Restrictive Covenants Flashcards

(59 cards)

1
Q

What is a restrictive covenant in land law?

A

A contractual promise limiting land use, enforceable in equity (Tulk v Moxhay).

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2
Q

Who is the covenantor?

A

The party promising to do or not do something on the land.

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3
Q

Who is the covenantee?

A

The party receiving the benefit of the covenant.

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4
Q

What case established the enforceability of restrictive covenants in equity?

A

Tulk v Moxhay [1848] 41 ER 1143.

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5
Q

Do burdens of positive covenants run with the land at common law?

A

No, only burdens of restrictive covenants may run in equity.

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6
Q

Which case confirmed burdens of positive covenants do not run?

A

Austerberry v Corporation of Oldham.

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7
Q

Give an example of a restrictive covenant.

A

A promise not to build a factory on land to preserve its use.

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8
Q

What is required for a restrictive covenant to bind future owners?

A

It must touch and concern the land and the buyer must have notice.

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9
Q

What statute in Guyana requires registration of restrictive covenants?

A

Section 111 of the Land Registry Act (Cap 5:02).

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10
Q

Why is Tulk v Moxhay significant?

A

It established that restrictive covenants may bind successors in equity.

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11
Q

What is privity of contract in the context of covenants?

A

It is a contractual relationship where all covenants can be enforced by or against the original parties due to the existing contract. (Owusu, p. 459)

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12
Q

What does ‘absence of privity of contract’ mean in property law?

A

It means that one or more parties were not part of the original covenant agreement, yet enforcement may still occur through doctrines like benefit and burden running with the land.

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13
Q

Under common law, when does the benefit of a covenant pass to a successor-in-title?

A

When the covenant touches and concerns the land,
the covenantee held a legal estate when created, and
the successor holds a legal estate benefiting from the covenant.

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14
Q

What case established that a covenant touching and concerning the land can be enforced by successors?

A

P & A Swift Investments v Combined English Stores [1989] AC 632

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15
Q

What principle did Federated Homes Ltd v Mill Lodge Properties Ltd [1980] establish?

A

That the benefit of a covenant is automatically annexed to land under Section 78 of the Law of Property Act 1925 unless otherwise stated.

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16
Q

What is the general rule regarding the burden of a covenant at common law?

A

The burden of a covenant does not run with the land. (Austerberry v Oldham Corporation, 1885)

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17
Q

What are the requirements for the burden of a covenant to pass in equity under Tulk v Moxhay?

A

The covenant must be negative, benefit identifiable land, be intended to bind successors, and the successor must have notice of it.

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18
Q

What does the doctrine of mutual benefit and burden entail?

A

If a successor takes the benefit of a covenant (e.g., right of way), they must also accept the burden (e.g., maintenance cost). (Halsall v Brizell, 1957)

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19
Q

What are the two critical questions in determining enforceability of a covenant in the absence of privity?

A
  1. Does the benefit pass to the plaintiff?
  2. Does the burden pass to the defendant?
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20
Q

How does Guyanese law treat covenants in property law?

A

Guyanese law adopts English common law and equity through the Civil Laws Ordinance, making cases like Tulk v Moxhay applicable.

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21
Q

What is the general rule at common law about the burden of covenants?

A

The burden of a covenant does not run with the land at common law (Austerberry v Oldham Corporation).

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22
Q

Under what conditions can the burden of a restrictive covenant run in equity?

A

1) Covenant is negative in nature, 2) Benefits identifiable land, 3) Intended to bind successors, 4) Purchaser has notice (Tulk v Moxhay).

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23
Q

What case confirmed that restrictive covenants bind successors in equity if the covenant benefits land and notice exists?

A

Tulk v Moxhay (1848)

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24
Q

What is the servient tenement in the context of restrictive covenants?

A

The land which carries the burden of the restrictive covenant.

25
Can lessees or licensees be bound by restrictive covenants in equity?
Yes, if they are in occupation and had notice of the covenant.
26
What is the mutual benefit and burden rule?
A party cannot accept a benefit from a covenant without accepting its burden (Halsall v Brizell [1957]).
27
What are examples of covenants that may be enforced under the benefit and burden rule?
Use of private roads, drainage systems, or other shared facilities tied to a contribution obligation.
28
What legal principle did Formby v Barker confirm?
That a restrictive covenant must benefit other identifiable land to be enforceable in equity.
29
Why was the covenant in London County Council v Allen unenforceable?
There was no dominant tenement to benefit from the covenant.
30
What case confirmed that restrictive covenants may bind a property even if held under a lease or license?
Mander v Falcke [1891]
31
At common law and in equity, does the burden of a positive covenant run with the land?
No, the burden of a positive covenant does not run with the land at common law or in equity. Only the original covenantor remains liable.
32
Which case established that in leasehold relationships, positive covenants can bind successors?
Spencer’s Case (1583) – Established that in a landlord-tenant context, covenants touching and concerning the land can bind assignees of the lease.
33
What is a 'chain of indemnity covenant'?
It is a requirement for a purchaser to enter into an indemnity covenant, obligating them to honor a covenant and indemnify the original covenantor for breaches.
34
What principle did Halsall v Brizell [1957] establish?
A party who takes the benefit of a covenant (e.g., access to roads) must accept the burden (e.g., maintenance costs).
35
What did Rhone v Stevens [1994] clarify about the benefit-burden rule?
The rule applies only if enjoyment of the benefit is expressly or impliedly conditional upon compliance with the burden.
36
What are the requirements for the benefit of a covenant to run at common law?
The covenant must touch and concern the land, the covenantee must hold a legal estate, the benefit must be intended to pass, and the successor must hold a legal estate.
37
Name a case that confirmed positive covenants benefiting land may be enforceable.
Smith and Snipes Hall Farm Ltd v River Douglas Catchment Board [1949]
38
What are the ways the benefit of a covenant can run in equity?
Through express annexation, implied annexation, express assignment, or under a scheme of development.
39
What does express annexation require?
Language that clearly indicates the covenant is intended to benefit successors and assigns of the dominant land.
40
What legal principle allows covenants to run in housing developments?
Scheme of development – as in Elliston v Reacher [1908] and Re Dolphin’s Conveyance [1970].
41
What is 'acquiescence' in the context of covenant enforcement?
It refers to the situation where a covenantee tolerates prior breaches of a covenant, potentially barring future enforcement by the court.
42
When can a court discharge a restrictive covenant due to neighborhood changes?
When the character of the neighborhood has substantially changed, making the covenant inequitable or redundant (Chatsworth Estates v Fewell, Hepworth v Pickles).
43
What happens when dominant and servient tenements are merged?
The covenant ceases to exist, as one cannot enforce a covenant against oneself.
44
What is 'tacit release' of a covenant?
When the servient owner breaches the covenant and the covenantee does not enforce it, indicating abandonment.
45
What effect does destruction of the dominant or servient land have on a covenant?
It may cause the covenant to automatically terminate.
46
What is the significance of lapse of time in enforcing covenants?
Long-term non-enforcement (e.g., 30 years) may extinguish the covenant.
47
How does a judicial sale affect restrictive covenants?
Restrictive covenants may be automatically extinguished under statutory provisions.
48
Which UK statute influences the modification or discharge of covenants in the Commonwealth Caribbean?
Section 84 of the Law of Property Act 1925.
49
What are statutory grounds for modifying or discharging a covenant?
Obsolescence, impediment to reasonable use, beneficiary consent, and no injury to beneficiaries.
50
What is the test for determining whether a covenant is obsolete under Ground A?
If the original purpose of the covenant can still be achieved, it remains enforceable; if not, the covenant is obsolete – Re Truman, Hanbury, Buxton and Co Ltd’s Application [1955] 3 WLR 704.
51
Give an example of when a covenant may become obsolete due to changes in land use.
If a residential area evolves into a commercial zone and businesses operate unopposed, restrictive covenants limiting land use to residential purposes may become unenforceable.
52
Name a key case where the court addressed the transformation of land use in determining covenant enforceability.
Re Lots 12 and 13 Fortlands (1969) 15 WIR 312 – balancing public interest in residential needs with private rights.
53
Under Ground B, what two criteria must an applicant meet to justify modifying a covenant?
1) The existing permitted use is no longer reasonable, and 2) The proposed use is the only reasonable alternative.
54
What case established that an applicant must prove a covenant actively prevents beneficial land use?
Re Systems Sales Ltd’s Applications (1992) 43 WIR 19.
55
Under Ground C, when can a covenant be discharged or modified based on agreement?
When all dominant owners either expressly agree or their conduct implies agreement to modify or discharge the covenant.
56
What case emphasized that two years of non-enforcement is insufficient to infer discharge?
Re Federal Motors Ltd’s Application (1966) 9 WIR 375.
57
What is required in a modification notice under Ground C?
Notices must be clear and specific – University of Westminster v President of Lands Tribunal [1998] 3 All ER 1014.
58
What must be shown under Ground D for a covenant modification to be allowed?
The proposed modification will not harm any party benefiting from the covenant and objections must not be frivolous.
59
What legal argument may lead a court to deny modification even without direct harm to objectors?
The 'thin end of the wedge' argument – risk of precedent leading to widespread dismantling of similar covenants.