The price for each Volume is £1 5s., cloth, net; or £1 8s., half brown calf, net. THE REVTSED REP ORTS. TABLE OF COMPARATIVE REFERENCE. OLD JRErORTS, CJ>SES FROM REVISED MEPOliTS, CITED AS K. R vide K. K. vols. 12 vols. . 40, « to 48, 60, 52, 54 3&4 t/ Adolphus * Ellis Anstruther — 3 vols. Arnold—'- vols. Bail Ct. Keports— 2 vols Ball ft Beatty BarneWall & j Barnewall & j Bamewall & ( Beavan— Vols. 64, 68, 73, 76, Bing-ham— 10 ' Bing-ham, N. Blackstone, £ Blig-h— 4 vols. Bligh, N. S.-] Bosanquet ft I Broderip ft Bi: Campbell— 4 v. Carringrton & Carringrton & '. Carring'ton & Chitty— '2 vols. Clark ft Finne 36 CoUyer— 2 vols Common Beni 72, 75, 77, 78, Common Ben' Cooper temp. Cooper, G. Cooper, Pr. Ci Cooper temp. COJC— •-' vols. Craig: & Philli Crompton ft J Crompton & M Crompton, M€ Daniell Danson ft Llo; De Gex, Macr De Gex & Sma Davison & Me Dow— •> vol-,. Dow ft Clark- Dowling-— !• vol Dow^ling ft lio I I K Dowling:, N.S Dow^ling ft Rj Dowling & Ry Drewry V(j1s. 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B. vols. 20 to 22 68, 69, 72 THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES Vols. 1 to 18 . 49, 55, 58, 62, 65, 67, 69, 72, 77, 81, 84, 85, 89, 93, 95, 97 „ o -r.,- . ^- . 102, 106, 108, 111 „ 101 „ 103, 110 1 44 i II ** 38, 40 I „ 26 to 31, 34 , 42, 46, 49, 52, 56, n, 94, 98, 101, 105 89, 103 46 „ 85 „ 86 84, 86, 87 .6 to 18 & 20 to 23 , 60, 61, 63, 64, 66 „ 31 to 34 „ 15 & 17 „ 14 to 18 28 29 , 63, 67, 69, 71, 73 ' „ 15 to 17 „ 31 I » 42.62 ' .. 19 to 29 SCHOOL OF LAW GIFT or J, 83, 97, 105, 110 ,, 29 to 31. 33 34, 35, 38 61 „ 43, 45, 48 „ 86, 39, 41 „ 38 to 43 ' 44, 45 „ 3&4 „ 48, 50, 52, 54 „ 65, 78 15 to 27 56, 57. 61, 62, 80, 81, 83, 85, 88 ,, 25 to 29 32, 34 15 27 9 41 to 44, 50, 54 60, 61. 63, 64, 66 17, 29, 30, 33, 35, 88, 40, 42, 47, 51, 54, 56, 60, 65, 74, 80, " Simons, N. S. Simons ft Stuart— 2 vols Smale & GifFard— Vols. 1 to 3 Smith— 3 vols. Starkie— 3 vols. . Swanston— 3 vols. Tamlyn Taunton— 8 vols. Turner ft Russell Tyrwhitt— 5 vols. Tyrwhitt ft Granger . 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It contains numbers of articles on subjects not to be found in any other work. The articles are all written by competent lawyers whose names guarantee accuracy, and their work does not need supervision by judges. It is kept up to date by annual cumulative supplements, with a permanent volume every five years. It may be obtained at the published price on easy terms of payment. Full particulars and a specimen article will be sent on application to SWEET & MAXWELL, LTD., 3, CHANCERY LANE, LONDON. A f^rrali^e 011 tire 'Xnfo af VENDOE AND PURCHASER OF REAL ESTAIE AM) CHATTELS IIKAL. INTENDED FOR THE USE OF CONVE VANCE RS OF EITHER BRANCH OF THE PROFESS/OA\ BY T. CYPRIAN WILLIAMS, OF LINCOLN S INN, BABKISTER-AT-LAW, LL.B. ; FOEMt^HLY LECTIEER ON CONV>:YANriNf> TO THE INCOEPOKATEB LAW SOCIF.TY OF THE UNITED KINGDOM, Editor of " jnilinnis oti Real Froperii/'^ and " WilliamH on Prrx&nf'/ I'lopftti/.'^ SECOND EDITION IN TWO VOLUMES. Vol. I. LONDON : SWEET AND MAXWELL, LIMITED, 3, CHANCERY LANE, WO. 1910. LONDON : PRINTED BY C. F. EOWOETH, 88, FETTEE LANE, E.G. ft '^o the Jttcmori) of AIY FATHER AND MASTER IN THE LAW, JOSHUA WILLIAMS, SOMETIME ONE OF THE CONVEYANCING COUNSEL TO THE COURT OF CHANCERY, AND AFTERWARDS ONE OF HER LATE MAJESTy's COUNSEL, 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, , ^, r) are annexed ; those on pj). 183, 184, to which notes (,^, 5-, ) 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 (/) 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. (, 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 (•). 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 " (). 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 ( 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- (?). 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. ( 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 ( 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- (•), 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. ( 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 ( 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 (?). 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 {). 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 { „ 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 (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 (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- (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. (), 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 ( 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. ■ (i 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, {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 {-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. (m 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 (. 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 (yenfi,60 the purchaser does literally undor- L. T. 73;'), explained and dis- take to bear the expense of w<^/.//i, 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 ('^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. [. 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. (). 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. ( * ' ' (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). 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 (<*«' 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. (.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 (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-'), 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 {) 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'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, (rest. 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 (