{"id":5831,"date":"2018-10-12T12:38:31","date_gmt":"2018-10-12T12:38:31","guid":{"rendered":""},"modified":"2019-06-15T15:01:14","modified_gmt":"2019-06-15T15:01:14","slug":"midland-bank-trust-co-v-green-1","status":"publish","type":"post","link":"https:\/\/www.lawteacher.net\/cases\/midland-bank-trust-co-v-green-1.php","title":{"rendered":"Midland Bank Trust Co Ltd v Green (No. 1)"},"content":{"rendered":"

Midland Bank Trust Co Ltd v Green (No. 1) [1981] A.C. 513<\/strong><\/p>\n

UNREGISTERED OPTION \u2013 ESTATE CONTRACT \u2013 LAND CHARGES \u2013 UNREGISTERED CONVEYANCING<\/strong><\/p>\n

Facts<\/h3>\n

For the consideration of \u00a31, W granted G the option to buy a farm, title to which was unregistered. This was an estate contract and so a legal charge, registrable under the Land Charges Act 1925 (LCA) although G did not do so. Several years later, when the property was worth \u00a340,000, W conveyed it to his wife E for \u00a3500. A month after that G registered the option, subsequently giving notice of his intent to exercising it. G sought a declaration that the option was still binding and sued for specific performance of the contract. He failed at first instance on the basis that the sale to E had been a genuine sale by a vendor to a purchaser, defined by s.13(2) LCA as being \u201cfor money or money’s worth\u201d. G was successful on appeal and E\u2019s estate themselves appealed to the House of Lords.<\/p>\n

Issues<\/h3>\n

Whether, in order to be a valid sale of unregistered land for \u201cmoney or money\u2019s worth\u201d within the meaning of s.13(2) LCA, a transaction must be in good faith and for consideration which was more than nominal.<\/p>\n

Decision\/Outcome<\/h3>\n

The House of Lords, allowing the appeal, found that there was no requirement in s.13(3) that the purchaser should be in good faith; the word “purchaser” in s.13(2), by definition, meant one who had provided valuable consideration, a legal term of art which did not connote adequacy. There was no clause in the Land Charges Act 1925 equivalent to s.205(1)(xxi) of the Land Registration Act 1925. To exclude a nominal sum of money from s.13(2), therefore, would be to rewrite the section entirely.<\/p>\n","protected":false},"excerpt":{"rendered":"

For the consideration of \u00a31, W granted G the option to buy a farm, title to which was unregistered. This was an estate contract and so a legal<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[85],"class_list":["post-5831","post","type-post","status-publish","format-standard","hentry","category-cases","tag-uk-law"],"yoast_head":"\nMidland Bank Trust Co Ltd v Green (No. 1) | LawTeacher.net<\/title>\n<meta name=\"description\" content=\"For the consideration of \u00a31, W granted G the option to buy a farm, title to which was unregistered. 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