L1 : Formal Acquisition

Question 1

Walsh v Lonsdale (1882) (CA)

Answer 1

Main point: a person occupying under an agreement for a lease is to be treated as holding on the terms of the agreement

Summary: P and D ag that D would grant P lease of a mill, P given possession and paid quarterly rent but no deed executed. D tried to have P pay in advance under terms of the ag, Q = whether P lessee under old CL rules or under rules of AG

CA held that “a person occupying under executory agreement for a lease is to be treated as holding on the terms of the agreement”
=> Equity’s rule = P and D bond by the terms of the agreement as if had been completed

Question 2

Scott v Southern Pacific Mortgages (2015) (SC)

Answer 2

Main point: holder of EI under VPCT cannot grant proprietary rights to others

Summary: D ag to sell freehold in her house to N, subject to ag that N would grant back a lease, N mortgaged property to C and defaulted on payments, C sought to evict D  issue = whether D’s equitable lease under ag w/ N capable of binding 3Ps incl C / or overriding interest taking priority over mortgage

=> SC held that prior to acquisition of the legal estate a purchaser of property cannot not grant equitable rights of a proprietary character + not an overriding interest bcs not proprietary in nature

Question 3

City Permanent BS v Miller (1952)

Answer 3

Main point (from w6 notes): ‘grant’ means grant of legal lease and not equitable lease (in context of priority contexts / overriding interests capable of taking priority over disposition of a legal estate)