Father granted son 10-year option to purchase farm.
Son tenant of farm.
Option not registered under the Land Charges Act 1925.
[NB LCA 1925, now LCA 1972, concerns only unregistered land.
Gives protection to equitable interests by
registration.
registration.
Note land
charges register, which applies to unregistered land, is different to charges register, which applies to
registered land]
charges register, which applies to unregistered land, is different to charges register, which applies to
registered land]
Within the term the father, wishing to deprive son of
option, conveyed farm to his wife for £500 (farm value was £40000).
option, conveyed farm to his wife for £500 (farm value was £40000).
Son, hearing of this, registered option and purported
to exercise it.
to exercise it.
Option binding on mother’s estate?
House of Lords held option void.
Mother was ‘purchaser of a legal estate for money or
money’s worth’ under LCA 1925.
money’s worth’ under LCA 1925.
No requirement of good faith was present in Act and
one cannot write it in from examples of contemporaneous acts [as Denning had
tried to do in CA].
one cannot write it in from examples of contemporaneous acts [as Denning had
tried to do in CA].
Further nothing in Act to suggest that protection not
provided to purchaser who has provided only nominal consideration.
provided to purchaser who has provided only nominal consideration.
In any event, difficult to hold £500 to be nominal
consideration.
consideration.
