwurds v. Meyrick, 2
Hare, 60, 68—70 ; Holman v.
Loyms, 4 De G. M. & G. 270 ;
Savery v. King, 5 H. E. C. 627,
656; Spencer v. Topham, 22 Beav.
573, 577 ; Gresley v. Monsley, 4
De G. & J. 78; Pisani v. A.-G.
for Gibraltar, L. R. 5 P. C. 516,
536 ; }Fri()ht v. Carter, 1903, 1
Ch. 27.
{p) Archer v. Hudson, 7 Beav.
551 ; Harvey v. Mount, 8 Beav. 439
(elder sister) ; Hoyhton v. Hoyh-
ton, 15 Beav. 278, 299, 300 ; Sharp
v. Leach, 31 Beav. 491 (brother
with whom a sister was living) ;
Savery v. Kitty, 5 H. L. C. 627,
655 ; Turner v. Collins, L. R. 7
Ch. 329 ; Knnpson v. Ashbee, L. R.
10 Ch. 15 ; Bainbriyye v. Browne,
18 Ch. D. 188 ; Pou-ell v. Powell,
1900, 1 Ch. 243. As to the
principles ou which the Court
act.s in setting aside or upholding
•family settlements or resettle-
ments made between father and
son of the family estates or pro-
perty, see Hoghton v. Hoghton,
15 Beav. 278, 298, 300 sq. ;
Hatherley, L.C., Turner v.
Collins, L. R. 7 Ch. 329, 339;
Fane v. Fane, L. R. 20 Eq. 698 ;
Hoblyn v. Hobli,n, 41 Ch. D. 200.
{q) Hatch y.' Hatch, 9 Ve^9i-,
(r) Nottidye v. Prince, 2 Giff.
246 ; Lyon v. Home, L. R. 6 Eq.
655 ; Allcard v. Skinner, 36 Ch.
D. 145 ; Morley v. Loughnan,
1893, 1 Ch. 736, 752.
(s) Dent V. Bennett, 4 My. &
Cr. 269, 276 ; Mitchell v. Hom-
fray, 8 Q. B. D. 587, 589.
DURESS AND UNDUE INFLUENCE. 843
position of influence to prove that the other gave his
unbiassed consent (t). It is enough, for instance, that
one has taken upon himself or come to be the other's
confidential adviser in business matters or the manager
of his property (i<)- But there is no presumption of Hiisbaudaud
undue influence on the part of a husband in trans- ^^ ^'
actions between himself and his wife (.r) ; though of
course undue influence may in fact be exerted by a
husband over his wife with respect to her making
some contract intended to bind her (y). The equitable
rules as to the avoidance of transactions induced by
undue influence apply, not only to contracts and con-
veyances for value, but also (and of course more readily)
to voluntary conveyances, settlements and gifts, when Voluutaiy
made infer vivoH {z). But the presumption of undue '-""^^y""'''^''-
influence from the establishment of a confidential rela-
tion between the parties has no application in the case
of gifts by will ; and to upset such a gift, it must be Gifts by will,
shown, not merely that the legatee soUcited or put
forward claims to the testator's bounty, but that the
testator's volition to the contrary was overborne by the
legatee's influence {a).
(t) Uridffemanv.Grcetiy'lVeii.sen. man-y ; Payt- v. Home, 11 Beav.
627, Wilm. 58 : Hioiier v. Atkins, -ITt ; Cobbctt v. Brock, 20 Beav.
3 My. & K. 113, 136, 140, 141 ; 524, 530; and in special circum-
J)cnt V. limnctt, 4 My. & Cr. 269, .stiinces betweeu a man and a
277, 279 ; Smith v. Kaij, 7 H. L. woman, with whom he has g'onc
C. 750, 779 ; Morlc;/ v. Louyhnari, through a marriage ceremony,
1893, 1 Ch. 736, 752. v/\i\ch.i»\oi^, but which she believes
{u) See Hugueitin v. Basiley, 14 to h valid ; Voulson v. Allison, 2
Ves. 273; Himtrr v. Atkins, 3 De G. F. & J. 521; see Fanner
My. & K. 113 ; Tate\jrilliamson, v. Farmer, 1 H. L. C. 724, 752.
L. R 2 Ch. 55 ; Morlei/ v. Lough- [y) See Turnbullv. Duval, 1902,
nun, 1893, 1 Ch. 736. 752. A. C. 429, 432—435; (Jhaplin df
{x) Griybi/ v. Co.r, 1 Ves. sen. Co., Ltd. v. Drammall, 1908, 1
517, 51.S ; Nedbii V. Ncdby, 5 De G. K. B. 233.
&Sm.377; Barronv. Willis, 1899, {z) Huyuertin v. BaseUy, 14 Ves.
2 Ch. 578, 585 (reversed on the 273; Allmrd\. Skinner, 'i&Ch.'D.
facts, 1902, A. C. 271) ; Hours v. 145, 171, 181 sq. ; and cases cited
liishoi), 1909, 2 K. B. 390. It has above, pp. 841, 842.
been held that a fiduciary relation («) Htiidson v. Weatherill, 5
of the kind above mentioned may De G. M. A: G. 301 ; Boysc v.
exist between a man and the Rossborouyh, 6 H. L. C. 2, 49 ;
woman, whom he is engaged to Walker v. Smith, 29 Beav. 394 ;
844
OF FRAUD, MISREPRESENTATION,
Undue
influence
l^resuined
from confi-
dential rela-
tion on the
ground of
public policy.
What the
duty of
advising-
another
imports.
It includes
the duty of
communi-
cating facts
material to
the value.
Non-disclo-
sure of these
avoids the
sale.
It is on the ground of public policy that contracts
and conveyances are presumed to be voidable by one
party, if the other occupied a position of influence over
him, or were under a duty of giving him advice (/;).
As regards this duty, the person on whom it is incum-
bent is bound to give the other as good advice in the
matter of any contract or conveyance made between
them as if the transaction were carried out with some
third person and not with himself. The burthen is
therefore laid on him of proving that the terms of any
such contract or conveyance executed in his own favour
are in all respects fair and reasonable ; such, in fact, as
a competent adviser, acting exclusively on behalf of the
other party would reasonably advise him to accept (c).
The duty of so advising a vendor or piu'chaser of land
includes the duty of communicating to him any circum-
stance known to the person bound to advise and en-
hancing or depreciating the value of the property (d) ;
and it follows of course that the mere non-disclosm-e
of any such circumstance is sufficient to avoid the
sale {e). This principle is exemplified, not only in the
case of a purchase by a solicitor from his client (/), but
also where land is bought by the vendor's agent having
Hall V. Hall, L. R. 1 P. & M.
481 ; Tarfitt v. Lawless, L. R. 2
P. & M. 462, 469, 470 ; Baudaim
v. Richardson, 1906, A. C. 169,
184, 185.
{b) Above, pp. 842, n. (o), 843,
n. {t).
(c) Above, p. 842, n. (o).
\d) See Fopham v. Brooke, 5
Russ. 8 ; Edwards v. Meyrick, 2
Hare, 60, 68—70, 74, 75 ; Mohnan
V. Loyncs, 4 De G. M. & G. 270.
It was held in Edwards v. Mey-
rick that a purchase by a solicitor
from his client was not avoided
by the mere fact that he had not
pointed out to his client, that it
was possible that a railway might
at some future time be made near
the land sold, which would in-
crease its value, no project for
making such railway being then
actually on foot. It is conceived
that a solicitor purchasing from
his client would not be justified
in concealing from him any fact
known to himself which would
certainly tend to increase the
value of the property, as that a
project was actually on '^feot ^or
making a railway through or near
it ; and it seems immaterial that
the information was not acquired
in the course of his employment
as that client's solicitor, but from
an entirely distinct source.
{e) Tate v. Williamson, L. R. 2
Ch. 55.
(/) Above, p. 842.
DUKESS AND UNDUE INFLUENCE. 845
the management of liis property (r/), or his steward (A),
or any person who has undertaken to advise him as to
liis financial affairs (/) ; and wliere a share in a partner-
ship business is bought from one partner by another,
who knows and is aware that he knows more than
the vendor about the partnership accounts (/.•) . And Purchase by
it is further applicable in the case of a purchase by centui-que-
a trustee of his coHfiii-que-ti'usfs interest in the trust ^''"■''■
property (/). Where a solicitor or other adviser
purchases from his client for value, what he has to
prove in order to maintain the transaction, is that
the terms he gave were fair and reasonable, that
is, as good as could have been obtained from any one
else ; and if this be made out, the circumstance tliat the Ho^^; far a
client was not advised by a separate solicitor or adviser buyino- from
actinff independently for him, will not of itself avoid ^^^ (^^^^^^
'^ \ -r, • • must see that
the sale {m) . But it appears that m such eases the the client has
solicitor's proper course is to insist that the client shall ad\dce°' ^"*
be so separately advised ; and the fact, that he has not
done this, will be weighed in connexion with the other
evidence and so may tell against the validity of the
sale («) . And a voluntary conveyance or gift by a client
to his solicitor or in the solicitor's favour will not be
upheld imless the client were actually so advised (o) . If
[ff) Cane v. Alien, 2 Dow. 289, See below, Chap. XVII.
294, 299; Molon;/ v. Kernan, 2 [m) Edivards-v.Meyrick,2'H.wcc,
Dr. & War. 31. 60 ; Spencer v. Tophain, 22 Beav.
(//) Selseij V. Rhoa(ks, 2 S. & S. r)73; Pisaniy . A.-G. for Gibraltar,
41, 49, 1 Bligh, N. S. 1. L. R. ;5 P. C. ol6 ; and see cases
(i) Tate v. Wtlliainson, L. R. 2 cited above, u. (/), and Cane v.
Ch. 55. Alle», 2 Dow, 289.
[k) Law V. Late, 190'). 1 Ch. (w) See Harrison v. Guest, 6 De
140. G. M. & G. 424, 432 ; Barnard v.
[l) Exptc. Lacey, 6 Ves. 625, /f/^w-, 2 Jur. N. S. 1213; /Vw'<
• i, 11-p •! couplefl with
of the bargain that the oulj' reasonable inference is that unfaimoss.
the one took advantage of the other's position to
influence his will (,r). Thus a sale of land obtained at Longmatev.
a great undervalue from an aged, illiterate and weak-
minded man was avoided by his heir after his death (//) ;
and so was a sale made by a poor and illiterate man on Clark v.
terms very disadvantageous to him in his last illness ' " ^"'^'
and without any independent advice (s). And in
several other cases Coiu'ts of Equity have set aside
sales made at an undervalue by persons in a humble
condition of life unacquainted or imperfectly acquainted
vnth their rights or with the value of the property and
acting without independent advice (rt). So sales of an
equity of redemption made by the mortgagor to the
mortgagee have been avoided where there was pressure
])ut upon the mortgagor to sell and inequality of
position, cou])led with undervalue {h) ; although there
is no general rule, whieh prohibits a mortgagee fiom
(m) Sturgc V. Stiirye, 12 Beav. (a) Wood v. Abrey, 3 Madd.
229, 245; see also iJumifif/r v. 417; Baker v. Monk, 33 Beav.
White, 1 Swanst. 137, lol. ' 419, 4 De G. J. i: S. 388 ; Fn/ v.
(j) Kvanx V. LUwelltu, 1 Cox, Lane, 40 Ch. D. 312, 321, 322;
333, 340; Woofi v. Ahr.i/, 3 Madd. Janw-s v. Kerr, ib. 449, 460 ; Hees
417, 423. V. De Bernard;/, 189'J, 2 Cli. 437,
(y) Loiigiiiatr v. Ledger, 2 Giff. 445.
157; affiniied, see 4 DeG. F. & J. (6) Ford v. Oldtn, L. 11. 3 Eq.
402. 461 ; Frees v. Coke, L. R. 6 Ch.
(z) Clark v. Malpas, 4 De G. F. 645.
& J. 401.
848
OF FRAUD, MISREPRESENTATION,
buying the equity of redemption (e). Where such
circumstances as above mentioned "of inequality of
position and absence of independent advice are shown,
the burthen of proof is shifted, as in the case of the
establishment of a confidential relation (r/) ; and it then
lies on the person, who took the benefit of the sale, to
make out that the terms of the transaction were in fact
fail' and reasonable and the other party acted freely in
accepting them (c).
Inequality of
position alono
is not suffi-
cient.
Inadequacy of
consideration
alone is not
sufficient.
It will be observed that in all the above-mentioned
cases of inequality of position between a buyer and a
seller, the inadequacy of the consideration given for the
sale has been a material reason for setting aside the
sale. A contract of sale is not voidable merely on the
ground that the parties occupied unequal positions, as
that the buyer was rich and well advised and the seller
was poor or in a humble way of life, or old and ill, and
had no independent legal advice (,/') ; although it appears
that these circumstances are sufficient to cast upon the
buyer the burthen of proof of fairness (g) . In the same
way, inadequacy of consideration is not of itself alone
a ground for avoiding a sale ; and further, if no more
be proved than this, it does not appear that the party
challenged is obliged to establish the fairness of his
bargain (h). The rule of equity in this respect accords
with the rule of law (/) and leaves the parties at
(c) Knight v. MarJoribmiKs, 2
Mac. & G. 10, 13, 14 ; Ilelbourne
Banking Corpn. v. Brougham, 7
App. Cas. 307, 315 : above.
p. 486. n. {r).
[d) Above, pp. 841, 842.
[c) Bal-cr v. Monlc, ubi sup. ;
Frees v. Coke, L. R. 6 Ch. 645,
649 ; FryY. Lane, 40 Ch. D. 312,
322 : and other cases cited in
notes (y), (s), {a), above, p. 847.
(/) Harrison v. Guest, 6 De Gr.
M. & a. 424, 432, 433, affirmed,
8 H. L. C. 481 ; Rosher v. Wil-
liams, L. R. 20 Eq. 210, 213, 217.
[g) Above, n. (e). r
(A) Griffith V. Sprauerj, 1 Cox,
383 ; Feacock v. Evans, 16 Ves.
512, 517 ; TFoodv. Abrei/, 3 Madd.
417,423; Stilwelly. Wilkins, Jac.
280, 282 ; Cockell v. Taylor, 15
Beav, 103, 115; Harrison v. Guest,
ubi sup.
(i) Litt. s. 344 ; Sturlyn v.
Albany, Cro. Eliz. 67 ; Bolton v.
Madden, L. R. 9 Q. B. 55, 57 ;
Carlill V. Carbolic Smoke Ball Co.,
1893, 1 Q. B. 256, 264, 271, 275,
DURESS AND UNDUE INFLUENCE. 849
lihorty, if they be of full legal capacity and no con-
straint be iiut upon their wills, to make -what bargain
they please between themselves (./). But the fact that
a sale was at an undervalue, is evidence from which it
may be inferred that the partv thereby benefited was
guilty of fraud or undue influence ; and where it is
sought to set aside a sale on these grounds the inade-
quacy of the consideration given may possibly be so
gross as to leave room for no other inference than that
the bargain was obtained by undue influence or fraud (/).
It is also considered, according to the great prepon- Inadequacy of
derauce of authority, that inadequacy of consideration aloue uo
is not of itself alone a good ground for resisting the ^^ou^d for
specific performance of a contract for the sale of land (/). specific
In this case, as in that of the rescission of the contract, P*^'""r"»ance.
undervalue is merely a matter of e\idence to be weighed
along Avith the other facts of the ease. And notwith-
standing that the specific performance of a contract may
be refused on the ground of hardship or unfairness —
reasons which are of no avail to support a claim to
rescind the contract {/i/} — it is thought to be settled at
the present day that, where the only evidence offered
of hardship or unfairness is the inadequacy of the con-
sideration, the Court will not withhold the remedy in
(juestion (//) ; unless the undervalue were so gross as to
(,/) Seen. (//), above, p. SIS. 1.53. Earlier cases had proceeded
(/•) See Gicytiue v. llcatoi, 1 on the ground that inadequacy of
Bro. C. C. 1, 9; Uiido-hUl v. consideration alone /'(r'. a sufficient
Huncood, iO Ves. 209, 219; Htil- ground for refusing to enforce
ircll V. Jn/liHs, Jac. 2^0, 2S2 ; specific perfunn;in(;e ; Yoiiuq v.
/iJfVf V. r?o*7/o;/, 11 Beav. 2().i, 270; <'lerh\ IVec.. Ch. 538; San'tr v.
Summers v. (hijlitlin, 3.) Beav. 27, Havile, 1 1*. W. 74 5 ; Jhiij v.
33 ; Lord Westbury, Trinuiit v. Ncwmuu, 2 Cox, 77 ; and tlie
Tcntients, L. R. 2 Sc. App. 6, 9. earlier nile was re-asserted by
(/) Collier V. Broun, 1 Cox, Kindersley, V.-C, in Falcke v.
4 2K ; White v. Damon, 7 Ves. 30, (iraii, 4 Drew. G.')l : but this case
■'ii ; Voh'K V. Trccotliiclc, 9 Ves. is said by Sir Etlward Fry. Sji.
234, 246; Jtmroucs v. Loc/~, 10 I'erf. ^ 44;}, 3rd ed., to break tlie
Ves. 470, 474 ; U'r.^fiin v. Rit.ssill^ current of the later authority.
3 V. A: B. 1«7, 193; ]}urcll v. , > ., -.„ -_.
/, o XI KM i-n III 44 ("'I Above, pp. (68, ,(,).
/hiiiii, 2 Hare, 440, 4.t0; Aliuott ^ ■ ' *^'
V. Suorder, 4 De G. & Sin. 448; («) Fry, Sp. IVrf. \ 44(;, I'.rd
/fai/iniiid V. Co/If, 2') Beav. 140. cd.
w. 54
850 OF FRAUD, MISREPRESENTATION,
raise, wlien considered in connexion with the circum-
stiinces of the case, an irresistible inference of fraud or
undue pressure (o).
Inadequacy An exception to tlie rule, that mere inadequacy of
of considera- • i - • • p ll- • i • l-
tiou on sale of consideration is no reason tor setting aside or resisting
a reversion. specific performance of a contract, was formerly admitted
in tlie case of tlie sale by private contract of estates in
remainder or reversion ( j)) or other reversionary pro-
perty ; wliere the oini.). And they
are equally unimpeachable against purchasers taking
any interest in the land sold for value in good faith and
without notice of that fact (r). Such contracts and
(«) Aiihsford V. Morris, L. R. (n) A voluntaiy settlement
8 Ch. 484, 490, 401; O'liorlr v. made in favour of several per-
Jl(i/i)if/firu/.r, 2 App. Cas. 814, 822, .sons and indueed, as ro intenst taken
Ch. D. ."iri; Brenchlfj/v. Hifigina, by himself alone, by undue in-
83 L. T. 7ol. Hucnce is not voidable ajraiiist the
(.r) Above, pp. 828 .w/. others ; Ifrii/hf v. Cart< r, 190:5, 1
(y) Fordv. Olden,!,. R. 3 Eq. Ch. 27. But the ca.se is different
461. where a .'settlement is procured by
[z) Holman v. J.nyiies, 4 De G. the undue influence of one party
M. & G. 270 ; Grrslcii v. Moiinhij, in favour of himself and other.--,
4 De G. & J. 78 ; ri(.wri) Jfiif/i/ciiin v. Jlasrlei/, liVes.
election for duros.s or influence, 273. 289 ; Kciiipxo)! v. Anhbee,
the option to set the transaction L. R. 10 Ch. lo ; Baiiibriqgc v.
aside forms part of his real estate, Ilroinie, 18 Ch. D. 18S, 197 •
a« in the case of a similar con- Mnrleii v. Louglnian, 1893, 1 Ch.
tract voidable^ for fraud : above, 730, 7o7.
p. 831 ; Tomson v. Jitdf/r, 3 Drew. fc) liluchic v. Clark, 15 Beav.
306. 595 ; Bainhrigqc v. Browne, 18
Ch. D. 188, 197.
54 (2)
852
OF FRAUD, MISREPRESENTATION
Terms of
sotting aside
sales induce!
l>y duress
or undue
influenee.
conveyances may be affirmed either expressly or im-
pliedly in the same manner as those induced by
fraud («■/) ; and long acquiescence therein may be evi-
dence of an election to affirm them {e). But of course
any such express confirmation must be quite free from
all taint of the duress, undue influence or breach of
duty which it is intended to condone (,/') ; and it must
not be made in ignorance of the party's right to set
aside the original transaction ; otherwise it will be
equally voidable {). Sales of land induced by duress
or undue influence will be set aside, in general, on the
like terms as those induced by fraud, the vendor
returning the purchase money paid with interest and
the purchaser giving up the land and the profits thereof
received or derived by him (//), including an occupation
rent for any land which has been in his own possession,
having the like allowances made to him for necessary
outgoings and substantial improvements and repairs,
and being charged, where the relief is claimed against
him, and in a proper case where the relief is claimed by
him (/;, with the loss caused by any acts of waste or
(d) Stump V. Gaby, 2 De G. M.
& G. 623 ; Jftrratt v. Aldnm, L. R.
9 Eq. 463.
[e) Edwardfi v. Meijrick, 2 Hare,
60, "i^ ; IFrif/Iit v. Vinidcrplank,
8 De G. M. .\^ G. 133 ; AUcanl v.
Skhini'r, 36 Ch. D. 14;5, 187, 192,
193.
(/) Bn'a//i V. rri-r, 1 Wils.
(K. B.) 320 ; Savery v. King, 5
H. L. C. 627, 664; Moxoi v.
Payne, L. R. 8 Ch. 881, 885.
[g] Bangh v. Prhr, 1 Wils.
(K! B.) 320, ;'22 ; lumpson v. Ash-
hee, L. R. lOCh. 15. It iseonceived
that there can be no doubt that, as
a rule, knowledge cf the party's
rights is necessary to make an
effectual confirmation. But in
MifrhcH V. Homfray. 8 Q. B. D.
587, it was in special cii'cum-
stances lield that a gift of money
to a medical man by a patient
was confirmed by the patient's
deliberate assent thereto persisted
in during-i^everal years after the
relation betAveen them had been
severed, although it was not
pi'oved that the patient knew
that the original gift was void-
able. The ground on which this
judgment really rests appears to
be that such assent was equiva-
lent to a new gift made at a time
when there was no cjnfidenrial
I'elation between the parties to
invalidate it. It may be noted
that, as the chattels given were
already in the donee's possession,
nothing was required to make a
new gift to him but the expres-
sion of the donor's intention to
yi\e: Wms. Pars. Prop. 09, 16th
cd.
{],) Above, pp. 834—837.
(I) See above, pp. 829, 830, 837.
DURESS AND UNDUE INELUENCE.
853
deterioration, which he has committed {k). Aud the Whether
piirchasor will not he i-(-quire(l to account for the rents aecountable
and profits on the footing of wilful default (/), unless a "" the footing
special case be made out against hrni {/n), or unless he default,
were guilty of a special breach of trust ; as where he
purchased when he was standing in a fiduciary relation
to the vendor and concealed from the vendor some
information Avhich ought to have been communicated to
him (»), or where the fiduciary relation was such as to
incapacitate him altogether from purchasing the estate(o).
It is thought that, where a sale is set aside for any undue
influence not amounting to an actionable wrong, the
party in fault is not liable to reimburse the other for
any loss sustained in the nature of collateral damages
and not attributable to any outla}- incurred or act done
in pursuance of the contract {p). But in the case of a
sale induced by duress (such as false imprisonment,
battery or menaces of loss of life or limb(y)), which
amounts to an actual tort (/•), it is conceived that the
party so coerced can recover all damages attributable to
the wrong, as in the case of fraud (*•).
(/.) Expte. Hiighex, (i Ves. fil7,
624, 625 ; E.epte. James, 8 Ve8.
;i:57, 3;)! ; E.) Above, p. 835.
854
CHAPTEK XV.
OF ILLEGALITY IN THE CONTKACT.
There must
be nothing
imlawful in
the object of
the agree-
ment.
Sales fur
illegal pur-
poses void.
Contract fur
sale of land
including
some \\u-
lawful term.
We have seen (a) that it is essential to the validity of a
contract that there he nothing unlawful in the ohjcct of
the agreement. A simple sale {h) of land is not in
general affected, hy this condition : but there are some
sales of land or other hereditaments which are expressly
prohibited by statute (c) ; and a sale of land is void, if
it be made for an illegal purpose (»'/). Ag-iin, it' a con-
tract for the sale of land include other terms besides the
agreement to convey the land on payment of a jtrice in
money, and any such other term be illegal, the whole
contract or the illegal part of it will be void, according
as the lawful portion of the agreement be inseparable
from the illegal part or not {''). And if the unlawful
stipulation be a part of the consideration for the convey-
ance of the land or payment "of ,^the price, as the case
may be, the whole contract will be void (,/').
What con-
tracts or
f-tipulations
are unlawful.
With regard to the question, what contracts or stipu-
lations are unlawful, contracts for the sale of land are
{(') Above, p. 2.
{/)) Above, pp. 1, '2(H).
{(■) See below, p. iSoT).
(V/) ]A(jhiJ(jot V. Tcinmt, 1 B. &
P. 5ol, .556; Gas Light and Coke
Vo. V. Turnc)-, 6 Bing. N. C. ;5i4 ;
FiSiher v. Brah/rs, 3 E. & B. 642 ;
Smith V. Whiir, L. R. 1 Eq. 6'26 :
T'enrce v. Jiri^ols, L. E. 1 Ex.
21.3.
(t) F 1 1 particularly
place, some contracts are particularly prohibited by prohibited,
statute and are void on that account. Thus tlie sale by Sale by
,• n ^ , 1 J auction of
auction 01 an advowson apart irom any manor or land j^,, advow.son
was made unlawful by the Benefices Act, 1898 (//), and ^^^ne.
is therefore void. And the sale of any land byway Sale by way
T -1 • 1 11 • 1 1 o^ lottery,
of lottery is expressly prohibited and made void by
statute (/). Other contracts are infected with illegalitv, f-""*^''^*.-^-
not as being particularly prohibited, but because they some rulJ'
infringe some rule of law. In this way, contracts for "* ^^" •
the sale of land are void if they contemplate the com- eontomplatiug
mission of any act, wliicli is illegal by conniion law or "" illegal act.
statute ; such as a crime, an indictable otiVuce or a civil
wrong (/•), or an act prohibiicd by statute on pain of a
lieiialty or otherwise (/). A sale of a house is therefore
void if made to the knowledge of both parties witli tlio
object of using it for the purpose of manufacturing
counterfeit coin or banknotes, or in any manner whicli
is a common nuisance ; as a brotliel, for instance [m), or
as a comnum gaming or betting house or a disorderly
place of entertainment (//) ; or for the purpose of carrying
on there any illegal process of manufacture {(>) or busi-
ness (;>) ; or for the purpose of putting it up for sale by
((/) Sec Pollock ou Contract, ()«; Lhijd \. Johii^mi, \ B. & V.
Ch. VII., pp. 27;J v'/., 7th ed. ; 340. 341 ; SmUh v. ll'hitr, L. K.
Wms. I'crs. IVop. 170 vy., KJth cd. 1 Ki|. 62 G : JKmrr v. liiiiuhs,
(//) Above, p. 4!:'.. L. R. 1 E.\. ■_'1<; and sec above,
(i) Stats. 10 & II Will. III. p. 770.
e. 17, s. 1 ; 12 Geo. II. c. 2K, (;/) See Stephen. Dijrest of
S8. 1, J ; Fisher V. Jlrii/ffts, 3 E. Criminal Law, Art. 1!>7 - 207,
& "B. (542, 64S. " oS8, 408 sq.
(/.) Co. Litt. 20iib and ii. 1 ; i«) (inx Li'jhl muf <'<,l;r ('„. v.
Milch, I V. Ji>;/,n>l'fs. 1 I'. W. IM, Tiinin: (> Biufr- N. C. 324.
Ibll; Bar. Abr Conditions (K). /') See f'o//c v. Jiijii/, 2 M.
(/) Jinisl,;/ V. Jlir/)ii,//i, .") R. vS: vt W. HO Unlicensed broken ;
A. 3 to : Cnp' V. Rnii/tuiils. 2 M. Tiu/fof v. r,t>i/{,i)ni (ios Co., M) E\.
& W. 149, 157 : Tui/lui- \. I'r.iii- 203 uncertilicjjted conveyances) :
land Uiis Cii , 10 Ex. 293; and Ihiricix. Mal.innt. 29 Ch. D. o9(>
8ec lUioth V. l{inl; of Einjlaitil, 7 (uuiiualifiedn:e.lical practitioner).
CI. & Ein. 509, -VtO.
^r.e
OF ILLEGALITY IN THE CONTRACT.
lottery {(/). Ho a sale of land is void if part of the con-
sideration be the publication of a libel (/•) or the com-
mission of a fraud on persons not parties to the
contract (.s), or an illegal transfer of a public office {f),
or any stipulation which is illegal as tending to en-
courage immorality or as being against the policy of the
law (ii). Such are stipulations for future cohabitation
(^\'ithout marriage) between a man and a woman (.r) or
for stifling a criminal prosecution (//) for some oifence,
■which cannot be the subject of an action for damages, or
is an o£fenc3 against the public {z) ; and stipulations in
general restraint of marriage {a). And it is thought that
stipulations, which are in general or unlimited restraint
of alienaUon, are of the same kind (b). Here it may be
((/) Fisher v. Bridi/es, 3 E. & B.
642 ; see above, p. 85.5.
(rj Shackell v. Itoslrr, 2 Biua".
N. 0. 634.
(a) Jlal/cihea v. Hodyson, 16
Q. B. 689 ; Begbie v. Fhosphatr
Hcwdffc Co., L. il. 10 Q. B. 491,
499 ; Scoit v. Brown ^- Co., 1892,
2 Q. B. 724 ; Jie Mi/ers, 1908, 1
K. B. 941, 9i3.
[1] H'lpklns V. IVcscotl, 4 C. B.
578. See Beiijamiii on Sales,
415, 437, 2ndcd.
('0 See Ef/erton v. Broiniloir, 4
H. L. C. L 123— 125, 160, 195.
(.(■) Walker v. Perk,i,s, 1 W.
Black. 517 ; Graij v. Miith'ms, .">
Ves. 286.
[if) Voliuix V. Bid litem, 2 Wilti.
341 ; 1 Smith L. C. ; ll'/«im.s v.
Bai/lei/, L. R. 1 H. L. 200, 213,
240 ; Lound v. Grimwadc, 39 Ch.
D. 605.
(r) Keir v. Lccniiin, 6 Q. B.
308, 321, 9 Q. B. 371, 395;
Fiilicr V. ApoUi)Hiris Co., L. R.
10 Ch. 297 ; Expte. Wohrr-
Ji iwpion, %c. Banking Co., 14
Q. B. D. 32; Windhill Locd
Board v. Vmt, 45 Ch. D. 351 ;
Jones V. Merionethshire, ifo. Bdtj.
i>oci/., 1892, 1 Ch. 173.
(«) Loire V. Feers, 4 Burr. 2225.
As to couditions iu general re-
straint of marriage, see an article
by the writer in L. Q. R. xii. 36.
(h) Parke, B., Eijerton v.Brown-
loir, 4 H. L. C. 1, 125 ; Hope v.
Gloucester Curpn., 7 De G. M. &
G. 647 ; F" Qnin. 8 Ir. Ch. 578 ;
Billimjv. Welch, I. R. 6 C. L. 88,
201 ; McLean v. McKai/, L. R.
5 P. C. 327, 334, 335 ; Pearson, J.,
Be Rosher, 26 Ch. D. 801, 810,
811, 819, 820; Chitty, J., Be
fTJliot, 1896, 2 Gh. 353, 356 ; but
see Co. Litt. 206 b, and Mr.
Smith's criticism thereon, 1
Smith, L. C. 185, 2nd ed. ; 435,
11th ed. These authorities are
all seated and discussed by the
writer in 51 Sol. J. 64 S, 650, 669,
670, in an article criticising the
decision of Warrington, J., in
Worthing Corpn.Y. Heather, 1906,
2 Ch. 532 ; see also other articles
by the writer iu 42 Sol. J. 628,
t)50, and 54 Sol. J. 501, 502, the
latter criticising the decision in
iSiiuth Eistern Bi/. Co. v. As^o-
clntcd Forthind, l^-c. Ltd., 1910,
1 Ch. 12. In these articles it is
submitted that contracts to make
some conveyance, which if actu-
ally made by way of shifting use
or other executory limitation
would be void as breaking the
rule against perpetuities, are in
general or unlimited restraint of
alienation and should on that
OF ille(;ality in the contract. 857
iiK^iitioiiod that stipulations in unreasonaLle restraint of Stipulations
trade are roi(/ as being against tlie policy of the law (r) : |,*bie"reliramt
but they are not unlawful ('/^,. If, therefore, such a of trade,
stipulation form part of the consideration for a sale of
laud, it does not avoid the sale ; for in such cases the
Courts will enforce the stipulation so far as it may be
reasonable, and reject the excess only (d). (Jontracts to Contracts
buy or sell land made with the inhabitants of hostile ™,e inhabi'-
states appear to be void, uidess entered into with the >^'"»t? "*'
1 • . ,. -,-, . , 1 ,. „ hostile states.
kings licence. Jbor except by royal licence all com-
mercial intercourse between the king's subjects and the
inhabitants of an enemy's country is prohibited {c).
And this rule applies, not only to aliens, but t(j all
persons, even to British subjects, residing in a hostile
state, who are adherent to the king's enemies by carry-
ing on business there or otherwise ( /) .
Sales of land are also void if they involve the offence Sales iu-
of maintenance or champerty, or infringe the principle mainteiiance
of legal policy on which those offences are founded, and '^'" ''"amperty.
which is intended to prevent the multiplication or stir-
ring up of lawsuits ((/). Here it may be mentioned Saleofaright
that at common law, if a man were disseised of his action ti: B. 76;5, 779 ; Juiisu/i v.
above, pp. ^70— :}72, and notes J)ricf'ontiui, i\r., I'JO.', A. C. 484,
(.(•), (//). 4SK, .)02, .509 ; below, Chap. XVI.
yf) See 3/fi.iiin, i\r. ^'o- v. Xor- ^ 1 , under the head of Aliens.
deitfe/l, 189 J, 1 Ch. G'-MK 1894, { /") M'Coinirft v. Hntor, .i ]i. ic
A. C. o3.i ; Khr.mtii v. liuiDwIn- P. li:} ; Rvhrrts v. Hind,/, W M. &
iww, 1898, 1 Ch. 671 ; i'liderwoml S. h'i'i ; Albntchl v. Su-ihiikdui, 2
V. Barker, 1899, 1 Ch. 30 : V. A: B 323 ; J,uix„„ v. Drufo,,-
Toirimiii V. Jarnuiii, 1900, 2 Ch. tein, 1902, A. C. 484, .)0.), .')06.
()98, 702: JJvudn, v. I'oo/,; 1904, () ItcijHttl v. Spri/e, 1 De G.
1 K. B. 45. IM. ^: G. (560, G77, 686 ; Spryr v.
(r/) Malhdi V. May, 11 M. cV W. I'urUr. 7 E. \- B. .■)8 ; HatUii v.
6i3. 609: Green v. I'ria, 13 M. Jli(Hrest. Ab-t. f' j^f:" J-/''i''""'''!^' 1«'"'- ^
204.205. Oh. 43 <, 446, 41/.
(») Stat. 8 & y Viet. e. IOC, (//) JFood v. Grijfi//,, 1 Swatist.
s. (> ; held not ti) extend to rig-ht 43, 5(i ; Hurtleii v. Unite//, 1 S. &
or title of entry upon a forfeiture S. 244 ; Hnmnglon v. I.onq, 2
for eouditioii broken ; Hnut v. My. & K. 500 ; Hunter v. Itnuirl,
/;i.v//o;<, 8 Ex. G75, (580 ; Ilnnt \. 4 "llare, 42(», 430; tWi:,// v.
Remnant, 9 Ex. 635, ()40 ; (hnm Tiii/'or. lo Heav. 103, 117; Kniijlit
V. Batten, 2 Conira. Law Rep v. linni/ r, 2 De G. & J. 421, 443
KiOfi, 23 L. T. O. S. 220; Wms. —445;' Myers v. rnif,d, \e. I',,.,
ou Seisin, 125; Jen/.ins v. Junex, 7 I)e G. M. & G. 112; Ja.nei v.
9 Q. B. D. 128, 131 ; above, Kerr, 40 Ch. D. 449. 450. 457.
pp. 404, 405.
800
OF ILLEGALITY IN THE CONTRACT.
iiuiiutiiiii the vendor in his suit to recover tlie rest (;:).
There is an exception, however, in the case of the
solicit(jr acting' in the litigation, who cannot lawfully
purchase the thing sued for from his client while the
action is pending {a) ; though he is permitted to take a
mortgage or charge thereon by way of security for a
loan (//).
Sales made
void or
iiueiiforce-
able, but not
prohibited.
Again, some contracts are made void or are rendered
unenforceable by statute, though not prohibited. Of
this kind are contracts made by way of gaming or
wagering (r) ; and if any contract for the sale of land be
so made, it will be void accordingly (d). So we have
seen that contracts for the sale of land are not enforce-
able unless put into writing and signed by the party to
be charged or his agent [r).
lllegH]
contracts are
void.
Property
transferred
tlicreuuder
cannot be
recovered
back.
Illegal contracts are altogether void ; no proceedings
can be maintained thereon at law or in equity ; and if
either |»arty sue the other in respect thereof, the latter
is at liberty to plead the illegality of the agreement as
a defence (./'). It follows that if an illegal contract be
wholly or partly executed, no action can, as a rule, be
maintained to recover any money paid or property
transferred thereunder (/'). Tims if land be sold for an
{z) Above, p. S59,n.(//) ; andsee
uitidersKH V. Radclifr, E. B. & E.
806. As to the question, how
far this doctrine is apphcable to
an action to recover damages for
a wrong, see Wms. Pers. Prop.
l.H, Ifitli ed. ; and an article
by the writer in L. Q. R. x. 14 3,
147 sq. ; above, p. 833.
(«) iSimpxuu V. Lamb, 7 E. & B.
84.
(/') Atidcrtion v. RadcHjI'c, E. B.
& E. 80C.
[c) Stat. 8 \- y Vict. c. 109,
s. 18; Bi/amx v Sliua-l Kimj,
1908, 2 K.'B 696.
{d) Consider Roitihr v. Short, b
E. & B. 904 ; Re Gitre, 1899, 1
Q. B. 794.
{(') Above, pp. 3 — 14.
( f) See VijU'uis v. lihoifvrn, 'I
Wils. 341 ; Hohiiaii v. Jo/nisitit. 1
Cowp. 311; cases cited above,
p. 8.)4, n. {d) ; T«n/lor v. Vhcxlcr,
L. R. 4 Q. B. 309 ; Ai/cml v.
Jad-lHs, L. R. 16 E(i. 275 ; Un-
man V. Jciu'hncf, 15 Q. B. D. ')6I ;
Kcarley v. Thomso)i, 24 Q. B. D
742; 'Scutt v. Brown S; Co., 1892,
2 Q. B. 724 ; Gedgc v. Royal
y.Xi-haiiye Ash. Corp., 1900, 2 Q. B.
214; nurse V. Pearl, i?r. Co.. 1904.
1 K. B. ;3o8; Re Myers, li 08, 1
K. B. 941.
OF ILLEGALITY IN THE CONTRACT. 861
illegal purpose and the contract be completed, the ven-
dor cannot afterwards recover the land, nor the purchaser
the price ; if the purchaser pay the whole or part of the
price to the vendor before the land be conveyed to him,
tlie vendor may plead the illegality of the agreement as
a bar to any action by tlio purchaser eitlior to compel
conveyance or recover the money paid (./') ; and if the
^■endor convey the land without payment, he cannot
get it back, or enforce payment of the price, either
directly, or indirectly by suing upon any bond, covenant
or note given to secure such payment (v). Here it may Sale for
.,,,, ii- 11- illegal pin-
be mentioned that, where land is purchased in order to p^ses kuown
be used for an illegal purpose, the contract is only void *« ^9*''
if such purpose be known to both parties to the sale (//).
If one contract to buy land, intending to use it for an To one party
illegal purpose but without disclosing this intention to
the vendor, the purchaser cannot in tliis case allege his
own unlawful intent in order to avoid the coutra(!t (/) ;
and the contract is enforceable by the vendor. And it
seems that this is equally the case, although the vendor
may suspect that the purchaser intends to put the pro-
perty to an unlawful use, so long as he is not actually
aware of any definite intention so to use it (/»•). If the
purchaser's unlawful purpose were at first unknown to
tli(> vendor, but the vendor afterwards became aware of
it before completion, the contract is in effect voidable
at the vendor's option ; he may then plead the pur-
chaser's illegal purpose as a bar to tlie enforcement of
tlie contract (/) : but llic j)urchas('r himself cannot
do so.
There are certain exceptions to tlie rule tliat money Excoptions
paid or property delivered under an unlawful agree- xh&t property
(/; See last note. li. & A. 867.
[g) Fithry v. lUidyrs, 3 E. & y.) Sue L/oi/il\. Ju/tiiyoii, I B. &
B. 042. r. :U0; /V«,yv v. Jfri,u/:s, L. R.
(/i) See oases oitccl above, pp. I Ex. "213."
8.')4, n. 'd), S5r.. (/) r,„r„,i v. MUlmnni, L. R. _'
(i) l>oe d. Hohrrtu v. Uobnl^, '1 Ex. -'{0.
862
OF ILLEGALITY IN THE CONTRACT.
parted with
under an
illegal con-
tract cannot
be recovered.
meiit cannot be recovered back. Thus if one who has
paid money or delivered property under such an agree-
ment repudiate his unlawful purpose before any part of
it be accomplished, he may recover his property back ;
unless perhaps the object of the agreement were actually
criminal or immoral (;»). But this exception does not
apply if the illegal purpose has been partly performed {)i) .
And where one has made an unlawful bargain, which
would (except for its illegality) be voidable by him, as
if he were induced to enter into it by fraud, duress or
undue influence, he may recover back any property
transferred thereunder (o). Another exception to the
rule is where it is sought to recover money paid or pro-
perty transferred under a contract made void by some
statute passed for the protection of a class of persons,
of which the plaintiff is one (]>). And money or pro-
}ierty deposited witli a stakeholder or other agent in
order to be applied under an illegal contract may be
recovered back, if notice not to part with it be given
before it be actually delivered over in pursuance of tlie
agreement (q).
{»i) Tappenden v. RandnlK 2 B.
& P. 467 ; Tahinrt ^.-mkie, 6
M. & S. 290 : T(i]ihr v. Tlou-er.%
1 Q. B. D. 291 ; see Hermann v.
Charlrm:oHh, 190.'), 2 K. B. 123.
('«) Kenrley v. Thomson, 24 Q.
B. D. 742 ; .see Hermann v.
rhnrlcxirorth, 190.5. 2 K. B. 123.
(o) (hhorne v. inUiams, 1 8 Vcs.
379; Reynell v. Spryc, 1 De G.
M. & G. 660, G79 ;' AtJdnson v.
Deiihi/, G H. k N. 778, 7 H. & N.
934 ; and see Hamc v. Tear/, iS,-r.
Co., 1904, 1 K B. 558, 563, 564:
Pollock on Contract, 384-^386,
7tli ed.
[p) Barclay v. Pefirxon, 1893, 2
Ch. 154, 165—168; Boinuird v.
Doft, 1906, 1 Ch. 740 ; Chapman
V. MlchaHmi, 1908, 2 Ch. 612,
1909, 1 Ch. 238; cf. Lode/c v.
National J'nion Inrefitmenl Co.,
Ltd., 1907, 1 Ch. 300, where a
plaintiflF applying under the
above exception for equUahJe
relief in the way of recovery of
property was put upon terms as a,
condition of havintr it restored to
him. The three last cases relate
to property mortgaged to an un-
registered moneylender ; see
above, p. 487.
(7) Hisfrhif v. Jack-son, 8 B.
& C. 221 : Bone v. Ekiesx, 5 H.
& N. 925 ; harclaif v. Pearson,
1893, 2 Ch. 154, 168—170 ; Stra-
chiin V. Universal Stock Exchanqe,
1895, 2 Q. B. 329, 1896, A. "C.
166; Hhoolhred v. Roberts, 1899,
2 Q. B. 560, 1900, 2 Q B. 497,
500; Bunie v. Ashlo/, 1900. 1
Q. B. 744.
OF ILLEGALITY IN THE CONTRACT.
863
Where a contract is not proliihited hy law, but is Proporty
merelj made void (/), au}^ money paid or property uuder\-oid
transferred thereunder is in general equally irrecover- contracts,
able as iri the case of a prohibited contract. For the
rule is that money paid or property conveyed away
with a full knowledge of the facts, though under a
mistake of law, cannot be recovered back (.s). And where
an agreement is made which is not prohibited, but is
binding in honour only and is void at law, the one
party has in general no legal remedy if the other refuse
to perform his part of tlie agreement after having
received what was due to him thereunder {f). Thus
contracts which are illegal merely because they are
made void by statute stand in effect on the same footing
as contracts which are prohibited. If therefore a void
agreement be whoUj- or partly executed, the l;iw will
leave the parties in the position in which tliey stand,
and will not lend its aid to undo what has actually been
performed {/i). But a party to a merelj^ void contract
is at liberty to repudiate it before it be performed, and
if he do this, he may recover any money or propertj-
deposited with the other party as seeurit}^ for his carry-
ing out the agreement (.r). And property transferred
to a stakeholder or other agent for tlie pur^jose of being
ai)plied under a merel}' void contract may be recovered
(»•) Aliove, p. 860. /„scr. Co., L. R. S (}. P. HIO, '.)
(s) liMie V. I.nwiii, -1 Kast, ^"^V '^^ ,V*^" ■ „ ,,-„,.
II u. U.I. „ /I. : -. T,,..f [il] Jldiliiuii/ V. ['((icrll., Do (.J.
4Ij9 ; liitslKiiitx. Dtiiiis.,.) I aunt. .^^ . ,, .. •;_ ..., ,.,. ,, ,
.,-, ,•- , • 77 ' .,, V. II iilsh, 1 Q. B. D. 189, l)i.
a. H. J). 742, 743; Fuul.- v. I i "/v" l\ «u-'''o n -^
Tra„t,,; 190.5. 1 K. B. 4-27: ami ^^::''"»a'' (No. 2), 189o, 2 Q. B.
see Seyiiiotr v. I'ukett, ib. 71'). ' ','\ tt . ti- j i w-> t. T^
There is an exception where .i'^^rTfr^'y L'^i?/-/^-
inouey is paid under a mistake l^^, 192, 194 ; Inmbic x hll, o
of law to «u officer ..f the fourt : f W" ^;'{^% ^'"l'^''-''^/ ''l"'"'"^
I- .. i„ v.- .. / i« (I Ti It IMW.t, ^ On. l.)4, lb.
714, dis.sentinjr from Cosson \. _('/) Above, pp. 4 !.t-4 Ui, 4.5(i—
00
866
OF ILLKGALITY IN THE CONTRACT.
the assuror, if lie lias parted with possession, acquires a
legal right of re-eutry, and the purchaser has no right
of action against him to recover the price (r). Where
a man has contracted in good faith to buy land and pay
for it with his own money, but directs the conveyance to
be made to some charitable use, intending to give the
land to the charity, and the conveyance is not made in
accordance with the Mortmain Act, the assurance of the
legal estate is void, and the charity has no equitable
interest in the land ; but in equity the land belongs to
the purchaser, who has done nothing effectual to divest
himself of the equitable estate which he acquired under
the contract for sale (-s-).
t
Illegality-
supervening
.since the
formation of
the contract.
If the performance of a contract, which was valid in
its inception, be rendered illegal by some event occur-
ring after the formation, but before the completion of
the agreement, the contract is dissolved, so far as it-
remains unperformed, and the parties' mutual obliga-
tions are discharged [f). And it appears that in such
case the parties are placed in the like position as if their
obligations were discharged for impossibility of per-
formance [ii] ; the law will not interfere to set aside any-
thing actually done in pursuance of the contract ; and the
parties cannot recover any money paid or property
transferred under tUeir agreement during its validity (x).
i
(>•) See above, ])p. -iio — 449
and notes (), (/), (w). 456 ; Thur-
staii V. Xoltmyhniii, iVc. JiiJr/. Soci/.,
190-2. 1 Ch. 1, 13, atfirmed, 19U3,
A. C. 6, 10. 1-2; Chapman v.
Muhaehon, 1908. 2 Ch. 612, 620,
621, affirmed, 1909, 1 Ch. 238 ;
and eon.sider Simpsoi/ v. Xic/io/ls,
3 M. & W. 240, 244, 5 M. & W.
702, and the American case of
Tliompsoi) V. Jl'illifims, 68 X. H.
248, cited in Keener on Quasi-
Con tract, 270, 271.
(.S-) Ffiec V. Ilathaivaij, 6 Madd.
304.
{t) Brewster v. KitcheU, 1 Salk.
198 ; Enposito v. Bowden, 7 E. &
B. 763 ; Baibf v. Be Crespxgmj,
L. R. 4 Q. B.'l80, 186.
(m) See Krell v. Benry, 1903,
2 K. B. 740; Civil Service Co-op.
Soci/. v. Genera? Steam Navigation
Co., ib. 766; Chandler v. TFelisfer,
1904. 1 K. B. 493; below, Chap.
XVIII. i 1.
(r) Furtado v. Rodfjers, 3 B. &
P. 191, 201: and see The Tcutonia,
L. R. 3 A. & E. 394, 417.
OF ILLEGALITY IN THE CONTKACT,
867
But this doctrine of illegality supervening applies only
to cases where the jyorfoniunire of the primary ohligatiou
created by the contract is rendered illegal by some
event, which has occurred since the formation of the
agreement ; it does not extend to dissolve obligations
arising from hrench of the contract (//). Illustrations of
this doctrine occur where the performance of a contract
is rendered illegal by statute passed since its formation (r ) ;
and where the act agreed to be done cannot be accom-
plished without commercial intercourse with the inha-
bitants of some foreign State, which was friendly when
the contract was made, but has become hostile before
the time stipulated for performance of the agreement {(i) .
ill) See Flitidt v. Waters, 1.)
East, 260, 266 : note to Clfmontnun
V. BlcsHtf/, 11 Ex. l-lo ; Janson v.
Brief onte ill, ^-c, 1902, A. C. 484;
see also tHanqer v. Abbott, 6
Wallace (73 U. S.), .)32, o36,
.537.
'z) BrcicsUr v. Kitchell, 1 Salk.
198; Baibj v. Be Crespigny, L. R.
4 Q. B. 180, 186.
{a) Esposiio V. Buwdeii, 7 E. «S:
B. 763 : see above, p. 857 ; and
next Chapter iindei- the head of
Aliens.
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