Addittional Flashcards
Mutual benefit and burden
He who takes the benefit of a right must bear the burden on which it is dependant
Halsall v Brizell
Purchases of an estate of houses in Liverpool were granted a right to use the private road drains and a promenade and seawall that all lay within the estate. The rights were expressed to be subject to an obligation to contribute to the cost of the repair of these facilities. When Brazil a successor in title to one of the original purchasers questioned his contribution the court held he could not claim the benefit of his right to use the facilities without the burden to pay for their upkeep
Rhône v Stephens & Halsall v Brizell
Link
The House of Lords in Rhône V Stevens approved Halsall v Brizell and the principle to the extent that the benefit and burden are reciprocal in the sense that a purchasers acceptance of the benefit is conditional upon whether he also accepts the burden. They refused any wider principle.
Thamesmead Town v Allotey
Formulated two stage test to establish whether a covenant falls within benefit and burden principle
Davies v Jones 2010
(i) the benefit and burden must be conferred in or by the same transaction
(ii) it must be evident from the construction of the documents that enjoyment of the benefit must be relevant to the imposition of the burden (I.e. conditional)
(iii) the person upon whom the burden is alleged to have been imposed must have, or have had, the opportunity of rejecting or disclaiming the benefit and not merely a right to receive the benefit
Equitable right of redemption
Reflection of the economic value of the borrowers interest in land.
Remains crucial to the operation of the legal charge as a security interest
Borrower = acquiring ownership