Formalities Flashcards
Benefits of formalities
Warns the parties that they are entering into a transaction that their actions may have legal consequences Makes them stop and thinkThis avoids rash decision makingPartied cannot easily slip into the transaction
What are the best type of formalities?
Those that are required for the transaction to be legally valid because parties are warned it will have legal consequences before it happens
How do formalities protect from outside pressure and duress?
It is a lot easier to say I give you my house then writing out all of the deeds etc.
Formalities also help to clarify the terms of the transaction because…
When you write things down you see the gaps in it appear
Formalities and third parties
They have a different set of interests The most important thing is publicity Ensuring that other parties know of the existence of the transaction
What is the most important aspect of formalities?
Evidence Writing is some proof but a note can always be hidden from a third party Registration is the best evidence
Why do the courts like formalities?
Gives them evidence and something to work off
Why does the state like formalities?
Allows for the collection of taxesGives data about the property market
What is the idea of channelling (Fuller)?
Formalities channel the parties towards a particular goal
where is the definition of a legal estate found
LPA 1925 s205 (1)(x)
Is a deed enough for formalities?
SometimesBut most of the time registration is also required
What were the requirements of a deed 1926-1989?
Had to be signed sealed and delivered
Abolished the need for a deed to be sealed
LP(MP)A 1989 s1 (1)(b)
You need to make it clear that it is a deed
LPA s1(2)(a)
A deed must be signed witnessed and delivered
LPA s1(3)
Exceptions to a deed
LPA s52 (2)(d)
What is a periodic tenancy?
One of those ones that are basically ongoing but you have to give half a years notice either side to quit
Periodic tenancies and deeds
A legal periodic tenancy is a deed exception under s52(2) as each period within it is less that 3 years
Equity- must be in writing
LPA 1925 s53 (1)(a)
Must be evidenced in writing, signed by some person who is able to declare such trust Equity
S53 (1)(b)