> .N ■- > \n -::^\' >\ I'-^^^v^v^V Cornell University Library KO 660.B84 1891 iresent laws of Engl Commentaries on the 3 1924 021 661 412 Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924021661412 COMMENTAEIES ON THE PRESENT LAWS OP ENGLAND BY THOMAS BEETT, OF THE MIDDLE TEMPLE, BARRISTBR-AT-LAW ; LL.B. LONDON UNIVERSITY; B.A., LATE SCHOLAR AND STUDENT OP TRINITY COLLEGE, DUBLIN; EXHIBITIONER IN REAL PROPERTY AND EQUITY ; HOLDER OP THE FIRST CERTIFICATE OF HONOUR, MICHAELMAS, 1869 ; JOINT AUTHOR OF OLERKE AND BBETT'S CONVEYANOINQ ACTS; AUTHOR OF BRETT'S BANKRUPTCY ACT, 1883, AND OF LEADING CASES IN MODERN EQUITY; AND LATE LECTURER IN EQUITY TO THE INCORPORATED LAW SOCIETY. geronS) ffiiition. IN TWO VOLUMES.— VOL. I. LONDON: WILLIAM CLOWES AND SONS, Limited, 27, FLEET STEEET, E.G. 1891. LONDON : HUNTED BY WILLIAM CLOWES AND SONS, LIMITED, aiAMFOBD SiapS ABD OHABIHO 0E0S3. TO THE EiaHT HONOURABLE LORD HERSCHELL. ■^ Maxk IS (by his lobdship's kind pebmission) MOST RESPECTFULLY DEDICATED TEE AUTHOB. PEEFACE TO THE SECOND EDITION. A SECOND edition of this work having been called for, no pains have been spared in endeavouring not only to correct and supply the errors and deficiencies of the first, but also to make such alterations and additions as have been ren- dered necessary by the progress of legislation and the decisions of the Courts in the interval. I have endeavoured to profit by the many reviews and notices which appeared of the first edition of my book. One of the greatest writers has told us that it is good " to have a vigilant eye how books demean themselves as well as men," and I have certainly no reason to complain in the great majority of cases of any undue acerbity of criticism. On the contrary, I have to return my sincere thanks to very many of my critics for the friendly reception which was given to the result of my labours. While making due allow- ance for the difSculty of the task, they shewed me many points where errors and deficiencies had escaped my notice, and I can only say that I have done my best to make the present edition as complete and as accurate as possible. The general plan of this book, and the order in which the various subjects discussed are treated, are stated in the Introductory Chapter, to which the reader is referred, A few words may, however, here be said as to the chief points in which the present edition differs from its predecessor. The changes which have been made in the statute law during the period of somewhat less than twelve months which have elapsed since the appearance of the first edition, have been very considerable, and have been carefully noticed in the appropriate parts of the work. Thus the VI PREFACE. alterations made by the Settled Land Act, 1890, will be found incorporated in the Chapter on Settlements (p. 145, et seq.) The chapter on Partnership has been almost re- written ; that on Companies has been very materially altered by three Acts — the Directors' Liability Act, 1890, the Com- panies (Memorandum of Association) Act, 1890, the Com- panies (Winding-up) Act, 1890. The Bankruptcy Act, 1890, has necessitated great alterations in Book X. A new chapter (Chapter XVII.) has been added to Book VI., dealing with miscellaneous business in the High Court and the principal remedies by the exercise of extraordinary judicial powers, habeas corpus, mandamus, prohibition, quo warranto, certio- rari, and petition of right. The Custody of Children Act, 1891 (54 Vict. c. 3), and the Tithe Act, 1891 (54 Vict. c. 8) were passed too late to be noticed in the text. The former Act should be added to Chapter IX. of Book V. ; the latter to Chapter VII. of Book XII. The Index to the work has been very much increased, and in the Table of Cases references have been added, in respect of the more important cases, to the Law Jowrnal, Law Times, and Weekly Reporter. I have now only to acknowledge most gratefully the able assistance which I have received in the preparation of this second edition from my friends Mr. G. M. W. Hill of the Inner Temple, and Dr. Sydenham-Jones, of Lincoln's Inn, and of the South Wales Circuit, barristers-at-law, and again to submit my work to the favourable consideration of the public and the legal profession. Thomas Brett. Lincoln's Inn, May, 1891. EXTRACT FROM PREFACE TO THE FIRST EDITION. The object of this work is to give, in as comprehensive a manner as is possible within moderate limits, an account of the present laws of England. The fact that great — indeed, almost revolutionary — changes have been intro- duced into the theory and practice of the law in recent times, so that, as a high authority Q) has told us, the judicial spirit itself is altered, " technicality after technicality is being brushed away with a rapidity only known to those who closely observe the process, and subtilties are laughed at that would have been listened to five and twenty years ago," would seem fully to justify the appearance of a work the object of which is to lay before the reader a statement of English law as it now is. A main idea of this book is to bring into special pro- minence the present and living law, and only to deal with past law, or that which is practically obsolete, so far as it is necessary to enable the reader to understand the present. Prefixed to the first volume will be found a Table of the Contents of that volume and Tables of the Cases and Statutes referred to in the work. The second volume contains a Table of the Contents of that volume, and a very full Index to the entire work. I desire to warmly acknowledge the very great assistance which I have received from my friends in the preparation of this work. Among these I must particularly mention Mr. Q. M. W. Hill, of the Inner Temple; Mr. James (■) Lord Justice Lindley, in a Lecture deliyered at Owena College, Manchester, Oct., 1889. Vlll PREFACE. Wilson, of the Middle Temple ; Mr. E. W Hansell, of the Inner Temple ; Mr. John Marsh Dixon, of the Inner Temple ; Mr. J. A. Strahan, of the Middle Temple ; Mr. W. Neill, of the Inner Temple ; Mr. P. H. Fothergill, of Lincoln's Inn ; Mr. Henly St. John Dawson, of Lincoln's Inn, Barristers-at-law : — Mr. G. Glover Alexander, of the Inner Temple; and Mr. Archibald Eivington, Solicitor. To all these gentlemen I return my grateful thanks, and I now submit the result of my labours to the favourable consideration of the public and of the profession to which I have the honour to belong. Thomas Beett. Lincoln's Inn May, 1890. CONTENTS OF VOL. I. Peeface to the Second Edition .. bxtbact fbom preface to the fibst edition . Contents of Vol. I. .. Table of Cases Cited Table of Statutes .. Intboddctoey Chaptbb BOOK I. REAL PROPERTY. pase V vii ix xxiii ovii cxi CHAPTER I. DiFFEEENT CLASSES OF PeOPEBTY. Division of property into real and personal — Definitions of Lands, tene- ments, and hereditaments— Different classes of personal property — Chattels real — Different classes of chattels personal — Fixtures — Essential diflferences between real and personal property enume- rated .. .. .. .. .. .. .. .. 1 — 9 CHAPTER II. Tenubes and Estates. Varieties of tenure — Grand serjeanty — Petit serjeanty — Gavelkind — Borough English^ — Ancient demesne — Estates in land considered in four aspects — (1) With regard to the nature of the estate — (2) With regard to the number and connection of the tenants — (3) With re- gard to the quantity or legal magnitude of the estate — (4) With reference to the time of the enjoyment of the estate .. 10 — 15 CHAPTER III. Legal and Equitable Estates. Origin of uses — The Statute of Uses does not apply to copyholds, chattels real, or peerages — Creation and transfer of equitable estates — Dis- tinction between legal and equitable estates not destroyed by the Judicature Act — Conveyances by one person to himself and another, and between husband and wife under the Conveyancing Act 16 — 21 X CONTENTS. CHAPTEB IV. Estates fob Life. Nature of— How created— Widow's dower estate— Estate by curtesy— Tenant in tail with possibility of issue extinct— Duty of tenant for life in respect of mortgages and charges— Law as to emblements— Apportionment Act— Custody of title deeds— Powers of tenant for life under Settled Land Acl^Waste— Trees —Estate pur autre 22 — o^ vie CHAPTER V. Estates Tail. Estate tail— Definition of— Descriptions of estate tail— Eule in SheUey's case— How created in will— How created in deed— Provisions of Con- • veyancing Act— Statute de (ioms— Taltarum's case— Provisions of Pines and Becoveries Act— Protector of Settlement— Leading cases on estates tail— Eule in Wild's case— Estates tail which cannot be barred — Position of tenant in tail .. .. ■• •• 33 — 42 CHAPTER VL Estates in Ebb Simple. Definition of fee simple estate — Different modes in which it may be acquired — How usually limited to individuals and to corporations — Provisions of section 51 of the Conveyancing Act, 1881, as to the words which are sufficient in a deed- — The rule in Shelley's case — Provisions of the Wills Act as to devise of fee simple — The statute of Quia Emptores — Powers of tenant in fee simple — Liability in respect of debts — Payment of charge by tenant in fee simple — Law as to restraint on alienation — Law as to married women, infants, lunatics, and idiots — Charities ■ — Companies — Corporations — ^Voluntary and fraudulent settlements — The rules of descent stated and illustrated by cases — The Naturalization Act, 1870 — ^Escheat — ^Abohtion of forfeiture for treason or felony .. .. .. .. 43 — 56 CHAPTER VII. Joint Estates. Definition of joint tenancy, &c. — Pour unities of joint tenancy stated and illustrated — Maxims applicable to joint tenancies and incidents of such estates — How tenancies in common and estate in coparcenary arise, &c. — Problems illustrating law as to joint tenancies, &c. — Tenancy by entireties — Effect of Married Women's Property Act, 1882, considered 57—63 CONTENTS. XI CHAPTEB VIII. FuTDEE Estates. Estates in possession and expectancy defined and contrasted — Definition of particular estate, reversion, remainder — ^Distinctions between re- version and remainder — Eemainders vested and contingent — -Different sorts of contingent remainders — Test wtietlier an estate is vested or contingent — Legislative changes with, regard to contingent remainders — Rule governing creation of contingent remainders — -Rule of cy-pres — Rule against perpetuities — Explanation of the policy of the law as to perpetuities by Sir George Jessel — Executory limitations — Rules which govern their construction — Section 19 of the Conveyancing Act, 1882 — Executory devises, springing and shifting uses — Law as settled by Gadell v. Palmer — Rule against perpetuities applied to conditions and covenants relating to the sale of land — Provisions of the Thelluson Act, 39 & 40 Geo. 3 64—74 CHAPTER IX. Conveyance on Sales. Definition of conveyancing — Matters preliminary to conveyance — Condi- tions of sale — statutory conditions implied by the Vendor and Pur- chaser's Act, 1874, and the Conveyancing Act, 1881- — Usual conditions of sale — Provisions of Trustee Act, 1888, as to depreciatory conditions — Deli veryof abstract — Requisitions on title — Usual searches — Various forms of conveyance considered — Different parts of a deed — Short form of conveyance in fee simple — Analysis of different partS' — Recitals — Changes made by the Conveyancing Act, 1881 — Restrictive covenants — Provisions of the Conveyancing Act, 1881, as to covenants — Prac- tical rules for conveyancing — Notice — Actual or constructive — Change in the law introduced by section 3 of the Conveyancing Act, 1882— Stamp duties 75—96 CHAPTER X. Mortgages. Deiinitions of — Judicial statement of the principles of the law relating to mortgages^" Once a mortgage always a mortgage " — Form of mort- gages and freeholds — Copyholds — Leaseholds — Short forms — Equit- able mortgages — Welsh mortgages — Mortgage in form of trust — Mortgagee's remedies — Provisions of the Conveyancing Acts — Con- solidation of mortgages — ^Marshalling — Law as to pledges 97 — 111 CHAPTER XI. Leases. Definition of— of what property leases may be made— Essentials of a lease — Summary of law as to leases and agreements for leases — Provisions xii CONTENTS. of the Vendor and Purchaser Act, 1874— What are usual covenants in a lease of a London dwelling-house and in an agricultural lease- Landlord's remedies for rent— Definition of distress— Things privileged from distress— Provisions of Lodgers' Goods Protection Act- Agri- cultural Holdings Act— Ground Game Act— Law of Distress Amend- ment Act— Different modes in which leases are determined— Pro- visions of Conveyancing Act as to forfeiture of leases — Leading cases and principal statutes with reference to the law concerning leases 112—132 CHAPTER XIL Settlements. Various meanings of the term — Necessity for, unaffected by Married Women's Property Act, 1882— Division of settlements — For value — Voluntary— Of personalty— Form of— Of realty— Form of— Distinc- tions between real and personal settlements — Consideration of marriage — When effectual and when not — Illustration — Settlements of after- acquired property — Husband's interest determinable on bankruptcy — Summary of law on the subject — Covenant implied by Conveyancing Act — Settlement of copyholds and leaseholds — Annulment of settle- ment — Voluntary and fraudulent settlement — Leading provisions of the Settled Land Acts and cases relating thereto considered 133—156 CHAPTER XIII. Wills. Definition of — Forms in which it may be made — Early history of wills — Formalities reqmred by Wills Act — Provisions of — ^Lord Kingadown's Act (24 & 25 Vict. c. 114) as to wills of personal estate — Law as to lapse — Various modes in which wills may be revoked — Will speaks from death — Case illustrating this rule — ^Effect of words " die without issue" — Various classes of legacies — General — Specific — Demonstra- tive — Cumulative — Substitutional — Executor's year — Charge of debts — Doctrine of incorporation — Rules of construction — Rules of law — Statement of some of the most important rules — Rules as to making and altering wills and as to taking instructions for wills— Summary of the law as to " death duties " .. .. .. ., 157 — 174 CHAPTER XIV. POWBBS. Definition of powers — Different classes of powers — Common law powers — Equitable powers— Powers operating under the Statute of Uses — Powers simply collateral — Powers in gross — Powers appendant or appurtenant — General powers — Special powers — ^Requisites to the valid creation of a power — Excess of exercise of powers — Fraud on powers — Illusory appointments — Provisions of various statutes re- specting powers 175—183 CONTENTS. Xlll CHAPTER XV. Copyholds. Definition of copyholds — History of copyholds — Principal characteristics of copyholds — Provisions of the Copyhold Acts, 1841 to 1887 — Law as to timber and minerals — Estate tail in copyholds — Enfranchise- ment of copyholds .. .. .. .. .. 184 — 193 CHAPTER XVI. Incorporeal Hereditaments. Definition of — ^Various kinds of incorporeal hereditaments — Law as to easements — ^Their different classes and mode of their creation — Leading cases with respect to — Rights of riparian proprietors — Rents —Rights of common 194—202 CHAPTER XVIL Statutes of Limitation and Prescription. Principle of the law — Tendency of modern decisions — Summary of pro- visions of — Important decisions thereon — Provisions of sect. 25, sub- sect. 2 of Judicature Act, 1873, and Trustee Act, 1888, with regard to actions against trustees — Provisions of Prescription Act with regard to commons, ways, watercourses, easements, light 203 — 209 CHAPTER XVIII. Married Women's Property. Summary of law independent of the Married Women's Property Acts — Doctrines of separate use and restraint on anticipation — Provisions of Married Women's Property Act, 1882 — Cases decided under — Law as to liability of husband for wife's contracts — Decision of the House of Lords in Debenham v. Mellon — Pin money^ — ^Bquity to settlement — Paraphernalia — Fraud on marital rights — Acknowledgment of deeds by married women — -Sect. 39 of Conveyancing Act, 1881 — Sect. 61 of Settled Land Act, 1882 — List of statutes specially referring to property of married women . . . . . . . . 210 — 229 CHAPTER XIX. Charities and Mortmain. Provisions of the Mortmain and Charitable Uses Act, 1888 — Assurances in mortmain — Legal meaning of the term charity— Provisions of 43 Eliz. c. 4 — Decisions as to what objects are, and what are not, charitable — Leading cases on the subject of charities .. 230 — 238 xiv CONTENTS. BOOK II. PBRSONAIi PROPERTY. CHAPTER I. Introductory. The division of personal property into choses in possession and choses in action stated and considered—" Incorporeal personal property " — Re- quisites for valid sale of personal property — Effect of sale — Greneral rule of the law Nemo dat quod non habet — Law as to sale in market overt — Provisions of the Factors Act, 1889 — Provisions of the Revenue Act, 1889, as to contracts and agreements — Conversion and redemption of consols — Points of similarity and difference between real and per- sonal estate — Order in which personal property is here considered 239—247 CHAPTER II.' Ships. Merchant Shipping Acts, 1854 to 1889 — ^Registration of ships — ^British and foreign ships — Division of property in a ship — Modes of acquisi- tion of property in ships — Sales and mortgages of ships, and trans- mission of interest therein — Equitahle rights in ships — Provisions of Merchant Shipping Act, 1862, with regard to equitable rights in ships — Nationality of ships .. .. .. .. .. 248—252 CHAPTER III. HOBSEB. Reason of special legislation as to horses — Provisions of statutes — 2 & 3 Philip and Mary, c. 7, and 31 Elizabeth, c. 12 — Cases on the subject — Law as to warranty — Of soundness of horses — Sale of Horseflesh Regulation Act .. .. .. .. .. ., 253 — 255 CHAPTER IV. Negotiable Instruments. Law to a large extent practically codified by Bills of Exchange Act, 1882 — ^Nature of negotiable instruments — Summary of provision of Bills of Exchange Act, 1882 — Definition of bill of exchange — Inland Bill— Foreign Bill— Parties to Bill of Exchange — Leading case on question who is a fictitious person — Acceptance of bill — General Qualified — Indorsement of bill— In blank — Special— Restrictive Presumption of law as to consideration — ^Days of grace — Acceptance CONTENTS. XV per JJTOC— Overdue bill— Dishonour of bill— Notice of dishonour- Statutory definition of cheque — What is reasonable time for pre- sentation—Authority to pay— How revoked— Law as to special and general crossing of bill— Law as to relations between banker and customer— Statutory definition of Promissory Note— "When inchoate — Indorsement of, etc.- Provisions of the Judicature Act, 1873, as to assignment of cAoses «ji ocWom .. .. .. .. 256 267 CHAPTER V. Policies of Insubance. Strict meaning of the terms "assurance" and "insurance" — General definition of the contract of insurance — Distinction between marine and fire insurances and life insurance — Consequences of principle of indemnity — The doctrine of " subrogation "—The contract of marine insurance defined and considered — " Open " and " valued " policies — Provision of Statute 28 Geo. 3, c. 56, prohibiting marine pohcies in blank — ^Assignment of marine policy — Particular and general average — ^Usual conditions in policies of fire insurance — -Provisions of the Trustee Act, 1888, with regard to fire insurance — Judicial definition of the contract of life insurance — Insurable interest rendered necessary by 14 Geo. 3, c. 48 — Oodsall v. Boldefo overruled by Dally v. The India and Jjondon Life Assurance Co. — The law as to the assign- ment of life policies under the Policies of Assurance Act, 1867, stated and considered — The Life Assurance Companies Acts, 1870, 1872 — Clause as to death by suicide, &c. — Stamp Duty on assignment of policies of life insurance — Provisions of the Trustee Act, 1888, with regard to policies of life insurance — Lien on policies created in four cases — Law as to concealment of material facts — Accident insurance defined and law considered — Guarantee policies — Eules for construc- tion of policies of insurance .. .. .. .. 268 — 282 CHAPTER VI. Dkbbntukbs. The question as to " what are debentiires " discussed — When debentures require to be registered — Principal kinds of debentures — Form of mortgage debenture— Nature of " floating charge " — Effect of deben- ture given by a railway company — The question whether debentmes payable to bearer are negotiable considered .. .. 283 — 286 CHAPTER VIL Patents. Definition of— Origin of term — How sealed — Eight founded on Statute of Monopolies-^Term of patent— Enactments and rules concerning patents— What objects patentable— What may be subject of patent— xvi CONTENTS. Consideration for patent— Who may apply for— Reference by comp- troller to Examiner — Appeal from comptroller's decision — Provisional specification — Complete specification — Construction and interpretation of specification — Rights of Crown— Certificate of validity — Extension of term — Petition for revocation — Register of patents .. 287 — 303 CHAPTER VIII. Designs. Statutes and rules by which the law with regard to designs is now governed — Statutory definitions of " design " and " proprietor " — Law as to originality of design — Registration of designs, &c. — Penalties and damages .. .. .. .. .. .. 304 — 308 CHAPTER IX. Trade Makes and Trade Names. The Patent, Designs, and Trade Marks Acts, 1883 to 1888 — Principle on which the law as to trade-marks is based — Leading cases with regard to trade-marks — Statutory definition of trade-mark- — Registration of " invented word " — The three marks rule — Restrictions on the regis- tration of trade-marks — Is there property in a trade-mark? — Is it necessary to prove fraud in an action for infringement? — ^Assignment of trade-mark — Registration of trade-mark — Sheffield marks — Dura^ tion of trade-marks — Trade names — Leading cases with regard to — Grounds for interference of Court .. .. .. 309 — 318 CHAPTER X. Copyright. The subject of copyright considered under the five heads of (1) Copyright •in literary works— (2) Copyright in engravings, prints, and litho- graphs— (8) Copyright in sculpture, models, casts, and busts — (4) Copyright in musical and dramatic representations or perfoi-m- ances— (5) Copyright in pictures, drawings, and photographs 319-328 CHAPTER XI. Bills of Sale. The leading principle upon which the law as to bills of sale is based, stated —Acts of Parliament by which bills of sale are now governed The question " What is a bill of sale " considered — Bills of sale absolute and conditional— What is necessary to establish a gift of chattels ?— Statutory definition of bill of sale— What are and what are not "personal chattels "—Trade machinery — ^Requisites of bill CONTENTS. XVll of sale — Sotedule — ^Attestation — Registration — Consideration — Law as to acquired property — Form of bill of sale — Test of accordance with, the Act considered by thtf Court of Appeal and the House of Lords — Oases in which bills of sale have been held to be void — Pro- visions " for the maintenance or defeasance of the security " which may be inserted in a bill of sale — Provisions of the Bills of Sale Act, 1882, with regard to seizure, consideration, registration, defeasance — Decision of the House of Lords with regard to the assignment of future book debts — Hiring agreements — The object of the earlier BUls of Sale Acts and that of the Act of 1882 contrasted by Lord HerscheU 329—340 CHAPTER XII. Intestacy. Statement of the rules which govern the descent of personal property in intestacy — When intestate leaves widow and children — When widow and no children — When children and no widow — Sir John Wickens' statement of the law — ^Law as to " hotchpot " Ulustrated— Married Women's Property Act — Rights of husband surviving wife — Decision as to .. .. .. .. .. .. 341 — 345 BTTSINESS OP THE COURTS. Inteoduotobt Chaptbk as to the changes in law and practice which have been introduced by the Judicature Acts and Rules 346 — 359 BOOK III. CONTRACTS. CHAPTER L DlFFEBEKT CLASSES OF CoNTBACTS. Definition of contracts— Different classes of contracts— Characteristics of— (1) Contracts of Record— (2) Contracts under seal— (3) Simple con- tracts 360—371 CHAPTER IL Simple Contbacts bequibed to be in Weiting. Enumeration of cases in which writing is required by law— 4th and 17th sections of the Statute of Frauds and leading cases thereon— Law as VOL. I. * Xviii CONTENTS. to guarantees— Provisions of the Mercantile Law Amendment Act, 1856— Law as to transfer of property on sale— Definition of warranty and review of cases thereon .. .< .. •• 372 — 383 CHAPTER III. Capaoitt of Parties. Capacity to contract considered under the heads of political, professional, and social status and personal conditions— Contracts by aliens — Foreign states — Ambassadors — Law as to fees of counsel and phy- sicians — Contracts of infants — Married women — ^Lunatics — ^Drunken persons — Corporations .. .. .. .. .. 384 — 395 CHAPTER IV. Illegal Contbacts. Oeneral principle of the law as to illegal contracts — No distinction between deeds and parol contracts — Leading case of Collins v. Blantern — Division of illegal contracts — ^Illustrations of illegal contracts — ^Law as to wagers and gaming considered .. .. .. 396 — 405 CHAPTER V. Bailments. befinition of bailments — Division of bailments by Lord Holt in the cele- brated case of Coggs v. Bernard — ^The law as to the different classes of bailments stated — Two classes of bailees, viz. innkeepers and common carriers, regarded by the law in an exceptional light — The law as to innkeepers and carriers stated and illustrated 406 — 413 CHAPTER VI. Peincipal and Agent. Definition of agent — The different kinds of agency — Universal, general special, mercantile, non-mercantile, del credere, considered Duties of agent — ^Exceptions to the general rule delegata potestas non potest delegwri stated — Essentials of ratification — Is a company boimd by a contract-made by its promoters ?— Statement of the leading case of Cornfoot v. ii'owSe— Observations of Lord St. Leonards thereon cited with approval in the House of Lords— Important case on the law of principal and agent decided by the House of Lords in 1887— Service of writ on agent — Circumstances under which agent primarily liable- Law as to liability of undisclosed principal— Effect of lunacy of prin- cipal upon contracts made by an agent .. .. 4^4 421 CONTENTS. xix CHAPTER Vn. Measuee of Damages. General rule of tlie law as to measure of damages — Limitation of the rule established by the leading case of Hadley v. Baxendale, and subse- quent cases — The principle illustrated by the decision of the Court o^ Appeal in Hammond & Co. v. Bussey — Greneral principles of the law as to interest on debts stated — Provisions of 3 & 4 Wm. 4, c. 42 422-^25 CHAPTER VIII. DiscHAEaB OF Contracts. The different modes in which contracts may be discharged stated and illustrated — (1) By mutual consent — (2) By performance — (3) By breach — (4) By impossibility of performance — (5) By operation of law— (6) By novation 426 — 434 CHAPTER IX. Stoppage ts Teansitu and Lien. The doctrine of stoppage in transitu stated — Principles decided by the leading case of Liekharrow v. Mason — Reason of the law of stoppage in transitu — ^Alteration in the law by the Factors Act, 1889 — Decision of the Court of Appeal in 1888 stated — Lien defined — ^Law as to particular Hen — ^Law as to general lien — ^Instances where liens have been allowed 435—438 BOOK IV. TORTS. CHAPTER I. Inteoductoet. Definition of torts — ^Distinctions between contracts and torts considered The law as to injuria sine damno illustrated by the leading case of AsKby V, White, and other cases — The law as to damnum sine iniv/ria stated and illustrated — Law as to torts committed abroad 439—441 h 2 XX CONTENTS. CHAPTER II. TOBT Fbasobs. Principles of the law as to tort feasors considered under the three heads of (1) The llahility attaching to certain persons for their own acts — (2) The liability attaching to certain persons for the acts of others — (3) The liability attaching to the ownership of mischief-causing property. The law as to torts with reference to convicts, alien enemies, married women, infants, corporations, mischief-causing property, joint tort feasors, stated and illustrated — Exceptional cases where acts which would otherwise be regarded as torts are justified or excused, enumerated and considered.. ., .. 4.42—455 CHAPTER III. Division op Tobts. Torts considered vmder the heads of torts to the person and reputation — Torts to property, whether real or personal — ^Torts not directly aifecting persons or property — The law as to personal wrongs con- sidered under the heads of assault and battery, false imprisonment, malicious prosecution — Peculiar character of the action for seduction — Statement of the law by Mr. Justice Blackburn .. 456 — 462 CHAPTER IV. Defamation. Principle on which the law as to defamation is based — Libel and slander defined — Distinctions between libel and slander — Words actionable per se— Summary of the law by Lord Blackburn— The question what is fair criticism considered — ^Law as to publication — Defences of justi- fication and privilege — Absolute and qualified privilege 463 476 CHAPTER V. TOKTS TO PeOPEETT. Torts to property considered under the heads of (1) Trespass— (2) Nuis- ance— (3) Conversion— (4) Slander of title— Trespass may be either to person, personal property, or realty— Instances of trespass— The Six Carpenters' Case— The law as to trespass ah initio altered as to landlords by 11 Geo. 2, c. 19— Defences to action of trespass- Nuisance defined— Public and private nuisances defined and illus- trated—Where action for conversion lies (formerly action of trover) —Law as to stated— SbZZins v. Fowhr—Armory v. Delamirie— Slander of title-Where an action for lies-The law does not presume damage— lUustratioE and summary of the law . . . . 477 igs CONTENTS. XXI CHAPTER VI. Nbgugence. The old definition of negligence stated and considered in the light of the decision of the Court of Appeal in Heaven v. Pender — Mr. Justice WUles' definition — The question what is "gross negligence" con- sidered — The law as to " contributory negligence '' stated generally, summed up in a series of propositions, and illustrated by cases 484^-492 CHAPTER VII. Deceit. The law with regard to actions for deceit to a great extent settled by the decisions of the House of Lords in Bmifh v. Chadwick, decided in 1888, and Berry v. Peek, decided in 1889 — Statement of the facts in Smith V. Chadwick, and of the law as laid down in the House or Lords with regard to what the Plaintiff must prove in order to succeed in an action for deceit — Statement of the facts in Berry v. Peek — State- ment as to how an action for deceit differs essentially fi:om an action brought to obtain rescission of a contract on the groimd of misrepre- sentation of a material fact — Summary of the law with regard to actions for deceit 493 — 496 CHAPTER VIIL Discharge op Toets. The various modes in which torts may be discharged considered — The rule Actio personalis moritwr cum persona — The exceptions to this rule stated and considered — Does the maxim apply to an action brought in respect of breach of promise of marriage ? — The Statute of Limitations as to periods within which actions must be brought for slander, assault, battery, wounding, imprisonment, trespass to lands or to goods, detinue, trover, replevin, libel, &c. — Accord and satisfac- tion — ^Waiver — The position of bankrupt tort feasors and that of persons injured by torts who become bankrupt considered — Discharge of tort by the recovery of damages — Important distinction between contracts and torts in reference to damages — The various kinds of damages awarded to parties injured by torts considered and illustrated (1) Nominal damages — (2) Ordinary damages — (3) Vindictive or exemplary damages — (4) Special damages — The question of measure of damages in cases of tort considered . . . . . . 497 — 507 TABLE OF CASES. PASK A. B., in the Matter of (11 P. D. 56) 1147. A. u. B (1 P. & D. 559) 1022 A.'sDivorceBiU(12App. Gas. 365,366) 1047 Abbott, Ex parte. Ee Goirrlay (15 Oh. D. 456 ; 50 L. J. Oh. 80 ; 43 L. T. 417 ; 29 W. E. 143) 774 1). Middleton (7 H. L. Caa. 68) 168 Aberdeen Eail way ■«. Blaikie (1 Macq. 461) .... 645 Aberdeen Town Council v. Aberdeen Univeraity (2 App. Cas. 544, 557) 521 Abergavenny (Earl of) v. Brace (L. E. 7 Bxcb. 145) ... 40 Abemethy v. Hutchinson (3 L. J. Ob. 209) . . . .321 Abratb v. Nortb-Eastem Eailway Co. (11 Q. B. D. 440; 11 App. Cas. 247 ; 52 L. J. Q. B. 620; 55 L. J. Q. B. 457 ; 49 L. T. 958 ; 54 L. T. 641 ; 32 W. E. 50 ; 34 W. E. 63) . . 446, 459 Ackroyd v. Smithson (1 Bro. C. C. 503) 541 Adam v. Newbiggin (13 App. Cas. 308) 633 Adams, Ee and The Kensington Vestry (27 Oh. D. 394) . . 515 V. Angell (5 Oh. D. 634, 645; 46 L, J. Ch. 31; 43 L. T. 464; 29 W. E. 117) 24,38,47 Adam's Pohcy, Ee (23 Ch. D. 525) 224 Trust, Ee (12 Ch. D. 634) 512 Addison v. Gandasequi (2 Smith's L. 0.) 420 i>. Bound (4 A. & E. 799) 1117 Addlestone Linoleum Co., Ee (37 Ch. D. 192) . . . .648 Ager V. Peninsular and Oriental Steamship Co. (26 Ch. D. 637) ". 323 Agg-Gardener, In re (25 Oh. D. 600 ; 53 L. J. Ch. 347 ; 49 L. T, 804; 32 W. E. 356) . Agnew V. Murray (9 App. Cas. 519) . ■w. Usher (14 Q.B. D. 78) Agriculturist Cattle Insurance Co. Baird's Case (L. E. 5 Oh. 725) . Ahier v. Ahier (10 P. D. 110) AJnslie, Ee. Swinburne v. Ainslie (30 Ch. D. 485 ; 33 W. E. 910) (33W.E. 148) Akerblom v. Price (7 Q. B. D. 129) .... Aldridge, Ex parte (1 S. & T. 88) Alexander v. Alexander (2 Ves. Sen. 640) . v. Birchfield (7 M. & G. 1061) . 191 660 718 6]9 1046 5 . 38 . 1072 . 1012 177, 178 . 263 XXIV TABLE OF CASES. Alexander v. Mackenzie (9 Scotch Sess. Cas., 2nd series, 758) ■!;. Simpson (43 Oh. D. 139) . . . , The (1 Dods. 278) Alexandre v. Alexandre (2 P. D. 164) Alison, In re. Johnson v. Mounsey (11 Ch. D. 284 ; 40 L. T, 27W. E. 389) Allbutt V. General Council of Medical Education (23 Q. B. D. 400). Allcard v. Skinner (36 Ch. D. 145 ; 56 L. J. Ch. 1052 ; 56 L. T. 104 ; 58 L. T. 61 ; 35 "W. E. 424) . Allen «. Aldridge (5 Beav. 401) V. Allen (2 Dru. & Warren, 307) V. Bone (4 Beav. 493) . V. Garbutt (6 Q. B. D. 165) . Alleston v. Moore (Hetl. 167) . Allhusen v. Brooking (26 Ch. D. 659) Allsop V. Wheatcroft (L. E. 15 Eq. 59; 42 L. J. Ch. 12 ; 27 372; 21W. E. 162) .... Almada and Tirito Co., Be (38 Ch. D. 415) Alston, Ex parte (L. E. 4 Oh. 168) . Amalia, The (1 Moo. P. C. C. (N.S.) 471 ; Br. & Lush, 151) American Braided Wke Co. v. Thomson & Co. (44 Ch. D. 274) Amon V. Bobbett (22 Q. B. D. 543) . Amos V. Chadwick (9 Oh. D. 459, 463; 47 L. J. Ch. 607; 38 (N.S.) 415; 26W.E. 556) .... Andalusian, The (3 P. D. 182) .... Anderson v. Bank of Columbia (2 Ch. D. 654, 658) Anderston Foundry Co. (1 App. Cas. 583) . Andrew v. Barnes (39 Ch. D. 133) . ■ V. Boughey (Dyer, 75, b.) . ■ V. Swansea Cambrian Building Society (50 L. J. 428) Ch, Andrews, Ee(7 Oh. D. 635) Anglo-African Steamship Co., Be (32 Ch. D. 348 ; 55 L. J. 54 L. T. 807; 34 W. E. 554) .... Anglo-Italian Bank v. Davies (9 Ch. D. 275; 47 L. J, Ch, L. T. (N.S.) 244; 57 W. R. 3) . Angus V. M'Lachlan (23 Ch. D. 330) Anlaby v. Prsetorius (20 Q. B. D. 764) Annandale, The (2 P. D. 179, 218) .... Annie, The (12 P. D. 50) Appleby v. Franklin (17 Q. B. D. 93). Arbenz' Application, In re (35 Oh. D. 248) . Arbuthnot v. BulsiloU (62 L. T. 234) Argus Life Insurance Co., Ee (39 Ch. D. 571) . Arkwright v. Newbold (17 Oh. D. 312) Armitage, Ex parte. Ee Learoyd & Co. (17 Ch. D. 13) Armory v. Delamirie (1 Strange, 604 ; 1 Smith's L. 0. 385) Armstrong, Ee (17 Q. B. D. 167, 621; 21 Q. B. D. 264, 273; 36 ^•^•'^'^2) 219,220,222 PAGE . 322 . 656 1059,1089 . 1017 .234; 103 470 . 603 . 842 . 41 . 831 1078, 1079 . 465 . 119 L. T. 595 648 110 1058 303 802 L. T. . 755 . 1067 . 742 . 292 800, 801 . 427 . 660 . 923 579; . 718 833; 39 590, 775 . 410 733, 735 . 260 . 1074 . 461 . 312 . 361 . 282 , 496 . 949 . 482 TABLE OF CASES. XXV PAOE Arnal, Ex parte. Ke Wilton (24 Ch. D. 26) . . . .927 Amison, Ex parte (L. E. 3 Ex. 56) 1141 V. Smith (41 Ch. D. 369) 494, 496 Arnold v. Dixon (L. E. 19 Eq. 113) 545 Amott K. Hayes (36 Oil. P. 731) 866 Arratoon Apcar, The (15 App. Oas. 37) 1059 Arrowsmith, Ex parte (8 Ch. D. 96) 402 Ashbury v. Eiche (L. E. 7 H. L. 653) , . . . . 283, 641 Ashby V. White (2 Ld. Eaymond, 938 ; 1 Smith L. C. 429) . . 505 Ashcroft, Ee (19 Q. B. D. 186) 923 Asher 1-. Calcraft (18 Q. B. D. 607) 1118 Ashley, In the Goods of Anne (15 P. D. 120) . . , 959, 989 Ashton V. Corrigan (L. E. 13 Eq. 76) 576 V. Sharrook (29 W. E. 117) 778 Ashwin, Ee (25 Q. B. D. 271) 950 Ashworth, Ex parte. Ee Hoare (L. E. 18 Eq. 705) . . .946 V. Outram (5 Ch. D. 941; 46 L. J. Ch. 687; 36 L. T. 200; 25 W. E. 862) 212 Aste V. Stumore (13 Q. B. D. 329, 380) . ... . .742 Aslatt V. Corporation of Southampton (16 Ch. D. 143; 50 L. J. Ch. 31; 43L. T. 464; 29 W. E. 117) 590 Astley V. Earl of Essex (L. E. 18 Eq. 290) .... 71 Atkins V. Shepherd (43 Oh. D. 131) 713, 775 Atkinson, In re. Atkinson v. Bruce (31 Ch. D. 577) . . . 154 V. The Bradford Third Equitable Benefit Building Society (25 Q. B. D. 377) 434, 987 Atlantic Mutual Assurance Co. v. North (16 Ch. D. 474, 481) , 243 Attorney-General v. Abdy (1 H. & C. 266) 173 '■ «. Acton Local Board (22 Ch. D. 221) . . 597 V. Emerson (24 Q. B. D. 56) . . . . 797 V. Gaskill (20 Ch. D. (C.A.) 525, 526, 530) . 742 ■ V. Hitchcock (11 Jurist, 478) . . . .852 ■■ of Hong Kong v. Kwok-a-Sing (5 P. C. 179, 199) 1176 ■;;, Hubback (10 Q. B. D. 488 ; 13 Q. B. D. 275) 541, 545 V. Ironmongers' Co. (2 Beav. 313) . . . 539 w. Jones (1 Mac. & G. 574) .... 3 V. Marquis of Ailesbury (12 App. Cas. 672 ; 36 W.E. 737 ; 57 L. J. Q. B. 83: 58 L. T. 192) . . . .543 of Ontario v. Mercer (8 App. Oas. 767) . . 12 V. Sands (Tudor's Eeal Property Oas. 3rd ed. 760. et seq.) .......... 55 V. Shrewsbury (Kingsland) Bridge Co. 21 (Oh. D. 752) 596 «;. Theobald (24. Q. B. D. 557) . . . .136 v. Vyner (38 W. E. 194) . . . .752 V. Wax Chandlers Company (L. E. 6 H. L. 1) . 512 u. Webster (20 Eq. 483) 237 XXVI TABLE OF CASES. PAGE 38 L. T. 234, 285. 723, 735 . 63a . 425 Attree v. Hawe (0 Ch. D. 337, 345 ; 47 L. J. Ch. 863 733? 26 W. E. 871) • Atwood V. Chichester (3 Q. B. D. 722) 1). Maude(L.R. 3Ch. 369) . w. Taylor (1 M. & G. 279, 332) . Auld V. Glasgow Working Men's Building Society (12 App. Cas. 197) . . Austerberry -v. Corporation of Oldham (29 Oh. D. 750 ; 53 543 ; 55 L. J. Ch. 633 ; 33 W. B. 807) . Austin i;. Bowling (L. R. 5 0. P. 540) Australian Wine Importers Co. (41 Ch. D. 278) . Automatic Weighing Machine Co. v. Knight (6 R. P. C. 297, Avemr,The(9P.D. 84) Axford V. Reed (22 Q. B. D. 548 ; 58 L. J. Q. B. 230 ; 60 L. T, 37W.R. 291) Aylesv. Cox(16Beav. 23) Aylesford, Earl of v. Morris (L. R. 8 Ch. 484) . Aylmer, In re. Ex parte Bisohoffsheim (20 Q. B. D. 258 ; 153) . Ayres, In the Goods of Harriet (8 P. D. 168) ,.Ee(8P. D. 168) Ayshford, Re. Ex parte Lovering (4 Mor. 164) Azemar v. Casella (L. R. 2 0. P. 679) 660 L. T. . 595 . 461 313, 316 309) . 292 . 1092 726; . 217 . 579 671, 674 4 Mor. 909, 915 224, 988 . 224 . 950 . 380 B, Backhouse v. Bonomi (9 H. L. 503) 501 Badoock Re. Kingdon v. Tagert (17 Oh. D. 361) . . ,. 600 Badeley v. ConsoUdated Bank (34 Ch. D. 536; 38 Oh. D. 238, 248, 258^ 57 L. J. Ch. 468 ; 36 W. R. 745) . . 616, 634, 684, 776 Badische Amlin Und Soda Pabrik v. Levinstein (12 App. Cas. 710 ; 52 L. J. Ch. 704 ; 48 L. T. 822 ; 31 W. R. 913) . . 290, 298 Bagley i;. Searle (56 L. T. 306) .587 Bagnall v. Carlton (6 Ch. D. 130) 777 Bagot.s;. Bagot and Selton (W. N. (1890) 38) . . . . 1040 Bahia, Re, and San Francisco Railway Co. (L. R. 3 Q. B. 584, 595) 649, 864 Bahin v. Hughes (31 Ch. D. 390) BaUe V. Baile (L. R. 13 Eq. 497) Bailey v. Badham (30 Ch. D. 84) V. Bailey (12 Q. B. D. 855) . V. Bodenham (16 C. B. (N.S.) 288) . V. Robertson (3 App. Cas. 1055 ; 38 L. BaiUie v. Goodwin (33 Ch. D. 604) . Bain v. FothergiU (L. R. 7 H. L. 158) Bainbridge, Re. Ex parte Fletcher (8 Ch. D. 218) Baird v. Wells (44 Ch. D, 661) , • . 215 • • • . 847 • ■ . . 1141 • • • . 725 • • ■ . 263 854 ; 27 W. R. 17) 297 • ■- •■ . 707 • • a . 581 8) . . . 920 . 599 TABLE OF- CASES. XXVU PAGE Baird's Case (L. R. 5 Ch. 725) 649 Baker, Ee (44 Ch,,D. 262) 549 .V. Baker (5 P. D. 143) 1042, 1043 ,w. Dening (8 A. & E. 94) 374 ,«. Oakes (2 Q. B. D. 171) 703 Baldry v. Bates (52 L. T. 620) 414 Ball V. Kemp-Welch (14 Ch. ,D. 512 ; 49 L. J. Ch. 528 ; 43 L. T. 116) 558 «. Ray (L. E. 8 Ch. 467) 594 BaUard v. Tomlinson (29 Ch, D. 115 ; 54 L. J. Ch. 454 ; 52 L. T. 942^ 83 W. E. 533) . , 594 Banister, Ee (12 Ch. D. 131 ; 48 L. J. Ch. 887; 40 L. T. 828; 27 W.E. 826) 78 Bank nf New South Wales v. O'Connor (14 App. Cas. 273 ; 60 L.T. 467) 570 Bankes v. Small (36 Ch. Div. 716; affirming 34 Ch. D. 415; 56 L. J. Ch. 832; 35 W.E. 765) 87,577 Banks, Ex parte. Ee Bowling (4 Ch. D. 689) . . . .919 V. Goodfelbw (L. E. 5 Q. B. 549) 391 Banner «. Berridge (18 Ch. D. 254) 207,583 Barber, In the Goods of H. T. (11 P. D. 78) . . . . 989 , Ee (31 Ch. D. 665) 159,784 Barber's Settled Estates, In re (18 Ch. D. 624, 627) ... 82 Barker's Trust, Re (1 Ch. D. 43) 512,915 Barkshire v. Grubb (18 Ch. D. 616 ; 50 L. J. Ch. 731 ; 45 L. T. 383 ; 29 W. E. 929) 201 Barlow «. Teal (IS Q. B. D. 501) 120 Bame, Ex parte. In re Barne (16 Q. B. D. 522) . . 902,903 Barnes v. Addy (L. E. 9 Ch. 244 ; 43 L. J. Ch. 513 ; 80 L. T. 4 ; 22 W.E. 505). . , . .583 ■». Barnes (1 P. & D. 463) .... 1038,1034 V. Bowling (44 L. T. 809, and Cases there cited) . . 28 «. Shore (8 Q. B. B. 640) 1110 r & Co. «. Toye (13 Q. B. B. 410, 412) . . . 386,387 Bamett, Ex parte, EeDeveze (L.E. 9 Ch. 293) . . .982 Barrett, Ex .parte (L.E. 10 Ch. 512) 689 V. Hartley (L. E. 2 Eq. 789) 674 Barrow v. Barrow. (18 Beav. 522) 602 Barry ,■!;. Bublin United Tramways Co. (26 L. E. Ir. 150) . . 444 Bartholomew v. Ereemao (8 C. P. B. 816) .... 255, 792 Bartlett v. Wells (1 B. & S. 836 ; 1 Sid. 258 ; and 8 Ex. 146) . 444 ir. Wood.(9 W, E. 817) 785 Barton v. London.and North Western Eailway Co. (24 Q. B. B. 87 ; 59 L. J. Q. B. 33 ; 62 L. T. 164 ; 38 W. E. 197)' 635, 649, 659, 862 V. London and North-Western Ey. Co. (88 Ch. B. 147; 57 L. J. Ch. 676 ; .58 L. T. 549 ; 86 W. E. 452) . . . .712 Bartonshill Coal Co. t». Eeid (3 Macq. 266) 487 Bass «. Gregory (25 Q. B. B. 481) ..... 199,440 XXVlll TABLE OF OASES. 767) Bastard v. Proby (2 Cox, 6) . Bastin v. Carew (Eyan & Mac. 177) . Batavier, The (15 P. D. 37) . Bate, Ee (43 Ch. D. 600) . Bates, Ee. Ex parte Lindsey (4 Mor. 192) i>. Bates (14 P. D. 17). . V. Moore (38 Ch. D. 382) Batstone v. Salter (L. E. 10 Ch. 431 ; 33 L, Batten, Ee (22 Q.B.D. -685) . , V. Gedge (41 Ch. P. 507) . Batterbee, In the Goods of (14 P. D. 39) Baxter v. London County Council (63 L. T, Bayley v. Great Western Eailway Co. (26 Ch. D. 484) Baynton v. Morgan (22 Q. B. D. 74) . BeaU V. Smith (L. E. 9 Ch. 85) . Beauchamp v. Winn (L. E. 6 H. L. 223) Beaumont v. Greathead (2 0. B. 494) V. Eeeve (8 Q. B. 483) Beavan's Trust, In re (34 Ch. D. 716) Beck, Ee (24 Ch. D. 608 ; 49 L. T. 95 ; 31 V. Pierce (23 Q. B. D. 316 ; 58 L. 448; 31W. E. 29) . Beckett v. Attwood (18 Ch. D. 54 ; 50 L. J 29W. E. 796) .... V. Eamsdale (31 Ch. D. 177 ; 55 222 ; 34 W. E. 127 . V. Tasker (19 Q. B. D. 7 ; 56 L. T. Beokford v. Beokford (Loffl. 490) Beckham v. Drake (8 M. & W. 846 ; 11 M, 579) BeddaU v. Maitland (17 Ch. D. 174) . Beddington v. Atlee (35 Ch. D. 317, 324 ; 56 154 ; 35 W. E. 799) . Beddow v. Beddow (9 Ch. D. 89) . Beeby v. Beeby (1 Hagg. E. E. 795) . Belhaven and Stenton Peerage (1 App. Cas, Behn v. Bumess (3 B. & S. 751) Belaney v. Pfrenoh (L. E. 8 Ch. 918 ; 28 L, BeUamy, Ee (25 Ch. D. 620 ; 48 L. T. 801 V. Debenham (W. N. (1890) 150) and MetropoUtan Board of Works, Bell V. Barchard (21 L. J. Ch. 411) . ■;;. Denvir (54 L. T. 729) . V. Holtby (15 Eq. 189) . V. Kennedy (1 So. App. 307, 320) BeU's Trusts (5 Ch. D. 504 ; 30 L. T. 644) Benand, Ee (16 W. E. 538) Benares, The (9 P. D. 16) FAOE . 514 . 875 . 1097 . 551 . 900 . 953 . 693 T. 4; 23W. E. 816) . 517 . 911 , 1134 . 987 , 807 . 201 . 128 . 710 . 603 424, 505 . 367 . 70 . 155 W. E. 900) J. Q. B. 516; 61 L. T. . 217,361 Ch. 687;44L. T.660; . 797 L. J. Ch. 241 ; 54 L. T. . 862 686) . . 218,219 . 517 &W. 315; 2H. L. C. . 501 . 131,805 L.J. Ch. 655;56L.T. . 520 . 590 . 1015 858 380 848 211 582 848 115 . 770 . 38 1003,^005 . 535 . 612 . 1067 279) T. 618) . 31 W. E. 900) . Ee (24 Ch. D. 387) TABLE OF OASES. XXIX PAGE Benbow v. Townsend (1 M. & K. 506) 511 Bennet v. Bennet (10 Oh. D. 474 ; 40 L. T. 378 ; 27 W. E. 573) . 517 Bentley v. Vilmont (12 App. Cas. 471 ; 57 L. J. Q. B. 18 ; 57 L. T. 854; 36 W. E. 481) . 243 Benwell, Ex parte. (Ee Hutton 14 Q. B. D. 301) . . .919 Benyon v. Benyon and O'Callagan (15 P. D. 29 ; affirmed 15 P. D. 54) ' 1036, 1037 Berkeley v. Standard Discount Co. (13 Oh. D. 95) . . . 744 Berkley, Ee (L. E. 9 Ch. 720 ; 31 L. T. 365 ; 43 L. J. Ch. 703) . 512 Bernina, The (13 App. Cas. 1) . . . . . . . 1062 Berridge v. Berridge (44 Ch. D. 168) 681 Berry v. Ada,mson (6 B. & C. 528) 457 Beryl, The (9 P. D. 134) . . , . . . . 1061, 1065 Besant, In re (11 Ch. D. 508; 48 L. J. Ch. 497 ; 40 L. T. 469; 27 W. E. 741) 609 : V. Wood (12 Ch. D. 605, 620 ; 40 L. T.,445) 354, 588, 609, 1039 Beswick, Ee, Ex parte Hazlehurst (5 Mor. 105) . . . 950 Bethell, In re. BetheU v. Hildyard (38 Ch. D. 220; 57 L. J. Ch. 487 ; 58 L. T. 674 ; 36 W. E. 503) 998 V. Abraham (17 Eq. 24; 43 L. J. Ch. 180; 29 L. T. 715 ; 22W. E. 179) 172 • V. Clark (20 Q. B. D. 617, 620) .... 435, 436 Bethlehem and BrideweE Hospitals, Ee (30 Ch. D. 541) . . 698 Betts V. Gibbons (2 A. & E. 57) 452 Bewley v. Atkinson (49 L. J. Ch. 160) 891 Beynon v. Cook (L. E. 10 Oh. 389, 391 n. ; 32 L. T. 53; 23 W. E. 531) 336, 672, 674, 675 Bianchi v. Oflford (17 Q. B. D. 484) 336 Bickers V. Speight (22 Q. B. D. 7) 725,726 Bickley V. Bickley (L. E. 4 Eq. 216), 13 Bidder/!). Bridges (37 Oh. D. 406 ; 57 L. J. Oh. 300 ; 58 L. T. 656) 371 Bill i;. Bament (9 M. & W. 36) 374 Billage v. Southee (9 Hare, 534) 840 Billingay v. Billingay (et al.) (35 L. J. (Mat.) 84) . . . 1036 Billmghurst v. Viokers (1 PhilUm. 189) 166 Birchi). Earl of Liverpool (9 B.& 0.392)- 367 Birchall, Ee (16 Oh. D. 41) 605 Bird i;. Jones (7 Q, B. 742) 457 Birkmyr v. Darnell (1 Smith's L. C.) 375, 376 Birmingham and District Land Co. v. London and North Western Eailway Co. (34 Ch. D. 261) 712 Birmingham, Dudley and District Banking Co. v. Eoss (38 Oh. D. 295,312) 197,202 Birmingham and Staffordshire Gas Light Co. Ee Eanshawe (L. E. 11 Eq. 615) 931 Bisohoffsheim, Ex parte. Be Ayhner (19Q. B. D. 33). . . 909 Biscoe V. Jackson (35 Ch. D. 460; 56 L. J. Oh. 540; 56 L. T. 753 ; 35W. E.554) 238 XXX TABLE OF CASES. Bishop, Ex parte. Re Tonnies (L. R. 8 Ch. 718) ; Re (13 CL D. 110; 49 L. J. (Bkcy.) 1; 41 L, W. E. 174) • V. Latimer (4 L. T. 775) . T. 388 ; 28 Bissett V. Jones (32 Ch. D. 637) Bithray, Re (38 W. R. 60) Blackburn, Re (43.0h. D. 75 ; 59 L. J. Ch. 208 ; 38 W. E. 140) . „. Blackburn (36 L. J. (Mat.) 88; 16 L. J. (N.S.) 435) . ■ , Low, & Co. V. Vigors (12 App. Cas. 531 ; 57 L. J. Q. B. 114; 57 L. T. 726; 36 W. R. 449) -, Low, & Co. V. Haslam (21 Q. B. 479; 36 W. R. 855) Blackford, Re (27 Ch. D. 676) . Blackman, Ex parte (1 B. & Ad. 122) Blaiberg v. Beckett (18 Q. B. D. 96 ; 876 ; 35 W. E. 34) . i V. Parsons (17 Q. B. D. 366) . Blair v. Bromley (5 Hare, 542 ; 2 Phil. V. Cordner (19 Q. B. D. 516) Blake, Ex parte. Ee MoBwan (11 Oh. D. 572) , Ee (29 Ch. D. 913; 53 L. T. 302 W. R. 886) 56 L. J. Q.B. 35; 55 L. T. 354) V. Herts and Essex Waterworks Co. (41 Ch. D. 399) Blake's Case (6 Co. 43 6, 44 a) . Blakey v. Latham (43 Ch. D. 23) Blaksley, Ee (23 Ch. D. 549) . Blanchard v. Hill (2 Ath. 484) . Blanchett, Ex parte. Re Keeling (17 Q. B. Blaady v. Widmore (1 Peere Williams, 324) Blank v. Footman, Pretty, & Co. (39 Ch. D. Blankenstein v. Robertson (24 Q. B. D. 543) Blewitt, In the Goods of (5 P. D. 116) Bligh V. Brent (2 Y. & C. 208) Blower v. Great Western Railway Co. (L. E. 7 0. P. 662) Bloxam v. Elsee (1 Web. P. C. 132 ; 6 B. & C. 169) . r V. Pavre (8 P. D. 101 ; 9 P. D. 130) D. 144; 57 L. J. Q. B. FAOH 923 598 465 560 776 157 1030 419 419 206 1134 336 336 621 845 928 54 L. J. Ch. 880; 33 785, 787 . 285 . 427 . 794 . 777 . 314 . 900 . 665 306, 307 . 339 . 974 . 376 . 411 295, 298 . 160 D. 303) 678) Bluck,.Ex parte (57 L. T. 419) ... . . .. .932 Blue Ribbon, &c.. Insurance Co. (W. N. (1889) 176) , . . 529 Blyth V. Birmingham Waterworks Co. (11 Exch. 781) . . . 484 ■ and Young, In re (13 Ch. D. 416; 41 L. T. 476; 28 W. E. ' 266) 586 Board of Trade, The v. Block (13 App. Cas. 570, 581 ; 56 L. J. Q B : 370 ; 56 L. T. 804 ; 35 W. E. 530) . . . 281, 943, 945 Boardman v. Boardman (1 P. & D. 233) 1011 Boddington v. Schlentur (4 B. & Ad. 759)- 263 Bodkin v. Case (Milw. Ir. E. C. 356) ...... 1026 Bolckow V. Fisher (10 Q. B. D. 168) ...!!! 742 Bold Buccleugh, The (7 Moo. P. C. 267) . . . . . 1051 1052 1053 TABLE OF CASES. XXXI L. T, Bold V. Hutehinson (5 De G. M. & G. 558) Boltott, Ee (30 W, E. 596) ' — ■ V. Corporation bf Liverpool (1 Mylne & K. 94, 95) ■ V. Lambert (41 Ch. D. 295 ; 58 L. J. Oh. 425 j 60 687 ; 37 W. E. 434) .... V. London School Board (7 Ch. D. 766) Bond, In re (21 Q. B. D. 17) . V. Hopkins (1 S. & L. 433) w Bosling (1 B. & S. 371) V. Walford (32 Ch. D. 238 ; 55 L. J. Ch. 667 ; 43 L. T, Bone V. "Whittle (1 P. & D. 249) Bonnewell v. Jenkins (8 Ch. D. 70) . Booth ■;;. Maofarlane (1 B. & Ad. 904) ' V. Eattd (15 App. Gas. 188) . Borough V. Collins (15 P. D. 81) Borthwick v. The Evening Post (37 Ch. D. 499) Boss V. Helsham (L. E. 2 Ex. 72) Boston Co. V. Ansell (39 Oh. D. 359 ; 59 L. T. 345) Bosville V. Attorney-General (12 P. D. 178) Boswell V. Coaks (36 Ch. D. 444; 57 L. J. Ch. 101 ; 57 35W. E.€5) . Bothamleyw. Sherson (20 Eq. 204) Boughton, re. Boughton v. Boughton (23 Ch. D. 169) Boulting V. Boulting (3 Sw. & Tr. 335) Boultcm V. Bull (1 Carp. 149) . Boulston's Case (5 Co. 104 a) . Bourke v. Davis (44 Ch. D. 110) Boussmater, Ex parte (13 Ves. 71) Bowen v. Hall (6 Q. B. D. 337). Bower v. Peate (1 Q. B. D. 321, 326 ; 45 L. J. Q. B. 446) Bowes V. Hope Society (11 H. L. 0. 389) . ' Bowie V. Marquis of Ailsa (13 App. Cas. 371) Bown, Ee (27 Ch. D. 411 ; 50 L. T. 796) . Bowser v. Maclean (2 De G. P. & J. 427) . Boxall V. Boxall (27 Ch; D. 220) Boycott, Ee (29 Oh. D. 573; 52 L. T. 482). BoydeU v. Drmnmond (11 East. 142) Boyes,-Re. Boyes v. Carritt (26 Ch. D. 531) Boyes v. Cook (14 Ch. D. 53) . . Bbyse i;. Eossborough (6 H. L, C. 34). Bozon R H P. 640) . 444 .. Tir^lV^.. /9Q TXT- T? 'TRfiN . 953 . 87 «. \KTn-^r^ TJn^ilm-n-rr Cr^ /'QK 'R/amr KQ\ "^"— ^ Ut VVd,lC XVdliWdiy UU. \K>fJ JJBOiV. UOJ. Wall, Ee. Pomeroy v. Willway (42 Ch. D. 510) . 233 , Ee (59 L. J. Ch. D. 172) . 200, 238 V. Stanwick (34 Ch. D. 763) . . 608 Wallingford v. Mutual Society (5 App. Cas. 699) 724, 728 Wallis, Ee (25 Q. B. D. 176) ... . 840 .. a~!J-l, /01 ni, Tl 0/f9. A7 T. T 'JQQ • ^1 W P 214; . 686 52 L. J. Ch. 145) .... , Oi, VV . I\, Walrond v. Walrond (1 Johns. 18) . . 399 Walsh V. Bishop of Lincoln (L. R. 10 0. P. 518) . 1138 It "RiQlinn nf TiATirlnn ^4- A ^ V, 242"^ . 1139 11 T.nTnirlalp C9A Ch D 9^ 114, 132 . 322 Walter v. Howe (17 Ch. D. 708) .. a„\e,. /■^ Tin a. s^ Btv, Q9'>^ . 594 . 926 Walton, Ex parte. Ee Levy (17 Ch. D. 746) T flnnV MO Ch D 325"t . 913 . 660 ,, -pj^p nfi A,,„ rt„„ Q-JN Ward i>. Beck (13 C. B. (N.S.) 668) . . 1085 V. Eyre (15 Ch. D. 130) . . 425 V. Lawson (43 Ch. D. 153) . 850 - V. Ward (L. E. 6 Ch. 789, 791) . 58 Warwick, The (15 P. D. 189) . . 1067 Waring, Ex parte (19 Ves. 344) . . 918 - V. Ward (7 Ves. 337) . . Ill TABLE OF OASES. PAGE Waring v. Waring (2 Cons. 154) 1011 Warkworth, Tlie (9 P. D. 20, 145) 1057 Warman v. Warman (43 Oh. D. 296) 138 Warne v. Reebohm (39 Ch. D. 73) 319, 324 Warner, In the Goods of (10 W. R. 566) 971 V. Murdock (4 Ch. D. 762) 690 Wairender v. Warrender (9 Bli^h. 103) .... 1003, 1004 Warter v. Warter (15 P. D. 35) 1027 V. (No. 2) 15 P. D. 152) .... 974, 1021 Wason V. Walter (L. B. 4 Q. B. 75) 470 Waterhouse v. Skinner (2 B. & P. 447) 370 Waterman's Trade Mark, In re (39 Ch. D. 29) . . . . 312 Waters, Ex parte. Be Hoyle (L. B. 8 Ch. 562) . . . .931 Watkins v. Evans (18 Q. B. D. 386) 336 Watling V. Stevens (Cutler's Pat. Cas. vol. iii. 151) . . .296 Watson, In re. Ex parte Official Beceiver v. Bankruptcy (25 Q. B. D. 27) 339 V. Arundel (10 Ir. B. E. 299) 911 V. Gray (14 Ch. D. 192) ...... 197 V. HoUiday (20 Ch. D. 780) 501 Watt V. Barnett (3 Q.B. D. 186, 366; 38 L. T. 903 ; 26 W. R. 745) 715, 735 Watfs, Re (22 Ch. D. 5 ; 52 L. J. Ch. 209 ; 48 L. T. 167 ; 31 W. B. 262 780 Waugh V. Carver (Smith's Leading Cases, vol. i.). . . . 634 Way man. Re (24 Q. B. D. 68) 850 Weaver, In re (21 Ch. D. 615 ; 48 L. T. 93 ; 31 W. R. 224) . . 530 Wtbb V. Beavan (11 Q. B. D. 609) 464 V. Bird (10 0. B. (N.S.) 268 ; 13 C. B. (N.S.) 841) . 199, 440 V. Hewitt (3 K. & J. 442) 683 V. Shaw (16 Q. B. D. 658) 765 V. Smith (30 Ch. D. 192) 110, 554 Webber, Ex parte (18 Q. B.D. Ill) 919 , Re (24 Q. B. D. 313) 950 V. Lee (9 Q. B. D. 315) 376 Webster v. British Mutual Life Assurance Co. (15 Ch. D. 169) . 275 ■!;. Cook (L. B. 2 Ch. 542) ! 674 V. Southey (36 Ch. D. 9) 204, 238 Weir V. Barnett (3 Ex. D. 32) 482,' 493 Welch V. Bishop of Peterborough (15 Q. B. D. 432) . . . 1139 Weldon v. Be Bathe (14 Q. B. D. 339) .... 215, 216 V. Dicks (10 Ch. D. 252) . . . . . . ' 322 V. Green (Phil. 304) 1108 V. Neal (32 W. B. 828 ; 15 Q. B. D. 471) . . 215 839 V. Weldon (9 P. D. 1883 ; 10 P. D. 72) . . . . 1025 V. Winslow (13 Q. B. D. 785) . . . . .215 Wells' Trust, Be. Hardisty v. Wells (42 Oh. D. 646 ; 58 L. J. Ch". 835 ; 38 W. B. 229 ; 61 L. T. 588) ' . . . 162, 181, 670 TABLE OF CASES. CI FAOE V/ells V. Forster (8 M. & W. 149) . ' 400 «. Wells (43 Ch. D. 281) 137 Wendt, Re (22 Q. B. D. 733) 903 ""■Venlock (Baroness) v. River Dee Co. (10 App. Gas. 354) . . 283 "Weiimaiiu.Asli(13 C. B. 836, 844) 468 Wenniak v. Morgan (20 Q. B. D. 635) .... 216, 468 Wensley, Elizabeth (deceased). In the Goods of (7 P. D. 13) . . 989 Werra, The (12 P. D. 52) 1069 Wesson Brothers v. Stalker (47 L. T. 444) 703 West Cumberland, &c., Co., Re (40 Ch. D. 361) . . . .656 West London Bank v. Kitson (13 Q. B. D. 360) . . . .644 West Riding Union Banking Co., Re Turner (19 Ch. D. 105). . 929 West V. White (4 Ch. D. 631, 636) 749 Western Bank of Scotland v. Addie (L. R. 1 H. L. 145) . . 495 Western Suburban Building Society v. Martin (17 Q. B. D. 609) . 660 Westmeath v. Westmeath (2 Hagg. B. R. Supp. 55) . . 1011, 1016 Westminster Fire Office v. Glasgow, &o.. Society (13 App. Cas. 699) 273 Weston V. Savage (10 Ch. D. 736) 584 Westropp's Divorce Bill (11 App. Cas. 294) .... 1047 Westrup V. Great Yarmouth Steam Carrying Co. (43 Ch. D. 241) 1053, 1077 Wheal BuUer Consols, Re (38 Ch. D. 42) 642 Unity Wood Mining Co. (15 Ch. D. 13) . . . . 650 Wheatiey Silkstone Coal Co. (29 Ch. D. 715) . . . .285 Wheeldon v. Burrows (12 Ch. D. 31, 49; 48 L. J. Ch. 853; 41 L. T. 327 ; 28 W. R. 196 197 Wheeler v. he Marchant (17 Ch. D. 675 ; 50 L. J. Ch. 793 ; 44 L. T. 632 ; 30 W. R. 235) 879 V. The United Telephone Co. (13 Q. B. D. 597) . . 737 Wheelwright v. Walker (23 Ch. D. 752 ; 48 L. T. (N.S.) 70 ; 52 L. J. Ch. 274; 31 W. R. 363) .... 27,151 Whelan v. Palmer (39 Ch. D. 649) . Whetham v. Davey (30 Ch. D. 574) . Whicker v. Hume (4 Jur. (N.S.) 938) Whinney, Ex parte. Re Saunders (13 Q. B. D. 476) : . Re Grant (17 Q. B. D. 238) Whistler, Re (35 Ch. D. 561) .... 1;. Forster (14 C. B. (N.S.) 248) . : — V. Webster (2 Ves. Jun. 367) Whitaker, Re (21 Q. B. D. 261) , Re. Christian v. Whitaker (34 Ch. D. 227) Whitbread, Ex parte (2 Mer. 99) . . . Whitby V. Mitchell (42 Ch. D. 494 ; 44 Ch. D. 85) While, Re (14 Q. B. D. 600) .... V. British Empire Mutual Life Assurance Co. 394) V. Carter (2 Eden. 864). V. ffindle. (7 Ch. D. 201) (L. R, 155 IbS 625 1002 900 915 165 256 . 927 . 222 . 815 68, 70, 177 . 942 7Eq. . 276 . 514 . 45 Cll TABLE OF CASES. White V. Pigott (22 Ch. D. 264) V. Tyndall (13 App. Gas. 263) •«. White (L. R. 15 Eq. 247) . V. (22 Ch. Div. 555) . White's Trusts, Ee (33 Ch. D. 449) . Whitehead, Ex pane (14 Q. B. D. 419) V. Whitehead (L. E. 16 Eq. 528) Whitehouse v. Edwards (37 Ch. D. 683) . Whiteley, Ee. Whiteley v. Learoyd (33 Ch. 1). 347 Whitham v. Kershaw (16 Q. B. D. 613) . Whittingham v. Murdy (60 L. T. 956) Whitwell, Ee (W. N. (1890) 171) . Whorwood, Ee (34 Ch. D. 446) Whyte V. Ahrena (26 Oh. D. 417) . Wicks, Ex parte (17 Ch. D. 70) Widgery v. Tepper (6 Ch. D. 364) . Wigglesworth v. Dallison (Douglas Kep. 201; : last ed.) ...... Wight V. Shaw (19 Q. B. D. 396) . Wiguey v. Wigney (7 P. D. 177) Wiloocks V. Wiloooks (2 Vernon. 558) Wilding V. Bolder (21 Beav. 322) Wilkins v. Aiken (17 Ves. 426) -^ V. Hogg (3 Giff. 116; 8 Jur. (N.S.) 25) Wilkinson, Ex parte. Ee Berry (22 Ch. D. 788) ^ V. Hall (3 Biug. (N.C.) 508) Willoock V. Terrell (3 Ex. D. 323) . Willesford v. Watson (L. E. 8 Ch. 480 ; 121 W (N.S.) 428 ; 42 L. J. Ch. 447) William Symington, The (10 P. D. 1) Williams, Ex parte. Ee Thompson (7 Ch. D. 138) , Ee (36 Ch. D. 573) . V. Dormer (2 Eob. 508) , Esther, In re. Poulkea v. Williams (42 Ch. D. 93) V. Lake (2 E. & E. 349) • V. Preston (20 Ch. D. 672) ~ V. Smith (22 Q. B. D. 134). — V. Wheeler (3 C. B. (N.S.) 316) . — V. Williams (17 Ch. D. 437) — V. (3 S. & T. 548) ■ (L. E. 1 P. & D. 370) Willis V. Bishop of Oxford (2 P. D. 192) , Ee (21 Q. B. D. 384 ; 36 W. E. 793) WiUison v. Patteson (7 Taunt. 439). . Willock V. Noble fL. E. 7 H. L. 580) Wills V. Luff (38 Ch. D. 197, 200) . Wilson V. Barnes (38 Ch. D. 507) V. Brett (11 M. & W. 113) . PAGE . 391 . 59 . 603 . 669 235, 238 . 918 . 25 . 517 12 App. Cas. 733) 525 . 422 . 389 . 669 . 160 . 730 . 919 . 777 Smith's L. Cas., . 24 . 802 139, 1037 . 665 . 512 . 322 . 138 . 897 . 131 . 400 E. 350; 28L. T, . 760 . 736 . 931 . 933 . 1004 . 181 . 373 . 841 . 472 . 379 . 95 . 1012 . 1030 . 1139 . 102 . 384 . 214 . 566 . 238 407, 484 i:able of cases. cm 336) Wilson V. Piuch-Hatton (46 L. J. (Ex.) 489 ; 2 Ex. Div. V. Johnstone (L. E. 16 Eq. 606, 609) V. Kenrick (31 Ch. D. 658) . V. Thornbury (L. R. 10 Oh. 248) . V. Wallani (5 Ex. D. 155) . ■;;. Wilson (1 H. L. C. 538) . V. (2 P. & D. 441) . V. (L. E. 14 Bq. 40) . Wimbledon Local Board v. Croydon Sanitary Authority (32 Ch. D, 421) Winchilsea's (Earl of) Policy Trusts, Ee (39 Ch. D. 168 ; 58 L. J. Ch, 20; 37 W. E. 71) .... Windham v. Sainton (21 Q. B. D. 199) WindhiU Local Board of Health v. Vint (59 L. J. Windsor, &c., Eailway Co. v. The Queen and the Co. (11 App. Gas. 607) Wingrave v. Wingrove and Others (11 P. D. 81) Winn. I!. Bull (7 Ch. D. 82) . Winspear v. Accidental Insurance Co. (6 Q. B. D. Wise, Ee (17 Q. B. D. 389) Withers v. Withers (Amb. 152) Witt, In re (2 Ch. D. 489) V. Banner (20 Q. B. D. 114) Witten, In re (W. N. (1887) 167) . Wollaston v. King (L. E. 8 Eq. 165) . Wolmershausen, Ee (38 W. E. 537) . Wolverhampton and Staffordshire Banking Co. v. 707) Wood V. Beard (2 Ex. D. 30) . u. Bell (6 E. & B. 772) . V. Burgess (24 Q. B. D. 162) . V. Earl of Durham (21 Q. B. D. 501). V. Gregory (43 Ch. D. 82) V. Lambert (32 Ch. D. 247) . V. Leadbitter (13 M. & W. 838) V. Odessa Waterworks Co. (42 Ch. D. 636) V. Weightman (L. R. 13 Eq. 434) . V. Wood (No. 2) (13 P. D. 22) V, — __ (14 P. D. 157) . V. and White (14 P. D. 157 ; 58 L. J. P. D. & Woodall, Ex parte (13 Q. B. D. 479 ; 32 W. E. 774; 50 L, Woodham, Ee (20 Q. B. D. 40). Woodhouse and Another v. Balfour (13 P. D. 3) V. Walker (5 Q. B. D. 404) Woodrop V. Sims (2 Dod. Ad. 85) Woods V. Eussell (5 B. & B. 942) . Woodward v. Goulstone (11 App. Cas. 469, 485) Ch. 738) , Counties Western 42) George (24 Ch. D. FAGE 128 630 183 670 927 577 1019 1087 598 277 738 396 809 963 581 279 948 511 437 332 610 669 684 606 . 114 . 250 . 316 . 472 . 558 . 314 . 363, 478 . 641 . 986 . 1013 . 224, 699 A. 68). 1046 T. 747) 771, 900 930 979 28 1055 250' 978 CIV TABLE OF CASES. Wooldiidge v. Norris (L. E. 6 Bq. 410) . Woolf i;. Pemberton (6 Oh. D. 19; 25 W. K. 873) WooUey V. Colman (21 Oh. D. 169) . Worman v. Worman (43 Ch. D. 296) Wormsley, Ee (4 Ch. D. 665) . Worsley v. Wood (6 T. R. 710) Worth V. GUling (L. E. 2 C. P. 1) . Woithington v. Curtis (1 Ch. D. 419) Wotherspoon v. Currie (L. E. 5 H. L. 508) Wragg's Trade-Mark, Ee (29 Oh. D. 551) Wray, Ee (36 Ch. D. 138) Wright, Ex parte. Ee Arnold (3 Oh. D. 70) V. Davis (1 0. P. D. 638) V. q-off (22 Beav. 207) . V. Horton (12 App. Cas. 371) . V. MiUs (62 L. T. 558) . V. Eedgrave (11 Oh. D. (O.A.) 24) V. Shaw (19 Q. B. D. 396) . V. Smith (5 Esp. 203) . V. Swindon Railway Co. (4 Ch. D. 164) Wyatt, In the Goods of (2 Sw. & Tr. 494) Wylson V. Dunn (34 Ch. D. 569) Wyman v. Ashwell (29 L. J. Proh. 94) Wythe V. Lee (3 Drew. 396) . PAGE . 683 . 605 . 571 , 529 , 552 . 272 . 449 . 274 310, 314, 316 . 314 839, 903, 953 . 920 . 1133 . 602 . 644 . 882 . 357 . 802 . 131 . 734 . 973 . 574 . 993 . 568 Xenos V. Wickham (L. E. 2 H. L. L. J. 0. P. 313; 16L. T. 800) 296 ; 14 C. B. (N.S.) 435 ; 36 362,365 Y. Yarhorough and Others v. Bank of England (16 East, 6) . . 446 Yarmouth v. France (19 Q. B. D. 647) .... 255, 490 Yates, Ee (38 Ch. D. 112) 331 1012, 1013, 1019 . 998 . 951 . 642 352 Yeatman v. Yeatman (L. E. 1 P. & D. 489) Yelverton v. Yelverton (1 Sw. & Tr. 586) . York, Re (36 Ch. D. 333) York Tramways Co. v. Willows (8 Q. B. D. 685) Yorkshire Banking Co. v. Mullan (35 Ch. D. 125) Young & Co. V. Mayor and Corporation of Leamington (8 App. Cas. 517 ; 8 Q. B. D. 579 ; 52 L. J. Q. B. 713 ; 57 L. J. Q. B. 292 ; 46 L. T. 555; 49 L. T. 1; 30 W. E. 500; 31 W. R. 925) . , In re (19 Oh. D. 124) Young, Ee. Trye v. Sullivan (28 Oh. D. 705) .... V. Eosenthall (1 R. P. 0. 29) 392 707 214 292 TABLE OF CASES. CV FAQE Young I). Young (L.R. 3 Eq. 805) 109 Youngs, Ee. Doggett v. Kevett (30 Ch. D. 421 ; 33 W. B. 880) . 797 Zeus, The (13 P. D. 188 ; 59 L. T. 164 ; 37 W. E. 127) . . 1095 Zoedone Co., Limited, Ee. Bx parte Higgins (60 L. T. 383) . 648 Zouche (Lord) v. Dalbiac (L. E. 10 Ex. 172 ; 23 W. E. 564 ; 44 L.J. Ex. 109) • . 185 TABLE OF STATUTES. PAGE 52 Hen. 3 28 11 Hen. 4, c. 9 1211 3 Bdw. 1, c. 4 1215 4Edw. 1, c. 5 28 13 Edw. 1, c. 1 (-De Lords ConditioncUibus) .... 34 13 Eiw. 1, c. 18 (Writ of Megit) 775 13 Edw. 1 {Oircumspecte Agatis) ...... 1145 18 Bdw. 1, c 1 (Quia Emptwes) 45 17 Edw. 2, c. 9 (Idiots) 812 17 Edw. 2, c. 10 (Lunatics) 812 2 Edw. 3, c. 3 1178 4 Edw. 3, c. 7 497 25 Bdw. 3, c. 2 1175 25 Edw. 3, c. 5 497 5 Eioh. 2, 0. 7 (Forcible Entry) 131 11 Hen. 7, c. 1 1174 23 Hen. 8, c. 20 1125 25Hen. 8, c. 10 1101 25Hen. 8,0.19 1098 25 Hen. 8, c. 21 (Special Licences) 1000, 1001 26 Hen. 8, c. 3 1125 26Hen. 8, 0.14 1104 27 Hen. 8, c. 10 (Statute of Uses) . . .17, 83, 158, 175, 188 31 Hen. 8, o. 1 62 31 Hen. 8, o. 3 13 32 Hen. 8. o. 1 158 33 Hen. 8, c. 39 41 34 Hen. 8, o. 5 158 5 & 6 Bdw. 6, 0. 16 402 1 & 2 P. & M. 0. 8 1098 2 & 3 P. & M. 0. 4 1125 2 & 3 P. & M. 0. 7 (Worses) 253,254 1 BUz. c. 1 1098 1 Eliz. 0. 4 . ; 1125 13 Eliz. c. 5 (Creditors) 50, 142, 144 27 Eliz. 0. 4 (Purchasers) 50, 143, 144 29 Eliz. c. 5 (Creditors) ........ 142 CVlll TABLE OF STATUTES. 31 Eliz. c. 6 . 31 Eliz. c. 12 {Horses) 43 Eliz. c. 4 (Cliariiies) 4 Jac. 1, c. 5 . 21 Jac. 1, c. 3 21 Jac. 1, c. 7 21 Jac. 1, c. 16 12 Car. 2, c. 24 (Feudal Tenures) 22 & 23 Car. 2, c. 10 (Statute of Distributions) 29 Car. 2, c. 3 (Statute of Frauds) 4 (Fraudulent Devises) 16 . . . 1 Jac. 2, c. 17 2 Wm. & M. c. 5 3 & 4 Wm. & M. c. 4 & 5 Wm. & M. c, 7 & 8 Wm. 3, c. 3 . 7&8 Wm. 3, c. 37. 8 & 9 Wm. 3, c. 11 9 & 10 Wm. 3, c. 32 9 <% 10 Wm. 3, c. 35 11 & 12 Wm. 3, c. 7 1 Anne, c. 17 2 Anne. c. 11 . 6 Anne, c. 7 . 6 Anne, c. 18 7 Anne, c. 12 . 8 Anne, c. 14 . 9 Anne, c. 18 . 12 Anne, Stat. 2, c. 12 (Simony) I Geo. 1, Stat. 2, c. 5 8 Geo. 1, c. 24 4 Geo. 2, c. 28 (Bent Distress) . 8 Geo. 2, c. 13 (Copyright) 9 Geo. 2, c. 36 (Bepealed Mortmain Act) II Geo. 2, c. 19 14 Geo. 2, c. 20 18 Geo. 2, c. 10 19 Geo. 2, c. 37 20 Geo. 2, c. 42 7 Geo. 3, c. 38 12 Geo. 3, c. 24 14 Geo. 3, 0. 48 (Insurance) 17 Geo. 3, c. 53 (Gilbert's Act) . 17Geo. 3, c. 57 . 28 Geo. 3, 0. 56 32 Geo. 3, c. 60 (Fox^s Libel Act) 36 Geo. 3, c. 7 36 Geo. 3, c. 52 (Legacy Duty Act) PASB 402, 1137 253, 254 231, 233 . 1182 . 288 . 1182 . 500 1, 12, 158, 608, 610 7, 341, et.seq. 20, 31, 75, 82, 102, 113, 158, 372, et seq., 511, 574 7, 341, . 123 . 46 . 98 1174, 1175 . 230 . 724 . 1186 . 1186 . 1177 . 1173 . U25 . 1173 . 691 . 1178 . 117 . 691 402, 1188 . 1179 . 1177 131, 200 . 327 231, 234, 236 25, 116, 132, 478 31 1177 274 997 327 1204 274 1126 327 270 475 1173 694, 783 TABLE OF STATUTES. CIX 38 Geo. 3, c. 87 . 39 & 40 Geo. 3, c. 98 (Thellusson Act) 42 Geo. 3, c. 116 . 43 Geo. 3, c. 75 43 Geo. 3, c. 108 . 47 Geo. 3. o. 74 49 Geo. 3, c. 126 . 51 Geo. 3, c. 37 (Lunatics) 52 Geo. 3, o. 155 . 53 Geo. 3, o. 127 . 54 Geo. 3, c. 56 55 Geo. 3, c. 184 . 57 Geo. 3, 0. 6 57 Geo. 3, c. 19 58 Geo. 3, c. 45 . 59 Geo. 3, c. 134 . 4 Geo. 4, 0. 48 4 Geo. 4, c. 76 (Ghurch of England) 4 Geo. 4. c. 83 (Bepealed) 4 Geo.. 4, c. 91 (Foreign Countries) 5 Geo. 4, c. 32 (Ghurches under Repair) 5 Geo. 4, c. 83 5 Geo. 4, c. 94 (Repealed) 5 Geo. 4, c. 113 6 Geo. 4, c. 16 6 Geo. 4, c. 50 7 Geo. 4, 0. 16 7 & 8 Geo. 4, c. 28 . 9 Geo. 4, 0. 14 (Lord Tenterden's Act) 9 Geo. 4, c. 31 9 Geo. 4, o. 69 9 Geo. 4, c. 94 (Resignation Bonds) 11 Geo. 4, c. 1, & 1 Wm. 4, c. 18 11 Geo. 4, and 1 Wm. 4, c. 41 11 Geo. 4, and 1 Wm. 4, c. 46 11 Geo. 4, and 1 Wm. 4, c. 68 (Carriers Act) 1 Wm. 4, c. 47 1 Wm. 4, 0. 65 1 & 2 Wm. 4, c. 31 1 & 2 Wm. 4, 0. 38 1 & 2 Wm. 4, 0. 45 2 & 3 Wm. 4, c 53 2 & 3 Wm. 4, c. 71 (Prescription Act) 2 & 3 Wm. 4, c. 93 3 & 4 Wm. 4, 0. 15 (Copyright) 3 & 4 Wm. 4, c. 27 (Statute of Limitations) 3 & 4 Wm. c. 42 PAGE . 982 3, 73, 74 . 699 . 49 . 214 . 46 . 402 . 1001 . 1187 . 1145 304, 327, 364 . 172 . 1173 . 1180 1156, 1157 1156, 1157 . 1204 999, et seq. . 244 . 1002 . 1002 . 1182 . 244 . 1177 , . 910 1183, 1211, 1215 . 1203 . 1213 372, 376, 378 . 1175 . 1210 . 1137 . 1002 . 980 . 179 . 412 . 46 . 785 . 1157 . 1157 1156, 1157 980, 1203 201, 208 . 1145 325 1, 62, 204, 205, 207, 434, 533 . 425,497 ex tablt: of statutes. 3 & 4 Wm. 4, 0. 74 {Fines and Recoveries) 35, 36, 37, 189, 2 26, 228, 691 3&4Wm.4, 0. 98 432 3 & 4 Wm. 4, c. 104 {Simple Contract Debts) . . 46 3 & 4 Wm. 4, c. 105 \l)ower Act) . • . . . 188, 228 3 & 4 Wm. 4, c. 106 {Inheritance) .... 44,51 4&5Wm. 4,c. 22 . 25 4 & 5 Wm. 4, c. 36 . 1209 5&6 Wm. 4, 0. 41(PFaflrers) . 402 5 & 6 Wm. 4, c. 54 {Prohibited Degrees) .... . 1002 5 & 6 Wm. 4, c. 62 {Statutory Declarations) . 1117 5 & 6 Wm. 4, c. 65 . 321 5&6Wm. 4, c. 76 . 1211 6&7Wm. 4,0.32 . 660 6 & 7 Wm. 4, c. 71 {Tithes Commutation Act) . 1140, 1141 6 & 7 Wm. 4, c. 77 1106, 1124, et seq. 6 & 7 Wm. 4, c. 85 {Solemnization of Marriages) 999, et seq. 7 Wm. 4, & 1 Vict. c. 22 1001, 1002 7 Wm. 4, & 1 Viot. o. 26 {Wills Act) 2, 23, 31, 45, 158, 159, 160, 161, 162, 176, 178, 180, 188, 239, 608, 961, 970, 974, 981, 994 1 Vict. c. 28 205 1 Vict, c, 69 {Tithes) . 1140 1 Vict. c. 88 . 1176 1 & 2 Vict. 0. 23 . 1126 1 & 2 Vict. c. 38 . 1182 1 & 2 Vict. c. 64 {Merger of Tithes) .... . 1140 1 &2 Vict. c. 106 . . . 1104, e< sej., 1113, 1153, 1154, 1158 1 & 2 Vict. c. 107 1156, 1157 1 & 2 Wet. 0. 110 {Judgments) 46,775,777 2 & 3 Viot. c. 49 1126, 1157, 1158 2 &; 3 Viot. c. 54 {Talfourd's Act) 608, 609 2 & 3 Viot. 0. 62 {Tithes) . 1140 2 & 3 Viot. c. 94 . 1158 3 Vict. 0. 15 (ri^es) . 1140 3 & 4 Vict. c. 20 . 1126 3&4Vict. c. 60 . 1157 3 & 4 Viot. 0. 65 {Admiralty Practice and Jurisdiction) 1078, 1084 3 & 4 Vict. c. 72 . 1002 3&4Viot. c. 82 . 777 3 & 4 Viot. u. 86 {Church Discipline Act) . . IKO 3 & 4 Viot. 0. 93 . 1145 3 & 4 Vict. 0. 113 . 1106 4 & 5 Vict. c. 35 {Copyholds) . 555, 699 5 & 6 Viot. 0. 38 . 1210 5 & 6 Vict. 0. 39 {Repealed) , 244 5 & 6 Vict. c. 45 {Copyright) . 319, et seq. 5 & 6 Viot. 0. 51 . 1176 6 & 6 Vict. 0. 54 {Tithes) . 1140 TABLE OF STATUTES. CXI 5 & 6 Vict. c. 69 (^Perpetuation of Testimony, repealed') 5 & 6 Vict. c. 100 . 6 & 7 Vict. c. 37 . 6 & 7 Vict. c. 65 . 6 & 7 Vict. c. 73 {Solicitors) 6 & 7 Vict. c. 96 . 7 & 8 Vict. c. 56 . 7 & 8 Vict. c. 59 . 7 & 8 Vict. 0. 94 . 8 & 9 Vict. c. 16 {Companies Glauses) 8 & 9 Vict, c 18 {Lands Glauses Consolidation, 1845) PAGE . 876 . 304 1158, 1159, IIGO . 304 784, 835, 842 473, 475, 1213 . 1157 . 1122 . 1158 . 364, 659 546, 691, 692, 759, 783 . 816 1126, 1156, 1157 8 & 9 Vict. c. 20 {Railways Glauses Consolidation) 8 & 9 Vict. o. 70 8 & 9 Vict. 0. 106 {Amendment of the Law of Eeal Property) 29, 67, 82, 85, 113, 363 8 & 9 Vict. c. 109 {Wagers) . 8 & 9 Vict. 0. 113 . 8 & 9 Vict, c, 118 {Enclosure Act, 1845) 9 Vict. c. 20 9 & 10 Vict. c. 59 . 9 & 10 Vict. c. 73 {Tithes) 9 & 10 Vict. c. 93 497, 959, 960, 9 & 10 Vict. c. 164 10 & 11 Vict. c. 96 ( Trustee Relief Act, 1847) . 281, 10 & 11 Vict. c. 98 {Licence) 10 & 11 Vict. c. 104 {Tithes) 11 & 12 Vict. c. 12 11 & 12 Vict. c. 42 11 & 12 Vict. c. 43 11 & 12 Vict. c. 78 12 & 13 Vict. 0. 68 {Foreign Countries) 12 & 13 Vict. c. 74 {Trustees) . 13 & 14 Vict. c. 21 {Interpretation of Statutes) 13 & 14 Vict. c. 28 13 & 14 Vict. c. 35 .... 13 & 14 Vict. c. 60 {Trustee Act, 1850) . 13 & 14 Vict. c. 94 .... 13 & 14 Vict. c. 98 25 67 97 14 & 15 Vict. 0. 14 & 15 Vict. c. 14 & 15 Vict. c. 14 & 15 Vict. c. 14 & 15 Vict. c. 100 15 & 16 Vict. c. 12 15 & 16 Vict. c. 24 ( Wills Act Amendment Act) 15 & 16 Vict. c. 55 {Trustees) . 15 & 16 Vict. c. 76 {Common Law Procedure Act, 1852) 403, et seq. . 865 . 201 '9, 783, 816 . 1187 1126, 1140 1062, 1063 . 1126 612, 693, 783 1000, 1002 . 1140 . 1175 . 1207 . 1205 . 1217 . 1002 693, 783 . 865 535, 536 . 739 634, 695, 699, 783 1125, 1126 1111, 1112 . 24 . 1157 1157, 1158 . 1145 1208, 1211 . 327 159, 981 534, 695, 783 . 439 1156, 1206 cxu TABLE OF STATUTES. 16 & 17 Vict. 16 & 17 Vict. 17 & 18 Vict. 17 & 18 Vict. 17 & 18 Vict. 17 & 18 Vict. 17 & 18 Viet. 17 & 18 Vict. 17 & 18 Vict. 18 & 19 Vict. 18 & 19 Vict. 18 & 19 Vict. 19 & 20 Vict. 19 & 20 Vict. 19 & 20 Vict. 19 & 20 Vict. 19 & 20 Vict. 20 Vict. c. 19 20 & 21 Vict. 20 & 21 Vict. 20 & 21 Vict. 20 & 21 Vict. 20 & 21 Vict. 20 & 21 Vict, 21 & 22 Vict, 21 & 22 Vict 21 & 22 Vict 21 & 22 Vict, 21 & 22 Vict, 21 & 22 Vict, 21 & 22 Vict. 21 & 22 Vict. 22 & 23 Vict, 22 & 23 Vict, PAGE c. 51 {Succession Duty Act, 1853) . . 172, 173, 342 0.83 878 0. 31 (Railway and Canal Traffic Act) 412, 413, 815, 816 0.36. . . 329 c.47 1145 0.102 1210 c 104 (Merchant Shipping) . 248, et seq., 364, 699, 980, 1071, 1074, 1080, 1084, 1085, 1184, 1210 c. 113 549, et seq. c. 125 (Common Law Procedure Act, 1854) 760, 875, 885 c. 43 (Infants Marriage Settlement Act) . 228, 612, 783 c. 81 c. 91 (Merchant Shipping) . c. 41 c. 60 0. 97 (Mercantile Law Amendment Act) 372, 374, 614, 683 c. 104 (Lord Blandford's Act) . 1128, 1158, 1159, 1160 c. 119 (Solemnization of Marriages) . . 1001, 1002 (Churches) ..... c. 43 c. 56 (Confirmation of Probate Act, 1858) c. 57 (Malins' Act) .... c. 77 (Prolate Act) . 959, 956, 958, 978, 987, 979, 989, 990, 996, 1144 c. 85 (Divorce Act) 212, 229, 612, 997, 1002, 1007, 1008, 1014, 1032, 1035, 1047, 1145 . 1187 248, 1084 . 980 . 614 . 1002 . 1206 . 955 228, 613 c. 157 (Mayor's Court Procedure Act) c. 27 c. 34 . 819 . 584, 599 . 543, 555 c. 58 956 c. 70 304 c. 93 (Legitimacy Declaration Act, 1858) . 1007, 1027 c. 95 (Probate Amendment Act, 1858) 955, 956, 957, 978 0. 100 229 c. 108 (Matrimonial Causes Amendment Act). 1007, 1008 c. 17 ( Vexatious Indictments Act) . . . 1207 c. 35 (Lord St. Leonards' Act) 51, 52, 53, 138, 165, 688 695, 9«5, 986 22 & 23 Vict. c. 61 (Matrimonial Causes Amendment Act) 1007, 1008, 1032 94 1126 22 & 23 & 23 & 23 & 23 & 23 & 23 & 23 & 23 Vict. 24 Vict. 24 Vict. 24 Vict. 24 Vict. 24 Vict. 24 Vict. 24 Vict. c. 18 (Quakers) ..... c. 24 (Churches) ..... c. 32 c. 38 (Lord St. Leonards' Act) a. 93 (Tithes) c. 106 c. 126 (Common Law Procedure Act, 1860) . 1002 . 1002 1118, 1187 696, 775 1027, 1140 . 691 . 1139 TABLE OF STATUTES. CXUl FAOE 23 & 24 Viot. c. 127 (Solicitors) 835, 847 23 & 24 Vict. 0. 144 {Matrimonial Causes Amendment Act) . 1007, 1008 23 & 24 Vict. c. 145 (Lord Oranworth's Act) . . . .103 24 & 25 Vict. c. 10 {Admiralty Omrt Act) . . . 1053, 1078 24 & 25 Vict. c. 62 204 24 & 25 Vict. c. 73 304 24 & 25 Vict. c. 94 1172 24 & 25 Vict. c. 96 (Criminal Law Consolidation) 242, 1162, 1164, 1196, 1200, et seq. 1210 97 1162, 1172, 1203, 1204 1162, 1172, 1203 24 & 25 Vict. c. 24 & 25 Vict. c. 24 & 25 Vict. c. 24 & 25 Vict. c. 99 100 1024, 1162, 1175, 1180, 1181 24 & 25 Vict. c. 114 (Wills of Personal Estate) 25 & 26 Vict. c. 53 (Transfer of Land) . 25 & 26 Vict. c. 63 (Merchant Shipping) . 25 & 26 Vict. c. 67 (Declaration of Titles) . 25 & 26 Vict. c. 68 (Copyright) 25 & 26 Vict. c. 81 .... 25 & 26 Vict. c. 86 .... 25 & 26 Vict. c. 89 (Companies Act, 1862) 50, 615, 617, 635, et seq., 655, et seq. 25 & 26 Vict. c. 108 . 1162,1172 1191, 1192, 1194 . 160 .■ 690 248, 1057, 1063 . 690 . 326 . 1007 . 49 26 & 27 Viot. c. 41 (Innkeepers) 26 & 27 Vict. c. 57 26 & 27 Vict. c. 73 .... 26 & 27 Vict. c. 87 26 & 27 Vict, c. 92 .... 26 & 27 Vict. c. 103 26 & 27 Viot. c. 125 27 & 28 Vict. c. 44 .... 27 & 28 Vict. c. 95 27 & 28 Viot. c. ] 12 (Judgments) 28 & 29 Vict. c. 18 .... 28 & 29 Viot. c. 60 28 & 29 Vict. 0. 64 (Colonies) . 28 & 29 Vict. c. 69; 28 & 29 Vict. c. 72 (Navy and Marine Wills Act) 28 & 29 Vict. c. 78 .... 28 & 29 Vict. c. 79 .... 28 & 29 Vict. 0. 86 (Partnership Amendment Act, 28 & 29 Viot. 0. 94 .... 28 & 29 Vict. 0. Ill (Navy and Marines' Property of Deceased Act) 980 28 & 29 Vict. c. 124 29 & 30 Vict. 0. 32 29 & 30 Vict. c. 96 30 & 31 Viot. c. 35 30 & 31 Vict. c. 69 (Exoneration of Charges) VOL. I. , 409 . 968 . 1203 . 980 . 413 . 1199 . 1211 . 1004 . 498 42, 46, 696, 775 846, 875, 1215 . 449 . 1002 . 1126 . 968 . 700 . 1217 now repealed) 614, 616 . . .412 1203 1007, 1008 . 329 . 1208 549, 552 h CXIV TABLE OF STATUTES. FAOE 30 & 31 Vict. c. 124 {Merchant Shipping) 248 30 & 31 Vict. c. 127 {Railway Companies Act, 1867) . . 285, 700 30 & 31 Vict. c. 181 {Companies Act, 1867) 638, 642, 647, 648, 657, 658, 823, 1203 30 & 31 Vict. c. 133 {Churches) 1002 30 & 31 Vict. c. 144 {Life Assurance) .... 274, et seq. 31 Vict. c. 4 {Sales of Reversions) ..... 672, et seq. 31 & 32 Vict. c. 40 {Partition Act, 1868) . . .62, 555, et seq. 31 & 32 Vict. c. 61 {Foreign Countries) 1002 31 & 32 Vict. 0. 71 1079, 1094, 1095 31 & 32 Vict. c. 77 {Divorced Persons) .... 1002, 1007 31 & 32 Vict. c. 86 271 31 & 32 Vict. c. 109 {Compulsory Church Rate Abolition Act) . 1117, 1143, 1156, 1157, 1158 31 & 32 Vict. c. 117 1110 31 & 32 Vict. c. 119 413 31 & 32 Vict. c. 129 {Merchant Shipping) 248 ■32 Vict. c. 11 {Merchant Shipping) 248 32 & 33 Vict. c. 18 691 32 & 33 Vict. c. 19 {Stannaries Act, 1869) . . . .650 32 & 33 Vict. c. 26 536 32 & 33 Vict. c. 46 {Specialty and Simple Contract Debts) . 46, 548 32 & 33 Vict. c. 51 1094 32 & 33 Vict. c. 62 {Debtors' Act) . 218, 839, 952, et seq., 1199, 1208 32 & 33 Vict. c. 68 {Evidence in Actions of Breach of Promise of Marriage) ...... 32 & 33 Vict. c. 69 32 & 33 Vict. c. 71 {Bankruptcy Act, 1869) 32 & 33 Vict. 0. 102 32 & 33 Vict. c. 109 32 & 33 Vict. c. Ill {Bishops' Resignation Act) 33 Vict. c. 10 33 Vict. c. 14 {Naturalization Act, 1870) . 33 & 34 Vict. c. 20 . . . . . 33 & 34 Vict. c. 23 {Treason and Felony Act) 33 & 34 Vict. c. 28 {Solictors) 33 & 34 Vict. 0. 35 {Apportionment) . 33 & 34 Vict. c. 58 33 & 34 Vict. c. 61 {Life Assurance Compcmies Act, 1870) 33 & 34 Vict. c. 76 .... 33 & 34 Vict. c. 90 33 & 34 Vict. c. 93 {Ma/rried Women's Property 33 & 34 Vict. c. 97 {Stamps) . 33 & 34 Vict, c. 102 .... 33 & 34 Vict. c. 104 {Companies) 34 & 35 Vict. c. 18 {Solicitors) . 34 & 35 Vict. c. 43 {Ecclesiastical Dilapidations Act) 1002, 1007 . 1112 . 908 . 700 . 1112 . 1103 . 432 55, 249, 384 . 700 11, 1162 835, 844 . 25 . 1203 276, 658 . 700 . 1177 ^c*, 1870)212, 229,699 84, 246, 1002 . 55 . 658 . 840 1107, 1114, 1126, 1131, et seq. TABLE OF STATUTES. CXV PAGE 34 & 35 Vict. c. 44 {Incumbents' Resignation Act) . . . 1113 34 & 35 Vict. c. 79 {Lodgers' Goods Protection Act) . .117, 118 34 & 35 Vict. c. 82 1156 34 & 35 Vict. c. 100 (Merchant Shipping) 248 34 & 35 Vict. c. 112 1200 35 & 36 Vict. c. 8 1105 35 & 36 Vict. c. 10 (Quakers) 1002 35 & 36 Vict. c. 39 55 35 & 36 Vict. c. 41 (Life Assurance Companies Act, 1872) . 276, 658 35 & 36 Vict. c. 44 (Court of Chancery Fund Act, 1872) . . 693 35 & 36 Vict. c. 73 (Merchant Shipping) 248 35 & 36 Vict. c. 93 (Paimbrokers) .... .407 35 & 36 Vict. c. 94 1182 35 & 36 Vict. c. 96 1131 36 Vict. c. 31 1007, 1008, 1038 36 & 37 Vict. 0. 12 (Infants' Custody Act). . . . 609, 699 36&37 Vict. c.42(ri%es) 1140 36 & 37 Vict. c. 48 (Regulation of Railways Act) . . . 815 36 & 37 Vict. c. 66 (Judicature Act, 1873) 20, 29, 207, 267, 350, 509, 533, 537, 555, 572, 582, 588, et seq., 600, 604, 614, 693, 705, 764, 769, 804, 807, 820, 823, 829, 834, 863, 955, 956, 991, 997, 1059, 1216 36 & 37 Vict. c. 85 36 & 37 Vict. c. 88 (Merchant Shipping) . 37 & 38 Vict. c. 36 37 & 38 Vict. c. 37 (Power of Appointment) 37 & 38 Vict. c. 40 (Board of Trade Arbitrations Act) 37 & 38 Vict. c. 42 (Building Societies Act) 37 & 38 Vict. c. 50 (Married Women's Property Act, 1874) 37 & 38 Vict. c. 57 (Real Property Limitation) . 1063 248, 1066 1203, 1210 , 179 , 815 660, 823 212, 229 204, et seq., 533, 567, 696 37 & 38 Vict. c. 62 (Infant's Relief Act) 388 37 ife 38 Vict. c. 68 (Solicitors) 835 37 & 38 Vict. c. 78 ( Vendor and Purchaser Act, 1874) 76, 86, 94, 114, 229, et seq., 585, 696, 785 37 & 38 Viot. c. 85 (Public Worship Regulation Act, 1874) . 1120, 1150, et seq. 38 Vict. c. 9 660 38 & 39 Vict, c, 38 & 39 Vict. c. 38 & 39 Vict, c, 38 & 39 Vict. c. 38 & 39 Vict. c. 38 & 39 Vict, c, 38 & 39 Vict. c. 39 & 40 Vict. c. 39 & 40 Vict. c. 39 & 40 Vict. c. 55 (Public Health Act) 60 . . . . 77 (Judicature Act, 1875) 79 (Legal Practitioners Act, 1875) 86 (Conspiracy Act) 87 . . ■ . . 93 17 (Partition Act, 1876) . 45 (Provident Societies Act) 59 (Appellate Jurisdiction Act) , 364, 597, 759 . 659 346, 548, 702, 705, 813, 835, 868, 956, 957 . 835, 842 . 878 . 690 . 304 62, 555, et seq. . 823 . 798, 804 i 2 CXVl TABLE OF STATUTES. 39 & 40 Vict. c. 61 .... 39 & 40 Vict. c. 66 {Legal Practitioners Act) 39 & 40 Vict. c. 80 {Merchant Shipping). 40 & 41 Vict. c. 18 {Settled Estates Act) 40 & 41 Vict. c. 25 {Solicitors). 40 & 41 Vict. c. 26 {Companies) 40 & 41 Vict. 0. 33 . . 40 & 41 Vict. c. 34 . 39 {Fa<^ors Act, repealed) . 62 {Solicitors) . .63 ... PAGE . 1217 . 1145 . 248 . 698 829, 835, 1145 . 658 . 68 . 552 244, 436 . 835 . 660 1007, 1024 102, 329, 330, et seq., 337 40 & 41 Vict. 40 & 41 Vict. 40 & 41 Vict. 41 Vict. c. 19 41 & 42 Vict. 41 & 42 Vict. 0. 38 " 410 41 & 42 Vict. c. 42 {Tithes) 1140, 1142 41 & 42 Vict. c. 54 {Debtors Act, 1878) . . . 839, 952, et seq. 41 & 42 Vict. c. 73 . . 1164 42 & 43 Vict. c. 11 {Bankers' Boohs Evidence Act) . . .866 42 & 43 Vict. c. 29 {Marriage on Her Majesty's Ships) . . 1002 42 & 43 Vict. c. 49 . . . . ' . . . 1205, 1206 42 & 43 Vict. c. 76 {Companies) 648, 658 43Vict. c. 14 172 43 Vict. c. 19 {Companies) ' 648, 658 43 & 44 Vict. c. 18 248, 250 43 & 44 Vict. c. 22 248 43 & 44 Vict. c. 41 1134 43 & 44 Vict. c. 42 {Employers' Liability) . . . 439, 488, et seq. 43 & 44 Vict. c. 43 {Carriage of Grain Act, 1880) . . .248 43 & 44 Vict. c. 47 {Ground Game Act, 1880) . . . .119 44 Vict. 0. 12 172, 173 44 & 45 Vict. c. 12 {Customs and Inland Revenue Act, 1881) 172, 676 44 & 45 Vict. c. 41 {Conveyancing Act, 1881) 2, 21, 34, 44, 75, 76, 87, 88, 89, 90, 91, 104, et seq., 114, 125, et seq., 137, 138, 152, 180, 190, 192, 196, 200, 201, 227, 229, 531, et seq., 570, 576, 688, 697, 759, 785, 796, 845, 848, 867 44 & 45 Vict. c. 44 {Solicitors' Bemuneration Act, 1881) 835, 844, et seq. 44 & 45 Vict. c. 58 {The Army Act) ...... 878 44 & 45 Vict. c. 60 {Newspaper Libel and Registration Act) . 322, 473 44 & 45 Vict. c. 68 {Judicature Act, 1881). . . . 705, 1046 45 Vict. c. 3 . . . . . . . . . _ 1204 45 & 46 Vict. c. 38 {Settled Land Act, 1882) 2, 26, 41, 133, 145, et seq., 162, 229, 608, 689, 698, 785, 822 45 & 46 Vict. c. 39 {Conveyancing Act, 1882) . 2, 70, 93, 104, 105, 131, 152, 180, 227, 867' 45 & 46 Vict. c. 43 {BUls of Sale) . . 102, 284, 329, et seq., 338 45 & 46 Vict. 0. 50 {Corporations) ..... 512 1211 45 & 46 Vict. 0. 51 {Government Annuities Act) .... 512 44 & 45 Vict. c. 60 ! .' 473 TABLE OF STATUTES. CXVll PAOE 45 & 46 Vict c. 61 {Bills of Exchange Act, 1882) . 256, et seq., 372 45 & 46 Vict. c. 75 (Married Women's Property Act, 1882) 63, 133, 177, 179, 210, 212, 214, 216, 217, 218, 223, et seq., 229, 239, 348, 389, 442, 443, 511, 613, 628, 699, 710, 785, 878, 901, 919, 982, 988, 10ii9, 1045 46 & 47 Vict. 0. 28 (Sepealed) 658 46 & 47 Vict. c. 34 (Cheap Trains Act) 815 46 & 47 Vict. c. 41 248 46 & 47 Vict. c. 49 581,599 46 & 47 Vict. c. 52 {Banhruptcy Act, 1883) 46, 50, 117, 145, 177, 229 350, 501, 775, 825, 878, 894, et seq., to end of Bankniptcy Bools 46 & 47 Vict. c. 57 (l-'afents. Designs, and Trade Marks Act, 1883) 287, et seq. 46 & 47 Vict. c. 61 (Agricultural Holdings Act, 1883) 26, 117, 119, 120, 229 47 & 48 Vict. c. 14 (Married Women's Property Act) . 221, 878, 1037 47 & 48 Vict. c. 18 (Settled Land Act, 1884) 26, 145, 149, 152, 154, 155, 698 47 & 48 Vict. c. 20 (Greek Marriages Act) . . . 1002, 1007 47 & 48 Vict. c. 41 660 47 & 48 Vict. c. 54 (Yorkshire Registry) .... 93, 109 47 & 48 Vict. c. 61 356, 765, 804 47 & 48 Vict. c. 66 1101 47 & 48 Vict. 0. 68 (Matrimonial Causes Act, 1884) 1007, 1013, 1025, 1032 47 & 48 Vict. c. 71 (Intestates' Estates Act, 1884) ... 55 48 & 49 Vict. c. 54 1111 48 & 49 Vict. i;. 63 288 48 & 49 Vict. c. 69 (Criminal Law Amendment Act, 1885) 878, 1192, 1193, 1208, 1210 48 & 49 Vict. c. 72 (Housing of the Working Classes, 1885) . . 128 49 Vict. c. 23 (Companies) 658 49 & 50 Vict. c. 3 (Marriages Validity Act, 1886) . . . 1002 49 & 50 Vict. 0. 14 (Hours of Solemnization of Marriages) . 1001, 1002 49 & 50 Vict. c. 20 1134 49 & 50 Vict. c. 27 ( Guardianship of Infants Act, 1886) 609, et seq., 699, 1007, 1034, 1035 49 & 50 Vict. 0. 33 304 49 & 50 Vict. c. 37 288 49 & 50 Vict. c. 48 (Medical Act) 386 49 & 50 Vict. c. 52 (Married Women Maintenance in Case of Deser- tion Act, 1886) 229, 1013 49 & 50 Vict. c. 54 (Tithes) 1140, 1142 50 & 51 Vict. c. 23 (Incumbents^ Resignation Act) . . . 1113 50&5L Vict. C.26 120 50 & 51 Vict. c. 28 (Merchandise Marks Act, 1887) . . 316, 1208 50 & 51 Vict. 0. 30 (Settled Land Act, 1887) . . 26, 145, 149, 698 50 & 51 Vict. c. 48 120 CXVlll TABLE OF STATUTES. 186, 190, 191, 172, 174, 277, 50 & 51 Vict. c. 53 50 & 51 Vict. c. 56 50 & 51 Vict. 0. 57 (JJeeds of Arrangement) 50 & 51 Vict. c. 62 (Merchard Shipping) . 50 & 51 Vict. c. 66 (Bankruptcy Discharge and Closure Act, 1887) 50 & 51 Vict. c. 67 . 50 & 51 Vict. c. 73 (Copyholds) &1 Yict. c. 8 (Customs and Inland Bevenue) . 95, 51 Vict. 0. 28 51 & 52 Vict. c. 2 (National Debt Conversion Act, 1888) 51 & 52 Vict. c. 17 . 51 & 52 Vict. c. 20 . 51 & 52 Vict. c. 21 (Law of Distress Amendment Act) 51 & 52 Vict. 0. 25 (Bailway and Canal Traffic Act) 51 & 52 Vict. c. 41 (Local Government Act) 51 & 52 Vict. c. 42 (Mortmain and Charitable Uses Act, 1888) 49, 230, 232, 234, et seq. PAGE 55 659 911 248 946 980 ,192 278 . 174 . 247 . 325 . 1130 117, 118, 122 . 815, et seq. . 825 51 & 52 Vict. c. 43 (County Cowts) . 51 & 52 Vict. c. 44 . 51 & 52 Vict. 0. 46 (Oaths Act) 51 & 52 Vict. c. 48 51 & 52 Vict. c. 50 . 51 & 52 Vict. c. 51 (Land Charges) 51 & 52 Vict. c. 56 (Suffragan's Nomination Act) 51 & 52 Vict. 0. 59 (Trustees) 78, 208, 273, 277, 524, 51 & 52 Vict. c. 62 (Preferential Payments) 61 & 52 Vict. c. 64 (Law of Libel Amendment Act, 1888) 473, et seq., 1208 122, 439, 807, e< se J., 821, 824, 825, 1095 . 227 . 870 . 659 288, 299, 304, 315 24,80 , 1105 et seq., 848, et seq. 658, 932, 933 51 & 52 Vict. c. 65 (Solicitors) 51 & 52 Vict. c. 66 (Friendly Societies Act, 1888) 52 Vict. c. 4 (Redemption of Consols) 52 Vict. c. 7 (Customs and Inland Bevenue Act) . 52 Vict. c. 10 (Administration of Oaths) . 52 & 53 Vict. c. 11 (Act Begulating the Sale of Horse-Flesh) 52 & 53 Vict. c. 12 (Act to Relieve the Courts of Assize) 52 & 53 Vict. c. 18 (Indecent Advertisements) ZiSD^ZNict. cZO (Board of Agriculture Act, l?:8?i) . . 835, et seq. . 659 . 247 95, 172, 174, 677 . 1185 . 255 827, 1210 . 1188 191, 1130, 1131, 1141 et seq., 660 526, 52 & 53 Vict. c. 32 (Investm^it of Trust Funds) 52 & 53 Vict. c. 36 (Settled Land Act, 1889) . . 26, 145, 150 52 & 53 Victc. 37 (Companies Clauses Consolidation Act, 1889) . 659 52 & 53 Vict. c. 41 (Lunacy Amendment Act Repealed) . . 813 52 & 53 Vict. c. 42 (Customs and Inland Revenue Act, 1889) . 246 52 & 53 Vict. c. 44 " 1^94 52 & 53 Vict. c. 45 (Factors Act, 1889) . . 243, 244, 245, 421, 436 52 & 53 Vict. c. 46 (Merchant Shipping Act, 1889) . . 248 1053 52 & 53 Vict. c. 47 (Palatine Court of Durham Act) . . , 827 52 & 53 Vict. c. 49 (Arbitration Act, 1889) . . 760, et seq., 807 TABLE OF STATUTES. CXIX FAOE 52 & 53 Vict. c. 52 (The Official Secrets Act, 1889) . . .882 52 & 53 Vict. c. 63 {The Interpretation Act, 1889) . . 2, 1126 52 & 53 Vict. c. 68 248 52 & 53 Vict. c. 73 248 53 Vict. c. 5 {Limacy Act, 1890) . . 2, 543, 628, 813, et seq. 53 Vict. c. 7 . . . . 8'^8 53 Vict. c. 8 {Customs and Inland Revenue Act, 1890) . 263, 277, 278 53Vict. c. 9 248 53 & 54 Vict. c. 15 {Open Spaces Act, 1890) . . . 235, 700 53 & 54 Vict. c. 16 ( Working Classes Dwellings Act, 1890) . . 235 53&54:\ict.c. 19 {Trustees' Appointment Act, 1890). . .535 53 & 54 Vict. c. 23 {Chancery of Lancaster Act, 1890). . 700, 828 53 & 54 Vict. 0. 24 911 53 & 54 Vict. c. 29 {Intestates' Estates Act, 1890) 7, 229, 341, 342, 345 53 & 54 Vict. c. 30 1141 53 & 54 Vict. c. 39 {Partnership Act, 1890) 58, 59, 544, 545, 614, 616, 620, et seq. 53&S4:Yict.o.'iO {Factors {Scotland) Act, 1890) . . .244 53 & 54 Vict. c. 44 757,797,803,804 53 & 54 Vict. c. 47 {Marriage Act, 1890) . 953, 959, 999, 1002, 1007 53 & 54 Vict. c. 49 {Expiring Laws Continuance Act) . . . 488 53 & 54 Vict. c. 53 {Bills of Sale Act, 1890) . . 829, 334, 920 53 & Si Yiot. c. 54: {Tenants' Compensation Act) . . . . 121 53 & 54 Vict. c. 57 105,121,1140 53 & 54 Vict. c. 59 {Public Health Amendment Act, 1890) . . 827 53 & 54 Vict. c. 62 {Companies {Memorandum of Association) Act, 1890) 638, 639, 658 53 & 54 Yict. c. GS {Companies {Winding-up) Act) . . 651, et seq. 53 & 54 Vict. c. 64 {Directors' Liability Act, 1890) 638, 645, 647, 658 53 & 54 Vict. c. 66 {Metropolis Management Amendment Act, 1890) 827 53 & 54 Vict. c. 69 {Settled Land Act, 1890) 2, 24, 26, 114, 126, 133, 147, 149, et seq., 698 53 & 54 Vict. c. 70 {Housing of the Working Classes Act) . 128, 130 53 & 54 Vict. c. 71 . . . 117, 894, et seq., to end of Bankruptcy Book, 1164 INTRODtJOTOEY CHAPTER. The object of this work, as already stated in the Preface, is to give, in as comprehensive a manner as is possible within moderate limits, an account of the present laws of England, and a main idea throughout has been to bring into special prominence the present and living law, and only to deal with past law, or that which is practically obsolete, so far as it is necessary to enable the reader to understand the present. As, however, it is often necessary, in considering a legal question, to follow the old principle laid down by Lord Coke, melius est petere f antes quam sectari rivulos, and to trace the law to its source, references have, as far as possible, throughout the work been given to authorities, where the diligent student can obtain, the fullest and most accurate information on the various subjects discussed. The celebrated author of the 'Curiosities of Litera- ture' (*), has told us that the introduction to a literary work being the entrance to the book, ought to be rendered as inviting as possible to the reader, and ought to contain something analogous to the work itselt: "An elegant porch announces the splendour of the interior. A good preface is as essential to put the reader into good humour, as a good prologue is to a play, or a fine symphony to an (') Disraeli's ' Curiosities of Literature ' : Essay on Prefaces. CXXU INTRODUCTORY GHAPTEB. opera." The object of the present work being to deal concisely with a great variety of legal subjects, and to render substantial assistance to the student who desires to obtain within a reasonable compass a statement of the present laws of England, the aim of this Introductory Chapter, in order that it may be inviting to the reader and analogous to the work itself, must be to indicate briefly the general plan of the book and the order in which the various subjects treated of are discussed. The first main division of this work deals with that perennial source of interest to mankind, that universal object of human desire — Property. The principal distinc- tions between the two classes of property, real and personal, are considered in the First Chapter. The remainder of Book I. is then devoted to the subject of Keal Property, the law as to personal property being, however, in some places (see p. 9) considered simultaneously. The various estates and interests which can be enjoyed in real property are first considered, and then the various modes in which it may be dealt with by its owners by way of total or partial disposition, by conveyance, mortgage, lease, settle- ment, and will. In no portion of law have the great changes that have taken place in modern times been more conspicuous than in the law with regard to real property. The alterations which have been introduced into the law of real property by the Conveyancing Acts and the Settled Land Acts are considered in the appropriate parts of Book I., and particularly in Chapters VIII., IX., X., XI., and XII., which deal with the subjects of Convey- ances on Sale, Mortgages, Leases, and Settlements. A separate ■ chapter (Chapter XVIII.) is devoted to the consideration of the law as to the property of married women, while in Chapter XIX. the law as to charities (so far as it is connected with property), and mortmain is reviewed with special reference to the Mortmain and INTRODUCTORY CHAPTER. CXXIU and Charitable Uses Act, 1888. Book II. is devoted to Personal Property, and in dealing with that subject special chapters have been devoted to particular descriptions of property which have of recent years come into peculiar prominence. The law with regard to Negotiable Instru- ments, now to a great extent codified by the Bills of Exchange Act, 1882, is made the subject of Chapter IV. Policies of Insurance and Assurance are dealt with in Chapter V. Patents, Designs, and Trade-marks are con- sidered in Chapters VII., VIII., and IX. respectively; Copyright in Chapter X. Chapter XI. is devoted to the difScult subject of Bills of Sale. Chapter XII. treats of the rules which govern the descent of personal property in cases of intestacy materially altered as they have been by the Intestates' Estates Act, 1890. Next, after the consideration of the law with regard to property, comes the consideration of that portion of law which is more intimately connected with the administration of justice by the Courts. As in the study of physical force the laws of bodies at rest are usually treated apart from the laws of bodies in motion, so here the principles of English law which are chiefly concerned with that which is technically termed " non-contentious " business have been dealt with before we proceed to the consideration of " contentious " business. The great changes, not only in practice, but in principle, which have been introduced by the Judicature Acts and Kules are considered (p. 346, et seq.), and the general plan of the remainder of the work indicated (p. 358). Books III. and IV. treat of the prin- cipal business which now devolves upon the Queen's Bench Division, under the two main divisions of the Law of Contracts and the Law of Torts. Book V. is concerned with Equity, and deals not only with the business which has been specially assigned by the Judicature Act to the Chancery Division, but also with CXXIV INTRODUCTORY CHAPTER. those other subjects which seem to fall most appropriately within this portion of the work. And here it should be borne in mind, as pointed out in a celebrated case Q-) by that great judge the late Sir George Jessel, that with regard to many subjects " the doctrines of Equity are progressive, refined, altered, and improved ; and, if we want to know what the rules of Equity are, we must look rather to the more modern than the more ancient cases." The doctrines of Equity are accordingly considered with special reference to the modern cases which may be regarded as settling the principles by which the Courts are guided in their decisions at the present day. Many subjects which have been already considered in other portions of the work and in different bearings, are again brought before the reader in the Book devoted to Equity. The law as to Trusts has been incidentally alluded to (p. 16, et seq.) in connection with the subject of Keal Pro- perty, but in the Book devoted to Equity it is assigned the premier position, and attention is directed to the important changes which have been made in recent years by the Conveyancing Acts of 1881 and 1882, the Trustee Act, 1888, and the Trust Investment Act, 1889. Charities have already been brought before the attention of the reader in Book I., but here Trusts for their benefit are dealt with and the doctrine of cy-fres is considered (p. 537, et seq.). Joint Tenancies and Tenancies in Common have previously occupied the attention of the student (p. 57, et seq.) as modes in which lands and tenements may be held in " concurrent ownership." Here the law as to the partition or sale of such estates is considered as" a portion of the business assigned to the Chancery Division of the High Court. Mortgages have been considered in one of the 0) In re EalUei Estate, 13 Ch. D. 710. INTRODUCTORY CHAPTER. CXXV chapters devoted to Keal Property (p. 97, et seq.). They are now (p. 559, et seq.) considered along with Charges and Liens in their contentious aspects, and the rights of parties in proceedings for foreclosure and redemption. The law as to Infants, which has been to some extent discussed in connection with Real Property (p. 48) and Contracts (p. 386, et seq.) and Torts (p. 433, et seq.), is considered (p. 605) with special reference to actions by and against them, and the questions of their guardianship, custody, and religious education. Other portions of the same book which may be here referred to, are Chapter X. dealing with the law of Partner- ship, codified to a great extent as it has been by the Partnership Act, 1890; Chapter XI. on the law of Com- panies (materially altered by the recent legislation of the Directors' Liability Act, 1890 (p. 645) ; the Companies (Memorandum of Association) Act, 1890 (p. 639); the Companies Winding-up Act, 1890 (p. 651) ) ; and Chapter XVIII. on the business specially assigned to the Chancery Division. Book VI. is concerned with Practice^ — ^well described by Lord Penzance as " the machinery of justice in its adminis- tration " (^) — and matters connected therewith, including (Chapter XVIII.) a notice of the various bodies other than the High Court which exercise jurisdiction in this country, and (Chapter XIX.) a review of the law concerning the position of Counsel and Solicitors, the members of the two branches of the profession to whom the conduct of legal business is entrusted. A new chapter (Chapter XVII.) has here been added to the present edition dealing chiefly with the remedies by means of which wrongs may in certain cases be redressed, or their continuance prevented by the exercise of extraordinary judicial powers. C) See further on this subject, Yol. ii. 701. CXXVl INTRODUCTORY CHAPTER. Book VII. deals with the principles and practice of the law relating to Evidence, the definition of which is con- sidered at p. 851. Book VIII. treats of the Law and Prac- tice of Bankruptcy, special attention being directed to the considerable changes which have been introduced by the Bankruptcy Act, 1890. Books IX., X., and XL are occupied respectively with the Law as to Probate, Divorce and Admiralty, now somewhat strangely grouped together in one Division of the High Court. Here, again, a variety of subjects which have been pre- viously considered in other aspects are again brought before the reader. The law of Wills has been previously considered (p. 157, et seq.) with special reference to the law affecting property. In Book IX. it is regarded in its relation to the business of the Probate, Divorce and Admiralty Division. The law as to Husband and Wife has been previously considered in connection with Property (p. 210, et seq.) ; Contracts (p. 389, et seq.) ; Torts (p. 442, et seq.) ; and the Custody of Children (p. 608, et seq.). It is now (p. 1008, et seq.) treated with reference to marriage and the juris- diction of the Probate, Divorce and Admiralty Division, dealing as it does primarily with the dissolution of marriage and kindred subjects, and only secondarily with property and the custody of children. Ships have been previously considered (p. 248, et seq.) as subjects of Property; in Book XL they are regarded from the standpoint of the practitioner in the Admiralty Division. Book XII. deals with Ecclesiastical Law. Here, too, several subjects of Property, such as Advowsons and Tithes, which have been previously but slightly touched on (p. 194), are made the subject of particular consideration (p. 1136, et seq., 1140, et seq.). The jurisdiction and procedure of the Ecclesiastical Courts are considered in Chapter VIII. (p. 1144, et seq.) INTRODUCTORY CHAPTER. CXXVU Book XIII. is devoted to Criminal Law. The general nature of crimes, the leading principles of the English criminal law, and the question of responsibility or irrespon- sibility for crime are first considered. The persons capable of crime and the various classes of crime, concluding with offences against property, are the subjects of the following Chapters (III. to VII., inclusive). The final Chapter of the work deals briefly with Criminal Procedure. COMMENTARIES ON THE PRESENT LAWS OF ENGLAND. BOOK I. REAL PROPERTY. property. CHAPTEE I. Different Classes of Peopeety. All property in the eye of modem English law is either real Real and or personal property. personal Land, said the late Mr. Joshua Williams, which is immovable and indestructible is evidently a different species of property from a cow or a sheop, which may be stolen, tilled, and eaten ; or from a chair or a table, which may be broken up or burnt. No man, be he ever so feloniously disposed, can run away with an acre of land Q). Attention was hence directed to the real remedy resulting in the recovery of the property itself as contrasted with the mere personal remedy, which could only result in damages against him who had wrongfully appropriated personal property, such as goods or money, and though real actions were to a great extent abolished more than fifty years ago (^), the terms " real " and "personal" came into use, and are recognised in many important statutes of modem times ('). Thus the term " Pro- (') Williams, Beal Property, in- movable ;" (2) When feudalism had troductory chapter. become established, landed property (^) 3 & 4 W. 4, c. 27, 3. 36. was looked upon as the subject of Q) The various terms which have tenure and as descending to the heir, been from time to time employed to and was accordingly regarded as contrast the two great classes of "tenements and hereditaments" as property may be divided into three opposed to " goods or chattels." groups, representing different periods (3) When feudalismhad lost its hold, of legal hist'iry :— (1) In the early after 12 Car. 2, cap. 24 (post, p. 12), days of England, as of other Euro- the terms real and personal were pean countries, property was first re- thenceforth employed, garded as "movable" and "im- VOL. I. B REAL PROPERTY. [Book I. Real pro- perty. Land, perty " is defined in the Conveyancing Acts with sweeping com- prehensiveness to include real and personal property, and any estate or interest in any property, real or personal, and any debt, and anything in action, and " any other right or interest in the nature of property " Q'), and in the Wills Act, which assimilates to a large extent the law with regard to real and personal pro- perty, the terms are made the subjects of separate definitions (^). The term " Eeal Property " comprises lands, tenements, and hereditaments. " Land," in its legal signification, comprehends not only the land ithelf, but also all that is above the soil — castles, houses, and other buildings, water, forests, and trees ; and also all that is below the surface — mines, earth, clay, quarries, and the like. The maxim of the law on this subject is cujua est solum ejus est usque ad caelum et inferos. Tenements. " Tenements,'' in a legal sense, means anything, whether tangible or intangible, that, according to the law of feudal tenure, might be " holden." Hence, the term is applicable not only to everything comprised in the term " land," but also to other rights and interests as offices, rents, and rights of common (f). "Hereditaments " is a term of still wider import ; for it com- prises not only lands and tenements, but whatsoever may be inherited, be it corporeal or incorporeal, e.g. an advowson or a fishery. The term " hereditaments " accordingly includes, in addition to immovable property generally, certain movable things, of which the following may be mentioned : (1) Deeds relating to the inheritance, " the sinews of the land," as Lord Coke calls them, are regarded as hereditaments, and even the very box or chest which is usually employed for keeping them partakes of their nature, and goes to the heir. The rule, however, does not apply to the title-deeds of terms for years'. Heredita- ments. (') a & 45 Vict. c. 41 ; 45 & 46 Vict. c. 39. (2) 6 & 7 Wm. 4, and 1 Vict. c. 26, B. 1. (') Co. Litt. ia and 45; Shep- herd's Touchstone, 90. Land is de- fined in the Conveyancing Act, to include for the purposes of the Act, " unless a contrary intention appears," land of any tenure, and tenements and hereditaments, eoi-poreal or in- corporeal, and houses and other build- ings, also an undivided share in land ; and see a similar definition iu the Settled Land Act, 18X2 (45 &46 Vict. 0. 38), s. 2 (10-11), extended to Settled Land Act, 1890 (53 & 54 Vict, c. 69). The Interpretation Act, 1889 (.52 & 53 Vict. 0. 63), s. 3, enacts that in the interpretation of every Act passed after the year 1850, the ex- pression " land " shall include " mes- suages, tenements, andhereditaments, houses, and buildings of any tenure." "Land " includes an undivided share of land iu the Lunacy Act, 1890 (53 & 54 Vict. 0. 5), s. 341. Chap. I.] DIFFERENT CLASSES OF PROPERTY. 3 for terms of years, and consequently the title-deeds relating to them, are regarded as personal property (i). (2) Heirlooms, " the limbs or members of th-e inheritance '' — STich goods and personal chattels of a " ponderous and more robust character " as go by special custom to the heir, along with the inheritance, and not to the executor or administrator of the last proprietor. Personal property comprises movable things generally (except Pei-sonal those above mentioned), or as they are commonly called, " goods P'^P*' ^■ and chattels," money, debts, stock in the public funds, shares in companies (with the exception of New Eiver Shares (f) and a few others), patents, copyrights, and other matters which will be considered hereafter. Under the head of personal estate fall also interests in land Chattels for years. Such interests, since they savour, as is said, of the ™*'- realty, have acquired the name of " chattels real." All leases and terms of lands, tenements, and hereditaments, which are for a definite space of time, no matter how long that time may be, are deemed chattel interests, and as such pass to a man's personal representatives on his decease (f). An im- portant point, however, was decided with regard to chattel interests in real estate in a case before the Lord Chancellor (sitting as Master of the EoUs) in 1873 (*). In that case the question 0,rose whether an English statute, which we shall consider hereafter (jpost, p. 73), the Thellusson Act, forbidding the accumulation of income beyond a certain period, applied to leasehold property belonging to a testator who was domiciled abroad (f). The Lord Chancellor decided that it did, and in delivering judgment expressed himself as follows : — " The territory and soil of England by the law of nature and of nations, which is recognized also as part of the law of England, is governed by aU statutes which are in force in England. Thus leasehold property in Belgrave Square is part of the territory and soil of England, and the fact that the testator had a chattel interest in it, and not a freehold interest, makes it in no way whatever less so. An Act of Parliament limiting the periods for which accumulations are permitted has as much force in Q) Williams on Executors, 8th ed. 1 Mac. & G. 574 ; and see Tyssen's p. 730. Charitable Bequests, 33s, et seq. (^) New Eiver Shares are real pro- (') See as to estates for the life of perty : Drybutter v. Bartholomew, 2 P. another, post, p. 31. Wms. 127 ; so also are Avon Naviga- (*) Per Selbome, L.C., for M.B., tion Shares: Hawse v. Chapman, in Freke v. Lord Carbery, L. K. 4 Ves. 542 ; Shares of Tolls of Light- 16 Eq. 461. houses: Attorney-Oeneral v. Jones, (') See, as to domioil, p. 1002, e< seiji. B 2 4 BEAL PEOPEBTT. [Book I. Belgrave Square, and tipon every part of the property in the land of Belgrave Square, as it has in any other part of England, and for that purpose, it appears to me to be totally immaterial what is the quantity of interest dealt with by the will .... " Domicil is allowed in this country to have the same influence as in other countries in determining the succession of moveable estate ; but the maxim of the law of the civilised ' world is mdbilia sequuntur personam, and is founded on the nature of things. When mdbilia are in places other than that of the person to whom they belong, their accidental situs is disregarded, and they are held to go with the person. But land, whether held for a chattel interest or held for a freehold interest, is in nature, as a matter of fact, immoveable and not moveable " (i). The real substance of the law is, that so strong is the force of the immovable character where it is found, that it will attract to itself prima facie things which are ambiguous, at least to the extent of obliging other nations to recognise the law of the place where the immovable property is situate. The principle thus laid down has been applied in several cases. In a case where a married woman domiciled in Italy died possessed of leaseholds in Ireland, and her husband, who survived her, was only entitled by Italian law to a limited interest in the leaseholds, but by the law of Ireland he was entitled absolutely, the Court decided that the case was governed by the Irish law (2). Again, in a more recent case (3) where a Scotchman died intestate as to leaseholds situate in England the devolution of the leaseholds whs treated as governed by the English law. There are also certain important descriptions of property which lie, as it were, on the border-land between real and personal estate, and are under some circumstances regarded as real, and under others as personal property. Chattels The reader will find the subject of chattels personal elaborately persona . considered in Williams on Executors, under three heads : 1, chattels animate ; 2, chattels vegetable ; 3, chattels inanimate. Chattels animate are divided into such as are domestic and such as are ferie naturae. Animals, tame and domesticated, horses, kine, sheep, poultry, and the like are personal chattels. Hounds, greyhounds, and spaniels (*), pigeons, rabbits, &c., when tame, fall under the same category. (') Per Selborne, L.C., for M. E. 41 Ch. D. 394. in Freke v. Lmd Carbery, L. E. (*) "And why not?" asks an old 16 Eq. 461. -writer, cited, Williams on Executors, O In the Goods of Gentili, Ir. U. 8th ed. p. 710, note, "for althou-h 9 Eq. 541. hounds, greyhounds, and spaniels be CO In re Duncan and Laweon, for the most part but things of plea- Chap. I.] DIFFERENT CLASSES OF PROPERTY. 5 There are certain animals, on the other hand, which are treated as real property. They are regarded as incident to the freehold inheritance, and do not pass to the executor or adminis- trator. Thus deer in a park Q-'), unless reclaimed, conies in a warren, doves in a dove-house, do not go to the executor or administrator, as personal property. Personal effects of a vegetable nature or chattels vegetable. Chattels as they are called, when severed from the body of the plant, or ^^S^tao'^- severed from the ground, as the case may be, are ti'eated as per- sonal estate. On the other hand, as stated in Williams on Exeoutors, apples, pears, and other fruits, if hanging on the trees at the time of the death of the ancestor, shall go to his heir, and not to his executor or administrator. So it is of hedges, bushes, &o., for all tliese are the natural or permanent profits of the earth, and are reputed parcel of the ground whereon they grow (2). The law on this subject was recently considered by the Court of Appeal in a case w^hen the question arose whether a number of beech trees, more or less blown down by extraordinary gales, were to be treated as real or personal estate. " The question, and the only question," said the Lord Chancellor, "put in the baldest and broadest form, is, whether or not the tree is affixed to the soil. If it is, it is realty; but if it is severed, it is per- sonalty." " The question," added another of the judges, " is not whether a particular tree can grow as a tree naturally would grow, but whether it is fixed to the freehold. All we can do is to say that trees which are severed from the soil are personal estate, and trees which are not severed belong to the inheritance. The life and growth certainly afi'ord no test as to whether a tree is or is not afiixed to the soil " (^). A somewhat similar principle as to the necessity of actual severance was involved in the old decision that timber trees " could not be felled with a goose quiU " (*). Vegetable products of land or crops, which are produced by Emble- annual labour, are regarded as personal property, even though ^ents. not severed from the land ; so far, at least, that they do not sure, that hinderetli not, but that (^) Williams on Exeoutors, 8th ed. they may be valuable, as well as in- p. 713. struments of music, both tending to (') Per Cotton, L.J., in Re Ainslie. delight and exhilarate the spirits." Swinburne v. Ainslie, 30 Oh. Div. 485. (') Morgan v. Earl of Abergavenny, (*) Liford's Case, 1 1 Co. 50 ; see 8 C. B. 768 ; Ford v. Tynte, 2 J. & H. however, "Williams on Executors, Hh 150-153, where it was said that " to edit., p. 713, where cases are men- reclaim deer makes them no longer tioned where trees though not actu- venison in a park but chattels like ally severed were treated as dividecT auy other d jmesticated animals." from the land by sale or grant. 6 REAL PROPERTY. [Book I. Fixtures. Distinc- tions between real and personal property. belong to the heir, but pass to the executor or administrator. Such crops are called emblements (*). When personal inanimate chattels are affixed to the freehold they are called fixtures. What are fixtures? The general principle on which the law proceeds has been stated by a great judge in a well-known judgment as follows : " Perhaps," says Blackburn, J., "the true rule is, that articles not otherwise attached to land than by their own weight are not to be con- sidered as part of the land, unless the circumstances are such as to show that they were intended to be part of the land, the onus of showing that they were so intended lying on those who assert that they have ceased to be chattels, and that, on the contrary, an article which is affixed to the land, even slightly, is to be considered as part of the land, unless the circumstances are such as to show that it was intended all along to continue a chattel; the onus lying on those who contend that it is a chattel " C^). The general principle on which the law pro- ceeds is quicquid plantatur solo, solo cedit, i.e., whatever is affixed to the realty is thereby made parcel of it, and partakes of all its incidents and properties. This " hard maxiiu " of our law was recently considered by the House of Lords, when Lord Blackburn said that it was much too broadly stated, even as the general rule. In this case the present law was stated to be that where a person, him.^elf the owner of the fee, has annexed any chattels of his own to his own land, he does not always cause the property in the chattels to cease to be personalty. No doubt he generally intends to make them part of the in- heritance, and when he does so intend there can be no question that on his death before severance the heir takes, and not the executor; but the rule, like all other rules, has received from time to time judicial modifications to suit the exigencies of modern life and modern progress, and numerous exceptions and qualifications have been grafted on it in favour of trade, agriculture, and in furtherance of the rights of creditors (3). Eeal and personal property differ in certain essential par- ticulars, which may be shortly stated as follows : (1) The most important distinction which exists between (') Aa between the devisee and the executor these crops are however- regarded (unless the contrary inten- tion clearly appears by the will) as real property : Cooper v. Worlfitt, 2 Hurl. & TSr. 122. {') Holland v. Hodgson, 41 L. J. C. P. UP ; L. U. 7 0. P. 328 ; ChidUy V. Churchwardens of West Ham, 32 L. T. (K.S.) 486 ; O-oss v. Barnes, 46 L. J. Q. B. 479; 36 L. J. 693. C) Wake V. Hall, 8 App. Cas. 195, 203, 211; and see the cases on the subject of fixtures reviewed under Elwes V. Maioe, Smith's Leading Cases. property. Chap. I.] DIFFERENT CLASSES OF PROPEBTY. 7 real and personal estate is in respect of descent in case of Distinc- in testacy. Eeal property, upon the death of the owner intestate, ^"."^ ^ descends to the heir (see jpost, p. 50, et seg.). Personal property, real and on the other hand, upon the death of the owner intestate, if he P^i'son^l be domiciled in England, goes to an administrator appointed by the Court, to be distributed according to the provisions of the Intestate's Estates Act, 1890, and the Statutes of Distribu- tions (jpost, p. 341, et seq. Q)). A similar distinction occurs as regards property given by will. Eeal property passes at once to the devisee, while personal property passes in the first instance to the executor of the will, and through him to the legatee. (2) A further distinction is with regard to the interests recog- nised in the law which can be enjoyed in real and personal estate. The first lesson, said the late Mr. Joshua Williams, to be learned on the nature of real property is this — that of such property there can be no such thing as an absolute ownership ; the utmost that can be held or enjoyed in real property is an estate. With regard to personal property, however, the primary rule is precisely the reverse. Such property is essentially the subject of absolute ownership, and cannot be held for any estate. Practically, however, as pointed out by Mr. Watson, by means of trusts, estates and interests in personal propertj'- may be created which to a great extent correspond to similar interests in real estate. Thus for instance in wills personal property may be given upon trust for one person for life with remainders over, and to such bequests effect is duly given by the Courts (2). (3) The law with regard to real estate is the lex situs, or lex loci rei sitse, i.e. the law of the country where the property is situated. Both as regards the capacity of transferring and the necessary forms to effect the transfer of real estate, the law of the country of which the land is an integral part is alone competent to speak. Eeal Property, says Mr. Jarman, is generally governed by the lex loci rei sitae ; and, hence, the place where a will happens to be made, and the language in which it is written are wholly unimportant, as affecting both its construction and the ceremonial of its execution ; the locality of the devised property is alone to be consider, d. Thus a will made in Holland and written m Dutch must, in order to operate (') 53 & 54 Vict. c. 29 ; 22 & 23 (_^) "Watson's Compendium of Car. 2, 0. 10; 1 Juc. 2, u. 17, =. 7. Equity, vol. i. 2ad eJ. p. 197. 8 BEAL PROPERTY. [Book I. Distinc- on lands in England, contain expressions which, being translated between ^°*° °^'' language, would " comprise and destine " the lands in real and question, and must be executed and attested in precisely the personal game manner as if the will were made in England 0). property. . ° ^ ' The law with regard to personal estate, on the other hand, proceeds on the maxim, Mobilia sequuntur personam, i.e. movable property follows the person of the owner. Accordingly the law as to the descent of personal property is governed by the law of the domicil (^). (4) Contracts with regard to personal property are construed according to the lex loci contractus, i.e. the law where the con- tract is made, unless the contract is to be performed somewhere else, when it is governed by the lex loci solutionis, i.e. the law of the place where the contract is to be performed. (5) Personal property is liable in general to be applied in payment of the deceased owner's debts in priority to his real property. (See under Administration, post, p. 549). (6) Probate duty is payable in respect of personal property, but not in respect of real property. (7) Another important distinction between real and personal is that wills of real estate are more strictly construed than those which deal with personal property. This distinction was pointed out by the late Master of the EoUs, Sir George Jessel, in the following manner : — " In real estate wills, as I have often 'said, and I will now repeat, I do not feel myself to have the . same liberty as regards construing a will according to its mean- ing, as I have in the case of what are commonly called personal estate wills, and for this reason. Land in this country is held by title, and the very complicated and curious law affecting real estates depends almost entirely on judicial decisions as to the construction of particular instruments — I mean as regards the effect of limitations — and any judge who attempted to interfere with the authorities by starting anew, and giving a new con- struction to a will, because he thought it expressed something different, would be in fact legislating and making new laws as regards real property, which no judge has a right to do, and which would do infinite mischief if he were right in his con- clusion that the original meaning of the words was different from that which they had been taken to bear by a long or an old course of decisions " (^). 0) Jarman on Wills, 4th ed. p. 1. foH, 39 Oh. D. 600. O Doglioni v. Ch-ispin, L. E. (3) Mihe v. Barford, 12 Gh D 1 H. L. 301; and see Chatfield v. 691,698 ^"^^J'""'' ^^ Wi. i>. BercMoMt, L. E. 7 Ch. 192 ; Ee Tru- Chap. I.] DIFFEBENT CLASSES OF PROPERTY. 9 In a still more recent case (i) attention was expressly directed to the establislied rules on the question of the construction of wills relating to real property, with, regard to which it was said that the cases have always had greater attention given to them than in the case of personalty, because land in England passes by title, and it has always been the habit of the lawyers and judges to look with- greater strictness to the reported cases where it is a question of land than where it is a question of personalty. In the following pages we shall begin with the consideration of the subject of real property, which, though possibly not more important than that of personal property, is certainly much more complicated and difficult. It must be borne in mind that the real property law of England had its origin at a time when land and its rents and profits constituted nearly the whole tangible wealth of the country, and when personal propeity was of com- paratively little importance, and that, although the law as to leal property has been considerably simplified, and in some respects assimilated to that of personal property, the bulk of the law peculiar to real property is still large and important (^). In some cases, as, for instance, with regard to executory interests {post, p. 71), and wills (post, p. 157), the two subjects of real and personal property wUl be treated together. In dealing with the subject of real property, we shall first consider the property itself and how it may be held, and then the various modes in which it may be disposed of by its owners. (') Be Bright Smith. Bright 31i, 318. Smith V. BHght Smith, 31 Oh. D. Q) Challis's Real Property, p. 1. ( 10 ) CHAPTER II. History of the law of real property. Tenures xsh Estates. It has already been pointed out (ante, p. 6) that one of the distinctions which exist in English law between real and per- sonal property, is that real property is essentially the subject of tenure, and that " estates " are " held " in it. The object of the present chapter is to consider briefly the subject of tenure, and the various interests technically called " estates " (post, p. 14) which are " held " in real property. The history of the law of real property, as has been pointed out by an eminent writer, may be considered under three great main divisions (}). The first division embraces the period of feudal ascendency, when the system of tenures flourished, severe and pure, without any tincture of equitable doctrines. The second division exhibits the rise and progress of equitable interests under the name of " uses." The third, and for practical purposes infinitely the most im- portant, division compriees the following subjects — (1) The adoption into our legal system of modes and forms of conveyance founded on the " use," by which greater flexibility was introduced into dealings with real property, and new capa- bilities imparted to the legal dominion (post, p. 17) j (2) The gradual development of the great system of trusts, of which we shall speak hereafter when we treat of the business specially assigned to the Chancery Divisiim of the High Court of Justice, a system by which the strictness of tenure was to a great extent evaded (post, p. 16, et seq.) (2); (3) The changes introduced to some extent by judicial decision, but chiefly by statute into the law of property. The grand characteristic of real property, says Mr-. Hayes, was Tenure. Tenure denoted " the specific feudal relation sub- (') Hayes on Conveyancing, p. 1. (^) Hayes on Oouveyanoing, p. 2, et seq. ; Challis' Eeal Property, p. b. Tenure is baoed on the theory of acknowledgmeut of a higher and paramount order of ownership in another, and it implies the rendering to that other of some service in return for the limited proprietorship it con- cedes : Goodeve, p. 17. Chap. II.] TENURES AND ESTATES. 11 sisting between the lord and the tenant," or, in other words, the holding of land of a superior owner or lord by service, real or nominal, rendered by owner or tenant to the lord. The origin of the various tenures of land in this country is Origin of well described by the learned writer from whom we have ^''"''^^• already quoted. The chief who received a grant of land dedi- cated the greater portion to arms and ambition, parcelling it out among his voluntary followers in the field, to be held on the honourable condition of military service ; another portion he allotted to an inferior yet not degraded caste, to be held in socage (^), and the resiilue he retained to be cultivated by his villeins or serfs, who were attached to the soil, rather by the chain of slavery than by the bond of tenure. Prom the former two classes have proceeded the freeholders ; from the latter, the copyholders of the present day (^). It is a fundamental principle of English law that there is no such thing as absolute ownership of land ; all lands in England are held, either mediately or immediately, from the king. To the Crown belongs the ultimate title to the soil, as lord paramount (^). This right of the Crown, however, only comes into practical operation in case of escheat which occurs when a tenant in fee simple dies intestate, and there is no one who can succeed to the estate as heir. Escheat formerly occurred also on the tenant's conviction of felony, but this was abolished by statute in the j'ear 1870 (''). See, as to esahea,t, jpost, p. 55. The law on this subject was stated by the Lord Chancellor in 1883, as follows :— " All land in England, in the hands of any subject, was holden of some lord by some kind of service, and was deemed in law to have been originally derived from the Crown, ' and therefore the king was sovereign lord, or lord paramount, either mediate or immediate, of all and every parcel of land within the realm.' The king had dominium directum, the subject dominium utile. The word ' tenure ' signified this relation of tenant to lord. Free or common socage was one of the ancient modes of tenure Q A man might hold of his lord by fealty only, and such tenure is tenure in socage,' Litt. sect. 18) which by the statute of 12 Car. 2, o. 24, was substituted throughout England for the (') The derivation of the word It wag called " free socage " because " socage " is, aoourding to some the owners were freemen, authorities, the Saxon word " soo," (^) Hayes' Introduction to Convey- signifying a " liberty," or " privi- ancing, p. 6. lege " J according to others, a Frenoh (') Goodeve, Keal Property, p. 36. word signifying "a plough-share." (') HS & 34 Vict. o. 23. 12 SEAL PB.OPEHTY. [Book I. former tenures hj knight service and by socage in capite of the king, and relieved from various feudal burdens. Some, how- ever, of the former incidents were expressly preserved by that statute, and others (escheat being one of them), though not expressly mentioned, were not taken away " (^). A great portion of the learning with regard to the many intricacies and oppres- sive incidents of tenure is now, however, happily obsolete. By an Act passed in 1660, immediately after the Eestoration of Charles II. (12th Charles 2, cap. 24 (^)), the Court of Awards and Liveries was abolished, and all wardships, liveries, fines, &c., by reason of any tenure by knight-service, were taken away and all sorts of tenures, held of the king or olhers, were turned into free and common socage, with the exception of tenures iu frankalmoign (jpost, p. 13), copyholds (posi, p. 184), and the honorary services of grand serjeanty (post, p. 12). The great division of the land in this country for practical purposes is into (1) freehold, which will be considered in the following chapters: (2) copyhold (jpost, p. 184, et seg.) and (3) leasehold Qpost, p. 112 (fj). Varieties The varieties of tenure, as pointed out by Mr. Joshua of tenure. "Williams, which deserve attention relate either, (a) to the persons to whom the estates were granted, or (6) the places in which the lands held are situated. The varieties of tenure which relate to persons are grand serjeanty and petit serjeanty. Grand serjeanty was an ancient tenure whereby the tenant was bound to do some special honorary service to the king in person, as to carry his banner or sword, or to be his butler, champion, or other officer at his coronation. This tenure was abolished by 12 Car. 2, c. 24 (^), but its honorary incidents are retained. Petit serjeanty is another ancient tenure of land which still exists. Lands in petit serjeanty are held by the rendering to the king annually some small implement of war, as a bow, a Bword, a lance, an arrow, or the like. The varieties of tenure which relate to places are gavelkind, borough-English, and ancient demesne. The chief peculiarity of the custom of gavelkind is that when the owner dies without having made a will the land descends among all the sons equally, and in default of sons, among aU (') The Attorney-General of On- Q) By a legal fiction Charles Il.'a tario V. Mercer, 8 App. Gas. 767. reien was dated as from the death (') Williams on Real Property, of Charles I. in 16i8. Chap. V. Chap. II.] TENURES AND ESTATES. 13 the daughters equally. The custom also extends to collaterals, Gavelkind. and in default of children the lands go to all the brothers equally. The issue of a deceased son, daughter, or brother, who if living would have been entitled to a share, are entitled ^er stirpes, i.e. to the share of their deceased parent. The husband is entitled to curtesy (jpost, p. 30), on the death of his wife seised of gavelkind lands, whether he had issue or not, but only to a moiety ; and this right ceases on his marrying again. Another marked peculiarity of this tenure is that an infant of the age of fifteen years can alienate by feoffment (j)ost, p. 83). Lands of gavelkind tenure exist almost exclusively in Kent, where all lands are assumed to be gavelkind until the contrary is shown, and it is said that the word " gavelkind " is not pro- perly used of lands outside Kent, even though affected by the custom. Various Acts have been passed fiom time to time, beginning with 31 Hen. 8, c. 3, for the purpose of " disgavel- ling " lands. Borongh-English is a custom chiefly affecting lands held by Borough- burgage tenure within certain ancient boroughs and some English. manors ; the descent is to the youngest son, to the exclusion of all other children. There are also certain modifications of this custom extending to females and to collateral descendants ('). Ancient demesne is a tenure existing only in manors which were in the hands of the Crown in the days of Edward the Confessor and William the Conqueror. The better opinion would seem to be that these tenants are freeholders, and they enjoy certain immunities, the chief of which is the right to sue and be sued only in the lord's Court, but this tenure is at the present time unimportant. Frankalmoign, or free alms, is the tenure by which the lands Franlcal- of parochial clergy of the Church of England are for the most '""'go- part held. There are no services incident to this tenure ; and as the church has a perpetual existence in its corporate capacity there cannot be any escheat of the land. Hence, though in theory absolute ownership of land is not recognised by law, yet land held by this tenure is in effect held absolutely. The word " estate " is used in two significations : (1) its (') See further as to other peculiar law, which is only the general custom customs of descent : Chiillis, Law of of the realm, would practically cease Keal Property, p. 14, where it is to exist ; and see Bieldey v. Bickley, pointed out that the restriction upon L. K. 4 Eq. 216, a case of mucti the legalityof local oustomsisfounded singularity, where descent was held upou the ciinsideration that, if every to mean " a single step in the scale trilling locality were indulged in the of genealogy." use of special customs, the common land, 14 REAL PROPEETT. [Book I. technical sense, viz., the quantity of interest in real property owned by a person; and (2) its popular sense, as the real pro- perty itself. It is of course only with the first of these two significations with which we have now to do (i). Estates in Estates in land may be regarded in four different aspects : — 1. With regard to the nature of the estate. 2. With regard to the number and connection of the tenants. 3. With regard to the quantity or legal magnitude of the estate. 4. With reference to the time of the enjoyment of the estate. 1. With regard to the nature of the estate. The estate may be either legal or equitable (jpost, p. 16). 2. With regard to the number and connection of the tenants. The estate may be held (1) in severalty or individual owner- ship, or it may be held (2) in concurrent ownership. In the latter case, it may be held (a) as a joint tenancy, or (6) as a tenancy in common, or (c) in coparcenary Qpost, p. 60). 3. With regard to the quantity or legal magnitude of the estate. The great division of estates considered with reference to their quantity is into estates of freehold and estates less than freehold. Estates of freehold are: (1) Estates for life; (2) Estates in tail ; and (3) Estates in fee. Estates less than freehold are estates (1) at sufferance, (2) at will, (3) for years. Thus, beginning at the lowest and proceeding through all the stages to the highest estate known to English law, we find that the various estates in real property considered with reference to their respective quantities, are — (1) Tenancy by sufferance (see infra, on this page) ; (2) Tenancy at will (see infra, on this page) ; (3) Estates for years (jpost, p. 112) ; (4) Estates for life (jpost, p. 22) ; (5) Estates in tail Qpost, p. 33) ; (6) Estates in fee simple (jpost, p. 43). A tenancy by sufferance is the lowest estate which can subsist. It arises where a person has held by a lawful title, and con- tinues the possession after his title has determined, without either the agreement or disagreement of the person then en- titled to the land, e.g., if a man has a lea^e for three years, and he holds over after that is out he is a tenant by sufferance (^). A tenancy at will is an estate in land, determinable at the will either of the landlord or tenant. Such a tenancy may be granted either by express words, written or orally, or by implication or construction of law. (') Wharton's Law Lexicon. (') Doe v. Smaridge, 7 Q. B. 957. Chap. II.] TENUBE8 AND ESTATES. 15 4. Estates considered with reference to times of their enjoy- ment are either in possession or in expectancy. Estates in expectancy are either — A. In reversion ; B. In remainder ; or C. Executory estates. These estates are treated together hereafter (p. 64, et seq.) under the head of " future estates." ( 16 ) Legal estates. Equitable estates. CHAPTER III. Legal and Equitable Estates. One of the aspects, as has already been pointed out (ante, p. 14), in whicli the various interests in property may be re- garded, is that denoted by the distinction of estates and interests into " legal " and " equitable." The legal estate is that which was prior to the Judicature Act alone recognised in the Courts of law ; the equitable estate is that which was only recognised in the Courts of Equity. The distinction between the two classes of estates is pointed out by a well-known text- writer, as follows : — 1. A merely legal interest is such an interest in or ownership of real or personal property, as is not of a beneficial, but simply of a possessory and fiduciary character. 2. A merely equitable interest is a beneficial interest in or beneficial ownership of real or personal property unattended with the possessory and legal ownership thereof (^). 3. An interest both legal and equitable is an interest in or ownership of real or personal property, which confers a right both to the posseshion, and to the beneficial enjoyment of such property, as well at law as in equity. Where the equitable and legal estates are both equal and co-extensive and become vested in the same person in the same right the equitable estate is said " to merge " in the legal. The division of the ownership of property into legal and equitable estates or interests arose through the recognition by the early chancellors of uses of land. Uses were originally introduced by the ecclesiastics to avoid the effect of the Statutes of Mortmain which forbade the granting of land to religious houses, and were afterwards adopted by the laity, chiefly in turbulent times, to avoid the penalties of forfeiture for treason. The mode in which this was effected was that conveyances were made to persons to hold to some specific uses, and declarations were then made by the legal owners that they themselves would hold to such uses. These uses were not recognised by the Courts of common law jurisdiction, but were effectual only by the rules of equity administered by the chancellors and were therefore called " equitable " estates. The doctrine of equitable (') Smith's Eeal and Personal Troperty, 248. Chap. III.] LEGAL AND EQUITABLE ESTATES. 17 interest, says Mr. Hayes (}), was founded on confidence in the '^s^^- person as opposed to the direct dominion over the land. The estate of the old common law proprietor was actual and mani- fest ; the right of the new beneficiary presented nothing either tangible or visible. The legal owner of the land contracted a moral obligation to hold or to dispose of it for the benefit of another, who was said to have the Use. Thus, A. conveyed land to B., to his (A.'s) own use, or to the use of C. This declaration of the use charged the conscience of B., the legal feofiee or grantee, but did not attach itself to the land. The parents of the use, as it was somewhat sarcastically said, were fraud and fear (^), and a Court of conscience was its nurse. As the feudal and other obligations which attached to owner- ship at common law did not apply to the use, the creation of a use became a means whereby the benefits of ownership might be secured to a person without any of its burdens. This gave rise to various inconveniences. " The clergy who were pro- hibited (by the laws against mortmain) from purchasing land, but who could now take the profits to any extent without becoming the legal owner of a single rood, increased their possessions. The factious baron vested his estate in a few con- fidential friends, and committed treason with comparative safety. The peaceful proprietor adopting the same precautions enjoyed and disposed of the beneficial interest unvexed by the exactions of the lord, and regardless of the rules of the common law (3)." By way of remedy for this the legislature sought to abolish the system by a single blow. The famous Statute of Statute Uses (27 Hen. 8, c. 10) was accordingly passed in the year " ^^^' 1536. This Act provided that whore any person or persons should stand seized of any lands or other hereditaments to the " use, confidence, or trust " of any other person or persons, or body politic, the person or persons or body politic that had any such use, confidence, or trust, i.e., the persons, &c., entitled to the beneficial interest in the property, should be deemed in lawful seizin of the lands and hereditaments for such estates as they had in the use, trust, or confidence. The same section also provided " that the estate, title, right, and possession, that was in such person or persons that were or thereafter should be seized of any lands, &o., to the use, confidence, or trust of any such person or persons, &c., should be from thenceforth clearly (') Hayes on Conveyancing, p. 32. and fraud, to defeat dne debts, law- (') " Fear," said Lord Coke, " iu ful actions, wards, escheats, moit- times of trouble and civil wars to mains." save inheritances from being forfeited; (') Hayes on Conveyancing, p. 35. VOL. I. C Case. 18 SEAL PBOPERTT. [Book I. deemed and adjudged to be in him or them that had or there- after should have such use, confidence, or trust, after such quality, manner, form, and condition, as they had had before in or to the use, confidence, or trust, that was in them." The statute thus "executed" the use as it was termed, that is, conTcyed the right to the ownership and possession at common law to the cestui que use, leaving no estate or interest in the person holding to the use. TyrreWs ' Soon after the statute it was decided in Tyrrell's Case that there could not be " a use upon a use " ; so that if land were conveyed to A., to the use of B., to the use of C, the statute executed the use in B. only, and the use declared in C.'s favour, was a nullity at law. This decision, which a great authority tells us must have surprised every one who was not sufficiently learned to have lost his common sense, had the efiect of com- pletely defeating (so far as the Courts of Common Law were concerned) the avowed object of the statute. The Court of Chancery however intervened, and held that, though the use in C.'s favour was void at law, it should be treated as valid in equity, and should create an equitable estate in C. The effect of this doctrine was to defeat the intended operation of the Statute of Uses, by reviving equitable estates in lands to which the statute applied, nothing more being needed for this purpose than the formula of a " use upon a use." The statute it will be observed only deals with cases where any person or persons stand seized of any lands to the use, con- fidence, or trust of any other person or persons. It accoidingly does not apply to cases where the person seized and the bene- ficiary are the same person as where the grant is made unto and to the use of A. In such a case A. takes both the legal and the beneficial ownership by the common law, and not under the statute. This doctrine received a very remarkable illus- tration in some cases which came before the Courts in recent years in connection with the subject of election law. In one of these cases the grant of a rent-charge was practically in the form " unto and to the use of A.," in the others the words practically amounted to a grant to A. to the use of B. It was held that in the first case the actual " possession " was to be reckoned only from the date of entry, while in the other two cases the time of possession began to run from the actual date of the grant itself (i). e)Orme's Ca,e, L- E 8 C. P. 281 ; 12 Q. B. D. 369 ; in the flvBt of which mdfsM s Case, L. E. 8 C. P. 30fa ; oases the law on the subject is most Lowcock V Overseers of Broughton, elaborately considered. Chap. III.] LEGAL AND EQUITABLE ESTATES. 19 The effect of the Statute of Uses must also be considered in Statute of reference to powers of appointment (jpost, p. 175). Thus, if an ^^^*' estate were conveyed to A. and his heirs to the use of such persons as B. should appoint, and B. appoints to C. Here, on the appointment, C. takes the legal estate by force of the statute. It has been said that the only practical effect of the Statute of Uses was to add the words " unto and to the use " to every conveyance ; but, as has been well pointed out by Mr. Haynes, two very remarkable results followed from the statute as read in the light of the decision in Tyrrell's case and subsequent cases. 1. Facilities were afforded for creating through the medium of it a variety of legal estates unknown to the common law with all the flexibility and adaptability to circumstances. The system of uses revived with a new and more healthful vigour under' the name of trusts. 2. The trust was gradually, though not without a struggle by the end of the reign of Charles II., placed upon a similar though more liberal and more satisfactory footing than the old uses Q"). The Statute of Uses was, however, limited in its operation to Statute freeholds, and therefore did not affect uses of copyholds or ^°^^ °°' chattels real. _ copyholds In 1876 the question (jame before the House of Lords whether or leaie- the Statute of Uses applied to peerages. This question was answered in the negative. The Lord Chancellor (Lord Cairns) *^'^*g^^- in delivering judgment, said : " According to the doctrine of these uses, the holder of an estate holding it absolutely as an estate at common law, might have imposed upon his conscience a trust which might be made to shift about, and pa.^s from owner to owner. After these uses had prevailed for some time the Statute of Uses was passed, and by it these uses were turned into actual legal estates. But your Lordships will observe that uses never could have had any application to a peerage, because they were originally trusts, and there could be no trust of a peerage which was a personal possession, and could not be held by one person on trust for another" (^). Of the rules applicable to equitable estates it must suifice here, when speaking of the subject of property, to say, that speaking generally, they are comprised in the comprehensive rule expressed by the maxim, " equity follows the law," that is, the rules applicable to equitable estates are in general similar to (') Haynes, Outlines of Equity, Buchhurst Peerage, I>. E. 2 App. Gas. p. 49. 5tli eriition. 27. (^) Per Cairns, L.C., In re The C 2 '20 HjEAI PB0PEET7. ' [Book 1. those by which legal estates are governed {post, p. 513). It must, however, be borne in mind that for the creation or transfer inter vivos of an equitable estate in land, the formal conveyances applicable to legal estates are not requisite, though, by the Statute of Frauds (29 Car. 2, o. 3), the creation of a trust of land must be evidenced by writing signed by the party creating the same ; and an as>ignment of an equitable interest in property of any kind must also be evidenced by writing signed by the assignor. Prior to the Judicature Act, the Court of Chancery alone had jurisdiction in regard to equitable estates. But that Act provided (jpost, p. 351, et seq.) that equitable estates and rights shall be recognised and taken notice of by all Courts, and that in case of conflict between common law and equity, the latter shall prevail Q-). The Court of Appeal, however, lately held, that though since the Judicature Act the Court administers and deals with the rights of parties, having regard both to law and equity, the legal estate and the equitable estate are still separate and distinct (^). " It has been argued before us," said" one of the judges of the Court of Appeal, "that the difference between legal and equitable interests has been swept away by the Judicature Acts. But it was not intended by the legislature, and it has not been said, that legal and equitable rights should be treated as identical, but that the Courts should administer both legal and equitable principles. I think that the clause enacting that the rules of equity shall prevail shows that it was not intended to sweep away altogether the principles of the common law." " It was contended," added another of the Lord Justices, "that the effect of the provisions of the Judicature Acts, 1873 and 1876, was to abolish the distinction between law and equity. Certainly that is not the effect of those statutes, otherwise they would abolish the distinction between trustee and cestui que trust." It was an old established principle of the common law that a man could not convey property, whether real or personal, to himself, and on a similar principle a man might not grant nor give his tenements to his wife during the coverture, for that his wife and he be but one person in the law. Both these rules were evaded, so far as real estate was concerned, by conveyances under the Statute of Uses. The Conveyancing Act, 1881, s. 50 Q) 36 & 37 Vict. o. 66, es. 24, 25. the legal estate and interest, without O Clements v. Matthews, 11 Q. B. notice was allowed to prevail over a T)iv. 808, 814 ; Joseph v. Lyons, prior equitable interest 15 Q. B. Div. 280, 286, 287, where Chap, in.] LEGAL AND EQUITABLE ESTATES. 21 now provides with regard to conveyances made after the com- mencement of the Act, Jan. 1, 1882, that freehold land or a thing in action may be conveyed by a person to himself jointly with another person, by the like means by which it might be conveyed by him to another person ; and may, in like manner, be conveyed by a hnsband to his wife, and by a wife to her husband alone or jointly with another person (i). (') 44 &, 45 Viot. e. 41, s. 50 ; see note thereon in Clerks and Brett's Con- veyaucing Acts, &c., Srd&d. p. 191. ( 22 ) CHAPTEE IV. Estates fob Life. Definition. An estate for life is an estate held or capable of being held during the subsistence of a life or lives, and not limited in duration to a fixed period. The life may be either that of the tenant or that of another person. An estate to a person for his own life or for the life of another is an estate of freehold, and is in the eyes of the law a larger estate than any estate for years. A grant to A. for 999 years, if he shall so long live, or if B. shall so long live, is only a chattel interest, and less than an estate of freehold, because a fixed period is limited when the estate must determine. An estate for a person's own life may be either absolute, as upon a conveyance or devise to A. for life, or it may be made determinable on a contingency, and its duration may be limited to some uncertain period included in the life ; as example, if an estate be given to a woman " as long as she remain single," or '■ during widowhood " (^). An estate for the life of another, or for an uncertain period included in another life, as when land is granted to A. to hold during the life of B., or during B.'s widowhood, is called dis- tinctively an estate pur autre vie. The person during whose life the estate is held is called the cestui que vie. Where an estate pur autre vie is granted to A. and his heirs, or to A. and the heirs of his body, on his death his " heirs," or " heirs of his body," as the case may be, are said to succeed to the estate p>ur autre vie as " special occupants," that is, persons specially nominated to the grant of the estate, and not as persons taking by descent from the grantee. An estate pur autre vie limited to a person and the heirs of his body is called a quasi entail (post, p. 41 (2)). Creation of Estates for life are either created by some legal instrument, e.g. a deed or will, in which case they are sometimes called, " conventional or contractual," or arise by mere operation of law. The estates for life which arise by operation of law, are : (1) The Widow's Dower estate (jiost, p. 30). (') Goodeve's Real Property, 2nd (^) See, us to the devolution of an ed. p. 40; Tudoi's Leading Cases in estate pur autre vie afte^i the death of Eeal Property, p. 19, 3rd edition. the tenant for life, post, p. 31. estates for life, Chap. FV.] ESTATES FOR LIFE. 23 (2) The Husband's estate, as tenant by the curtesy (post, p. 30). (3) The estate of a tenant in tail after possibility of issue extinct (jpoit, p. 33). A grant of land to a person without anything more, confers upon him only an estate for life. The reason for this is that the old feudal rule by which gifts were strictly interpreted, and limited precisely to the exact terms of the grant, had on this point been so long and so firmly established before the subsequent rule, that " every grant is to be taken as strongly as possible against the grantor," had been recognised by the law, that it prevails even at the present day {}). Thus a conveyance to a man or his heirs, or to a man and his successors, only conveys a life interest. It should, however, be borne in mind that the word " heirs " is not essential in an agreement for the purchase of land. A conveyance to a corporation ought to be made in the form to A. and his successors. A conveyance, how- ever, to a corporation aggregate, consisting of many capable persons, as to a dean and chapter, is effectual to pass the fee simple without the word " successors," the reason being that the body never dies, but when the conveyance is to a bishop, parson, or any other sole corporation, " having a successor after his decease," nothing passes but a life estate, unless the word " successors " be employed (^). As this rule, however, was found to defeat the intention of Wills Act. persons making wills, it has been enacted by the Wills Act that a devise to a person without any words of limitation will pass the fee simple or other the whole estate of the testator, unless a contrary intention appear by the will (f). A tenant for life is bound, as a general rule, to keep down interest on mortgages and ascertained charges. That liability, as was stated in a case when the law on the subject was con- (') Williams on Real Property, the meaning of the instrument ao- 16tli edition, p. 23. It must, however, cording to the ordinary and proper be borne in mind that it is, to say tbe rules of construction. If we can thus least, extremely doubtful whether the find out its meaning we do not want maxim that any grant is to be taken the maxim. If, on tlie other hand, we as strongly as possible against the cannot find out its meaning, then the grantor can be regarded as sound instrument is void for uncertainty, law at the present day. On this and in that case it may be said that subject the late Sir George Jessel the instrument is construed in favour made the following important obser- of the grantor, for the grant is vations : — " I do not see how, accord- annulled " : Taylor v. Corporation of ing to the now established rules of St. Helens, 6 Oh. D. 270. construction, as settled by the House (^) Co. Litt. 8 b ; Tudor's Leading of Lords, that maxim can be con- Cases, 3rd ed., p. 716. Bidered as having any force at the (') 1 Vict. c. 26, s. 28. present day. The rule is to find out 24 REAL PROPEBTY. [Book I. Mortgages aud charges. Em- blements. sidered, is in harmony with the settled principles and rules of the Court (}). The same principle applies to a tenant by curtesy, and a tenant in dower, so far as her one-third interest is concerned. The Land Charges Eegistration and Searches Act, 1888 (51 & 62 Vict. c. 51, s. 10"), provides that a registry of land charges shall be kept at the oiSce of Land Eegistry, and that land charges may be registered therein in the prescribed manner. In the case of freehold land, in the name of the person beneficially entitled to the first estate of freehold at the time of the creation of the land charge. V\ hen a mortgage or a charge is paid off by a tenant for life without any expression of his intention, he retains the benefit of it against the inheritance. Although he has not declared his intention of keeping it alive, it is presumed that his in- tention was to keep it alive, because it is manifestly for his benefit (2). Under the Settled Land Act, 1890, a power is conferred upon a tenant for life of raising money by mortgage ■ of the fee simple or otherwise for the purpose of discharging an incumbrance on the settled land or part thereof (^). See post, p. 38, as to the rule when a charge is paid off by the owner of an estate of inheritance. On the death of a tenant for life his personal representatives are entitled to emblements (ante, p. 5). When the estate of a person holding under a tenant for life comes to an end through the determination of the estate of the tenant for life, the undertenant is entitled to emblements. It is, however, provided by a statute of the present reign (*) that where the lease or tenancy of any farm or lands held by such a tenant shall determine by the death or cesser of the estate of any landlord entitled for his life, or for any other uncertain interest, instead of claims to emblements, the tenant shall continue to hold and occupy such farm or lands until the expiration of the then current year of his tenancy. Our law proceeds upon the principle laid down by Lord Mansfield in the leading case of Wigglesworth v. Dallison (=), that it is just and for the benefit of agriculture that he who sows should be allowed to reap, or that, at all events, his estate should be entitled to the benefit of his outlay. Accordingly, if a tenant for life sows land, and his estate comes to an end, his C) Per Hall, V.-O., in Marshall v. Orowthdr, 2 Ch. D. 199, where the principle as to personal estate was extended to real estate. (^') Adams v. Angell, 5 Ch. Div. 6;!4, 645. (') 5S & .^4 Vict. 0. 69, s 11. (0 14 & 15 Vict. 0. 25. Douglas' Eeports, I., 201 ; 1 Smith's Leading Cases, 9th ed. p. 569. CnAP. IV.] ESTATES FOR LIFE. 25 personal representatives are entitled to come on the land and take away the crop which he has sown, if it be of such a nature as bears an annual profit, e.g., corn, hemp and flax, and he has also liberty to enter upon the land and carry them away. This right, however, does not extend to things which the tenant has planted, not bearing an annual profit, such as young fruit trees, oaks, ashes, elms, or the produce of acorns which the tenant may have sown Q-). Should, however, the estate de- termine by the tenant's own act, as for instance, if a widow entitled to a life estate determinable on her second marriage should marry again, the tenant is not entitled to the crop. At common law, and independently of statute, when the Appnrtion- estate for life determined, no rent was payable by the under- ^^'^^ ^<=t- tenant to anybody from the last rent day to the day of the death of the tenant for life. This difficulty has been dealt with by various statutes (f), ending with the Apportion- ment Act, 1870 (^), which provides that all rents, annuities, dividends, and other periodical payments in the nature of income (whether reserved or made payable under an instrument in writing or otherwise), shall, in the absence of express stipu- lations, be considered, like interest on money lent, as accruing from day to day, and shall be apportionable in respect of time accordingly (*). A tenant for life, even if impeachable for waste, is entitled to Estorers. " estovers " (^). These are housebote, or a sufficient quantity of wood for the fuel and repairs of his house. Ploughbote, suffi- cient wood for making and repairing agricultural implements ; and haybote, for repairing fences. The "estovers" must, how- ever, be reasonable, and must not be applied for any other purpose. (') Co. Litt. 55a, 55b, cited in seemed to be some fatality about Tudor's Leading Oases on Real Pro- Apportionment Acts, for even this perty, 3rd ed. p. 103, wliich see. last one, though intended to settle (*) 4 & 5 Wm. 4, 0. 22 ; 11 Geo. 2., all questions, is drawn in a very odd u. 19. See as to incoming and out- way. And see as to what is and is going tenants : Mansel v. Norton, not apportionable : Jones v. Ogle, 22 CI). D. 769 ; Woodfall's Landlord L. B. 8 Oh. 192 ; Whitehead v. and Tenant, 14th ed. p. 774. Whitehead, L. E. 16 Eq. 528 ; Folloch (0 33 & 84 Vict. c. 35. v. Pollock, L. R. 18 Eq. 329 ; In re C) In In re Cfriffith, 12 Ch. D. Cox's Trusts, 9 Ch. D. 159. See alsb 655, it was laid down that the word Oapron v. Capron, L. R. 17 Eq. 288; "dividends" in the Act includes In re Oliver's Estate, L. E. 18 Bq. payments by way of bonus or surjilus 213 ; Hasluclc v. Pedley, L. R. 19 Eq. profits to the shareholders of a public 271 ; Constable v. Constable, 11 Ch. D. company, even though such pay- 681 ; Laurence v. Laurence, 26 Ch. D, ments may be only occasional and 795. not strictly periodical. In tijia case (') From the French word, mean- Sir GeorKO Jessel said tliat there ing to furnish. 26 MEAl PROPERTT. . [Book I. Title- A legal tenant for life of freeholds is entitled to the custody '^^'^'- of the title-deeds as a matter of right, except in cases where he has been guilty of misconduct, so that the safety of the deeds has been endangered, or where the rights of others intervene, and it becomes necessary for the Court to take charge of the title- deeds in order to carry out the administration of the property Q). In a case which came before the Court of Appeal in 1884, the following somewhat peculiar question arose with regard to the. custody of title-deeds. A lady was legal tenant for life of certain lands, and as it was not settled to her separate use, her husband in her right would have been entitled under ordinary, circumstances to receive the rents, and to have possession of the title-deeds during the coverture. The husband became a. bankrupt, and there was evidence that the wife was about to apply to the Divorce Court for a dissolution of the marriage. The Court decided that under these circumstances the title- deeds ought not to be delivered to the husband's trustee in bankruptcy, but ought to be retained in Court (2). A change which may be in some cases of considerable import- ance with regard to the position of a tenant for life is intro- duced by the Agricultural Holdings Act, 1883. A " landlord" is defined in relation to a holding to mean any person for the time being entitled to receive the rents and profits, and the Act provides that any "landlord," on paying compensation or executing improvements as therein mentioned, is entitled to obtain a charge on the holding for the amount so paid or expended (^). It is a principle of our law nemo dat quod non habet, i.e., no man can give that which he does not possess (post, pp. 241, 256). Accordingly, independently of statute, a tenant for life can only alienate to the extent of his estate, so that no lease or other estate granted by him can be effectual after the determination of his life interest. He was further limited with respect to improving the estate as in the absence of some special provision all improvements were at his own cost. Settled The powers of a tenant for life under a " settlement " are now very greatly enlarged by the Settled Land Act, 1882, amended by the Acts passed in 1884, 1887, lfc89, and 1890 (*). A settlement C) Leathes v. Leathes, 5 Ch. D. 769. 221-222; Be Pyatt, 26 Ch. D. 31. (*) 45 & 46 Vio+ c. 38; 47 & 48 O Ex parte Rogers. Be Pyatt, 26 Vict. 0. 18; 60 & 51 Vict. 0. 30 s 8- Oil. D. 31. 52 & 53 Vict. c. 36; 53 & 54 Viet' 46 & 47 Vict. c. 61, s. 29 ; which c. 69, to be cited as " the Settled see as to exhausted improvements ; Land Acts, 1882 to 1890." and see Hansel v. Aorton, 22 Ch. D. Chap. IV.] ESTATES FOR LIFE. 27 is defined, for the purposes of the Act, in the most compre- Settled hensive language to include " any deed, will, agreement for a settlement or other agreement, covenant to surrender, copy of Court Eoll, Act of Parliament, or other instrument, or any number of instruments," under or hy virtue of which any land, or any estate or interest in land, stands for the time being limited to or in trust for any persons by way of succession, and this definition is expressly made retrospective so as to include all settlements whatever their date may be. The object of these Acts has been judicially stated to be " to confer upon the present generation of landowners the means of alienation which they had become deprived of in the process of time by the ingenuity of conveyancers. It enables tenants for life to sell, and thus to take settled land out of settlement, and substitute for it its value in pounds, shillings, and pence, to partition, lease, and otherwise dispose of settled land freed from the re- strictions which, by the general law previously existing, and by the numerous statutes applicable to the subject, had up to the time of passing the Act, prevented tenants for life from so dealing vdth settled land " (^). For the present it may be sufScient to point out that the tenant for life has not only power to sell, enfranchise, exchange, and make partition, but also to grant building, mining, and other leases, execute improvements authorised by the Act, raise money by mortgage for the discharge of incumbrances on the settled land or any part thereof, &c. (jpost, p. 147). It must also be borne in mind that the powers conferred upon the tenant for life are also enjoyed by a great number of other persons {post, p. 146), as if each of them were a tenant for life as defined in the Settled Land Act. The provisions of these Acts are so important that it has been deemed advisable to devote a portion of a separate chapter to their consideration {post. Chapter XII.). A tenant for life is entitled to all the ordinary fruits and Waste, profits of the land. But he is liable to succeeding owners of the land for voluntary waste, unless his estate has been granted to him expressly " without impeachment of waste," in which case he is liable only for what is called " equitable waste." Waste is the destruction or material alteration of things formerly an essential part of the inheritance, as houses, timber, &c. The opening of new mines is waste, but not the working of old ones. (') Cardigan v. Ourzon-Howe, 30 of Newcastle's Estate, 24 Gh. D. 129 ; Ch. D. 536 ; see In re Glitheroe Estate, In re Chaytor's Settled Estates Act, 25 31 Ch. Div. 135 ; Wlieelwright v. Ch. D. 651 ; In re Jones, 26 Oh. Div. Walker, 23 Oh. D. 752 ; In re Duke 738. 28 EEAL PS FEB TV. [Book I.. Waste. It is laid down by text boots of great autbority, following Lord Coke, that it is waste to build a new bouse, and to pull it down again is waste also, but it was decided by Sir George Jessel in 1875, in a well-known case, that the lessee of land^ who erects a building thereon, without the consent of his lessor, does not commit waste unless it can be shown that such build- ing is an injury to the inheritance Q). Waste is either voluntary or permissive (^). Waste is voluntary when it consists in acts. The chief instances of such waste being the felling of timber, destroying or damaging buildings, opening mines or pits, or changing the course of husbandry. Permissive waste consists in that passive line of conduct which permits decay rather than be at the trouble or cost of preventing it — e.g., suffering buildings about the premises to fall into ruin. Courts of Equity, as was said by Lord Bramwell in a cele- brated case, have always declined to interfere against mere per- missive waste, and now, under the Judicature Acts, in all cases of conflict the rules of equity are to prevail. It has accord- ingly been decided that a tenant for life is not liable for mere permissive waste (^). Formerly by the operation of certain conveyances which were said to have a " tortious operation," viz., feoffments, fines, and recoveries, a tenant for life might grant the fee, but fines and recoveries are now abolished (3 & 4 Wm. 4, c. 74) ; and it is (') Burton's Law of Eeal Property, is void), tenants in tail, tenants in p. 235 ; Jones v. Ohappdl, 20 Eq. 539 ; fee simple unless copyholders. Shear- and see as to ameliorating waste : wood's Keal Property, 3rd ed. p. 31. Doherty v. AlVman, 3 App. Gas. 709. (') Powys v. Blagrave, 4 De Gr. {') The different classes of persons M. & G. 448 ; Barnes v. DowUng, who may or may not commit the dif- 44 L. T. 809, and cases there cited ; ferent kinds of waste fall naturally Be Cartvmght, W. N. (1889) 101 ; under four graduated groups, viz. : — Edwards' Compendium, 61 ; see also (1) Those who may not commit any Woodhouse\. Walker, 5 Q. B. X>. 404, waste whatever, tenants at sufferance, and as to the liability of a tenant for bishops, parsons, vicars, and other . years for permissive waste : Daviesy. ecclesiastical persona andcopyholders; Davies, 38 Oh. D. 499. In a case (2) Those who may not commit volun- decided in 1889, In re Cartwriglit, tary, hut are not liable for mere per- Avis v. Newman, 41 Ch. D. 532, missive waste, tenants at will, tenants Kay, J., said tliat from the time of for years, not being bound to repair, the statutes of Marlborough (52 Hen. tenants for life impeachable of waste; 3), and of Gloucester (6 Edw. 1, (3) Those who can commit legal but c. 5), to the present day it could not- not equitable waste, tenants in tail be shown that damages had ever been after possibility of issue extinct, recovered by a remainderman against tenants in fee subject to an executory the executor of a tenant for life on devise over, tenants for life without the ground of permissive waste, and impeachment of waste ; (4) Those who such authority as there was upon the can commit any waste (and even a subject was against t)ie existence of bond to restrain them fiom doing ao sucuaright. Chap. IV.] ESTATES FOB LIFE. 29 provided by the Property Amendment Act (8 & 9 Vict. c. 106), sect. 4, that a feoffment shall not have a tortious operation. " Equitable waste " for which, as has been said, a tenant for life Equitable is liable, although his estate has been granted without impeach- ^''^'^• ment of waste, consists of such acts as pulling down or dis- mantling a family mansion, or felling ornamental timber; and the Court of Chancery restrained such proceedings on the ground that where the testator (or settlor) gave these powers to the tenant for life, he intended them to be used fairly. Accordingly the tenant for life was restrained, because though he had legal powers he was not using them fairly; he was making an unconscientious use of his powers, and abusing them so as to destroy the subject of the settlement (post, p. 698). What are the rights of a tenant for life in respect of trees ? Trees. This question was most carefully considered by the late Sir George Jessel in a well-known case, and answered as follows : — " The tenant for life can cut all that is not timber with certain exceptions. He cannot cut ornamental trees, and he cannot destroy ' germins,' as the old law calls them, or stools of under- wood, and he cannot destroy trees planted for the protection of banks, and various exceptions of that kind ; but, with those exceptions, which are waste, he may cut all trees that are not timber, with again an exception that he must not cut those trees which, being under twenty years of age, are not timber, but which would be timber if they are over twenty years of age. If he cuts them down he commits waste, as he prevents the growth of the timber. There is also this qualification that the tenant for life may cut down oak, ash, and elm under twenty years of age, provided they are cut down for the purpose of allowing the proper development and growth of other timber that is in the same wood or plantation" C-). It is now provided by the Judicature Act, 1873 (^), that an estate for life without impeachment of waste shall not confer, or be deemed to have conferred, upon the tenant for life, any legal right to commit waste of the description known as equitable waste, unless an intention to confer such right shall expressly appear by the instrument creating such estate. Having thus noticed the principal characteristics, or " inci- dents" as they are technically called, of an estate for life, we may revert to some of the peculiar kinds of life estates which we have previously mentioned. These are the estate in curtesy, estate in dower, and the estate pur autre vie. (') Honywood v. Honywood, L. K. 18 Eq. 306. O 36 & 37 Vict. o. 66, s. 25. 30 BEAL PEOPERTT. [Book I. Curtesy. The hTisband's estate as tenant by the curtesy is a life estate to which a husband is entitled in certain estates in lands of freehold tenure in which his wife has an estate of inheritance, i.e., in fee simple or tail, whether legal or equitable, in posses- sion, and either in severalty or as tenant in common, and pro- Tided there has been issue of the marriage bom alive and and capable of inheriting the land. Until the birth of such issue, the husband's interest in his wife's land is confined to an estate during their joint lives. Where, however, land belongs to a married woman as her separate property, whether by the rules of equity or under the Married Women's Property Act, 1882, her husband has no interest therein during her life, nor after her death, except in the event of her dying intestate, in which case he becomes tenant by the curtesy as if the land had not been separate property (i). Dower. Dower, in cases within the Dower Act, i.e., in all cases where the marriage has taken place after the 1st of January, 1834, is an estate for life, to which (where it is not prevented, barred, or lost) a woman becomes entitled on the decease of her husband, ■in one-third of the lands and tenements to which he died legally or equitably entitled, for any estate of inheritance in possession otherwise than in joint tenancy, and which any issue which she might have had might by possibility have inherited. If for the words " to which he died legally or equitably entitled " we substitute " of which he was seized in deed or in law at any time during the coverture," this proposition expresses the law as to cases not within the Dower Act, i.e., where the marriage took place before the 1st of January, 1834 (2). The effect of the Dower Act, which applies to all women after the 1st of January, 1834, is to put the widow's right to dower wholly in the power of the husband. The Act provides that no widow shall be entitled to dower out of any land which shall have been absolutely dispoped of by her huhband in his lifetime or by will ; that all partial estates and interests, and all charges created by any disposition, or will, of a husband, and all debts, incumbrances, contracts, and engagements to which his land shall be subject or liable, shall be valid and effectual as against the right of the widow to dower, and also enables the husband to bar his wife's right to dower by any declaration made for that purpose in any deed or in his will. . The Act, however, on the other hand, improved the position ('■) See Eager v. Furnivall, 17 (") Smith's Eeal UTid PerBoual Pro- Ch. D. 115 (post, p. 161). perly, 6th ed. p. 220. autre vie. Chap. IV.] ESTATES FOR LIFE. 31 of the widow to some extent by allowing her dower out of equitable estate Q). Under tlie custom of gavelkind, the widow's dower is a moiety of the estate, hut only during widowhood (^durante vi- duitate). By custom, dower may extend to the whole estate (see as to Copyholds, post, p. 193). Allusion has already been made to the estate granted for the Estate pur life of another pur autre vie, as it is called. Under the old law if a tenant pur autre vie died without having alienated the estate in his lifetime, and leaving the cestui que vie surviving him, the land, unless it had been limited to the heir of the tenant pur autre vie as special occupant, might be taken posses- sion of by any person and held by him during the remainder of the life of the cestui que vie. This right of possession was called " general occupancy." General occupancy was abolished by the Statute of Frauds (^), and the law was amended by subsequent statutes (^), until finally it has been provided by the Wills Act (''), that the tenant pur autre vie may dispose of his estate by will ; and, failing any such disposition, the estate is to pass to the heir as special occupant if so limited ; and if there be no special occupant, it is to pass to the executor or administrator of the deceased tenant as if it were personal estate, and is to be dealt with accordingly. Whether in the hands of the heir or the executor or administrator, it is assets for the payment of debts (5). The law as to estates pur autre vie was much considered in a case which came before the Court in 1881, when it was characterised as " very anomalous and very singular." The Court in this case proceeded upon the principle which had been laid down many years before by Lord St. Leonards, that the analogy between estates pur autre vie and ordinary estate in fee simple ought to be supported as far as possible, and it accordingly decided that where an estate pur autre vie was limited to several persons in succession, the power of alienation (') The following cases are im- estates pur autre vie was much con- portant as to the law of dower : sicJered, and the Court came to the Lacey v. Sill, 19 Eq. 346 ; Dawson v. conclusion that such an estate was to Banlc of Wliitelmven, 6 Ch. D. 218 ; be treated not as personal estate, but Frampton v. Stephens, 21 Ch. D. as " realty not following the person." 164 ; Be Thomas, 34 Ch. D. 166. The devolution of an estate pur autre O 29 Car. 2, c. 3, s. 12. vie is regulated by the words of limi- (^) 14 Geo. 2, c. 20, s. 9. tation contained in the last convey- (*) 7 Wm. 4, and 1 Vict. o. 26, ance, without regard to the mode of s. 3 and 6. its original conveyance : 1 Jarm. on (=) See Chatfield v. Serchtoldt, Wills, 4th ed., p. 55. L. K. 7 Ch. 192, where the law as to 32 REAL PEOPEETT. [Book I. to the successive takers ought to be regulated as far as possible by the rules which would govern similar limitations of an ordinary estate in fee simple. In the course of his judgment. Fry, J., said : " When an estate jpwr autre vie is given to a man, or to him and his heirs, the most he can take is an estate for his own life, and any one who comes in after him takes, not through him, but as occupant of the estate. Originally any one who pleased was allowed to scramble for the occupancy after the death of the first taker, but this was found to be so incon- venient that he was allowed to appoint by will a special occupant. But still every one who came in after the first taker came in as an occupant, and not as deriving title through him. Such a mode of devolution is very different from that of an estate in fee simple. But still, for the sake of convenience, the Legislature and the Courts have enforced an analogy between these estates pur autre vie and estates in fee simple, and have given effect to it with regard both to the capacity and incapacity of alienation by the first taker " (^). O In re Barber' » Settled Estates, 18 Ch. D. 624, 627. ( 33 ) kinds of estates tail. CHAPTER V. Estates Tail. An estate tail — feudum talliatum, so called because the in- heritance is cut down and confined to the heirs of the body — is an estate limited to a person male or female and the heirs of the body of such person. Estates tail are of two kinds, i.e. — 1. Estates in tail general ; 2, estates in tail special. (1) An estate in tail general is an estate limited to a person Different and the heirs of his or her body, in -which case the issue by any marriage may inherit. (2) An estate in tail special is an estate limited to the heirs of the body of two persons, either already mairied, or capable of inter-marriage, as to A. and the heirs of hi.s body begotten or to be begotten upon B., ia both which cases no issue, except by the marriage of those two persons, can possibly inherit. Estates tail, whether general or special, may be limited in tail male, i.e. to males and the male descen- dants of males only, or in tail female, i.e. to females and the female descendants of females. This latter kind of estate tail, however, is of extremely rare occurrence. Where, in the case of an estate in tail special, the person from whose marriage with the tenant the issue was to proceed is dead, and there has been no issue of the union, or the issue has failed, the estate becomes in effect an estate for the life merely of the tenant, and, as such, is subject to the rules applicable to estates for life generally, except that the tenant is not liable for waste. Such an estate is called an estate tail after possibility of issue extinct (ante, p. 23). And here upon the threshold of our subject it will be Rule in desirable to notice the celebrated rule in Shelley's Case ('). c^^ ^^° " The rule," says Mr. Jarman, " simply is, that where an estate of freehold is limited to a person, and the same instrument contains a limitation, either mediate or immediate, to his heirs (') Coke's Keports, 93b. VOL. 1. 34 SEAL FRO FEB TY. [Book I. Creation of estate tail. Words of limitation. Origin of estates tail. Taltarum's or Ihe heirs of his body, the word ' heirs ' is a word of limitation, i.e., the ancestor takes the whole estate comprised in this term. Thus, if the limitation be to the heirs of his body, he takes a fee tail ; if to his heirs general, a fee simple " ('). In a will technical words are not required in order to create an estate tail; but any words that evince an intention to create such an estate, will suffice for the purpose; thus, a devise to a person and his seed, or to him and his issue, will create an estate tail. So, a limitation to a person and his heirs male, which, if it occurred in a deed would create an estate in fee simple will, when it occurs in a will, create an estate in tail male according to the apparent intention of the testator (f). It is now provided by the Conveyancing and Law of Property Act (44 & 45 Yict. c. 41, s. 61), with regard to deeds executed after the commencement of the Act, January 1st, 1882, that in the limitation of an estate in tail it shall be sufficient to use the words " in tail," without the words " heirs of the body ;" and in the limitation of an estate in tail male or in tail female, to use the words " in tail male," or " in tail female," as the case requires, without the words " heirs male of the body," or " heirs female of the body." Every estate tail owes its origin to the statute Be Bonis, 13 Edw. 1, c. 1, passed in 1285. Prior to this statute, when an estate was given to a man and the heirs of his body, he was enabled, as soon as he had issue born, at once to alienate and defeat the lord's right to the land on failure of the issue, as well as the right of the issue. The Statute of Westminster the Second, Be Bonis condition- alibus, provided that the wiU of the dunor according to the form in the deed of gift manifestly expressed, should be from thenceforth observed ; so that they, to whom the tenement was given, should have no power to alien it, whereby it should fail to remain unto their own issue after their death or to revert unto the donor or his heirs, if issue should fail. Nearly two centuries after this statute Taltarum's Case was decided. The practical effect of this celebrated decision, which established the right of every tenant in tail to convert his estate tail into an estate in fee simple, by " suffering," as it was termed, a common recovery, was to repeal to a great extent the statute Be Bonis, and to set lands free from the fetters of perpetual (') "Shelley, ivliose aucestor.s a freehold take, The words (his heii's) a limita- tion make." C) Tiidor'e Real Property, 3rd ed p. 716; Theobald on Wills, 3rd ed ?^?.?''',r?.°'^ ^"^ ^"/'"^^ "■ Borrell, W Eq. 194. Chap. V.] ESTATES TAIL. 35 entails. After this time tlie estate tail was barred wholly and thereby converted into a fee simple estate by means of a " common recovery," i.e. a collusive action brought against tenants in tail or persons to whom they had conveyed their estates for the purpose of the action. Estates were also paiti«lly barred, i.e. so as to bar the issue in tail but not no as to defeat the ri^^hts in remainder and reversion, by fines, i.e. fictitious actions commenced and compromised by leave of the judge and in open Court, so as to put an end to all claims in respect of the property which were not made within a year and a day. Fines and recoveries were abolished in the year 1833 by a Fines and statute (3 & 4 Wm. 4, c. 74), commonly called the Fines and E«''="verie3 Eecoveries Act, which substituted for these clumsy fictions a simple method of bariing an estate tail, namelj', an ordinary deed of conveyance. The Act, however, required that the deed should be enrolled within ^ix months after its execution in the Court of Chancery Q). In this w ay a tenant in tail is empowered to convey away or dispose of the fee simple, or any less estate in the lands entailed; the conveyance, to the extent of the estate created thereby, is effectual as against all jDersons claiming by virtue of the estate tail, or in remainder or reversion thereon. Under the Judicature Acts enrolment in the central office of the Supreme Court of Judicature takes the place of the enrolment in the Court of Chancery (^). The deed by which an estate tail is barred is called a "disentailing deed," or "disentailing assurance." An estate tail cannot, however, be barred by will, and any dis- position "resting only in mere contract,'' whether express or implied, and whether supported by consideration or not, is void. The old rule of law was that the freehold tenant in possession Protector (usually the tenant for life) must be a party to all proceedings °*^*'j^ in recoveries, and the framers of the Fines and Eecoveries Act, applying this idea to a practical purpose, established the office of Protector. The Act provides that "If at the time when there shall be a tenant in tail . . . there shall be subsisting in the same lands . . . under the same settlement, any estate for years determinable on the dropping of a life or lives, or any greater estate (not being an estate for years) prior to the estate (') Sects. 40,41. It must be borne to them if accompanied by some ex- in mind, in construing this Act, that pi'ession denoting oopylioids. Tlje " lands " extends to miinciis, advow- wcjrd " estate ' also extends to equit- sons, rectories, messuages, lands, able as well as legal estates, and nny tenements, tithes, rents, and here- interest therein, and money subject to ditaments, corporeal or incorporeal, be invefted in the pwchase of lands. of any tenure except copyholds, and C) 3 & 1 Wm. 4, c. 74, s. 15. 36 REAL PROPER TT. [Book I. Protector of the Settlement, tail, then such owner of the prior estate, or the first of such estates if more than one. . . . shall be the protector of the settlement." . . . Estates by the curtesy ... or by way of resulting use or trust are within this section. The protector is usually the first tenant for life, though it must be borne in mind that the statutoiy definition includes an estate for years determinable on the dropping of a life or lives. When there is one tenant in tail in possession and another in reversion the tenant in tail in possession is treated as the protector. Power to appoint protectois is also given by sect. 32 of this Act, which enacts that " it shall be lawful for any settlor entailing lands to appoint, by the settlement by which the lands are entailed, any number of existing persons, not exceeding three, and not being aliens, to be piotector of the settlement in lieu of the person who would otherwise have been protector . . ."(}). The protector's consent is required by the Act (^) to enable the tenant in tail to bar the entail as against persons entitled in remainder or reversion subsequent to the estate tail. This con- sent must be given either by the deed barring the entail or by a separate deed, to be executed and enrolled prior to or at the time of the execution and enrolment of the deed barring the entail (^). The Act expressly provides that any " device, shift, or contrivance by which it is sought to control the protector in the exercise of his powers is void." He is declared by the Act not to be a trustee, and the rules of equity which apply to other personages in respect of powers are not to apply to his dealings and transactions (*). Where there is a protector of the settlement, a disentailing assurance made without his consent will be operative only to the extent of creating a hose fee ; that is, an estate effectual as against the tenant in tail himself and his issue, but not as against persons entitled in remainder or reversion. The Act, however, contains provisions under which a base fee so cieated may subsequently be enlarged, in different ways, into a fee simple absolute (^). It was decided by the Court of Appeal in 1887 that if a (') Challie, Law of Eeal Property, p. 256. (2) 3 & 4 Wm. 4, 0. 74, s. 34. (') 3 & 4 Wm. 4, c. 74, s. 46. (*) 3 & 4 Win. 4, c. 74, ss. 36, 37. C) 3 & 4 Win. 4, 0. 74, ss. 1, 34. It is provided by sect. 39 of the Act that if a base fee in any lands, and the remainder or reversion in fee in tlie same lauds sliall be united in the same person, and there shall be no intermediate estate between the base fee and the remainder or reversion, then the base fee shall not merge, but shall be ipso facto enlarged, into as large an estate as the tenant in tail, with the consent of the protector, if any, might have created by any dis- position under this Act, if such remainder or reversion had been vested in any otlier persun. See Shelford's Keal Property as to the effect of this section on cliarges. Chap. V.] ESTATES TAIL. 37 tenant in tail conveys a base fee, and enters into a covenant for Protector fuitlier assurance {jpost, p. 88), he is bound on the death of of the the protector to execute a disentailing deed, so as to enlarge ^^^^' the base fee into a fee simple, and that the Court will force him specifically to perform the coveniint (jpost, p. 665 (y) ). If any protector of a settlement is lunatic, idiot, or of unsound mind, whether found so by inquisition or not, the Lord Chan- cellor is protector, and in a variety of other cases, e.g., where the protector is convicted of treason or felony, the Court of Chancery, now the Chancery Division, is the protector (^). In a case where a lunatic was tenant in tail of an estate Lunatic which was subject to charges, and it became necessary that a tenant in disentailing deed should be executed for the purpose of raising the charge by mortgage, the Court proceeded on the principle that they could not assume that the lunatic, if sane, would have desired to bar the entail, and, accordingly, that it ought not to be barred further than was necessary for the purpose. The mortgage was accordingly made in a limited form, and it was directed that the deed should express that the estate tail of the lunatic and the remainders over were barred " for the purpose of giving effect to the security, but not further or otherwise" (^). A disentailing assurance will be effectual to bar not only Barring the entail, but all remainders and reversions in the cases follow- ^nt'""'- ing, viz. : (1) If the tenant in tail who executes it is in possession ; (2) If the tenant in tail though not in possession is entitled to the immediate remainder or reversion in fee simple ; and, (3) If the protector consents. The Fines and Beooveries Act was drawn with immense care and consummate skill by a very eminent conveyancer, Mr. Brodie, and has always been regarded as a model of parliamen- tary drafting. For this reason, and, perhaps, because its pro- visions have been comparatively little subjected to the ordeal- of contentious business, very few cases have been decided upon its construction. A variety of interesting cases, however, have been decided hy the courts in recent years with regard to estates tail, the principal of which we shall now proceed to consider. (') Bankes \. Small, 36 Ch. Div. 333. See also Be Sharp, 3 Ch. D. 59, 71ti, affirming ;i4 Ch. D. 415. where the Court declined to interfere O 8 & 4 Wm. 4, e. 74, s. 33. on the ground that it was not for the I') In re Fares, 2 Oli. Div. 61. It benefit of the lunatic's estate : Se is the duty of the Court so tu exercise Qaitslcell, 40 Ch. D. 416, where au the power of barring an entail as not application by the committee of the to affect the rights of persons entitled lunatic tenant in tail under the Settled in remainder : lie Pares, 12 Ch. Div. Land Act, 1882, was authorised. 38 REAL PROPERTY. [Book I. Office of Protector. Charges. Who is protector ? In one of the comparatively few cases -wliich have arisen on the construction of the Fines and Recoveries Act, decided in 1873, four protectors of the settlement had been apj)ointed: one of them died, and the others joined with the tenant in tail in executing a disentailing deed. The Court decided that tlie office of protector survived, and that the estate tail was effectually barred Q). Where a tenant in tail pays off an incumbrance or charge, the presumption of the law is that the charge is extinguished, unless he has declared his intention to keep it alive, or has held him- self out as a creditor of the estate in lieu of the mortgagee. The reason of this rule is that such a tenant in tail might bar the entail, and thus render himself owner in fee. The same prin- ciple, however, does not apply to a tenant in lail not in posses- sion ; when he pays off a charge he is presumed to have intended to keep it alive (^). In a case where a tenant in tail in possession of an estate executed a disentailing deed, purporting to be a grant of the estate to A. and B., and their heirs, free from all estates tail of the grantor, to the use of A. and B. and their heirs upon trust for the grantor. The deed was inrolled, but not executed by A. and B., who subsequently executed a deed of disclaimer (f). The Court decided that the deed did not convey any estate to any one, and was merely an expression of intention on the part of the tenant in tail to make other persons trustees, and that accordingly the entail was not barred. In a case which came before the Court of Appeal in 1878 the property had been devised to trustees for A., a married lady, for her separate use, with remainder to the use of B. in tail. B. v/ith the consent of A., disentailed the estate. The Court of Appeal stated that ever since the passing of the Fines and Eecoveries Act it had been the universal opinion and the uni- versal practice of conveyancers that the ''owner of the prior estate " meant the substantial owner of the estate, that is, the owner of the beneficial interest. That construction had been settled, and family settlements and purchases been made on the faith of it, for many years. And they accordingly decided that A., and not the trustees, was the proper protector of the settle- ment (*). C) Bell V. Hulthy, 15 Eq. 189. See also as to protector of settlement: Tufndl V. Borrelk 20 Eq. 194 ; Clarke V. Chamberlin, 16 Ch. D. 176. («) Adams v. Angell, 5 Ch. D. 634. (') Fearock v. Eastland, L. K. 10 Eq. p. 17. The diacntuiling deed need not however be assented to or executed by tiie grantees to uses: Nelson v. Agnew, 6 Ir. Eep. Eq. 232. C) Re Dudson's Contract, 8 Ch. Div. 628, 631, followed Be Ainslie, y3 W. R. 148. ' Chap. V.] E8TATE8 TAIL. 39 The right of the actual tenant in tail to enlarge his estate Right to to a fee simple, cannot be restricted by any attempt on the part bar entail. of the settlor or testator by inserting clauses either that he shall not exercise the right or by defeating the estate tail in case he exercises the right. Such an interdict upon barring the estate tail, it was said in a case which came before the House of Lords in 1878, is contrary to the law. The testator in this case devised Penrhyn Castle and the estates belonging thereto to his son Richard and the heirs male of his body lawfully begotten, " upon special trust and confi- dence," that he would not do nor suffer to be done " any act in law or otherwise " to obstruct or prevent the thereinafter de- clared trusts and limitations of the estates from taking effect, but that, on the contrary, he would do every act in his power to establish and confirm them. He then declared how the estates were to go if the son died without issue of his body lawfully begotten, and made a special devise of a portion of it. The son entered into possession of the devised estates, and then barred the entail according to the then existing state of the law by suffering a recovery (i). The House of Lords decided that the words of the will did not create a trust, and that the entail was effectually barred. The following statement of the law by the late Lord Justice James was cited with approval : — " If there is one thing that has been settled beyond all question in the real property law of this country, it is that no condition, no restriction, no pro- hibition, nothing, can prevent a tenant in tail from suffer- ing a common recovery with all the consequences of that common recovery; and it appears to me to be perfectly immaterial whether the conveyancer uses one form of words or another." The celebrated rule in WiMs Case, which has also been made Wild's the subject of consideration by the House of Lords, may here **' be noticed. It is that where there is a devise to a person and his children or issue, and he has no issue at the time of the devise, there, prima facie, such person will tate an estate tail. If, however, the devise be to a man and his children or issue, and he then has issue of his body, in the absence of manifest intention to the contrary on the face of the will, the parent and his children will take concurrently. This rule was con- sidered in the year 1880, when the Lord Chancellor said that the rule in Wild's Case, though the reasoning on which it was (') DawTcins v. Lord Penrhyn, i App. Cas. 51 40 REAL PROPERTY. [Book I. Harried women. Rectifica- tion. Estates tail which can- not be barred. originally founded had been sometimes crit'oised, had as a rule of construction been uniformly followed from Lord Coke's time down to the present day, and that having been so long established, and so constantly followed, it was not to be departed from (i). It was decided by the Court of Appeal in 1877, in a case where a married woman was equitable tenant in tail of certain freehold estates, that the fact of her being restrained from anticipating or alienating the income (as to which, see post, p. 212, et seq.) did not prevent her from barring the entail, acquiring the equitable fee, and then defeatin^j her husband's title as tenant by the curtesy (^). It was decided in 1885 that the Court is not prohibited from, exercising its ordinary jurisdiction to rectify a deed on the ground of mistake (see post, p. 602), because it is enrolled as a disentailing assurance under the Fines and Eecoveries Act. It was pointed out by the Court of Appeal that if the legisla- ture hail meant to touch the jurisdiction to rectify, one would expect to find it specifically mentioned, but nothing was said on the subject ; that the scope of the Act is to make the enrolled deed conclusive, and that it would be monstrous and highly unjust to say that the instrument on parchment was to be con- clusive of the rights of the parties for all time, however great the mistake or blunder, and however clear the evidence of it. " The purport of the Act," said the Lord Chancellor, " is that there shall be one instrument, attended with certain formalities, including inrolment, and that nothing but that instrument shall be effectual as a disposition of the estate comprised in it. But what has that to do with the question whether that instrument as executed carries out the real intention of the parties? It appears to me to be entirely beside the question " (^). There are certain estates tail v^'hich cannot be barred ; these are: — (1) Estates tail after possibility of issue extinct. (2) Estates tail granted by the Crown as the reward for public services which cannot be barred so long as the reversion continues in the Cro"'n ; (3) Estates limited by special Act of Parliament, as those conferred upon the Duke of Marlborough, Lord Nelson, and the Duke of Wellington (*). (') Cliffm-d V. Koe, 5 App. Cas. 447. C) Cooper V. Maedonald, 7 Ch. D. C) Hall-Dare y„ Hall-Dare, 8] Ch. Div. 251, 256. (■*■) Earl of Abergavenny v. Brace, L. R. 7 Exih. 145; Shelford, Eeal Troporty Statutes, 8th cd. p. 322, 324. Chap. V.] ESTATES TAIL. 41 If an estate jmr autre vie be given to a person and the heirs of Estate pur his body it is called a, quasi entail, and may be dealt with much ""''"<' ^'^■ more easily than an ordinary estate tnil, for when in possession any deed of transfer or surrender will bar the entail, and when in remainder the consent of the tenant in possession is the only additional requisite (^). Suppose that an estate tail has been sold by the order or Money in under the authority of the Court, or taken under the compulsory Court. powers of the Lands Clauses Consolidation Act (posi, p. 691), must the tenant in tail execute a disentailing deed before he can obtain the money out of Court ? The practice would now appear to be settled that a disentailing deed is necessary (2). The rights of a tenant in tail with respect to the rents and Rights of profits of the laud, waste, &c., are similar to the rights in these /"i"" '" respects of a tenant in fee simple (as to which, see post, 46), It must also be borne in mind tliat, among the persons who are enumerated in the Settled Land Act {ante, p. 27, and post, p. 146), who may exercise the powers of a tenant for life, the first men- tioned is " a tenant in tail, including a tenant in tail who is by Act of Parliament restrained irom barring or defeating his estate tail, and although the reversion is in the Crown, and so that the exercise by him of his powers under this Act shall bind the Crown, but not including such a tenant-in-tail where the land in respect whereof he is so restrained was purchased with money provided by Parliament in consideration of public services." In the same list as one of the " limited owners " entitled to exercise the powers of a tenant is the tenant in tail after possibility of issue extinct (f). Land held for an estate tail is liable for the debts of the Debts, tenant in tail in the event of his bankruptcy (jpost, p. 933, note) (*). It is also liable even after his death for debts due from him to the Crown by judgment recognizance, obligation, or other specialty, although the heir shall not be comprised therein (^). An estate is also liable in respect of judgment debts, i.e., debts in respect of which judgment has been recovered against the (') Allen V. Allen, 2 Dru. & the authorities are colleotud. Warren, 307. C) Settled Land Act, 1882, sa. 58, (^) In re Reynolds, 3 Ch. Div. 61 ; 31, and note in Gierke's Settled Land In re JBroadwood's Settled Estates, Act therein. 1 Gil. D. 438, following Ire re J?«rte/s (") By sec^t. 56, sub-s. 5. Bank- Will, 16 Eq. 479, ami see Mills v. ruptoy Act, 1883, and these powers Fox, 37 Ch. D. 153, where under the can probalily be exercised even after circumstances it was held that the the bankrupt's death : Eobson's estate tail on a fund in Gourt was Bankruptcy, 6th edit. p. 433. not barred ; and see Morgan and (') 33 Hen. 8, 0. 39, s. 75. Wurtzburg on Costs, p. 290, where 42 REAL PBOPERTY. [Book I. tenant in tail, though the judgment does not bind the lands until they have been actuallj' delivered in execution (^), but (unlike land held in fee simple) an estate tail cannot be made available after the dealh of the tenant in tail for his other debts. Chattels. It is an old-established principle that a bequest to a person of chattels, whether real or personal, in such terms as would in the case of a devise of real estate have conferred upon him an estate tail- — for instance, a gift to A. and the heirs of his body of lease- hold or personal property — will generally confer on him an absolute interest passing on his death, not to his heir in tail, but to his personal representatives (^). The subject of estate tail in copyholds will be subsequently considered in the separate chapter dealing with lands of that tenure. ■ 0) 27&28Viot. 0. 112. (') Levenihorpe v. Ashbie, Tudor's Beal Property Cases. '' 43 ) CHAPTER VI. Estates in Fee Simple. An estate iu fee simple (^feudum simplex) is the greatest Fee simple, interest in land known to the law ; being an estate of inherit- ance that is capable of descending not only to heirs of the body of the tenant, but also to his heirs generally, whether lineal in the ascending or descending line, or collateral, male or female, proximate or remote (i). It absolutely exhausts the whole possible interest which any one can have, by way of estate, in the lands so as to leave no residue subsisting in any one else. The lord is the only person with whom the tenant as such has any connection, and the only connection between them is the tenure (2). An estate in fee simple may be acquired either by some form How of assurance, e.g. a deed of grant, or a will, or by operation of "^^^ ' law, as by descent on intestacy (see ;post, p. 650). A person who acquires an estate, otherwise than by title of descent, and other (') The idea of a fee simple is well some event, as, for instauoe, if an and quaintly expressed in the old estate is given to a man and Ijis heirs lines quoted by Lord St. Leonards until the marriage of B., or, to take (Handy Book on Real Property Law, the old illustration, until C. return p. 128, 8fch ed.) : — from Rome. Here there is an estate " A tenant in fee simple is he which may last for ever, and these That need fear neither wind nor determinable fees are governed by weather; the same rules as the fee simple ab- For I'd have you to know and to solute. see. Another instance of a qualified 'Tis to him and his heirs for estate in fee is the base fee, which ever !" aiises when a tenant in tail not in An estate of fee simple, said Lord possession with remainder over {post, Coke, in Seymour's Case, is either an p. 65) bars the entail without the pro- estate of inheritance absolute and in- lector's consent. See further on this determinable, as where lanrls are subject,Tudor's Eeal PropertyCases; given to a man and his heirs, when notes to Taltarum's and Seymour's he has a pure and absolute estate ; or Case. See a list of examples of deter- a fee simple determinable. A fee minable fees in Challis' Eeal Pro- simple of the latter class, i.e. a fee perty, p. 201. simple "limited and qualified," is (^) Goodeve'sEealProperty, p. 84; determinable on the happening of Challis' Real Property, p. 29. 44 REAL PROPERTY. [Book I. means specified in the Act to amend the law of inheritance Q), is called " a purchaser," and from him descent is traced in case of intestacy (post, p. 51). In the case of a grant by deed of the fee simple, it was, generally speaking, essential that the land should he limited to the grantee and his heirs. To this rule, however, there were some exceptions, of which the most important is with regard to grants to corporations. In a gift to a corporation sole, e.g. a bishop, parson, &c., the word " buccessors " is necessary to pass the fee, while in a gift to a corporation aggregate the same word though the proper word of " limitation " is not usually essen- tial (2). In practice, the estate has usually been limited to the grantee, " his heirs and assigns " ; or to the grantee, " his heirs and assigns for ever ;" but the word " heirs " alone was always sufficient for the purpose, for the word " assigns," as pointed out by Sir George Jessel, is not a word of limitation, and only means that the man takes an assignable interest (^). The Con- veyancing Act of 1881 (*), however, now provides with regard to deeds executed after the commencement of the Act (1st January, 1882) that in a deed it shall be sufficient in the limiia- tion of an estate in fee simple to use the words " in fee simple " without the word "heirs." Convey- It has however been pointed out in a recent case where the 188°^ ° ' subject was considered, that the Conveyancing Act stops very far short of enacting that an intention deduced from the context or the actual limitation itself, shall be sufficient to pass by deed an estate of inheritance without technical words, and that it is confined to the popular expressions "fee simple," "in tail," and " in tail male or female." " This section of the Conveyancing Act applies to all future deeds of conveyance, whether of legal or equitable estates ; but, except when those specified words are used, it leaves the law unaltered " (s). The celebrated rule in Shelley's Case, which we have already stated in connection with the subject of estates tail, should here again be noticed. It is that whenever an estate of freehold is given to a person, and by the same conveyance or will an ulterior estate (whether mediately or immediately) is limited (') These other means are escheat (=) Osborne to Bowlett, 13 Ch. D. (post, p. 55), partition (post, pp. 62, 774 ; and see as to words creating a 555;, and inclosure : 3 & 4 W. 4, c. fee simpie, Olivunt v.Wright, 9 Ch. D. 1(j6, iriterp. clause. 646. (") See Elphinstoce's Interpreta- (<) 44 & 45 Vict. c. 41, s. 51. tion of Deeds, p. 225, et saq. ; Tudor's Q) Meyler v. MeyUr, L. E. 11 Ir. Eeal Property Oases, 3rd ed. p. 717, 523. et seq. Chap. VI.] ESTA TES IN FEE SIMPLE. 45 to the heirs of the same person in fee, e.g. an estate to A. for life, then to B. for life, then to the heirs of A., the word " heirs " is regarded, as it is technically phrased, as a word of limitation and not of purchase, and A. takes an estate in fee simple (y). In a will the use of the word " heirs " has never been essen- tial to pass an estate in fee simple ; any other words indicating an intention to devise the fee simple being sufficient for the purpose. And the Wills Act (^) now provides that a devise with- out any words of limitation shall be construed to pass the fee simple, or other the whole estate or interest which the testator had power to dispose of by will, unless a contrary intention shall appear by the will. It is pointed out, however, by Mr. Jarman (f) that this rule does not apply to interests created de novo. Thus where a rent- charge (^post, p. 199) was devised to a man without further words he only took a life estate. Prior to the Statute next referred to, a tenant in fee simple might grant his land, or part of it, by a process called subin- feudation to be held of him as lord, and there might thus be a number of intermediate lords, who were called mesne lords, between the actual owner of the laud and the king. The right of free alienation was recognised, and the practice of Q„ia subinfeudation forbidden by the famous statute of Quia emptores, emptores. passed more than six centuries ago, which struck the first great blow at the feudal system. That Act provided That from henceforth it should be " lawful to every freeman to sell at his own pleasure his lands and tenements, or part thereof, so nevertheless that the feoffee (or purchaser) should hold the same lands or tenements of the same chief lord of the fee, and by the same services and customs as his feoffor held them before," and further enacted that if part be so sold, that part should be held immediately of the chief lord, and should be charged with a pro- portionate part of the services due to the lord (*). The effect of this enactment is, that on the transfer of an estate in fee simple the transferee holds directly from the king or other lord of whom the transferor previously held. One main result was to put an end to the creation of manors ; for the lordship, or seignory, as it is called, i.e. the having tenants (') See Whit^ v. Kindle, 7 Ch. D. {') 3id ed. vol. ii., p. 287, and see 201. Beay v. BawUnson, 29 Beav. 88, where (2) 1 Vict. c. 26, o. 28 ; and see it was dt-cided that the fee " in grass Jarman on Wills, ith ed. vol. ii. 268, for a cow " did not pass. et seq. for cases under the old law. (') 18 Edw. 1, c. 1. 46 EEAL PROPEBTY. [Book I. in fee simple, is an essential incident of a manor. The tenancies in fee simple, however, existing at the date of the passing of the Act were left unaiFected by its provisions Q'). A tenant in fee simple may commit waste of any kind, and may use the land in such manner as he pleases, subject only to the restriction that he may not use it in such manner as to infringe upon the rights of others — a rule expressed by the maxim, " Sic utere tuo ut alienum non Isedag," " enjoy your own property in such a manner as not to injure that of another person " (post, p. 447). Debts. ^j^ estate in fee simple is liable for debts of all kinds incurred by its owner. In the event of his bankruptcy, it passes to the trustee for the creditors, appointed in the bankruptcy (^). It is liable to be taken in execution under a writ of elegit and sold for judgment debts (^). As regards the liability of the land for the debts of the owner in fee simple after his decease, there was under the old law no remedy independent of statute, either direct or indirect, against the land in respect of such debts (other than judgment and Crown debts) except where the debt was due by contract under seal wherein the heirs of the debtor were expressly bound. A most important alteration was made in the law on this subjedt by a statute passed in the year 1833 (3 & 4 Will. 4, c. 104) (*) under which all estates in fee simple which the owner should not b\' his will have charged with, or devised subject to, the payment of his debts, were made liable to be administeaed by the Court for the payment of all his debts, as well those due on simple contract, as those due by contract under seal. Thus the simple contract creditor was for the first time given a remedy against the real estate of the deceased debtor independently of the will of his debtor. The Act, however, gave to creditors by contract under seal a priority in payment over simple contract creditors, wheie the remedy of the latter was under the Act ; Viut this priority was abolished by a htatute of the year 1869 (32 & 33 Vict. c. 46) as regards the estates of persons dying on or after the 1st January, 1870 (post, p. 548). Charges. When the owner of an estate in fee or in tail pays off a charge, the presumption is that he intended that the charge should " merge," as it is technically phiased, in the inheritance and so be destroyed. The person pajing off the charge can, (') ■Williams's Keal Property, ject : 3 & 4 W. & M. c. 4 (Fraudulent 16th edit. p. 365. Devises) : 47 Geo. 3, c. 74 (Sir (^) Bankruptcy Act, 1883, s. 44. Samuel Eomilly's Act); repealed, (') 1 & 2 Vict. c. 110 ; 27 & 28 but to a great extent re-enacted by Vict. c. 112. 1 Wm. 4, c. 47 ; Shelford's Heal Pro- (*) See as to old law on tliis sub- pcrty Statutes, and see notes 8th edit. Chap. VI.] ESTATES IN FEE SIMPLE. 47 however, by expressly declaring his intention, keep it alive. " If there is no reason for keeping it alive, then, in the absence of any declaration of his intention, equity will destroy it ; but if there is any reason for keeping it alive, such as the existence of another incumbrance, equity will not destroy it " (^). It is a cardinal principle of English law that a man shall not Restraint take away with one hand what he gives with the other ; and °.° ^'"="*- therefore a condition in absolute restraint of alienation attached to a grant or devise in fee is void as being repugnant to the nature of an estate in fee. In a case decided near the close of last century it was treated as long-established law that a condition that a tenant in fee should not alien was inconsistent and repugnant to the grant, and therefore void (^). The law on this subject was very carefully reviewed in a recent case. A testator devised an estate to his son in fee. The will next contained a proviso that if the son, his heirs, or devisees, or any persons claiming through or under him or them, should desire to sell the estate, or any part or parts thereof, in the lifetime of the testator's wife, she should have the option to purchase the same at the price of £3000 for the whole, and at a proportionate price for any part or parts thereof, and that the property should accordingly be first offered to her at such price or proportionate price or prices. The real selling value of the estate was, at the date of the will and at the time of the testator's death £15,000. The Court decided that the proviso amounted to an absolute restraint on alienation during the life of the testator's widow; that it was consequently void in law; and that the son was entitled to sell the estate as he pleased, with- out first offering it to the widow at the price named in the will (3). A similar point arose in another recently decided case. By an instrument in the form of a settlement, but proved as a will, real and personal property had been given to trustees upon trust for the sole use and benefit of the settlor's son to " his heir, executors, and administrators," to be assigned and trans- (') Adams v. Angell, 5 Ch. D. 634. or judgment is an incident of the (') Bradley v. Ptixoto, 3 Vee. 324, estate, and no attempt to deprive and see notes in Tudor's Eeal Pro- it of that incident by direct prohibi- perty Cases, 3rd ed., p. 968, et seq. tion would be valid. If a testator, (') In re Bosher. Bosher v. Bosher, after giving an estate in fee simple 26 Ch. D. 801, where the cases on to A., were to declare that such the subject are eolJected and re- estate would not be subject to the viewed. bankruptcy laws, that would clearly The liability of the estate to be be inopiiative : In re Dugdale. I)ug- attached by creditors on a bankruptcy dale v. Dugdale, i!S Ch. D. 182. 48 SEAL PROPERTY. ■ [Book I. ferred to him as soon as conveniently might he after the settlor's death. The gift, however, was subject to a proviso that if the sun should die unmarried and without issue, his share should go over, and also that the property assigned in trust for the son was to he held hy the trustees upon the express condition, that he should not during his life have power to " mortgage, sell, alien, charge, or incumber " any part of the property, and that in that event the trustees should stand possessed of such if in trust for other persons. The Court of Appeal decided that the son took an absolute interest in fee simple under the instrument, and that the condition of forfeiture in case of charge or aliena- tion was therefore void as repugnant Q'). The complete right of alienation which, as already pointed out (ante, p. -17), is generally inseparable from the estate in fee simple, is limited to some extent by the English law, not only with regard to persons but also with reference to objects (^). The principal cases of personal disability under the present law which aifect the alienation of property are those of married women, infants, lunatics, and idiots. Married The subject of the property of married women is considered in women. ^ separate chapter {post, p. 210, et seq.). Infants. An infant cannot make a will (post, p. 158). A conveyance of real estate by an infant in his lifetime is not, like his will, wholly void, but is voidable on his attaining the age of t"enty- one, at which age, if he ratifies his previous conveyance, it will be binding on him. An exception has been already pointed out with regard to gavelkind land which by custom an infant can alienate by feoffment at the age of fifteen years. An Act passed in the year 1855 (the Infants' Settlement Act, 18 & 19 Vict. c. 43), enables infants (males not under the age of twenty, and females not under the age of seventeen), with the sanction of the Court of Chancery (now Chancery Division), to make valid and binding marriage settlements upon or in contemplation of marriage, and the Act provides that any conveyance so executed by such an infant, with the appro- bation of the Court, for the purpose of giving effect to such settlement, shall be as valid and effectual as if the person executing the same were of the full age of twenty-one years. This, however, is followed by a provision that the enactment shall not extend to powers of which it is expressly declared that they shall not be exercised by an infant, and "that, in C) Corbett v. Cnrbett, 14 P. D. 7. (_"') Williams on Heal Property, I6tli cflition, p. 83, et seq. Chap. VI.] ESTATES IN FEE SIMPLE. 49 case any appointment under a power of appointment or any- disentailing assuitince shall have been executed by any infant tenant in tail under the provisions of the Act, and such infant shall 'afterwards die under age, such appointment or disentailing assurance shall thereupon become absolutely void " : (see as to this statute, post, p. 612). Conveyances by lunatics and idiots, unless executed in lucid Lunatics, intervals, are void ; and prior to an Act of Geo. III. (^) there was no power to sell or charge the estate of a lunatic. The prin- ciple of this statute has been developed by subsequent legisla- tion, and now under the Lunacy Act of 1890 (^), the judge in lunacy is empowered to order that any property of the lunatic, whether ^present or future, be sold, charged, dealt with or dis- posed of as th^ judge thinks most expedient for the purpose of raising or securing or repaying with or without interest, money which is to be or which has been applied to all or any of the purposes specified in the Act. These purposes are : — Payment of the lunatic's debts' or engagements ; Discharge of any incumbrance on his property ; Payment of any debt or expenditure incurred for the lunatic's maintenance, or otherwise for his benefit ; Payment of or provision for the expenses of his future maintenance. The judge has also power to charge the, lunatic's property for permanent improvements, and to authorize the committee of the lunatic's estate to sell, exchange, lease it, &c. The objects in respect of which the alienation of land is limited by English law may now be briefly noticed. The law limits very strictly the powers of an owner in dealing with his land for the benefit of a charity. At a future portion of this work the subject of charities will Charities, receive farther consideration; but for the present it will be sufScient for us to call attention to the fact that under the Mortmain and Charitable Uses Act (61 & 52 Vict. c. 42), which came int(j operation in 1888, and consolidated and amended the previous law on the subject, any assurance of land for the benefit of a charity, with the exceptions hereafter noticed (post, p. 235), which is not made in accordance with the requirements of that Act, is to be void. (') 43 Geo. 3, o. 75. expressly authorised by the Act; and Q) 53 Vict. c. 5, s. 117, et seq. See see the recent case of In re Fox, 33 Pope on the Law and Practice of Ch. Div. 37, where a form of order Lunacy, 2nd ed. p. 182, et seq., where is given, authorising a mortgage of it is pointed out that the sale or charge tlie lunatic's estate to pay the debts must be strictly confiiied to the objtcts of her ancestor. VOL, I. - E 50 REAL PRO PER TT. [Book I. Voluntary and frau- dulent settle- ments. Companies, The holding of land by companies and corporations is also severely restricted. The Companies Act, 1862, s. 21, enacts that " No company formed for the purpose of promoting art, science, religion, charity, or any other like object, not involving the acquisition of gain by the company, or by the individual members thereof, shall, without the sanction of the Board of Trade, hold more than two acres of land ; but the Board of Trade may, by licence, under the hand of one of their principal secretaries, or assistant secretaries, empower any such company to hold lands in such quantity, and subject to such conditions, as they think fit. Corporations sole and aggregate, with some exceptions, cannot hold lands without a licence. Again, great as are the powers of dealing with his estate which the law confers upon the tenant in fee simple, it yet proceeds strictly upon the principle that he must be just before he is generous, and accordingly a statute (13 Eliz. o. 6) provides that all grants and conveyances of lands or goods, or any profit thereof, made with intent to delay, hinder, or defraud creditors or other persons of their lawful actions, debts, damages, &c., shall be utterly void against such creditors or persons. This statute is made for the protection of creditors, and another statute of the same reign, made for the protection of purchasers (27 Eliz. c. 4), renders voluntary settlements vgid as against subsequent purchasers for value, under which head are included mortgagees, lessees, &c., of the same lands, tenements, or other hereditaments. These important statutes will be hereafter considered more fully when we come to speak of settlements {fost, p. 144). Settlements may also be void under the provisions of the Bankruptcy Act, 1883 {^ost, pp. 145, 921). EuLEs OF Descent. Let us now proceed to consider the descent of a fee simple. In a case where the sole owner of an estate in fee simple dies without having alienated it during his lifetime, or by his will, recourse must be had to the rules or canons of descent, to answer the question who shall succeed to the property. The phrase " sole owner " is here used so as to exclude the idea of a joint tenancy in which the property would go to the survivor (jpost, p. 69). The person from whom the descent is traced 'is sometimes called the propositus, i.e. the person proposed. The person who succeeds by descent to an estate of inheritance is called the heir, and before proceeding to consider the canons of descent, it may be well to say a few words with regard to the position of the heir : Chap. VI.] ESTATES IN FEE SIMPLE. 51 The law on the subject is expressed in the two maxims : " Solus deus heredem facere potest non homo," and " Nemo est hmres viventis " (J-") : " No man can be heir during the life of his ancestor." The heir apparent is he whose right of inherit- ance is indefeasible, provided only he outlive the ancestor. The heir presumptive, on the other hand, is he or she who, if Heir pre- the ancestor should die immediately, would be his heir, but sumptive. whose right may be defeated by the birth of some nearer heir. Thus the eldest son is heir apparent to his father, because if he Heir survive the father he must be heir. A daughter, whose right apparent. would be defeated by the birth of a son, is only an heir pre- sumptive. The law with regard to the descent of an estate in fee is now governed by the Descent Act (3 & 4 Wm. 4, c. 106), amended on one point by Lord St. Leonards' Act (2), and is contained in the following rules : — Eule 1. Inheritances shall descend lineally»to the issue of the last purchaser in infinitum. A purchaser is defined by the Act to mean the person who Purchaser, last acquired the land otherwise than by descent, or by escheat, partition, or inclosure, by the effect of which the land shall have become part of or descendible in the same manner as other land acquired by descent. Prior to the Inheritance Act, the rule was seisinafacit stijpitem, i.e., the descent was to be traced from the per- son who last had seizin, or actual possession, of the property (^). " The former law " on this subject, as is pointed out by the Eeal Property Commissioners, " produced many anomalous con- sequences, as it sometimes made it a matter of chance whether a whole sister or a half brother of the person who last died entitled, or whether a father or an uncle, or more remote rela- tion of the person who last actually enjoyed the property should inherit ; and it might happen that one part of a family estate, having been in the occupation of a tenant, should go one way ; another part, as to which the possession might have remained vacant during the time of the person last entitled, should go another way " (*). Q) See Broom's Legal Maxims as tainted persons, and see further notes to this maxim. in Shelford's Eeal Property Sta- C) The great changes introduced tutes, 8th ed. p. 436. by this Act were (1) that the descent (') See Ingilby v. Amcotts, 19 Beav. is now to he traced fiom the pur- 593, and as to seizin, Leach v. Jay, chaser, and not to be traced from the 9 Ch. 1). 42. See as to coparceners, person last seized ; (2) with regard to Cooper v. France, 19 L. J. (Ch.) 315, the admission of the half blood ; (3) post, 62. with regard to the " descent " of the (') See further notes to Shelford's property to the ancestor; (4) allow- Eeal Property Statutes, 8th ed. ing descent to be traced through at- p. 435, et seq. E 2 52 HJEAL PROPERTY. [Book I. Rules of Eule 2. The male issue shall be admitted before the female (i). descent. Exceptions to this rule occur in the case of gavelkiad lands, borough English lands, and some lands of customary tenure. Eule 3. Where there are two or more males in equal degree, the eldest only shall inherit, but the females all together ; excep- tions to this rule occur in the case of gavelkind lands, borough English lands, and in some lands of customary tenure. Eule 4. The lineal descendants in infinitum of any person deceased shall represent their ancestor : that is, shall stand in the same place as the person himself would have done had he been living. Thus, the child, grandchild, or great-grandchUd (either male or female) of the eldest son succeeds before the younger son, and so in infinitum. The four first rules of descent which have just been stated apply alike to estates in tail unless and until barred under the Fines and Eecoveries Act (ante, p. 35), as well as to estates in fee simple. The remaining rules apply only to estate in fee simple. The idea of each of these rules may be conveyed shortly by saying that rule 5 deals with the " descent " of real estate to the ancestor ; rule. 6 with the admission of the father and male paternal ancestors, &c. (i.e. preference of the male stock) ; rule 7 with the admission of the half blood ; rule 8 with the rare-occurring cases of questions as to the admission of female paternal ancestors ; rule 9, introduced by Lord St. Leonards' Act, passed in 1 859, provides for the case where there is a total failure of heirs of the purchaser, treating the person last entitled as the purchaser (2). Eule 5. The fifth rule is, that on failure of lineal descend- ants, or issue of the purchaser, the inheritance shall descend to his nearest lineal ancestor. Eule 6. The sixth rule is, that the father and all the male paternal ancestors of the purchaser and their descendants shall be admitted, before any of the female paternal ancestors or their heirs ; all the felnale paternal ancestors and their heirs, before the mother or any of the maternal ancestors or her or their descendants ; and the mother and all the male maternal ancestors, and her and their descendants, before any of the female maternal ancestors or their heirs. Eule 7. A kinsman of the half blood shall be capable of being heir; and such kinsman shall inherit next after a kinsman in the same degree of the whole blood, and after the issue of (') This rule is founded on the " the quarter-btaff before the distaff." principle expressed in the quaint say- i^) 22 & 23 Vict. u. 35, ss. 19, 20. ings, " the spear before the spindle," Chap. VI.] ESTATES IN FEE SIMPLE. 53 such kinsman when the common ancestor is a male, and next Rules of after the common ancestor, when such ancestor is a female. descent. Rule 8. In the admission of female paternal ancestors, the mother of the more remote male paternal ancestor, and her heirs, shall be preferred to the mother of a less remote male paternal ancestor, and her heirs ; and in the admission of female maternal ancestors, the mother of the more remote male maternal ancestor, and her heirs, shall be preferred to the mother of a less remote male maternal ancestor, and her heirs. Kule 9. The last rule is introduced by Lord St. Leonards' Act Lord St. (22 & 23 Vict. c. 36), viz., "where there shall be a total Leonards' failure of heirs of the purchaser, or where any land shall be descendible as if an ancestor had been the purchaser thereof, and there shall be total failure of the heirs of such ancestor, then and in every such case the land shall descend, and the descent shall thenceforth be traced, from the person last entitled to the land, as if he had been the purchaser thereof." In connection with the custom of descent it should also be remembered that it is an established rule that proof of a custom of descent contrary to the course of the common law prevailing in a nearer degree of consanguinity is no proof of such custom extending to a more remote degree (^). And now, having enumerated the canons of descent, we may c^ggs ^^ j^ briefly notice a few of the more important cases on the subject, descent. One important case which was decided many years ago shall be noticed subsequently when we come to speak of coparceners {post, p. 62), and another in the chapter on copyholds {post, p. 193), but the following cases may be more appropriately considered in the present place. A testator having inherited lands ex parte maternd devised them to trustees in fee upon trust for his widow for life, and, on her decease, to convey the same to such person as should answer the description of his " heir-at-law," and died, leaving only collateral heirs ; it was held that the heir general, and not the heir ex parte maternd, was entitled. Lord Hatherley, then Vice-Chancellor Wood, in delivering judgment, said, " There is not any authority precisely in point, but the principle must be, that when once the descent is broken by a devise of the whole fee simple to trustees, upon trust to convey it to the testator's heir, they are bound to convey it to the person who is heir of the testator at the common law " (^). (') Per Crompton, J.. 2 H. & N. 661. O Davis V. Kirk, 2 K. & J. 391. 54 REAL PBOPERTY. [Book I. Title to land in England. Aliens. The question how the paternal ancestors are to be exhausted so as to let in the female line, was considered by the Court in 1877, when the case was stated as follows, by one of the judges : — " I think the true meaning of the section is that, when there is no reasonable possibility of ascertaining that there are descendants from the paternal ancestors — I mean, of course, a reasonable poshibility, after due and sufficient investigation and inquiry, — and what may be a due and sufficient investigation must depend on the circumstances of the case — then descendants of the maternal ancestors must be sought for. In the present case, all the descendants of paternal ancestors who have been born within 150 years have been exhausted. The intestate was the last of those descendants. Therefore we are considering a case in which certainly there has been a very full and very com- plete investigation " (i). The title to land in England is governed by English law, and it has accordingly been held that when a person is not legitimate at English law, though he be legitimate by the law of the country where he is domiciled, he cannot inherit nor can inherit- ance be traced from him (2). An interesting case was decided on the subject of descent in 1884 (3). The question arose whether the descent as to certain real property was to be traced ex parte paterna or ex parte maternd. The propositus was entitled to an equitable estate in the pro- perty under his father's will, and also to a legal estate which descended to him from his mother. The Court decided that as the equitable estate merged in the legal, the descent must be regulated by the legal estate, and that therefore on his death, intestate and without issue, the property descended to the heir of his maternal grandmother, who was the last purchaser of the legal estate, and not to his own heir. An exception from the right of holding land which formerly existed in English law, but has now been abolished by legisla- tion, may here be noticed. The Naturalization Act, 1870, enacts that real and personal property of every description may be taken, acquired, held, and disposed of by an alien in the same manner in all respects as by a nafural-born British subject; and a title to real and personal property of every description may be derived through, from, or in succession to an alien, in the same manner in all respects. (') Per B;iggallay, L.J., in Greaves V. Greenwood, 2 Bxch. Div. 289. C) Doe V. Vardill, 2 CI. & Fin. 571 ; Be Don, 4 Drew. 191. C) In re Douglas. Wood v. Douqlas, 28 Ch. D. 327. Chap. VI.] ESTATE 8 IN FEE SIMPLE. 55 as thiougli, from, or in siiccession to a natural-born British subject (1). Another " incident " of the fee simple estate which must be Escheat. noticed is that it is liable to escheat, which may be defined or described as follows : — It is the reverter of lands held for an estate in fee simple to the next superior lord propter defectum tenentis when the tenant in fee simple dies without having alienated his estate in his lifetime or by his will, and where there is a total failure of his heirs. The law with regard to escheat was extended to equitable estates and to incorporeal hereditaments by the Intestates Estates Act, 1884, which provides that after the passing of the Act (^) where a person dies without an heir, and intestate in respect of any real estate, consisting of any estate or interest, whether legal or equitable, in any incorporeal hereditaments, or of any equitable estate or interest in any corporeal heredita- ments, whether devised or not devised to trustees by the will of such person, the law of escheat shall apply in the same manner as if the estate or interest above-mentioned were a legal estate in corporeal hereditaments (sect. 4). (^) The subsequent sections of the Act provide that the Crown may waive its rights, and that where any beneficial interest in the real estate of any deceased person is " owing to the failure of the objects of the devise, or other circumstances happening before or after the death of such person, in whole or in part not efiectually disposed of," such person shall be deemed, for the purposes of the Act, " to have died intestate in respect of such part of the said beneficial interest as is inefiectually disposed of." With regard to forfeiture for treason or felony, an Act passed Forfeiture. in the year 1870 (33 & 34 Vict. c. 23), provides that, from and after the 4th July, 1870, no confession, verdict, inquest, con- viction, or judgment of or for any treason or felony, or felo de se, shall cause any attainder or corruption of blood or any forfeiture or escheat. But nothing in the Act is to affect the law of for- feiture consequent upon outlawry. Q) The Naturalization Act, 1870 (») 47 & 48 Vict. c. 71, ss. 4, 6, 7, (33 & 34 Vict. u. 14). It is not retro- and see as to procedure with respect spective : Sharp v. St. Sauveur, L. E. to escheat, 50 & 51 Vict. c. 53, under 7 Ch. 343, and ships are expressly which rules have heen made (see excepted from the property which Weekly Notes, Aug. 3, 1889). See may be so held. Bee also as to generally as to escheat and forfeiture, naturalization, 33 & 34 Vict. c. 102 ; Attorney -General v. Sands, Tudor's 35 & 36 Vict. 0. 39. Ktal Property Cases, 3rd ed. p. 760, C) Challis' Keal Property, p. 33, et seq. et seq. 56 BEAL PROPERTY. ' [Book I. And now, having considered the principal characteristics of the estate in fee simple, we shall hereafter regard it in another respect, viz. in respect of the modes in which its owner may deal with it. The estate may be alienated wholly or partially by act inter vivos or by will. These subjects shall be subKcquently con- sidered under the headings of Conveyances, Mortgages, Leases, Settlements, and Wills, but our next chapter will be concerned with estates in which there is concuiTent ownership. The rules of descent have been cleverly put in verse as follows : — "Descent from the purchaser is traced; And males before the females must be placed; Age will prevail ("), but females take as one. And children take as parents would have done ; Next, seek the ancestors near before far, And males again before the females are. The half-blood issue now their title make, And mothers more remote the sooner take. When of the purchaser all heirs are dead, Heirs of the last-entitled take instead." Law Students' Jovmal, January, 1890. (') Sometimes given thus : instead of " age will prevail," read " eldest of males." ( 57 ) CHAPTER VII. Joint Estates. Joint estates or interests in lands and tenements held in "concurrent ownership," as distinguished from sole or several estates, are divided into four classes ; these are : — • I. Estates in joint tenancy : Joint II. Tenancies in common : estates. III. Estates in parqenarj' or coparcenary : IV. Tenancies by entireties. I. A joint tenancy is where property is conveyed, devised, or bequeathed to persons jointly, either for years, lives, pur autre vie, or in fee Q-^. A joint tenancy cannot arise by descent or operation of law. Each joint tenant is seized of the whole and every part, or, as it is termed in old Norman French, per my et per tout (2). A joint tenancy is characterised by " four unities," viz. : — Four (1) Unity of interest : unities of (2) Unity of title: Cncy (3) Unity of time : (4) Unity of possession. (1) Unity of interest. — The estates of all the joint tenants must be the same in quantity or extent. Thus, an estate cannot be given to one for life and to the other for years, as joint tenants. Two, however, may hold as tenants for their lives, with remainder to one in fee or in tail. (2) Unity of title, viz. the estate must be created by the same act or instrument, whether legal or illegal : The doctrine of unity of title received a curious illustration in a case which came before the late Lord Chancellor Hatherley in 1871. Eobert Ward and Bryan Ward came into lawful posses- (') Litt. ss. 280, 281. is entitled to nothing separately, and {") Another explanation which has yet to the whole jointly, et sic totvm been given of these words is that the tenet et nihil tenet. See Watson's word mie signifies nothing, and that Oompend. of Equity, 2nd ed. vol. i. the meaning is that the joint tenant p. 500. 58 BEAL PBOPERTT. [Book I. sion of a certain property as tenants pur autre vie (ante, p. 22), and after the life had dropped, they still continued in possession as owners, and went on in this way for more than twenty years. Bryan Ward then died, and the question ultimately arose Joint whether there had been a joint tenancy. The Lord Chancellor, tenancy. ^^ delivering judgment, said : " In what capacity do they so hold on ? It appears to me as joint tenants. The possession of each became wrongful as to this share at the same moment of time, so that they acquired their title at the same moment of time, they held by one common right, or by one common wrongful title, whichever you please to call it, and they have done nothing to sever their tenancy. As to the business carried on by Bryan Ward and Eobert Ward, it is not averred that they entered into a joint speculation as farmers and made this land partnership property, nor is such a view in the least consistent with any of the facts of the case. They appear simply to have held on because no one made any claim against them; and their cultivating the property at their equal expense, and sharing the profits equally, is just what two farmers would do as to land of which they were joint tenants " (O- (3) Unity of time. — The estates must vest at the same time, but this rule does not apply to estates created by deeds operating under the Statute of Uses or by Will. (4) Unity of possession. — Joint tenants are seized in the old Norman French phrase, per my et per tout, i.e. each holds an equal share in the land, and at the same time is seized of the whole land. The right of survivorship, or jus accrescendi, is also an incident of joint tenancy (^). On the death of one of two or inore joint tenants, the estate remains to the survivors or survivor i With respect to survivorship between joint tenants, the following rules apply : — Jus accrescendi prsefertur oneribus. — The right of survivorship takes priority over incumbrances on the property. Thus a rentcharge granted by a joint tenant will not be binding upon the survivor (2). Jus accrescendi prsefertur ultimse voluntati. — The right of sur- vivorship prevails over the last will. It follows from this that a joint tenancy cannot be severed by a will of one of the joint tenants. (') Ward V. Ward, L. E. 6 Ch. nerehip property ; 53 & 5i Vict. c. 39, 789, 791. See as to, the conversiou s. 22. iato personalty of land held as part- {') Litt. 3. 277 Co. Litt. 180 b. Chap. VII.] JOINT ESTATES, ETO. 59 Jus accrescendi inter mercatorea pro heneficio commereii locum non Joint habet. — The right of survivorship does not exist among merchants *^"*"''y- for the benefit of commerce. The general rule of law is that where persons have entered into a joint contract for the purchase of an estate, and have paid, or contracbed to pay, the purchase-money in equal proportions, the Court will not, upon the death of one of them, decree a conveyance to the survivor and the heirs of the deceased purchaser as tenants in common, but the surviving purchaser will be solely entitled to the benefit of the contract, and to have a conveyance of the estate to him- self alone. It was, however, settled even in the time of Lord Coke, that, as between joint merchants, wares, merchandises, debts or duties that they have as joint merchants or partners, shall not survive, but shall go to the executors of him that deceaseth ; and this is per legem mercatoriam. This rule is now extended to the case of real property which has become partnership property (}). Although a joint tenant cannot dispose of his interest by will, he may alienate it in his lifetime, as, e.g. sale or mortgage. The effect of such alienation with respect to the share so dis- posed of is to sever the joint tenancy and to convert the joint interest into a tenancy in common — except, indeed, where one of two joint tenants disposes of his share to his co-tenant, in which case the latter becomes sole owner of the entirety. But if, for example, there be three joint tenants, and one of them grants his share to a stranger, such stranger will then hold one undivided third part of the land as tenant in common with the remaining two who still hold the other two-thirds as joint tenants (^). II. Tenancy in common is where property is conveyed. Tenancy in devised, or bequeathed to persons in undivided shares for any common, estate, expressly as tenants in common, or in other terms indicating that they are to take distinct shares in the land. It may also arise, as has been seen, through the alienation by a joint tenant or coparcener of his or her share. (1) Partnership Act, 1890 (53 & 54 12 App. Gas. 184 ; White v. Tyndall, Vict. c. 39, SB. 22 and 46, and see 13 App. Gas. 263; and see generally as to the law independent of this on tlje subject of joint tenancy : enactment. Lake v. Craddock, 3 P. Tudor's Eeal Property, 3rd edition, Wms. 158 ; W. & T., 6th ed. vol. i. pp. 889, 890 ; In re Bowe, W. N. p. 217 ; Lindley on Partnership, 5th 1889, pp. 74, 161 ; and see as to ed. p. 840; Be Hulton. Sulton v. severing joint tenancy, Burnaby v. Lister, W. N. (1890) p. 14. Equitable Beversionary Interest So- f ) See as to the liability of joint ciety, 28 Gh. D. 416. tenants : Burns v. Bryan or Martin, 60 BEAL PBOFEBTY. [Book I- Tenancy in A tenancy in common is usually created in a deed by common. limiting the estate to A and B equally to be divided between tbem as tenants in common and not as joint tenants, tbough the latter words " not as joint tenants " are not necessary. In a will any words showing that a division amongst the parties is intended will create a tenancy in common (^). Thus the words " to be divided," or " equally," or " between," or " amongst " or " respectively," or " the parties to participate," have been held to create a tenancy in common. The Court leans towards a tenancy in common, and will prefer it when there is a doubt. So in several cases where there have been such words as " jointly and equally " the Courts have held the gift a tenancy in cpmmon. Tenancy in common may arise in any of the following ways : — (1) By express limitation. (2) By severance of a joint tenancy. (3) By severance (through alienation without partition) of the interest of coparceners. (4) By construction of law. Tenants in common have a unity of possession, but a distinct and several title to their shares. Their shares are not necessarily equal, or similar in quantity of estate. And there is no survivorship between tenants in common (^). A tenant in common may alienate his share either in his lifetime, or by will. The alienee will hold as tenant in common with the other co-tenant or co-tenants, except where one of two tenants in common disposes of his share to the other, in which case the latter will be sole owner of the whole land. III. Parceners at common law are females, or heirs of females, who, when there is no nearer heir male, succeed upon an intes- tacy of the person seized of an inheritance. By the custom of gavelkind, also, heirs, whether male or female, succeed upon an intestacy as parceners. The essential distinction between joint tenancy and tenancy in (') Tudor'B Eeal Trnperty, 3rd husband and wife, as the remainder edition, p. 894, et seq. ; Theobald on muat vtst In interest at different Wills, 3rd edition, p. 298 ; Jarman times, the respective lieirs will take on Wills, 4th ed. vol. ii. p. 257. as tenants in common ; (II.) Under a C) Challis' Keal Property, p. 298. limitation, in the form of an estate G.'he following illnstrations are there tail, to two persons neither married given of tenancies in common arising nor capable of lawful marriage, or by operation of law ; — (I.) If a (con- to three or more persons, they will tingent) remainder be limited to the take as tenants in common. heiiB of two living persons, not bemg Chap. VII.] JOINT ESTATES, ETC. 61 common on tlie one hand and coparcenary on the other hand, is Co-par- that joint tenancy and tenancy in common always arise by <^<=°^>'y- purchase. Coparcenary arises hy operation of law; it cannot be created by grant or devise. Coparcenary, like joint tenancy, is characterised by the ■unities of interest, time, and title. Coparceners have also unity of possession, so far, at least, that they hold in undivided shares. But a coparcener is not deemed (as a joint tenant is), to be seized of the whole land. And there is no right of survivor- ship between coparceners. On the death of a coparcener tenant in fee simple her share passes to her heir, unless she has dis- posed of it by will ; for a coparcenary may alienate either in her or his lifetime, or by will. The effect of such alienation is to create a tenancy in common with respect to the share disposed of, except where alienation is by one of two coparceners in favour of the other, in which case the latter becomes sole owner of the whole land Q-"). The law on the various subjects connected with the ownership of land by persons in " concurrent " ownership which we have been considering is well illustrated by the two following pioblems : — (1) A., B., and C. are brothers, A. being the eldest ; B. and Illustra- C. become joint tenants of land in fee simple ; B., without C.'s *'°"^" knowledge, conveys his undivided moiety in fee to D. by way of mortgage. B. then dies ; does C. on B.'s death take the entirety, or does a moiety (subject to the mortgage) descend on A. as B.'s heir-at-law ? The solution of this matter is — The mortgage being of B.'s entire interest will sever the joint tenancy, and C. and D. will hold as tenants in common, and on B.'s death intestate his share will descend to A. his heir, subject, of course, to the mortgage. (2) A testator devises land to A. and B. and their heirs. A. dies intestate leaving a son, and afterwards B. dies intestate leaving two daughters, one of whom dies intestate - leaving a son. Who can convey the land to a purchaser ? The solution of this problem is — The surviving daughter of B. and the son (and heir) of the deceased daughter are the proper parties to convey the land. The limitation to A. and B. was one in joint tenancy ; and the (>) Co. Litt. 163. 62 REAL PBOPERTT [Book I. Pai'titiou. Tenancy by entire- ties. two daughters of B. were coparceners, amongst whom there is no right of survivorship (y). A curious question arose (^), whether, where a coparcener dies intestate leaving a son, the descent was to he traced from her father as purchaser, or whether her whole share descended to her son as her heir. At common law, the heir was entitled, and the Court proceeding on the ground that the meaning of the Act was to leave the law of inheritance in such parts as were plain ahsolutely as it was found, and only to alter it where it was doubtful, decided that the Law of Inheritance Act had made no difference, and that the heir of the daughter was entitled. Joint tenants, tenants in common, and coparceners may effect a partition of the land between themselves so as to vest in each of the co-owners a distinct portion of the land to he held by him or her as sole owner. This partition may be either voluntary, by the act and agreement of the co-tenants, or compulsory, at the instance of any one of them, irrespective of the consent of the others. At common law, coparceners alone had the right of enforcing a partition; but by a statute of Henry "VIII. (f), this right was extended to joint tenants and tenants in common. Partition was formerly effected by writ of partition ; but this remedy, having become obsolete, has been abolished by statute (*), and the mode of enforcing a partition is now by action in the Chancery Division (jiost, p. 655, et «eg.). Formerly the Court could not direct a sale of the property and division of the proceeds of sale in lieu of a partition, how- ever inconvenient or disastrous to the interest of the parties concerned a partition might be. The law on this point was altered, however, by the Partition Act, 1868 (^). By this Act, as amended by the Partition Act, 1876 (*), the Court may in certain cases direct a sale of the property instead of a partition (jpost, p. 555, et seq.). TV. Tenancy by entireties may next be briefly considered. At common law, husband and wife were regarded as forming together but one person ; they did not hold property given to them jointly, in undivided shares, but each was deemed to be owner of the entirety or whole of the property. They held, to employ in a varied form the technical language (') Hallilay's Digest, 14th ed., pp. 232, 233 ; and see note thereto for a fnrtlier problem solved on the same principle as question Ko. 2. (2) Cooper V. France, 19 L. J. Ch. 315. («) 31 Hen. 8, o. 1. (*) 3 & 4 Will. 4, c. 27, s. 3G. C) 31 & 32 Ylct. c. 40. (») 39 & 40 Vict. 0. 17. Chap. VII.] JOINT ESTATES, ETC. 63 which has been previously employed (p. 57), per tout et non per my. Hence, there coiild he no partition between them ; and neither could dispose of the property, or any part of it, without the other's concurrence; and on the death of either of them, the property remained to the survivor. At common law, on a gift to husband and wife and a third person, the husband and wife took half the property between them as tenants by entireties, and held in joint tenancy with the third party, who took the other half of the property (i). The effect of the Married Women's Property Act, 1882 Q), would seem to be to abolish tenancy by entireties in the case of any gift to husband and wife made since that Act came into operation. Under such a gift a husband and wife will now take in equal undivided shares, the share of the wife being her separate property (f). The law with regard to such gifts was recently considered in a case which came before the Court of Appeal. A testatrix who Married died after the 1st of January, 1883 (*) (the date when the Married Women's Women's Property Act came into operation), by her will, dated Act'' 1882 before that time, gave all the residue of her real and personal ' property to A. B. and G. B. and E., C. B.'s wife. The Court decided that A. B. was entitled to one half of the property, C. D. to a quarter, and E., his wife, to the other quarter for her separate use. In this case Lord Justice Cotton stated that in his opinion "the Married Women's Property Act, 1882, was not intended to alter any rights except those of husband and wife inter se." (•) Litt. s. 291. see Be Dixon, 42 Ch. D. 306, where (2) 45 & 46 Viot. c. 75. Be Jupp is commented on, and (') In re March, 27 Oh. D. 166. Warrington v. Warrington, 2 Hare (*) In re Jupp, 39 Ch. D. 148, and 54, followed. ( 64 ) CHAPTEE VIII. Estate in possession. Estate in expect- ancy. Berersion, rcrtJEE Estates, Estates, •when considered with reference to the times of their enjoyment, are, as has already been pointed out (ante, p, 15), either in possession or in expectancy. An estate is in possession ■when the owner is entitled to the immediate enjoyment of it ; and it must he borne in mind that an estate in possession, as contrasted with an estate in expectancy, comprehends not merely the actual and bodily occupation or enjoyment of the property, but a right to have it (i). An estate is said to be in expectancy when the owner has not the immediate possession and enjoyment of the land, but is entitled thereto at a future time (2), Estates in expectancy are either reversions, remainders, or executory interests. Suppose A. B., the owner of an estate in fee simple grants an estate to C, D, for life : The estate to C. D, for life so granted or " carved out," as it is technically called, is called the par- ticular estate, being a particula or portion of the whole estate in fee simple, originally held by A. B, The estate which still remains in A. B,, " the present estate in virtue of which he is to have again the possession at some future time," is called a reversion (^). The owner of the estate is called a reversioner. Suppose, however, that when A, B, was granting the life estate to 0, D, he at the same time, and by the same instrument, granted subsequently to, or as it is called " subject " to C, D,'s life interest all the rest of his estate to E, E,, or gave a life estate or life estates after C, D,'s to another person or other persons, each estate so conveyed after C. D.'s life estate is called a remainder and the owner of it a remainderman, A reversion always arises by mere operation of law, i.e. it is (') Goodeve's Keal Property, 2nd ed. p, 211. Q Edwards' Compendium of Real Property, p. 100. (^) Williams on Real Property, 16th ed. p. 282. A reversion, says Sir E Coke, is when the residue of the estate doth continue in him that made the particular estate : Co. Litt. 226. Chap. VIII.] FUTURE ESTATES. 65 a necessary consequence of granting a particular estate and doing nothing more. A remainder is always created by the act of the parties, and Remainder. while there may be any numbi-r of remainders in the same estate, there can be only one reversion. Another distinction which exists between a reversion and a Reversion. remainder is this : where the owner of an estate becomes a reversioner by the grant or creation of a less estate, a tenure springs into existence between him and the person put into possession, and to this tenure (sometimes called an imperfect tenure, to distinguish it from the tenure in fee simple) rent service is usually incident. On the other hand, between the different persons successively entitled in remainder who all hold from the same grantor there is no tenure. Eemainders are either vested or contingent. A vested remainder is an interest certain and indefeasible. Vested re- i.e. not liable to be defeated, an interest which however small ™'"" ^^' it may be, being limited to some certain person or persons in existence and on a certain event, is always ready, from its commencement to its end, to come into possession the mo'nent the prior estates, be they what they may, happen to determine. There is always an immediate fixed right of future enjoyment. A contingent remainder is one which is limited to an uncer- Contingent tain person or on an uncertain event. As distinguished from a '■^™''"'"^'^- vested remainder, it is an interest in remainder, which is not ready from its commencement to its end, to come into posses- sion at any moment when the prior estates may happen to determine ('). (') Four sorts of contingent re- dition upon which the remainder is mainders are dibtinguished by Mr. limited is certain in event, but the Fearne : First, Tyhbre the remainder determination of the particular estate depends entirely on a contingent may happen before the contingency determination of the preceding estate takes place, e.g. if an estate be given itself, as wlien a conveyance is made to A. B. for life, and after the death to B. until 0. returns from Rome, of C. D. to another in fee. Now C. and after such return of C. remainder must cei tainly die some time or other, ovi-r in fee ; Secondly, where the but his death may not happen until contingency on which the remainder after A. B.'s particular estate was is to take effect is independent of the determined by its owner's death ; determination of the precedingestate. Fourthly, where the person to whom e.g. if land be given to A. in tail, the remainder is limited is not yet and if B. come to Westminster Hall ascertained, or not yet in being, e.g. on buch a day to B. in fee. Here it if an eotute be given to A. B. for life will be observed in the first case the with remainder to the right heirs of happening of the event determines C. D. a living person. Now as nemo the particular estate. In the second est Tiseres viventis there can be no case the contingent event vests the ■' heirs " of 0. D. until his death, and remainder without inierfering with this mny not happen until after the A.'s estate ; Thirdly, where the con- determination of A. B.'s estate. VOL. I. F 66 EEAL PROPERTY. [Book I. Contingent The true test whetlier an estate is vested or contingent is remainders, ^j^^^ stated in Fearne on Contingent Eemainders : " It is not the uncertainty of ever taking effect in possession that makes a remainder contingent ; fur to that every remainder for life or in i.ail is and must be liable; as the remainderman may die, or die without issue, before the death of the tenant for life. The present capacity of taking effect in possession, if the possession were to become vacant, and not the certainty that the possession will become vacant before the estate limited in remainder determines, universally distinguishes a vested remainder from one that is contingent." Thus, suppose successive estates for life are given in the same property, e.g. to A., a healthy young man, for life with remainder for life to B., who is on the very point of death. Here the chance that B. will ever have possession of the property is no doubt extremely remote, but as B.'a life estate is always ready whilst he lives to come into possession on the failure or expiration of A.'s, his estate is a vested remainder. The nature of a contingent remainder may also be illustrated by conferring similar estates in a different order on the same fictitious characters. Suppose the first life estate were limited to B., then on the brink of the grave, followed by an estate to A., in the prime of his manhood, if a certain extremely probable event should occur ; here the chance of A. obtaining possession of the estate is practically certain ; but as his estate is subject to a contingency, and not certain to come into possession immediately on the determination of the preceding estate, it is only a contingent remaindei'. Contingent remainders were liable to certain imminent perils of destruction which have been to some extent removed by legislation in the present reign. The reason why a contingent remainder under a legal devise failed, if at the death of the previous holder of the estate of freehold thtre was no person who answered the description of the remainderman next to take, is very clearly stated by Sir George Jessel in a well-known case {^). " It arose from the feudal rule that the freehold could never be vacant, because there must always be a tenant to render the services to the lord, and there- fore if the remainder could not take effiict immediately on the determination of the prior estate it never could take effect at all. This result of feudal rules was never held to apply to equitable estates, and it was sometimes said that ' the legal (') In re Finch. Abhiss v. Biirncy, 17 Ch. D. 211, 229. Chap. VIII.] FUTURE ESTATES. 67 estate in tiie trustee supported the remainder.' The real prin- Contingent ciple, however, was that as the legal estate in the trustees remainders. fulfilled all feudal necessities, there being always an estate of freehold in existing persons who could render the services to the lord, there was no reason why the limitations in remainder of the equitable interest should not take effeot according to the intention of the testator. If at the time of the determination of the prior equitable estate of freehold there was no person capable of taking, a person afterwards coming into existence within the limits of the rule of remoteness, and answering the terms of the gift, wks allowed to take. So that the doctrine of ascertaining once for all at the death of the tenant for life what persons were to take under the subsequent contingent limita- tions, had no application to equitable estates. Equity on this subject dill not follow the law." Again contingent remainders were liable to be destroyed not only by the natural expiration of the preceding estate, but also by its forfeiture, surrender, or merger Q-). In consequence of this state of the law, estates were often limited in trustees " to preserve contingent remainders " as they were called. This formality however has become practically obsolete since the passing of the Act to amend the law of real property which came into operation on the 1st of January, 1845 (^), and provided that a contingent remainder should be, and if created before the passing of the Act should be deemed to have been capable of taking effect, notwithstanding the deter- mination by forfeiture, surrender or merger, of any preceding estate of freehold, in the same manner in all respects as if such determination had not happened. The same Act also provides that a contingent interest, and a possibility, coupled with an interest, in any tenements or hereditaments of any tenure, whether the object of the gift or limitation of such interest or possibilitj- be or be not ascertained, may be disposed of by deed. The effect of this Act, however, was to preserve the contingent remainder only against destructive acts by or with the concur- rence of the owner of the particular estate. The remainder, however, would still fail to take effect if the particular estate expired before the contingency happened. In the words of the late Lord Justice James, in his judgment in the celebrated case which led to the change in the law which we shall presently notice (^), contingent remainders were protected against the (') See Cliallis' Eeal Property, C) 8 & 9 Vict. c. 106, s. 8. pp. 110 and 111, for two other (now (') Cunliffe y. Brancher, 3 Ch. Div. obsolete) modes of theh destruction. 393, 407. F 2 68 BEAL PROPERTY. [Book I. Contingent destruction of tlie preceding particular estate, but they were still left to die with the death of such estate through an inherent defect in their original constitution. An Act passed on the 2nd of August, 1877 (i), dealing with the subject of contintrent remainders with extraordinary brevity in a single clause, introduces an important alteration into the law with respect to them. It provides that every contingent remainder created by any instrument executed after the passing of the Act or by any will or codicil, revived or republished by any will or codicil, executed after that date in tenements or hereditaments of any tenure, which would have been valid as a springing or shifting use or executory devise or other limitation, had it not had a sufficient estate to support it as a contingent remainder, shall in the event of the particular estate determining before the contingent remainder vests be capable of taking effect in all respects as if the contingent remainder had originally been created as a springing or shifting use or executory devise or other executory limitation. A rule which governs the creation of contingent remainders is that if an estate be given to an unborn person for life, followed by any estate to any child of such unborn person, the estate given to the unborn person's child must fail. Rule of The rule of cy-pres (2), as it is called (which proceeds upon cy-pres. ^^^ principle of effectuating the intention of the testator " as nearly as possible"), is, neverthele.ss, applied in cases where property is devised to an unborn person for life, with remainder to his first and other sons in tail, Here the remainder is invalid as being beyond the limits allowed by the rule, but the Court if it can see that the testator's general intention is to benefit the issue, though it cannot be done in the particular mode pointed out in the will, will carry out the general intention by giving an estate tail to the unborn person, which, if not barred, may go to the i>sue according to the testator's wish. The principle on which the Court proceeds was thus stated by Lord St. Leonards, in the well-known case of Monypenny v. Bering Q') : " This doctrine, as I understand it, is nothing more than that which prevails in other cases of giving eifect to the general intent, but with this difference, that it is not as in them, carried into effect at the expense of the particular intent. In the common case there is a valid particular intent, and there is C) 40 & 41 Vict c. 33. (3) 2 De G. M. & G. 145, 173 : see See as to the doctrine of cj/-p7-es WA«% v. Mitchell, 42 Ch D. 491, in connection witli the subject of affirmud, 44 Ch. D. 85. charities, ^os<, p. 2.37. Chap. VIII.] FUTURE ESTATES. 69 a valid general intent, and the particular intent not in tlie view of the Court effeutuating all the intentions which they presume the testator to have had, they look at the general intent and they effect his general intent at the expense of his particular intent. In applying, however, the doctrine of cy-pres nothing is sacrificed ; for example, in the case of limitations under a power, where there is a good gift of a limited estate to a person an object of the power, and then a gift over to his children who are not objects of the power, effect may be given to the whole intention by giving to the parent an estate of inheritance by means of which the estate will descend to his children. In such a case the general intent is, no doubt, effectuated, but it is done at no expense of the particular intent, because, there is no valid particular intent to which effect can be given. So in the case of a limitation to an unborn son for life with remainder to his unborn son in tail, where, as effect cannot be given to the expressed intention, because successive estates cannot be limited to an unborn person and to his issue, an estate tail is given to the party to whom the limitation was made for life. Here again, the particular intent is not sacrificed, but effect is given to it as a general intent.'' The rule against perpetuities, as it is usually though by no Enle means happily described, is as follows : — it prohibits real or pfrp^tui. personal property being tied up for a longer period than the ties. lives of existing percnyns, and twenty-one years after their decease, allowing a further time in favour of a person en ventre sa mere if gestation actually exists. The piilicy of the law with regard to permitting, and at the same time restraining, a settlor's power of tying up his property was explained by Sir George Jessel, as follows : " Then there was another rule, also invented by the Chancellors, in analogy to the common law. That was an invention of a different kind from the other, and was this time in favour of alienation and' not against it. The law does not recognise dispositions which would practically make property inalienable for ever. Con- tingent remainders were introduced, which had the effect of rendering property inalienable. The doctrine of contingent remainders was discussed by the Chancellors, who held that a remainder depending upon what was called a possibility on a possibility was contrary to the common law. That was a wholesome rule, only it was considered that it did not go far enough. The result was that the Chancellors established this rule in favour of alienation, that property could not be '^'^^y- . 11 1 • T 1 anoing. owner or owners m due form, according to the law which ob- tains under any given set of circumstances. It is a science, inasmuch as it is founded on a system of general principles. It is an art, inasmuch as it consists of a putting; of these principles into practice (^). The main object of the following pages is to give a short account of the nature of a modern conveyance along with some practical advice as to the mode in which the theory of conveyancing is to be applied to practice, and it may be pointed out that nearly all that is here said upon the latter branch of this subject is equally applicable to the subjects of mortgages, leases, and settlements, of which we shall treat hereafter (j^). Before, however, we come to the conveyance itself, a good many preliminary matters require to be considered. A purchase of land is usually preceded by an agreement, and here it must be borne in mind that (by the Statute of Frauds, 29 Car. 2, c. 3, s. 4) any contract for the sale or purchase of lands, tene- ments, or hereditaments, or any estate or interest concerning them, must be in writing, signed by the party to be charged. (') Cavanagh, Principlea and Pre- deed on a sale, mortgage, demise, or cedents of Modern Conveyancing. settlement of any property, or on any (^) A conveyance is defined by other deiding with or for any pro- the Conveyancing Act, 1881 (unless perty ; and " convey," unless a con- a contrary intention appears), to in- trary intention appear, lias a mean- elude in the interpretation of that ing coiTesponding with that of con- Act, assignment, appointment, lease, veyance : 44 & 45 Yict. c. 41, s. 2 settlement, and other assurance, and (sub-s. 5). covenant to surrender made by a 76 REAL PEOPEBTY. [Book I. Conditions of sale. Statutory conditions of sale. or his agent thereunto lawfully authorised, though, as we shall herenfter see in some ca^es, agreements not in writing may be specifically enforced (see post, p. 574, et seq.'). A man who oifers property for sale on what is called " an open contract," i.e. a contract not guarded by any conditions of sale, incurs certain serious responsibilities which are stated by Mr. Prideaux as follows : — " He is bound, in the absence of stipulation, to deduce and verify his title for a period of at least forty years preceding the day of sale. This obligation involves the delivery to the purchaser of an abstract of title extending over the above period ; the production of all deeds and documents stated in the abstract ; the identification of the property as described in the particulars with the property described in the several documents of title, and the strict proof by certificates, declarations, or otherwise, of all births, marriages, deaths, heirships, and other matters and facts forming a link in the chain of title, unless such facts are recited or stated in documents twenty years old." In order to guard against this liability, it is usual to employ particulars and conditions of sale — the proper office of the parti- culars, as is well said by Mr. Davidson, being to describe the subject-matter of the contract, that of the conditions to state the terms on which it is sold. The particulars should describe the property accurately, and if there be anything connected with it important to be known which cannot be discerned, or may be misapprehended by ocular inspection, or any right or restriction interfering with its absolute possession or enjoyment, it ought to be plainly stated in the particulars, as even its partial concealment may afford the buyer a ground for abandoning his purchase Q-). A considerable number of important conditions of sale are now implied by virtue of the Vendor and Purchaser Act, 1874, and the Conveyancing Act, 1881 (2). These "statutory conditions" provide as follows: — Forty years' title only need be shewn. No objection shnll be raised on the ground of .the vendor's inability to furnish a legal covenant to produce documents, when the purchaser will, on completion, have an equitable right to production. The purchaser shall bear the costs of the acknowledgment and undertaking for production and safe custody of deeds and (■) Davidson's Conveyancing, vol. i. Conditions of Sale. (2) 37 & 38 Vict. 0. 78, bs. 1, 2 : 44 & 45 Vict. c. 41, s. 3. See Gierke and Brett's Conveyancing Acts, 3rd ed. p. 268. Chap. IX.] CONVEYANCE ON SALES. 77 documents, except costs of perusal and execution on behalf of Statutory and by the vendor and on behalf of and by necessary parties ■'^'^'t""'' other than the purchaser. Where the vendor retains part of the land, he shall retain the deeds. Recitals, statements, and descriptions of facts, matters, and parties contained in deeds, instruments. Acts of Parliament, or statutory declarations, twenty years old at the date of the contract, shall, unless and except so far as they shall be proved to be inaccurate, be taken to be sufScient evidence of the truth of such facts, matters, and descriptions. A purchaser of any property shall not require the production, or any abstract or copy, of any deed, will, or other document, dated or made before the time prescribed by law, or stipulated, for commencement of the title, even though the same creates a power subsequently exercised by an instrument abstracted in the abstract furnished to the purchaser ; nor shall he require any information, or make any requisition, objection, or inquiry w^ith respect to any such deed, will, or document, or the title prior to that time, notwithstanding that any such deed, will, or other document, or that prior title is recited, covenanted to be produced, or noticed ; and he shall assume, unless the contrary appears, that the recitals, contained in the abstracted documents, of any deed, will, or other document forming part of that prior title, are correct, and give all the material contents of the deed, will, or other document so recited, and that every document so recited was duly executed by all necessary parties, and perfected, if and as required, by fine, recovery, acknowledgment, inrolment, or otherwise. On a sale of any property, the expenses of the production and inspection of all Acts of Parliament, inclosure awards, records, proceedings of Courts, Court rolls, deeds, wills, probates, letters of administration, and other documents, not in the vendor's possession, and the expenses of all journeys incidental to such production or inspection, and the expenses of searching for, procuring, making, verifying, and producing all certificates, declarations, evidences, and information not in the vendor's possession, and all attested, stamped, office or other copies or abstracts of, or extracts from, any Acts of Parliament or other documents aforesaid, not in the vendor's possession, if any such production, inspection, journey, search, procuring, making, or verifying is required by a purchaser, either for verification of the abstract, or for any other purpose, shall be borne by the purchaser who requires the same ; and where the vendor retains possession of any document, the expenses of making any copy 78 BEAL PBOPEBTY. [Book I. tlieieof, attested or unattested, whioli a purchaser requires to be delivered to him shall be borne by that purchaser. On a sale of any property in lots, a purchaser of two or more lots, held wholly or partly under the same title, shall not have a right to more than one abstract of the common title, except at his own expense. The following are some of the iisual conditions of sale, which are not provided for, and are accordingly still employed : — (1) That the highest bidder shall be the purcliaf*er (subject to the right of the vendor or his agent to bid up to the reserved price), and in case of dispute that the lot shall be put up again at the last undisputed bidding, &c. (2) As to payment of deposit i}'). (3) As to valuation of timber, &c. (4) As to cum- mencement cf title, e.g. that the title shall commence with an indenture dated 6th June, 1847. (5) That the purchaser shall admit the identity of the property with that comprised in tiie muniments of title. (6) As to alio win"; or excluding compen- sation for misdescription. (7) As to the time within which requisitions must be made. (8) A power for the vendor to rescind the contract rather than comply with the purchaser's requisitions (^). In connection with the subject of conditions of sale, it may Trustee be pointed out that the Trustee Act, 1 888 (3), contains the follow- Act, 1888. jjjg important provisions with regard to the employment of what are called "depreciatory conditions " on sales by trustees: — "No sahf made by a trustee shall be impeached by any cestui que trust upon the ground that any of the conditions, subject to which the ^ale was made, may liave been unneces- sarily depreciatory, unless it shall also appear that the consideration for the sale was thereby rendered inadequate. " Nil sale made by a trustee shall, after the execution of the conveyance, be impeached as against the purchaser upon the ground that any of the conditions subject to which the s^le was made, may have been unnecessarily depreciatory, unless it shall appear that such puichaser was acting in collusion with such trustee at the time when the contiact for such sale was made. " No purchaser, upon any sale made by a tiustee, shall be (') See as to forfeiture of deposit, any whicli cannot be removed or Sowe y. Smitli, 27 Cli. D. 89; 8oper whicli it would be inconvenient to V. ArnoU, 35 Cli. D. 384 : Brett's remove, without inseriing unneces- LeariingCasesinEquity, i).41,e«(.'e2. sary or special stipulations whicli (2) " The honest purpose of condi- may alarm prudent purchasers " tiuns," says Mr. Davidson, " is that See as to misleading; conditions of the vendor may not put up a better sale: Re Baniste'-, 12 Ch. I) 131 • title thau he has, and that foreseeing Be Marsh and Earl Granville 24 every possible objection, he may Ch. D. 11. ' guard, l)y special conditions, against (^) 51 & 52 Met. c. 59 Chap. IX.] CONVEYANCE ON SALES. 79 at liberty to make any objection against tlie title upon the ground aforesaid." Having thus considered the agreements for purchase and matters connected with it, we must next notice the investigation- Investiga- of the title. A purchaser " is entitled to be satisfied, before ^°? ° parting with his purcliase-money, that the person who professes to convey to him the property sold has in fact the right'to do so ; and for this purpose he is not bound to wade through the deeds and other documents of title themselves at the place or several places where they are to be found." He is entitled to have a resume or abstract of the documents by which the vendor purposes to prove his title, and discover whether a good title is disclosed (i). The title, Mr. Dart tells us, is perfect whenever it appears that under the contract the puroljaser either already has, or will necessarily before the time fixed for completion be able to acquire, an immediate and indisputable right to the legal and equitable estates, even although the absence of parties or other cirouri I stances may considerably delay the conveyance (^). Within a limited time after the abstract is delivered — seven, fourteen, or twenty-one days, or as may be, according to the con- tract — the purchaser's solicitor delivers to the vendcjr's solicitor certain requisitions of title — i.e., a statement of his objections to the title and of the points which he may desire to have cleared up. The following may serve as examples of tho requisitions Eequisi- which might thus be delivered : — j.;jjg_ The receipts for the Succession Duties payable on the deaths of A. B. and C. D. respectively must be produced, and handed to the purchaser on completion. What deeds and documents of title will be handed to the pur- chaser on completion ? Are there any rights of way or other easements over, out of, or affecting any part of the property sold ? If so, state the particulars. In a case which came before the Court of Appeal in 1879 (^), the purchaser made the following requisition : " Is there to the knowledge of the vendors or their solicitors, any settlement, deed, fact, omission, or any incumbrance, affecting the property not disclosed by the abstract ? " The Court considered that the question put was " anything but a requisition." That it was in fact a searching interroga- tory put to the vendors and their solicitors. " As I understand (') Sweet ou Conveyancing, p. 1, C) Dart's Vendors and Purchasers, which see for some valuable observa- 6th ed. p. 32i. lions on the nature and preparation (') Be Ford and Hill, 10 Cli. Div. of Abstracts. 371. 80 BEAL FBOPERTr. [Book I. the law," said Lord Justice James, " a vendor is bound to furnisli an abstract of title ; and upon the requisition of the purchaser, to verify it or complete it on any point on which it appears defective. But if in addition to this questions are to be asked for tlie purpose of negativing the existence of incum- brances, where is the matter to end ? " Is a vendor to be expected to remember every restrictive covenant to which the property is subject ? A person in New Zealand may have occasion to sell his property in haste ; is the sale to be delayed until an answer to this inquiry has been obtained from the antipodes? What is the good of such an inquiry ? Every solicitor knows that he is subject to civil and criminal responsibility if he wilfully suppresses matteis preju- dicially affecting the title. " The purchaser is entitled to say : I have received this abstract ; I presume that you remember the provisions of the Act as to suppressing incumbrances, and that I may rely on the abstract as being complete, and I warn you that you incur criminal liability if it is not so." The Court of Appeal ac- cordingly decided that the vendor was not bound to answer the requisition. The practice has been completely settled by this decision, and though a general requisition as to incumbrances is often made, the vendor's solicitor generally declines to answer it. In addition to ccmsidering the abstract furnished by the vendor and comparing it with the origiaal documents, the pur- Searches, chaser's solicitor procures the statutoiy registers to be searched for such charges and other matters affecting the land as are capable nf being registered. A recent statute (^) has established at tho office of Land Eegistry three registers of this kind, namely, a register of writs and orders affecting land, a register of deeds of arrangement affecting land, and a register of land charges created under the authority of Acts of Parliament. All incumbrances capable of being registered under the Act are to be void as against a purchaser for value unless and until so registered. But writs and orders registered at the central office (under an earlier statute) before the 1st of January, 1889, do not require registration under the Act of 1888, until the expira- tion of the time for which they are so registered at the central office ; and land charges cieated before that date need not be i egis- tered until the expiration of one year after they shall have been C) The Land Charges Eegistra- v. Vice-Registrar of Office of Land tion and Searches Act, 1888 (51 & 52 Begistry, 24 Q. B D. 178 ; Ckiok v. Yict. c. 51), and see Elphinstone and Coolt, 15 P. D. 116. Clark, p. 1, tt seq., and 22. See Beg. Chap. IX.] CONVEYANCE ON SALES. 81 assigned by act inter vivos ; so that it will be necessary to search the earlier registers as well as those established under the Act. The searches at the office of Land Eegistry and at the central Searches. office may be made by the officials upon the requisition of the purchaser or his solicitor ; and a certificate of the result may be obtained. Other searches, e.g., the search for bankruptcies, the search in the county register if the property is situate in Middlesex or Yorkshire, or the search in the Court rolls when the property is copyhold — are made, not officially, but by the purchaser himself or his solicitor. The numbei', nature and extent of the searches to be made will depend in each case on the tenure and quality of the property sold and the nature of the title shown. But the registry office search for writs and orders aifecting land, and the central office search for judgments and pending actions, crown debts, executions, and annuities, are of general application ; and these are commonly referred to as the " usual " searches. Assuming that these preliminary matters have been satisfac- torily disposed of, we may now proceed to consider the form of the conveyance of the property, and it may be pointed out that the costs of the conveyance and of all matters lelating to it fall, in the absence of stipulation to the contrary, on the pur- chaser, but the expense attendant on the execution and examina- tion of the deed by or on account of the conveying parties must be paid by the vendor. The various forms of conveyance, a great authority on the Forms of subject tells us, are :— ™°^_'5'- For freeholds : a grant, an appointment, a feoffment, a bargain and sale, and a covenant to stand seised; for leaseholds an assignment ; for copyholds an assignment, or a release, if the estate be equitable ; and an actual surrender of the land evi- denced by a record of the act on the Court EoUs if the estate be legal Q). Of the five assurances of freeholds, however, only two, the grant and the appointment, are in ordinary use, and they are frequently employed in combination, but it will be necessary to say a few words with regard to such other forms of assurance as are still occasionally employed. See as to lease- holds, jposf, p. 112, et seq. And as to copyholds, see post, p. 184, et seq. (') Davidson, vol. ii. p. 176. The and Personal Property, where the reader who desires a more elaborate learned author gives a very formid- enumeration of the various forma ahle list of common law conveyances, which conveyancing has Proteus-like statutory conveyances, and modes of assumed at various periods of legal alienation of property by matter of history, is referred to Smith's Keal record. VOL. I. G 82 BEAL PBOPERTY. [Book I. Deeds. Appoint- ment. Feoffment. A grant is a conveyance by deed wliich at common law was applicable only to incorporeal hereditaments, which were accordingly said to " lie in grant " as contrasted with corporeal hereditaments which were said to " lie in livery." But by the Act to Amend the Law of Eeal Property, 1845, it was provided that all corporeal hereditaments should, as regards the convey- ance of the immediate freehold thereof, be deemed to lie in grant, as vpell as in livery (^). With regard to a deed (see post, p. 361), it will be sufficient for our present purpose to say that it is a writing sealed and de- livered ; and, in practice, signed also by the party or parties making it, though it is a matter of doubt whether signing as well as sealing is necessary (^). Deeds are of two kinds, indentures and deeds-poll. The in- denture — so called because the top of the parchment or paper was cut in an indented or waiving line, which formerly served as a tally where a similar line was cut on a duplicate of the deed — is a deed made between two or more parties (^). A deed-poll ■ — so called becaiise it is polled or shorn even at the top — is a deed made by one party only. An ajjpointment is a conveyance made in exercise of a power of appointment (as to which, Bee post, p. 175, et seq.). Thus, suppose that certain lands have been limited by will to such uses as A. B. shall by deed or will appoint, A. B. might in exercise of the power so vested in him appoint the property to C. D. and E. F., in fee simple. A feoffment is a conveyance applicable only to estates of freehold in possession ; for it consists in " livery of seisin," that is, a delivery of possession of the land, accompanied by appro- priate words of transfer. At common law an instrument in writing was not required on a conveyance by feoffment; but now, by the Act to Amend the Law of Eeal Property, 1845, it is provided that a feoffment, other than a feoffment made under a custom by an infant, shall be void at law unless evidenced by deed (*). The feoffment, though once commonly employed, was long since superseded by other modes of convey- ance ; and, at the present day a deed of grant taking effect under the Act to Amend the Law of Eeal Property (^), is the form of conveyance usually employed for the transfer of freehold estates in possession. The feoffment is still employed, however, (') 8 & 9 Vict. c. 106, s. 2. (") Cherry v. Hemminfj, 4 Ex. C31. (= ) By 8 & 9 Vict, c.' 106, s. 5, a, deed purporting to be an indenture is to have effect aa such, though not actually indented. C) !S & 9 Vict. 106, s. 2. C) 8 & 9 Vict. 106, s. 3. Chap. IX.] CONVETANOE ON SALES. 83 on a conveyance by an infant under tlie custom of gavelkind (^ante, p. 12 (^)), and sucli a conveyance need not be evidenced by deed. A bargain and sale is a conveyance depending for its effect Bargain upon tbe operation of the Statute of Uses (ante, p. 17). Under it an implied use arises in favour of the purchaser, on payment of the purchase-money ; and to the use thus raised the Statute of Uses annexes the seisin, thus vesting the estate in the pur- chaser (ante, p. 18). A covenant to stand seised, which is a form of conveyance Covenant very rarely employed, is similar in its operation to a bargain and *°/'™'i sale. It consists in a covenant by the party conveying that he will stand seised of the land to the use of another in considera- tion of natuial love and affection to a child or near relation, or in consideration of marriage. The Statute of Uses by annexing the seisin to the use thus declared (see ante, p. 18), vests the estate in the party in whose favour the declaration is made. A deed made in consideration of a sum of money will not operate as a covenant to stand seised. The effect of these two forms of conveyance has been well explained, as follows : — " A bargain and sale enrolled, and a covenant to stand seized, wholly derive their effect from the Statute of Uses ; the first is considered a real contract, by which the bargainor, for a pecu- niary consideration, sells and contracts to convey the lands to the bargainee ; the second is a real covenant by which a person covenants to stand seized to the use of his or her husband, wife, child, or near relation. Neither of those conveyances has any effect at the common law, or independently of the Statute of Uses, in conveying the land from the party selling or covenant- ing to stand seized to those in whose favour they are intended to operate ; so that at common law they have no legal operation, and are merely declarations of trust, binding the land in equity. But the statute attaches on them, and divests the land from the party selling or covenanting to stand seized, and vests it in the persons to whom it is limited " (2). And now having briefly reviewed the various forms in which a conveyance of real property may be made, and the usual pre- liminaries to a purchase, let us consider a little more closely the nature of the deed by which it may be effected. (') Davidson on Conveyancing, custom of gavelkind, p. 2-11. vol ii. Itli ed. p. 177, and see form of {') Sanders on Usls. feoffment made by an infant under 84 SEAL PROPEBTT. [Book I. Parts of a The different parts of a deed, after the words " This indenture," ■ are the date, the parties, the recitals (if any), the consideration (if any), the grant, release, or other operative part, the parcels, i.e. description of the property conveyed, the hahendum, the declaration of uses or trusts, the provisoes, and other explanatory clauses, the covenants (if any), and, finally, the testimonium, commencing with the words " In witness," which connect the contents with the signatures and seals. In deeds-poll the instrument commences, if there be recitals, with the words, " To all to whom these presents shall oome," and if there be no recitals, with the words, " Know all men by these presents," and the date is placed last. Form of The attention of the reader may now be directed by way of convey- illustration to a short form of conveyance in fee simple, which may serve to some extent to bring before his mind the present state of the law. This Indenture made the 1st day of January, 1890. Between A.B., of Egham Hythe, in the county of Surrey, Esq., of the one part, and G.B., of Staines, in the county of Middlesex, merchant, of the other part : Whereas the said A.B. is seised in unincum- bered fee simple in possession of the hereditaments hereinafter expressed to be hereby conveyed : And whereas the said A.B. has agreed with the said G.B. for the sale to him of the said heredita- ments for the sum of £5000. Now this Indenture witnesseth that in pursuance of the said agreement and in consideration of the sum of £5000 upon or before the execution of these presents to the said A.B., paid by the said G.B. (the receipt whereof the said A.B. hereby acknowledges). He the said A.B., as bene- ficial owner doth hereby convey unto the said G.B., All that messuage, or farmhouse and farm, with the several cottages and parcels of land belonging thereto, known as the Manor Farm, situate in the parish of Selborne, in the county of Oxford, and more particularly described in the 1st schedule hereto, and deli- neated in the plan drawn in the margin of these presents, and therein contained within a pink border-line, the said schedule and plan being respectively extracts from the apportionment of the tithe commutation rent-charge for the said parish and from the map therein referred to : To hold all the said premises Unto and to the use of the said G.B., in fee simple. Suppose that A.B. were retaining the deeds, the following acknowledgment and undertaking would be added : " And the said A.B. hereby acknowledges the right of the said G.B. to the production and delivery of copies of the documents specified in the 2nd schedule hereto (which are now in the possession of the Chap. IX.] CONVEYANCE ON SALES. 85 said A.B.) : And. hereby undertakes with the said CD. for the safe custody of the same documents." In witness, &c. The first schedule above referred to (description of premises). The second schedule above referred to (the documents re- tained by the vendor). Let us now endeavour to analyse the various parts of this conveyance, but before doing so, it may be useful to premise for the benefit of the uninitiated, that writings of legal instruments are without punctuation, though the forms contained in the present books are punctuated. Marks of parenthesis are em- ployed, but are disregarded unless consonant with the sense and required by the context. The date is invariably placed at the commencement of the Date. deed, but it is not an essential part of it, and the deed takes effect from delivery. With regard to parties, the rule is that all persons from whom anything is to pass, or who are to enter into any engagement, ought to be parties and execute the instrument. It is, however, provided by the 8 & 9 Vict. c. 106, that the benefit of a covenant contained in an indenture may be taken by a person not named as a party. With regard to the order of the parties, the rule is that Order of those from whom the property passes are placed first, the pafties. premier position of all being conceded to those who convey the legal estate, the next to those who have partial or temporary interests, e.g., second mortgagees, incumbrancers, and the last to those to whom, subject to the preceding incumbrances, &c., belongs the ultimate interest in the property conveyed. Eecitals are the narrative of the facts aad instruments show- Recitals. ing the title and the relation of the parties to the subject- matter, and the motive for the operative parts of the instrument. They are generally divided into narrative recitals, which set forth the facts and instruments, and introductory recitals which explain the motive for the operative parts. As a general rule, recitals in conveyances upon sales, mortgages, exchanges, parti- tions and the like, should be confined to such matters as are required to elucidate the existing condition of circumstances, and the estates and interests and intentions of the parties, excluding such as are merely matters of title which are omitted as irrelevant Q). Where the vendor is owner in fee no recitals are really required, and a conveyance from him might well proceed straight from the parties to the operative part. But even in (') Davidson's Precedeuts, vol. i. 5th cd. jij), 21, 31, 44, 46. 86 SEAL PB0PEBT7. [Book I. sucli a case, a recital, " Wtereas the said (fhe vendor) is seised in fee simple in possession, free from all incumbrances of the hereditaments hereinafter expressed to be hereby conveyed," is not without its uses, and is now not unfreqnently inserted, for it has been decided that under the Tender and Purchaser Act, 1874, s. 2, such a recital in a conveyance more than twenty years old is sufficient evidence of the fact, and no prior abstract of title can be demanded, except so far as the recital can be proved to be inaccurate ; and in such cases a forty years' title (the usual length) is not required (^). Recitals. And here, as we are speaking of recitals, it may be well, though the observation is not altogether germane to the con- sideration of an ordinary conveyance, to direct the reader's attention to the well settled rule that a release of claims, how- ever generally expressed, only extends to matters of which the releasor was cognizant when he executed the release. In pre- paring a deed of this nature, therefore {^), it is essential that full and accurate recitals should be inserted in order to show on the face of the instrument what are the claims to be released. In framing recitals the usual and the safest rule is to recite the necessary assurances and facts in chronological order; and moreover each of them should be recited as an independent matter, " recitals within recitals " being the abhorrence of the conveyancer. The draftsman must bear in mind that he is telling a story ; his business is to make it a clear and accurate one, and to present to the reader, as far as the subject-matter will allow, " a round unvarnished tale." The recitals in a deed may on occasion exercise a most mate- rial influence on its construction. The general rule of law on this point has lately been expressed in the following terms : — " If the recitals are clear and the operative part is ambiguous, the recitals govern the construction. If the recitals are am- biguous, and the operative part is clear, the operative part must prevail. If both the recitals and the operative part are clear, but they are inconsistent with each other, the operative part is to be preferred " ('). A recital in a deed in certain circumstances, as it is technically said, " operates as an estoppel," i.e., a party may be held bound not to deny it ; but it will not so operate against a party to the (') BoUon V. London School Board, 829 ; and see as to setting aside 7 Oh, D. 766 ; see, however, some release : Be Garnett. Gandy v. Ma- observations on this case: 1 David. caulay, 31 Ch. Div. 251. 5tl'„e'i„P- llO- C) Ex varte Dawes. In re Moore, C) Tamer t. Turner, 14 Ch. D. 17 Q. B. D. 286. Chap. IX.] CONVETANOE ON SALES. 87 deed in an action not founded on the deed, but collateral to Eecitals. it Q'). The law on this subject has been well summed up as follows : " If a distinct statement of a particular fact is made in a recital of a bond or other instrument under seal, and a contract is made with reference to that recital, it is unquestionably true that as between the parties to that instrument, and in an action upon it, it is not competent for the party bound to deny the recital. But there is no authority to shew that a party to the instrument would be estopped in an action by the other party, not founded on the deed, and wholly collateral to it to dispute the fact so admitted, though the recitals would certainly be evidence " (see, as to Estoppel, post, p. 863). With reference to the next portions of our conveyance, it may Considera- sufBce here to point out that a deed of itself imports considera- *'°°' tion, though of course in a conveyance on sale a consideration is always expressed. Sect. 49 of the Conveyancing Act provides that the word " grant " shall no longer be necessary to convey Grant, tenements or hereditaments, corporeal or incorporeal. Sects. 54 and 55 of the same Act render a receipt in the body of the deed Receipt, sufficient (see as to solicitor producing deed with receipt indorsed in the body of it, post, p. 848). A deed is sometimes delivered to a third party until some condition, ex gr., the pay- ment of money is fulfilled, and is then called an escrow, i.e., a mere scriptum, or writing, and when the condition is fulfilled it dates from the time of execution (2). Formerly, an elaborate form of words, as to " all the estate, right, title," &c., of the conveying party would have been inserted in the deed. The " all the Estate " clause, as it was called, had become so firmly established, that an eminent conveyancer predicted, that though wholly unnecessary, it would hardly be eradicated by less force than an Act of Parliament. The words are now implied by the Conveyancing Act, and the clause is consequently invariably omitted (^). It will be observed that in the above deed covenants for title CoTenauts. are conspicuous by their absence. This is in accordance with the invariable practice of conveyancers, the reason being that in a conveyance for valuable consideration other than a mort- gage when a person conveys, and is expressed to convey, as beneficial owner, the following covenants which were formerly Escrow. Estate clause. (') Ex parte Morgan. Be Simpson, 2 Gh. D. 72. (^) See Walker v. Ware Sailway Co., 35 Beav. 58, where the deed waa delivered by a man to his solicitor to be exchanged against the purchase money. The deed ought to be de- livered to the solicitor as an escrow. (') Sect. 63 of Conveyancing Act, 1881. 88 REAL PBOPEBTY. [Book I. Covenants, inserted in deeds are now implied by the Conveyancing Act, 1881 Q). 1. Eight to convey, viz. that notwithstanding anything by the person who so conveys, or any one through whom he derives title, otherwise than hy purchase for value, made, done, executed, or omitted, or knowingly suffered, he has with the concurrence of every other person, if any conveying by his direction, full power to convey the subject-matter expressed to he conveyed ; 2. For quiet enjoyment ; 3. freedom from incumbrances ; 4. Further assurance. On the other hand, when in a conveyance a person eonvej'ing is not expressed to convey as beneficial owner, or as settlor, or as trustee, or as mortgagee, or as personal representative of a deceased person, or as committee of a lunatic so found by inquisition, or under an order of the Court, or by direction of a person as beneficial owner, no covenant on the part of the person conveying is implied by the Conveyancing Act Q). When a mortgagor conveys and is expressed to convey as beneficial owner, absolute covenants are implied. (See as to covenants in conveyances of leaseholds, post, p. 132). Where the conveyance is by way of settlement (jpost, p. 133, et seq.), the following covenant is implied by a person who conveys, and is expressed to convey " as settlor." That the person so conveying, and every person deriving title under him by deed or act, or operation of law, in his life- time, subsequent to that conveyance, or by testamentary disposition or devolution in law, on his death, will, from time to time, and at all times, after the date of that con- veyance, at the request and cost of any person deriving title thereunder, execute and do all such lawful assurances and things for further or more perfectly assuring the sub- ject-matter of the conveyance to the persons to whom the conveyance is made and those deriving title under them, subject as, if so expressed, and in the manner in which the conveyance is expressed to be made, as by them or any of them shall be reasonably required : When a person conveys, and is expressed to convey, as trustee or mortgagee, or as personal representative of a deceased person, or as committee of a lunatic so found by inquisition, or under an order of the Court, the following covenant, which (') U & 45 Vict. c. 41, s. 7. (^) 44 & 45 Vict. c. 41, s 7, subs. 4. Chap. K.] CONVEYANCE ON SALES. " 89 is to te deemed to extend to every such person's own acts Covenants, only, is implied by the Conveyancing Act : — ■ That the person so conveying has not executed or done, or knowingly suffered, or been party or privy to, any deed or thing, whereby or by means whereof the subject- matter of the conveyance, or any part thereof, is or may be impeached, charged, affected, or incumbered in title, estate, or other- wise, or whereby or by means whereof the person who so conveys is in anywise hindered from conveying the subject- matter of the conveyance, or any part thereof,_in the manner in which it is expressed to be conveyed (i). The Conveyancing Act provides that where in a conveyance it is expressed that " by direction of a person expressed to direct as beneficial owner " another person conveys, then the person giving the direction, whether he conveys and is expressed to convey as beneficial owner or not, shall be deemed to convey and to be expressed to convey as beneficial owner the subject- matter so conveyed by his direction ; and a covenant on his part shall be implied accordingly. The Conveyancing Act also provides with regard to convey- ances by husband and wife that when a wife conveys and " is expressed to convey as beneficial owner," and the husband also conveys and is expressed to convey as beneficial owner, then the wife shall be deemed to convey and to be expressed to convey by direction of the husband, as beneficial owner ; and, in addi- tion to the covenant implied on the part of the wife, there shall also be implied, first, a covenant on the part of the husband as the person giving that direction, and secondly, a covenant on the part of the husband in the same terms as the covenant implied on the part of the wife. Suppose now the conveyance in question instead of being in this extremely simple form were a conveyance of part of a build- ing estate, subject to what are called " restrictive covenants," i.e., covenants not to erect any buildings, except of a particular class. In that case recitals might be inserted that A. B. was seised in fee of the property in question subject to certain restrictive covenants. The conveyance would then be made subject to these covenants, and there would be a covenant by €. D. with A. B. in some such form as follows : — " And the said G. D., for himself and his assigns, covenants with the said A. B. that he, the said G. D., his heirs and assigns, will at all times hereafter observe and perform all the covenants (') 41 & 45 Viot. c. 41, s. 7, subs. 1 (F.). 90 REAL PROPERTT. [Book I. Covenants. \^j the said A. B., and restrictive provisions contained in the said [Indenture of the 10th day of June, 1887,] so far as the same covenants and provisions relate to the said premises hereinbefore granted, and will keep the said A. B. and his estate indemnified against all actions, proceedings, costs, damages, claims, demands, and liability under or in respect of the said covenants and provisions, or any of them." This covenant in the deed, it will be observed, is simply made by A. B. with C. D. The reason is, that a great many words which were under the practice before the let of January, 1882, invariably inserted in all covenants, are now rendered wholly unnecessary by the following provisions : The Conveyancing Act, 1881, provides with regard to cove- nants made after the commencement of the Act, 1st Jan. 1882 : — That, (1) a covenant relating to land of inheritance, or de- volving on the heir as special occupant, shall be deemed to be made with the covenantee, his heirs and assigns, and shall have effect as if heirs and assigns were expressed. (2) A covenant relating to land not of inheritance, or not devolving on the heir as special occupant, shall be deemed to be made with the covenantee, his executors, administrators, and assigns, and shall have effect as if executors, administrators and assigns were expressed. It is also provided by the same Act with regard to covenants, contracts, bonds or obligations, made or implied after the com- mencement of the Act : — That, (1) a covenant and a contract under seal, and a bond or obligation under seal, though not expressed to bind the heirs, shall operate in law to bind the heirs and real estate, as well as the executors and administrators and personal estate of the person making the same, as if heirs were expressed. The section, however, applies only if and as far as a contrary intention is not expressed in the covenant, contract, bond or obligation, and shall have effect subject to the terms of the cove- nant, contract, bond or obligation, and to the provisions therein contained (}). When independent of the statutory covenants implied under the Conveyancing Act, by the use of certain words, will cove- nants be implied in deeds? This question was discussed in a recent case where the law was stated as follows : " Much the safest rule in such cases to follow, when there is any reasonable doubt, whether the parties did intend to enter Q) Conveyancing Act, 1881, sects. 58 & 59. tion. Chap. IX.] CONVEYANCE ON SALES. 91 into a covenant sucli as is sought to be implied here, is to look at the deed and at the circumstances under which the deed was made ; and if you find that there is no such covenant in the deed, and that there has been no bad faith on the part of those against whom it is sought to imply such a covenant, the Court ought to be extremely careful how it implies such a covenant in a well-considered deed, when there are no words whatever which express that covenant in any way " (}). The last part of the deed is the testimonium. A change of Attesta- considerable importance is here introduced by the Conveyancing Act, 1881, sect. 8, which provides that " On a sale the purchaser shall not be entitled to require that the conveyance to him be executed in his presence, or in that of his solicitoi-, as such ; but shall be entitled to have, at his own cost, the execution of the conveyance attested by some person appointed by him, who may, if he thinks fit, be his solicitor " (^). It may here be pointed out that it is provided by sect. 53 of the Conveyancing Act that when a deed is expressed to be sup- plemental to a previous deed or directed to be read as an annex to it, it is to be read as if it was made by indorsement on the previous deed or contained a full recital of it. Having thus considered the various portions of an ordinary conveyance, we may proceed to notice briefly some points of importance with regard to the rules which the draughtsman ought to bear in mind in undertaking the task of its prepara- tion. The last portion of our conveyance contains the acknowledg- Acknow- ment and undertaking for the custody of title deeds which is ancfunder- now employed under sect. 9 of the Conveyancing Act, 1881, taking, where the vendor retains possession of documents. The object of legal instruments, as Mr. Davidson tells us, is to Object of " bear witness," to preserve testimony clearly and distinctly '"Sal in- respecting the matters to which they relate. The business of the draftsman is to state the intention of the parties in clear language (^). The learned author from whom we have just quoted has laid down a series of rules for the guidance of draftsmen, which may be here usefully summarized. (') In re Bailway and Electric the princiiial documents ■whioli re- Applianees Co., 38 Ch. D. 597. quire attestation for their validity, (^) It must be borne in mind that wills, warrants of attorney, cognovits, attestation is only requisite when bills of sale, and under the Mortmain required by an instrument creating a and Charitable Uses Act, 1888. power or by statute : Seal v. Claridge, (^) Davidson, vol. i. p. 15. 7 Q. B. D. 516. The following are 92 REAL PROPERTY. [Book I. PracticRl rules for convey- ancing. 1. Before the draft is commenced, the whole design of it should be conceived. It must, however, be borne in mind that the details of the plan will generally require to be altered more or less in the progress of the work, and that of course if the original design be found seriously wrong it must be altered, and the draft then be made the subject of a thorough revision. A practical rule, which is also of value, is suggested by another writer on Conveyancing (}), viz. that it is a good plan for the draftsman to prepare a " skeleton draft " before he begins to draw^ in reality. Ex. gr. Parties. A. B. 1st, C. D. 2nd, E. F. 3rd. Eecitals. 1. Mortgage in fee. 2. Contract for sale, &c. 2. Nothing should be omitted or admitted at random; all that is introduced should have an object for its introduction, and should be conducive to the general design, and only the essential parts of instruments should be recited. Particular attention is also directed to one branch of this rule, viz., that necessary consequences which inevitably flow from facts previously mentioned should not be expressed, ex. gr., a statement that " A. B. died leaving C. D. his heir-at-law" is quite sufficient, and should not be marred by the addition of the wholly unnecessary words " him surviving," because C. D. could not possibly be A. B.'s heir-at-law unless he survived. Again, Mr. Davidson tells us statements of negatives should be omitted. 'I'hus it is wholly superfluous to add to the words " to A. B. and C. D. as tenants in common " the words " and not as joint tenants." 3. The order of the draft should be strictly logical, i.e. the recitals should be as far as possible connected with each other in logical order, and the consequences effected by the operative parts should follow in natural course upon the recitals and upon each other. 4. The ordinary and accustomed forms of instruments and technical language should be employed. 6. The language should be precise and accurate, so that by the use of technical language, legal phraseology, and clear and connected expressions, there may be no ambiguity. Eeal accuracy and precision, says Mr. Davidson, in con- clusion, consists not only in the use of apt words, but in the omission of superfluous phrases, the avoidance of tautology. (') ElphinstoDe on Conveyancing. Chap. IX.] CONVEYANCE ON SALES. 93 correct references, and a strict adherence to the rules of grammar Q-). Notice. Notice. It will be here desirable in connection with the subject of purchases to draw attention to the extremely important change with regard to the doctrine of constructive notice introduced by the third section of the Conveyancing Act, 1882, which came into operation on the 1st of January, 1883, and, with a saving clause as to pending actions, applies to purchases made either before or after the commencement of the Act. This section provides that — • (1) A purchaser shall not be prejudicially affected by notice of any interest, fact, or thing, unless : — (i.) (2) It is within his own knowledge, or would have come to his knowledge, if such inquiries and inspections had been made as ought reasonably to have been made by him ; or (ii.) In the same transaction, with respect to which a ques- tion of notice to the purchaser arises, it has come to the knowledge of his counsel, as such, or of his solicitor or other agent, as such, or would have come to the know- ledge of his solicitor, or other agent as such, if such inquiries and inspections had been made, as ought reason- ably to have been made by the solicitor or other agent. (2) This section shall not exempt a purchaser from any liability under or any obligation to perform or observe any covenant, condition, provision or restriction contained in any instrument under which his title is derived, mediately or im- (') Davidson on Conveyancing, 6th ed. p. 10). 5th ed. vol. ii. p. 20. The various (") See note in Gierke and Brett's qualifications of a conveyancer are Conveyancing Acts, 2nd ed. p. 20, well stated in an ancient treatise, as where it is pointed out that the line follows : — " He that will arrive at any of succession of the authorities having perfection in conveyancing must be been broken by this section, the well acquainted with the diversities Courts will be much slower to impute of the limitation of estates in fee tail, constructive notice to a purchaser ; for life, &c., as also with the quali- and attention is directed to several tiesthereof as joint tenancy, &c., and cases which would almost certainly the incidents, rents, conditions, and be decided differently if they came the like, and indeed he ought to now before the Court. The effect of be well skilled in the Institute and the repeal of the former Yorkshire Reports. And yet unless he can make Registry Acts by the Yorkshire a, due application of his notions. Registries Act, 1884 (47 & 48 Vict, unless he knows how to frame and c. 54) is to make the priority of fit these materials suitable to kia assurance depend on the date of intended design, he will rather be ex- registration, and the doctrine of ploded as an unmethodical blunderer notice, actual or constructive, has no than esteemed a neat conveyancer." application : Clerke and Brett, 3rd The Conveyancer's Assistant, pub- ed. p. 248. lished 1702 (cited Davidson, vol. i. 94 EUAL PBOPERTT. [Book I. mediately, and such liability or obligation may be enforced in the same manner and to the same extent as if this section had not been enacted. (3) A purchaser shall not by reason of anything in this section be affected by notice in any case where he would not have been so affected if this section had not been enacted. Notice. Where a purchaser or lessee has notice of a deed relating to and forming part of the chain of title, he is regarded by the Courts as having notice of the contents of the deed. In a well- known case on this subject, a lady took a lease of a plot of ground, for seven years, for the purposes of an Art College, and proceeded to erect a studio upon it. The lease contained an express provision that she should be at liberty to erect the studio, but as the conveyance under which the lessor took the property contained a covenant that private dwelling houses only should be erected upon it, she was restrained by injunction from proceeding with the construction of her studio. The change in the law by which under the Vendor and Purchaser Act, 1874 (jpost, p. 114), an intending lessee or assignee cannot call for the lessor's title has made no difference in this respect. " Formerly," said Jessel, M.E., in delivering judgment, " if the lessee had expressly stipulated not to look into his lessor's title it would not have affected constructive notice. The Vendor and Purchaser Act now makes it necessary for an intending lessee to bargain that the lessor should shew a title : You may bargain to shut your eyes, but if you do wilfully shut your eyes, whether as a bargain or not, you must be liable to the consequences of shutting your eyes. If, therefore, the lessee had formerly expressly bargained to take a lease without looking into the lessor's title, the lessee would have been bound by constructive notice, and now, if the lessee says nothing, it is exactly the same as if formerly he had bargained expressly not to look into the lessor's title " Q). Notice is either " actual notice " or " constructive notice," or, as it has been called, " imputed notice," i.e. " evidence of notice the presumption of which is so violent, that the Court will not even allow of its being controverted " (2). " If a man has notice that there is a deed or document, and at the same time has notice that that deed or document is either entirely worthless or does not affect the property with which he is going to deal, he is put so completely off his guard that a (■) Fatman v. Earland, 17 Ch. D. Q) Plumb v. Fluitt, 2 Anst. 438. 353. Chap. IX.] CONVEYANCE ON SALES. 95 Court of Equity does not treat him as fixed witli knowledge of the document or the effect of it " Q). The present law with regard to constmotive notice was Construe- much considered in a case decided in ] 886 {^). In that case ^'^"^ notice. Chitty, J., said " that the Act was clearly intended for the pro- tection of purchasers to some extent — the question was to what extent — against that refined doctrine of imputed notice which had been found to work very grievous injustice to honest men, the notice being implied in a very refined manner, and brought home to a man who knew nothing about the matter, and who found that though he had acted perfectly honestly, he was postponed by reason of the doctrine of the Court." " Under the former law," the judge went on to say, " a solicitor might be employed who had had a considerable number of other trans- actions, and amongst them might have had a dealing with the particular estate which was under sale. He might or might not have a good memory, but according to the doctrine of that law notice was imputed to the client if there was such a distance only between the former transaction and the present trans- action in which he was engaged as left the Court under the impression — it could not be much more than an impression — that the solicitor had actually remembered the former trans- action ; and in that way knowledge was imputed to the solicitor, and then through the solicitor notice was imputed to the client. The present law is as follows : There must be something which comes to the knowledge of the solicitor as such, and in the transaction. Every word of the section requires careful weigh- ing, and the result is (1) that it must be in the same trans- action ; (2) the matter must come to his knowledge, and (3) must come to the knowledge of the solicitor as such, viz., as solicitor for the purchaser or mortgagee." It may here be pointed out that a deed that is not duly Stamps. stamped cannot be given in evidence, except upon payment of the proper stamp duty, together with certain pecuniary penal- ties. The law as to the stamp duties on deeds is contained in the Stamp Act, 1870, as amended by the Customs and Inland Eevenue Acts, 1888 and 1889 (s). An important section (sect. 20) of the Act of 1888 which may here be noticed, enacts that " every condition of sale framed (') Williams v. Williams, Yl Ch. D. 991, and authorities collected, Clerlre 437. and Brett's Conveyancing Acts, 3rd (^) Be Cousins, 31 Ch. D. 671 ; and ed. p. 243, et seq. see Earlnf Gainshoroughv. Watcomhe (') ?yA & 34 Vict. c. 97; 51 Vict. Term Coita Clay Co.,'54 L. J. (Ch.) c. 8 ; 52 Vict. cc. 7 and 42. 96 BEAL PROPEBTT. [Book I. with the view of precluding objection or requisition upon the ground of absence or insufficiency of stamp upon any instru- ment executed after the passing of this Act, and every contract, arrangement, or undertaking for assuming the liability on account of absence or insufficiency of stamp upon any such instrument, or indemnifying against such liability, absence, or insufficiency, shall be void." ( 97 ) CHAPTER X. Foundation of doctrine. Mortgages. A mortgage, says Mr. Davidson, may be considered for the Definitioc. " ordinary purposes of conveyancing " as a plerige of real or personal estate, evidenced by deed, for securing the payment of money. A somewliat fuller general description is that a mort- gage is an assurance or pledge of, or charge upon, property, real or personal, for an antecedent, present, or future debt or loan, as security for, and redeemable on, the payment of it C-). " What- ever property, personal or real, is capable of an absolute sale may be the subject of a mortgage " (2). " The equitable doctrine as to mortgages," as was stated in a very recent case (^), " and more especially that part of it which refers to the right to redeem, is founded in the first instance on what is usually called a legal mortgage, that is to say a con- veyance of land in fee by the mortgagor to the mortgagee, with a proviso defeating that conveyance if a certain sum with interest is paid by a certain time. At the end of that time, the money not having been paid, there is an absolute estate in law. But the Court has held from the earliest times that the real contract between the parties is not one of vendor and purchaser, but that it is a security for money and the interest upon that money ; and that, if that money and interest be paid, then the right of the grantor is to have back his property in exchange for the money and interest. The Court of Equity gives effect to what it sees to be the real contract between the parties, though it be not expressed on the face of the instrument. That has been extended to all sorts of mortgages, charges, and incumbrances ; but the whole of the law on it is founded upon that one prin- ciple arising out of the mortgage in fee." (*) " The Couit of Equity " (said the Court of Appeal, upholding (') Davidson, Conveyancing, 4th ed. vol. ii. Part ii. p. 1 ; Watson's Comp Eq., 2nd ed. p. 686. (^) Story's Equity Jurisprudence, p. 1021. (=) Tarn v. Turner, 39 Ch. D. 456 ; 58 L. T. (N.S.) 558. VOL. I. (■') A mortgage has been defined, (see Coote on Mortgages, 5th ed. p. 1), "to be a debt by specialty, secured by a pledge of lands, of which tlie legal ownership is vested in the creditor, but of which in equity, the debtor and those claiming under him 98 BEAL PBOPEBTY. [Book I. the judgment from which we have just quoted) " always says :— What is the real contract? When it is a mere security for money, and when the money is tendered with interest, then we direct the mortgagee to divest himself of the legal estate, and not to insist on such legal rights as he has." The richt of the mortgagor to have his estate back again on payment'^of the amount owing to the mortgagee is called his " equity of redemption." Fraudulent A statute of William & Mary provides that if any person, mortgages, j^aving once mortgaged, shall again mortgage, and shall not dis- close the former mortgage to the second mortgagee, he shall have no equity of redemption against such second mortgagee, and the second mortgagee shall hold the land freed from the equity of redemption, and as fully as if his mortgage had been an absolute purchase. The statute, being of a penal character, is construed strictly, and accordingly neither an equitable mortgagee by deposit of title-deeds, nor a mortgagee under a deed in the form of a further charge falls within its provisions Q-). A lono'-established principle of the law is embodied in the maxim " once a mortgage always a mortgage." The rule " never to be transgressed " is, that a mortgagor never by any contract made at the time of the mortgage gives up his right to redeem or fetter the right in any way Q). Another and analogous principle is that a man shall not have interest for his money and a collateral advantage besides for the loan of it, or clog the redemption with any bye agreement (^). It is, however, often stipulated, in mortgage deeds especially, when the mortgage money is of large amount, that the loan shall continue for a certain period, e.g., seven years, for although the law will not allow a mortgagor to be precluded from redeeming remain tbe actual owners, until de- implied transfer of property (other- barred by judicial sentence, by legis- wise than by mere delivery or pawn- lative enactment, or their own laches." ing), as a pledge for the payment of It has been pointed out, Davidson, a debt, or performance of an obliga- vol. ii. Part ii. p. 2, note (1), that tion." these words are rather a description (') 4*5 Wm. & M. c. 16 ; Ken- of the type or standard form of mort- naird v. Futvoye, 2 Giff. 81. gage than a definition, and that (1) a (^) Marquis of Noiihampton v. mortgage debt must not necessarily Folhck, 45 Ch. X). 190. See notes to be a specialty debt, as only a simple Howard v. Harris, 2 White & Tudor, contract debt is implied, unless there where the rule is spoken of as an is a bond or covenant for repayment ; exception to the general principle (2) that it excludes mortgages of modus et conventio vincunt legem. personal estate ; and (3) that it does (=) Eyre v. Hughes, 2 Ch. D. 148 ; not apply to second mortgages or James v. Kerr, 40 Ch. D. 449 ; and see mortgages of equitable interests. The Mainland v. Upjohn, 41 Ch. X>. 126, true definition of a mortgage, says where the mortgagees' commissioner Mr. Davidson, " must include every bonus was allowed, case in which there is an actual or Chap. X.] MOBTGAGJSS. 99 altogether, yet he may be precluded from redeeming for a fixed period, such as five or seven years (i). It is a long-established rule that a mortgagee is entitled to Notice to six months' notice before he can be paid oif in order that he '"*■*' may be able to look out for another investment for his money. A mortgage of freeholds is usually made by a conveyance in Freeholds, fee simple, or of such other interest as the mortgagor has in the premises, but it may be made by demise for a term of years (2). Mortgages of leaseholds are effected either by assignment of Leaseholds. all the term and interest of the mortgagor, or by demise, i.e. by underlease for all the term except the last day, or last (usually three) days of the term. The latter course should generally be adopted vs^here the rent reserved by the lease is more than nominal, or' the cove- nants are onerous, as the assignment renders the mortgagee liable to the payment of the rent and performance of the cove- nants. If, however, the liability for rent, and in respect of covenants is trivial, a mortgage by assignment is the prefer- able form (^). Where a mortgage comprises buildings it is desirable gene- Insurances, rally to insert a covenant by the mortgagor that he will insure the premises to a certain amount, and that he will on demand produce the policy and receipt to the mortgagee (*). A mortgage of copyholds is usually effected by conditional Copyholds. surrender entered on the Court rolls of the manor, i.e. by a surrender subject to a condition for making the surrender void on payment of principal and interest on a given day. The mortgagee is seldom admitted, as such admission would entail the expense of fines, fees, and liability to the payment of rents and heriots, and to the performance of customary services; as well as the necessity of re-admission on the mortgage being paid off". The mortgagee runs no risk by adopting this course, as the admittance when made relates back to the surrender on which it is founded, and he cannot, therefore, be prejudiced by the previous admittance of any subsequent surrender. On the repayment of the mortgage-money, the mortgagee gives an acknowledgment called a warrant of satisfaction to the steward to vacate the surrender, and a receipt for the mortgage-money is endorsed on the deed. (') Per Jessel, M.K,, Teevan v. almost universally abandoned. Smith, 20 Cli. D. 724. (=>) See as to 'liability for rent : O Coote on Mtrrtgagea, 5tli ed. Johnson v. 11'7W, 44 Ch. D. 146. p. 243. The mortf^age by the owner (') Prideaux, 14th ed. vol. i. p. 480. in fee for a long term of joars is now 100 REAL PBOPEETT. [Book I. Jfortgages Tte following short forms will serve to illustrate the mode holds " ^■'^ which mortgages of freeholds and leaseholds are effected : — - This indenture made the 10th day of January, 1890. Between A.B. of in the county of of the one part, and CD. of in the county of of the other part, witnesseth that in consideration of the sum of £ now paid to the said A.B. hy the said CD. the receipt whereof the said A.B. hereby acknowledges, the said A.B. hereby covenants with the said CD. to pay to him on the 10th day of July, 1890, the sum of £ with interest thereon in the meantime at the rate of per cent, per annum : And also so long after that day as any principal money shall remain due under this mortgage to pay to the said CD., interest thereon at the same rate by equal half-yearly payments on the day of and the day of in every year. And this indenture also witnesseth that for the consideration aforesaid the said A.B. hereby as beneficial owner conveys unto the said CD. All that &c., to hold all the premises unto and to the use of the said CD., in fee simple, subject to the proviso for redemption herein- after contained : Provided always that if the said A.B., his heirs, executors, administrators, or assigns, shall on the said 10th day of July, 1890, pay to the said CD., his executors, administra- tors, or assigns, the sum of £ and interest thereon at the rate aforesaid, then the said CD., his executors, administrators, or assigns, will at the request and cost of the said A.B., his heirs, executors, administrators, or assigns, reconvey the premises hereby granted unto the said A.B. , his heirs or assigns, And the said A.B. hereby covenants with the said CD. that he the said A.B. will at all times during the continuance of this security keep the messuages and buildings now existing or hereafter to be erected on the premises, hereby conveyed, in proper and substan- tial repair and insured against loss or damage by fire, in the sum of £ at the least, and will pay all premiums and sums of money necessary for such purpose on the first day on which the same respectively ought to be paid and will on demand produce to the said CD., his executors, administrators, and assigns, the policy or policies of such insurance and the receipt for every such payment : And also that if default shall be made in keep- ing the said premises so repaired or insured, it shall be lawful for the said CD., his executors, administrators, and assigns, to enter into and upon the said premises and put the same into proper and substantial repair, or (as the case may be) to insure and keep insured the said premises in any sum not exceeding £ , and that the said A.B., his executors, administrators. Chap. X.] MORTGAGES. 101 or assigns, will on demand repay to the said CD., his executors, administrators, or assigns, all moneys expended for either of the aforesaid purposes by him or them with interest thereon at the rate aforesaid from the time of the same respectively, having been advanced or paid, and that until such repayment the same shall be a charge upon the said premises hereinbefore expressed to be hereby conveyed. Suppose now that the property mortgaged was leasehold. Mortgages The lease is iisually recited formally, and the parcels set out in ^01(1^'^" the recital ; but, as pointed out by Mr. Davidson, this is only necessary when it is required to show who the lessor is. Let us suppose that it is considered desirable to mortgage without reciting the lease in this case (i). The form might proceed as follows : — That, for the consideration aforesaid, the said A.B. hereby demises and, as beneficial owner, conveys unto the said CD. All that, &c. To hold all the premises hereby demised unto the said CD., his executors, administrators, and assigns, fur all the residue now unexpired of a term of years, from the day of , 188 , therein created by an indenture of lease, dated the day of , 188 , and made between , except the last three days of the said term, Subject to the pro- viso for redemption hereinafter contained. And the said A.B. declares that he and his executors, administrators, and assigns will henceforth stand possessed of the reversion hereby excepted out of the said term in trust for the said CD., his executors, administrators, and assigns, and to assign and dispose of the same as he or they shall from time to time direct, subject to such right of redemption as may for the time being be subsist- ing by virtue of this mortgage. And the said A.B. hereby irrevocably appoints the said CD., his executors, administrators, and assigns, and every of them, and his or their nominee or nominees, the attorney or attorneys of him the said A.B. in his name and on his behalf at any time when they or he shall think fit to assign the said excepted reversion to the said CD., his executors, administiatois, or assigns, or as he or they shall direct, subject to such equity of redemption (if any) subsisting as aforesaid, and to execute and do all deeds, instruments, and things which may be necessary or proper for that purpose. A clause which was formerly much in use in oases of what Attorn- were called residentiary mortgages, that is, where the mortgagor ™^°* continued in occupation of the mortgaged property, was an (') Davidson, vol. i. Part ii. p. 212; Part ii. p. 118; and see Me Gee, 24 Q. B. D. 65, 67. 102 REAL PROPERTY. [Book I. attornment clause by which the mortgagor became tenant to the mortgagee at rent equal to the interest so as to give tlie mortgagee the power to distrain for the interest as rent. Since the Bills of Sale Acts, 1878 and 1882, however, this clause is not unfrequently omitted Q-~). Attention may now be directed to the various kinds of mort- kinds of mortgages. Various An " equitable mortgage," whether of real or personal property, may be created by making a mortgage subject to a prior legal mortgage ; by charging the property without a conveyance ; or by an agreement to execute a legal mortgage. It may also be created (and this is the transaction to which the term " equitable mortgage " is most usually applied), by deposit of title-deeds or copies of Court rolls in the case of copyholds, either with or with- out a memorandum of the terms of the deposit. It was decided by Lord Thurlow in Russell v. Russell (^), that the provisions of the 4th section of the Statute of Frauds {post, p. 376), do not in- terfere with the validity of the transaction. A deposit may create a legal mortgage, " though there be not one word spoken at the time," but a parol agreement to deposit deeds unaccom- panied by any actual deposit is not an equitable mortgage. (^) It was established by a well known decision in the House of Lords, that if a mortgage is made to secure a specified sum and future advances, and then a subsequent mortgage is made, and notice thereof given to the first mortgagee, the first mortgagee will not be entitled to priority over the second mortgagee, in respect of any sums which he advances after the notice (''). A form of mortgage which is still existent, is that which is called the Welsh mortgage ; there is no covenant for payment of mortgage debt, the mortgagee has no power to compel redemp- tion or foreclosure, but the mortgagor may redeem at any time. The mortgagee meanwhile, retaining the profits without account in lieu of interest (^). Q) Be Willis, 21 Q. B. D. 384; was held, reversing the Court of Mumfm-d v. Collier, 25 Q. B. D. 279. Appeal, 31 Ch. D. 19, that this doc- (2) 1 Bro. C. G. 269, followed by trine applied, tlio same judge in Feaiherstone v. (=) Howell v. Frice, Free. Ch. 423. Fenwiok. Harford v. Carpenter, 1 See as to the Vivum Vadium and Bro. C. C. 270, note. Mortuum Vadium (both now obso- (=) See further as to equilable lete), and how they differ from the mortgage : Coote on Mortgages, Welsh mortgage : "Coote on Mort- 5th ed. p. 336, et seq. ; Watson's Com- gage, 5d. ed. p. 5. It has been pendium of Equity, p. 690 et seq. ; decided that tlie Court will, if the Fisher ou Mortgages, 4th ed. p. 49. amount of rents and profits be ex- C) Hopkinson v. Rolt, 9 H. L. 0. cessive, order an account, notwith- ^\i ; 3,uA see Bradford Banking Co. standing the agreement that the V. Briggs, 12 App. Cas. 29, where it rents and profits are to be taken in Chap. X.] MOBTGAOSS. 103 The nature of anotlier class of mortgage security was rauch considered in a case which came before the Court of Appeal in 1879. In this case there was, as Sir George Jessel said, what is even now by no means an uncommon form of mortgage, and what was at the beginning of this century a most common form of mortgage, viz., a conveyance reciting the loan and the intended security, and then a grant or release of the land to the mort- gagee upon trust when he thought fit to sell, or to sell or mortgage, with a declaration of the trusts of the money, and a further declaration that whenever he chose he might enter and take the rents and apply them in keex)ing down the interest Q). The Court of Appeal decided that this security was intended by the parties and was to be treated by the Court as simply a mortgage and nothing more. A transaction which must be carefully distinguished from a Condi- mortgage, is that which is called a " conditional purchase," ^^^^^ viz., a sale by the owner of property to another person with an option of repurchasing at a particular time. The rule of the Court is, in the case of such a conditional purchase, to hold the vendor strictly to his contract. The inadequacy of the con- sideration, the value of the property, the taking by the grantee of immediate possession under the conveyance, the payment by grantee or by grantor, of the costs of the transaction or of insur- ance and other outgoings of the property, are circumstances, each or all of which with other circumstances will be taken into consideration in deciding whether the transaction is a mortgage, but they are not conclusive on the point (2). A mortgagee has a variety of remedies for the purpose of Mortga- recovering money which he has lent, and, subject to certain ^f^ I'eme- limitations, he may pursue all his remedies concurrently. He may (1), foreclose ; (2), apply to the Court for a judgment or order for sale; (3), he may sell under a power of sale, either expressly given by the mortgage deed, or conferred upon him by the provisions implied by Lord Cranworth's Act (23 & 24 Vict. c. 145), or the Conveyancing Act ; (4), he may enter into posses- sion ; but this course is open to many disadvantages ; (5), he may sue on the personal covenant for his principal and interest ; lieu of interest, and Mr. Coote ex- p. 325. presses an o]pinion that at the present Q) In re Alison. Johnson v. Motm- day the Court would, in every in- seij, 11 Ch. D. 284, explaining Lock- stanoe, order an account against the iiig v. Parker, L. K. 8 Ch. 30. mortgagee of the rents and proiits, (^) Fisher on Mortgages, 4th ed. whether the value was excessive or p. lU. not: Coote on Mortgages, 5th ed. 104 REAL PROPERTY. [Book I. but a mortgagee who sues on the oovenant and obtains full pay- ment cannot have judgment for foreclosure; but if he only recovers part he may foreclose for the balance. Tf, on the other hand, the mortgagee gets his foreclosure judgment first and then sues on the covenant, he thereby " opens the foreclosure," as it is said, and gives the mortgagor a fresh right to redeem. If the mortgagee, having foreclosed, sells, and thus disables himself from restoring the property, he will be prevented from bringing an action on the covenant (^). In a case which came recently before the Court of Appeal, a mortgage contained a covenant to pay at the expiration of six months, with a power of sale in the usual form, and a proviso that the power should not be executed nntil after notice and three months' defanlt. The deed also contained the usual clause that, upon any sale purporting to be made in pursuance of the power, the purchaser should not be bound to inquire whether the case mentioned in the power of sale had happened, or whether any de- fault had been made in payment of any prin'cipal or interest at the time appointed for payment, or as to the propriety or regu- larity of such sale, and that, notwithstanding any impropriety or irregularity whatsoever in any such sale, the same should, so far as regarded the safety and protection of the purchaser, be deemed to be within the power, and be valid and effectual accordingly. Two months after the date of the mortgage the mortgagee gave notice to the mortgagor to pay off the debt, and five months after the notice sold. The mortgagor then brought an action to set aside the sale, and the Court decided in his favour. The principle upon which the Court proceeded was that a proviso relieving a purchaser under a power from inquiring as to the regularity of a sale does not protect a purchaser who knows of an irregularity which cannot have been waived (}). A new right has been conferred upon mortgagors and incum- brancers, by the Conveyancing Acts of 1881 and 1882. Section 15 of the Conveyancing Act, 1881, which is retrospec- tive in its operation and is to have effect, " notwithstanding anv stipulation to the contrary," provides that where a mortgagor is entitled to redeem he shall by virtue of that Act have power to (') Falmer v. Hendrie, 27 Beav. London v. Ingram, 16 Oh. D. 53; 349 and 28 Beav. 341 ; Loclthart v. Noyes v. Pollock, 32 Ch. D. 53 ; and Sardy, 9 Beav. 349 ; Re Burrell, see Tomlin v. Luce, 41 Ch. B. 573, 7 Eq. 399 ; and see Kinnaird v. Trol- varied 43 Ch. D. 191 as to mistake on lope, 39 Ch. D. 636. See, as to mort- sale, gagee in possession : Union Panic of C) Selwynv. GarJif,38Ch. Div.278. Chap. X.] MORTGAGES. 105 require tlie mortgagee, instead of reconveying and on tlie terms on which he ■would be bound to reoonvey, to assign the mortgage debt and convey the mortgaged property to any third person as the mortgagor directs, and the mortgagee shall, by virtue of this Act, be bound to assign and convey accordingly Q-^. The pro- visions of this section do not apply where a mortgagee is or has been in possession. Section 12 of the Conveyancing Act, 1882 {^), provides that the right of a mortgagor under section 15 of the Conveyancing Act, 1881, to require a mortgagee instead of reconveying to assign the mortgage debt and convey the mortgaged property to a third person shall belong to and be capable of being enforced hy each incumbrancer or by the mortgagor, notwithstanding any intermediate incumbrance, but a requisition of an incum- brancer shall prevail over a requisition of the mortgagor, and as between incumbrancers a requisition of a prior incumbrancer shall prevail over a requisition of a subsequent incumbrancer. Sect. 16 of the Conveyancing Act, 1881 — which applies only to mortgages made after the commencement of the Act, but is to have eifect notwithstanding any stipulation to the contrary — provides that a mortgagor, as long as his right to redeem subsists, shall, by virtue of that Act, be entitled from time to time, at reasonable times, on his request, and at his own cost, and on pay- raent of the mortgagee's costs and expenses in this behalf, to inspect and make copies or abstracts of or extracts from the documents of title relating to the mortgaged property in the custody or power of the mortgagee. Before the Conveyancing Act, 1881, in the absence of special powers in the mortgage deed, it was necessary, in order that a proper lease should be granted, that both mortgagor and mort- gagee should concur (^). The Conveyancing Act now provides that a mortgagor of land while in possession may as against every incumbrancer, and a mort- gagee of land while in possession may, as against all prior incum- brancers and against the mortgagor, lease such land in the following manner, viz. : — (i.) An agricultural or occupation lease for any term not exceeding twenty-one j^eavs ; and (■) This provision is a legislative 279; 1 Smith's Leading Oases, 9tlied. reversal of the old law as stated in pp. 546-604 ; Cuthbertson t. Irving, Dumtany.Fatterson,2Fhil3il,3i5. 6 H. & N. 135: 7 H. & N. 742; {") Passed in consequence of Tee- and note in Gierke & Brett's Con- van V. Smith, 20 Oh. D. 724. veyancing Acts, p. 97, et seq., and (^) 44 & 45 Vict. u. 41, s. 18. See see as to compensation to tenants as to previous law : Keech v. JEall, when mortgagee in possession, 53 & Dougl. 21 ; Moss v. Gallimore, Dougl. 54 Vict. i>. 57. 106 SEAL PBOPERTT. [Book I. (ii.) A ■building lease for any term not exceeding ninety-nine years. Every person making a lease under this section may execute and do all assurances and things necessary or proper in that behalf. Every such lease must take effect in possession not later than twelve months after its date; must reserve the best rent that can reasonably be obtained, and the section also contains further elaborate provisions as to the contents of the lease. It is, however, provided that the section is only to have application if and so far as a contrary intention is not expressed either in the mortgage deed or otherwise in writing and its provisions are usually excluded as regards the mortgagor. The Conveyancing Act also gives to a mortgagee, where the mortgage is made by deed, these further powers : — (1.) A power where the mortgage money has become due to sell the mortgaged property or any part thereof, either by public auction or private contract, and either together or in lots. (2.) A power at any time after the date of the mortgage deed to insure and keep insured against loss or damage by fire. (3.) A power, when the mortgage money has become due, to appoint a receiver. (4.) A power, while the mortgagee is in possession, to cut and sell timber, ripe for cutting. But these powers may be excluded if a contrary intention is expressed in the mortgage deed. (^) A mortgagee, however, cannot exercise the power of sale conferred on him by the Conveyancing Act unless and until one of the following conditions has been fulfilled : — (i.) There must be notice requiring payment of the mort- gage money served on the mortgagor or one of several mortgagors, and default made in payment of the mortgage money, or of part thereof, for three months after such service ; or (ii.) There must be some interest under the mortgage in arrear and unpaid for two months after becoming due; or (iii.) There must be a breach of some provision contained in the mortgage deed or in the Act, and on the part of the mortgagor, or of some person concurring in making the mortgage, to be observed or performed, other than and besides a covenant for payment of the mortgage money or interest thereon (^). C) 44 & 45 Vict. i;. 41, s. 19. {^) 44 & 45 Vict. c. 41, s. 20. Chap. X.] M0B1GAGE8. 107 It is provided tliat a mortgagee exercising tlie power of sale conferred by the Act sliall have power, by deed, to convey the property sold, for such estate and interest therein as is the sub- ject of the mortgage, freed from all estates, interests and rights to which the mortgage has prioiity, but subject to all estates, interests and rights which have priority to the mortgage ; except that, in the case of copyhold or customary land, the legal right to admittance shall not pass by a deed under this section, unless the deed is sufficient otherwise by law, or is sufficient by custom, in that behalf (i). In a mortgage of freehold property all things which are annexed to the place are part of the mortgage security, unless a contrary intention can be collected from the deed, and, there- fore, the deed need not contain any mention of the fixtures, (2) and it has been held by the Court of Appeal that words which, in a conveyance in fee by way of mortgage, are sufficient to pass trade fixtures, will have the same effect when the mortgage is of leasehold property by subdemise. The difference between the two cases, however, is that in the mortgage of the leaseholds the absolute property in the fixtures as separate chattels, with the right to remove and sell, will not pass to the mortgagee unless an intention to that effect is apparent on the deed. Brief forms of mortgages of freeholds and leaseholds for years, and of transfers and reconveyances of such mortgages, are sanctioned by the Conveyancing Act, 1881, (^) and these forms may be us-ed, with such variations and additions, if any, as circumstances may require. Each of the instruments in ques- tion must be expressed to be a statutory mortgage, statutory transfer of mortgage, or statutory reconveyance, as the case may be. An important doctrine in connection with the subject of mortgages is that of consolidation. The rule of consolidation of mortgages in its simplest form is this : Where one person has vested in himself by way of mortgage two estates, the property of the same mortgagor, one of these cannot be redeemed without the other; and this is so, whether the two mortgages were Q) 44 & 45 Vict, c 41, s. 21 ; see very materially from the repealed In re Hodson and Howes' Contract, section in Lord Cranworth's Act and 35 Oh. Div. 668, where it was decided the case of Eiatt v. Sillmann, 19 that an equitable mortgagee by deed, W. B. 694, is considered : see, as to ■who sells in exercise of the power of sale under power. Be Tliompson and sale conferred by the Conveyancing Holt, 44 Ch. D. 492. Act, cannot convey the legal estate (^) Southport and West Lancashire vested in the mortgagor. In this Banking Co.Y.Thompson,57 Oh. D. 72. case it was pointed out that the (') 44 & 45 Vict. c. 41, s. 26, and language of the present section differs Sched. III. 108 BEAL PBOPEBTY. [Book I. originally granted to the same mortgagee or, having been originally vested in different persons, Lave by assignment be- come vested in the same person Q-). A mortgagee, in fact, as the law was stated in the House 'of Lords, who holds several distinct mortgages under the same mortgagor, may within certain limits and against certain persons, consolidate them, that is, treat them as one, and decline to be redeemed as to any unless he is redeemed as to all. The reason of the law as to consolidation has been stated as follows : " The principle upon which the Court proceeds is that he who seeks equity must do equity. The Court refused to assist a mortgagor in getting back one of his estates unless he paid all that was due, though secured on a different estate. The mortgagor was coming into a Court of Equity to obtain its assistance in getting back an estate which at law belonged to the mortgagee, and it was held to be inequitable to allow him to get back an estate of more value than the debt charged on it, and to leave the mortgagee with an estate charged with a debt due by the_ mortgagor which might be of larger amount than the value of the estate." Consolida- The law as to consolidation of mortgages applies to all mort- tion. gages whether legal or equitable, whether of real or personal property, and in actions whether for foreclosure or redemption ; but the leaning of the Courts in modern cases has been against anything in the nature of an extension of the doctrine. Thus it has been held that the doctrine does not apply to a case where default has not been made on all the securities in respect of which the right to consolidate is claimed (2). In another case where one of the securities, a lease which had been determined by bankruptcy, had ceased to exist, it was held that there could be no consolidation of the two debts (^). A great change has been introduced into the law with regard to consolidation of mortgages by the Conveyancing Act, 1881 (''). It provides that a mortgagor seeking to redeem any one mort- gage shall, by virtue of the Act, be entitled to do so, without paying any money due under any separate mortgage made by him, or by any person through whom he claims, on property other than that comprised in the mortgage which he seeks to Q) Mills V. Jennings, 13 CIi. D. 639, (=) In re Raggett, 16 Oh. D. 117 ; 646, reported in the House of Lords Gierke and Brett's Conveyancing as Jennings v. Jordan, 6 App. Cas. Acts, 3rd ed. p. 93 ; Brett's Leading 698. Cases in Equity, p. 178. Cummins v. Fletcher, 14 Ch. D. («) 44 & 45 Vict. c. 41, s. 17. 699. Chap. X.] MORTOAOES. -109 redeem. The section, however, only applies if and as far as a contrary intention is not expressed in the mortgage deeds or one of them, and where the mortgages or one of them are or is made after the 1st of January, 1882, the date of the commencement of the Conveyancing Act. Next after the law as to consolidation may be noticed the law "Tackijg.' as to " tacking," as it is technically called. Consolidation relates to several mortgages on different properties. Tacking relates to several mortgages on the same property. In other words con- solidation is the right to throw together several mortgages on several estates. Tacking is the right to throw together several dehts lent on the same estate. In dealing with the question of priorities between the various incumbrancers on an estate two great principles must be borne in mind : (1) that where the equiiies are equal the person who has the legal estate is to prevail, and (2) that, where the equities are in all other respects equal, the incumbrancers rank in order of time according to the maxim, " Qui prior est tempore potior est jure " (^). It is a settled rule that when a mortgagee has the legal estate and makes a further advance, and has no notice of any claim adverse to his title, being a purchaser for valuable con- sideration, he is entitled to tack the further advance to the original mortgage (^). The doctrine, however, has a wider application, and is not limited to cases where the purchaser or mortgagee acquires the legal estate in the first instance or before notice of a prior incumbrance. Thus, suppose a third mortgagee has advanced his money without notice of a second mortgage, he may purchase the first mortgage which gives him the legal estate, tack his third mort- gage thereto and squeeze out the second incumbrancer. The legal estate thus obtained is called the tabula in naufragio (the plank in the shipwreck), for which the incumbrancers are entitled to struggle. The Yorkshire Eegistry Act provides that no priority or pro- tection is in future to be allowed to any estate or interest in lands by tacking it to any legal estate therein, as to lands within the three Eidings of Yorkshire (except as against estates existing prior to this Act), even though the party claiming such priority or protection claims as a purchaser for value without notice (^). Q) Prideaux Conveyancing, vol. i. (=) 47 & 48 Vict, c. 54, b. 16. It must 14th ed. p. 503, citing Fonblanque on be boi-ne in mind that the doctrine of B(}uity; Biee v. Mice, 2 Blew, 73. tacking wns abolished between 7th (,2) Young v. Young, 3 Eq. 805. Aug, ) 874, and 1st Jan. 1876 ; see 110 REAL PROPERTT. [Book I. The statutory covenants implied by the Conveyancing Act in a conveyance by way of mortgage by a person who conveys and is expressed to convey as beneficial owner, are absolute and not limited as in a conveyance for value other than a mortgage ; see, as to the covenants where a person is expressed to convey as mortgagee or trustee (ante, p. 89). In the absence of special agreement, simple interest only can be charged in a mortgage account. Where such mortgage account had been settled on the footing of compound interest with half-yearly rests, both parties wrongly understanding the mortgage deed to require the same, it was held that such settled account might be re-opened Q). Marshal- The doctrine of marshalling in its relation to the subject of '°^' mortgages must here be noticed. If A. has a charge upon White- acre and Blackacre, and if B. also has a charge upon Blackacre only, A. must take payment of his charge out of Whiteacre, and must leave Blackacre so that B., the other creditor, may follow it and obtain payment of his debt out of it ; in other words, if two estates, Whiteacre and Blackacre, are mortgaged to one person, and subsequently one of them, is mortgaged to another person, unless Blackacre is suiScient to pay both charges, the fi.rst mortgagee will be compelled to take satisfaction out of Whiteacre, in order to leave to the second mortgagee Blackacre, upon which alone he can go (^). Law as to In connection with this subject it will be desirable to direct ^ ^ ^^' the reader's attention to the law with regard to pledges of personal property, which has been well summed up in a case which came before the Court of Appeal in 1886, as follows : — " There is another entirely distinct transaction, which was known to the Eomans, and has long been familiar to English law, the transaction of a pawn or pledge Q). In this there must be a delivery of the goods pledged to the pledgee, but only a special property in them passes to him, in order that they note Gierke & Bretfs Conveyancing Q) Per Cotton, L.J.,Tre66 v. ;S'mftA, Acts, 3rd ed. 271 ; see the law as to 30 Oh. D. 192 ; and see Ex ■parte tacking as against various classes of Ahion, L. E. 4 Oh. 168 : Heyman v. persons reviewed and tabulated ; Dubois, L. E. 13 Eq. 158 ; Trumpir Fisher on Mortgages, 4th ed. p. 554, v. Trimper, L. E. 14 Eq. 295. et seq., and p. 575 ; and see Ledbrook (=) Ex parte Hubbard. In re V. Passman, 57 L. J. (Oh.) 855, where Sardwick, 17 Q. B. Div. 690, 698 ; tacking was not allowed ; and as to and see Carter v. Wake, 4 Ch. D. 605, building societies : Eosking v. Smith, where it was decided that the pledgee 13 App. Oas. 582 ; 58 L. J. (Ch.) of personal chattels is not entitled to 367. foreclosure, but only to an order for (') Baniell v. Sinclair, C App. Cas. sale. 181. Chap. X,] MORTGAGES. Ill may be dealt witli by him, if necessary to enforco Lis rigbts — tbe general property in tbe goods remaining in the pledgor. A special property in the goods passes to the pledgee in order that he may be able — if his right to sale arises — to sell them. In all such cases there is at Common Law an authority to the pledgee to sell the goods on the default of the pledgor to repay the money, either at the time originally appointed, or after notice by the pledgee. If the pledge is accompanied by a written document, still the essence of the transaction is that actual possession of the goods should be given to the pledgee." When a purchaser buys property subject to a mortgage debt, he should ascertain by inquiry in writing the existing state of the mortgagee's debt, and it should be stated that the inquiry is made on behalf of an intending purchaser. A purchaser is bound to indemnify the vendor against the mortgage debt, and a covenant to so indemnify him is not necessary (^), but is usual. Q) Waring v. Ward, 7 Yes. 337. ( 112 ) CHAPTEE XI. Leases. Definition. A lease Q) is a conveyance by way of demise of lands or tenements, for life or lives, for years, from year to year, or at ■will. A lease must always be for a less term tlian the party conveying bas himself in the premises ; for, if it be for the whole interest, it is an assignment and not a lease. A tenant from year to year, however, since he has an estate for an inde- finite period may underlet from year to year, or for a term, and it will not operate as an assignment (^). A lease is usually made in consideration of rent, or some other annual recompense rendered to the party conveying the premises — who is called the lessor or landlord — by the party to whom they are conveyed or let, who is called the lessee or tenant. It must be borne in mind that " almost every sort of tene- ments and hereditaments, incorporeal as well as corporeal, advowsons, annuities, corrodies, leases, estovers, ferries, fisheries, franchif^et , rights of common, rights of herbage, rights of way, tithes, goods, furniture, sheep, and other live animals, and almost all else, even of&ces of trust, save those connected with the public revenue and justice, may be let on lease for a term of years, and that leases of live stock are among the most ancient known to the law." The usual leases of course are those of land and houses (^). A lease must entitle the tenant to exclusive possession, for some definite period, of the matter demised. If a mere limited right to use premises is conferred and the property remains under the control of the owner, a licence and not a lease is created. O Woodfall's Landlord and Ten- person to another for an interest less ant, lith ed. p. 129 ; Eedman & in point of duration than the lessor Lyon's Landlord and Tenant, p. 2, cf has therein. A lease may be for seq., where the authorities are col- lives, or for a term of years or from lected. A lease is deiiued by Mr. Pri- year to year, or at will. ' deaux to be an assurance or contract (^) Redman & Lyon, p. 360. whereby land or any other thing (') Eedman & Lyon', p. 68.' Ciipable of being demised is let by one Chap. XL] LEASES. 113 Every lease must contain (1) proper parties ; (2) words of Requisites present demise ; (3) a description of the premises to be demised ; " ''°*^°" (4) the commencement and duration of the term ; and (6) the rent. A date is not necessary, and if there be no date, or an impossible one, as the 30th of February, the instrument operates from delivery. The usual words employed to create a lease are " demise " or " lease," but these words are not essential, and any words which sufficiently express the intention of the parties that one shall divest himself of possession and the other come into it for a determinate time are sufficient to create a lease. By the joint operation of the Statute of Frauds and the Act to Amend the Law of Eeal Property passed in 1845 (8 & 9 Vict. c. 106, s. 3), all leases for more than three years, or at a less rent than two-thirds at least of the full improved value, must be made by deed. An executory agreement for a lease does not satisfy the Statute of Frauds, unless it can be cnllected from it on what day the term is to begin, and there is no inference that the term is to commence from the date of the agreement in the absence of language pointing to that conclusion Q-). A curious result which follows from the provisions of the Statute of Frauds which relate to leases, and agreements for leases, may here be pointed out. A lease not exceeding tliree years from the making thereof where two-thirds improved rent is reserved, may be by parol, but every agreement for a lease must be in writing; where there is no writing, a tenant entering and paying rent is regarded as a tenant from year to year on the terms of the parol lease (^). (') Marshall v. Berridge, 19 Oh. D. a lease for any term, however long, ia 233, overruling Jaques v. Millar, 6 valid, and will be specifically en- Ch. D. 153. forced : see Ball v. Warren, 9 Ves. O The following summary of the 605. somewhat complicated law relating 5. An instrument in writing which to leases and agreement for leases, purports to demise, but which, not taiten from Gierke & Humphrys on being under seal, is void as a lease. Sales of Land, will be found useful, will be construed as an agreement, 1. A lease for a term not exceeding and specific ptrformance will be three years, at a rent of two-thirds of decreed : Parker v. Taswell, 2 De the full improved value, may be made G. & J. 559 : and an action lies for by parol : 29 Car. 2, c. 3, s. 2. not accepting the lease : Brnid y. 2. But an agreement for such a BosHng, 1 B. & S. 371. See also lease is void if not in writing : 29 Tidey v. Mollett, 16 C. B. (N.S.) 298 ; Car. 2, c. 3, s. 4. Hayne v. Cummings, Ibid. 421 ; Rol- 3. When the term exceeds three lason v. Leon, 7 H. & N. 73 ; over- years, or the rent is less than two- ruling Stratton v. Pettitt, 16 C. B. thirds of the full improved value, the 420. lease must be under seal : 8 & 9 Vict. 6. An action may be brought after c. 106, s. 3. the determination of the term for 4. An agreement in writing to grant breach of the stipulations contained VOL. I. I 114 REAL PROPERTY. [Book L The Settled Land Act, 1890 (the provisions of which shall he further considered hereafter (jpost, p. 149) ), provides that a lease for a term not exceeding twenty-one years at the hest rent that can reasonably be obtained without fine, and whereby the lessee is not exempted from punishment for waste, may be made by a tenant for life " by any writing under hand only containing an agreement instead of a covenant by the lessee for payment of rent in cases where the term does not extend beyond three years from the date of the writing " (}). Eestriction The lights of an intended lessee, or purchaser of a lease call for ° °^ underlease, in regard to calling for the title to the rever- titie to the sion, are now limited by the joint operation of the Vendor and reversion. Puj-cJiaser Act, 1874, sect. 2, rule 1, and the Conveyancing Act, 1881, sect. 3, which provide as follows (^) : — " Under a contract to grant or assign a term of years, whether derived or to be derived out of a freehold or leasehold estate, the intended lessee or assign shall not be entitled to call for the title to the freehold." " Under a contract to sell and assign a term of years derived out of a leasehold interest in land, the intended assign shall not have the right to call for the title to the leasehold rever- sion." A., the owner in fee, grants a lease to B. for 999 years. B. grants an under-lease to 0. for ninety-nine years. If C. con- tracts with D. to grant him a lease for twenty-one years, the latter section applies. D. is precluded from calling for the title to the leasehold reversion, i.e. B.'s term of 999 years, as he is, by the Vendor and Purchaser Act, 1874, from calling for the title to the freehold (^). An important question often arises w^hen an agreement for a lease has been entered inio which contains a provision that the lease shall contain " all usual covenants." This subject was in a void deinise : Martin v. Smith, 248. L. K. 9 Ex. 50. (') 53 & 54 Vict. c. 69, s. 7, which 7. Entry and payment of rent also provides that such a lease may imder a void lease or agreement con- be made without notice under sect. 45 stitutes a tenancy from year to year : of the Settled Land Act, 1882, and Doe d. Thompson v. Amey, 12 Ad. & E. notwithstanding that there are no 476 ; Wood v. Beard, 2 Ex. D. 30. trustees of the settlement for the 8. An agreement for a lease, which purposes of the Settled Land Acts, is capable of being specifically per- 1882 to 1890. formed, confers since the Judicature C) 87 & 38 Vict. c. 78, o. 2 ; 44 & Act on both parties the same rights 45 Vict. c. 41, s. 3 (1). as a lease under seal : Walsh v. Lorn- (') See as to the effect of these dcde, 21 Ch. D. 9; and see Coats- provisions, Gierke and Brett's Convey- worth V. Johnson, 55 L. J. (Q.B.D.) anoing Acts, 3rd ed. p. 30, et seq. See 220; Lowther v. Heaver, 41 Ch. D. Jozies v. Watts, 43 CI). D. 570. Chap. XL] LEASES. 115 carefully considered in a case which came before the Court in Usual 1878. In that case an agreement had been entered into to accept ''°^^"™'^- a lease of a dwelling-house in London " to contain all usual covenants and provisoes." The lease contained a covenant not to assign without the lessor's consent, and the Court decided that such a covenant was not a " iisual covenant," and accord- ingly the agreement could not be enforced, (i) Sir George Jessel in delivering judgment, after enunciating and illustrating the proposition that "usual covenants may vary in different generations, and that the law declares what are usual covenants according to the then knowledge of man- kind, but that it could not be said that usual covenants never change," cited thefollov?ing passage from Davidson's Precedents in Conveyancing (^) as containing a statement of the present law on the subject. " The result of the authorities appears to be that in a case where the agreement is silent as to the particular covenants to be inserted in the lease, and provides merely for the lease containing usual covenants, or which is the same thing, in an open agreement without any reference to the covenants, and there are no special circumstances (^) justifying the introduction of other covenants, the following are the only ones which either party can insist upon, namely, — " Covenants by the lessee, " 1 . To pay rent (*). " 2. To pay taxes, except such as are expressly paj-able by the landlord ; " 3. To keep and deliver up the premises in repair (^) ; and, '' 4. To allow the lessor to enter and view the state of repair. " And the usual qualified covenant by the lessor for quiet enjoyment by the lessee. " The usual covenants in an agricultural lease (^) are (1) to pay rent ; (2) to pay taxes (except landlord's taxes) ; (3) to keep and (') Hampshire v. WieJcens, 7 Ch. D. Johnson v. Wild, 44 Ch. D. 146. 555. 1 ') See as to the meaning of good C) Davidson's Conveyancing, 3rd tenantable repair, Proudfoot v. Eart ed. vol. V. pp. 48. 49. 25 Q. B. D. 42. (=) By " special circumstances " (") In an agreement for a lease to Sir George Jessel pointed out are contain " all covenants usual and meant circumstances peculiar to a ordinary in farming leases," the local particular trade, e.g. in leases of custom in respect of such leases may public-houses, where the brewers be looked to : Bell v. Barchard, 21 have their own forms of leases, the L. J. (Ch.) 411 ; 16 Beav. 8, or pre- " usual covenants " would mean the vious leases between the same parties : covenants always inserted in the Eedman & I.yon on Landlord and leases of certain brewers. Tenant, p. 120. C) See as to liability for rent, I 2 116 SEAL PROPERTY. [Book I. Landlord's remedies. Distress. Exemptions from dis- tress. deliver up the premises in repair ; (4) to cultivate the land in accordance with good husbandry ; (5 j to permit the landlord to enter and view the state of repairs ; and, (6) for quiet enjoyment until default. The landlord's remedies for enforcing payment of rent (^ ) are : (1) An action on the covenant express or implied, or for use and occupation. A lease contains not only a reservation of rent, " the yielding and paying clause," as it is called, but also a covenant by the lessee to pay the rent. The express covenant is inserted in order to render the lessee liable during the whole term, whether he assigns or not, as his liability under the yielding and paying clause would only continue until assign- ment. (2) By re-entry on his condition of re-entry if, as usually is the case, such condition exists ; and (3) By distress, which is well characterized by Mr. Smith as " the great and peculiar remedy of landlords immemorially known to the common law." Distress is defined by the same authority as a right to take personal chattels found on the demised premises, for the purpose of obtaining payment of the rent in arrear. When goods are fraudulently removed to avoid distress for rent, a statute of Geo. II. gives landlords power within thirty days to seize them wherever found, unless they are sold bond fide and for value to some person not privy to the fraud. The landlord is also empowered by the same statute to recover double the value of the goods so fraudulently carried off the premises to avoid distress (^). As a general rule, all chattels personal (f) there found, whether the goods of strangers or of the tenant, are liable to be distrained, unless paiticularly exempted. The following things are, however, absolutely privileged from distress : — 1. Animals /eras waiuras. 2. Whatever is in the personal use of a man, as an axe, with which he is cutting wood; or a horse which he is riding. (') See as to landlord's right to claim for arrears of rent under County Courts Act, 1888. s. 160; Sughes v. Smallwood, 25 Q. B. D. 306. O 11 Geo. 2, c. 19. See for the other provisions of this statute and cases thereon, Woodfall's Landlord and Tenant, 14th ed. p. 483, et seq. The statute only applies to the goods of a tenant and not to those of a stranger : Tomlimon, v. Consolidated Credit and Mortgage Corporation, 24 Q. B. D. 135. the action is a penal one, and the plaintiff cannot administer interrogatories to the de- fendant : Hohbs & Co. v. Hudson, 25 Q. B. D. 232. Cj The antiquities of the subject of distress are considered with much learning in Sir Henry Maine's Early History of Institutions. Chap. XL] LEASES. 117 3. Things delivered to a person to be carried, wrought, or managed in the way of his trade, as cloth at a tailor's house Q-). 4. If the Agricultural Holdings Act, 1883, applies, agri- cultural or other machinery, bona fide hired by the tenant, and live stock, the property of another, and only on the farm for breeding purposes (^). 5. Things already in the custody of the law, such as property taken damage feasant, or in execution. 6. Loose money. 7. Everything which cannot be returned in as good a condition as when distrained, as milk, fruit, and the like. 8. Fixtures. 9. The goods of a lodger under the Lodgers' Goods Protection Act, 1871 (j)ost, p. 118). 10. Any goods or chattels of the tenant or his family which would be protected from a County Court execution ; see the Law of Distress Amendment Act, 1888 (51 & 52 Vict. c. 21, (jpost, p. 122) ). The following are also privileged sub modo, or conditionally, i.e. if there be other sufficient distress on the premises : beasts of the plough and instruments of husbandry, and beasts which improve the land, such as sheep, and the instruments of a man's trade or profession, such as the axe of a carpenter, the books of a scholar, and the like, even though not in actual use. The Agricultural Holdings Act also exempts from distress live stock belonging to another person, and taken in by the tenant to be fed at a fair price agreed on, if other sufficient distress is to be found ; and if there is no other sufficient distress, they are distrainable only for the amount of the price agreed on which remains unpaid, and the owner may redeem on paying this. (^) The amount of rent which can be recovered by distress is, in ordinary cases, six years' arrears, but in cases under the Agri- cultural Holdings Act, 1883 (^), distress is limited to one year's arrears. Again, if the tenant be bankrupt, the distress, if levied after the commencement of the bankruptcy, is available only for one year's rent, accrued due prior to the date of adjudication under the Bankruptcy Act, 1883, and six months' rent under the Bankruptcy Act, 1890 (^). The landlord may, however. (') See Clarke v. Millwall Dock (') 46 & 47 Vict. c. 61, s. 45. Co.,17Q.B.D. 494, and for a general {*) Ex parte Bull. Be £ew, IS review of the law, notes to Simpson Q. B. D. 642 ; 8 Anne, c. 14, s. 1. V. Hartopp, 1 Smith's Leading Oases, (') 46 & 47 Vict. c. 52, a. 42 ; C) 46 & 47 Vict. c. 61, s. 45. 53& 54 Vict. c. 71, s, 28. 118 BHAL PROPERTY. [Book I. Jlodera legislation as to land- lord and tenant. Lodgers' Goods Pro- tection Act. Ground Game Act, 1880. prove for the deficiency in the bankruptcy (jpost, p. 930). As against an execution creditor the landlord can only claim rent actually due at the time of taking the goods, and his claim is limited to one year's rent (i). The relative positions of landlords and their tenants have been very materially altered by the Legislature in modern times. The general principle of the law that all personal chattels found on the premises, with the exceptions which we have named, no matter to whom they belong, could be made the subject of distress, was found to bear most unfairly upon lodgers whose goods might be distrained upon by the superior landlord for arrears of rent due to him from his immediate tenant. The law on this subject was altered in 1871. Now by the Lodgers' Goods Protection Act any lodger whose goods are seized for rent due to the superior landlord by the immediate tenant may serve the landlord or the bailiff or other person employed by him to levy the distress with a declaration in writing setting forth that the immediate tenant has no right of property or beneficial interest in such goods, and that they are the property, or in the lawful possession of the lodger, and there- upon, and upon payment of the rent (if any) due by the lodger to the imii.ediate tenant, the landlord is prohibited from pro- ceeding to levy distress upon the goods of such lodger (^). By the Ground Game Act, 1880, it is enacted that every occupier of land shall have the right to kill and take ground game (defined by sect. 8 to be hares and rabbits) thereon con- currently with any other person who may be entitled to kill and take ground game on the same land. This right is in- separable from the occupation of the land, and the occupier cannot contract himself out of the Act. The right, however, can only be exercised subject to certain limitations, the prin- cipal of which are that the right must be exercised by the occupier himself or by one other person authorized in writing, such person being either a resident member of his household or a person in his ordinary service on the land, or a person (') Mx parte Pollen. Be Benn- Dams, 55 L. J. (Q.B.) 217 ; Cox v. Leigh, 43 L. J. (Q.B.) 123; L. E. 9 B 333 O 3t & 35 Vict. c. 79. It has been decided that the existence of the relationship of landlord and tenant Is a question of fact in each case, and that if the landlord, reserving a room in a house, lets the rest of it to a person, but retains such control and dominion over it as is usually re- tained by masters of houses let In lodgings, the relation of landlord and " lodger " may still exist between the parties within the meaning of the Act: Phillips V. Benson, 3 0. P. D. 26; Ness v. Stephenson, 9 Q. B. D. 245 ; also Thwaites v. Wilding, 12 Q. B. D. 4 ; Sharp v. Fowle, ib. 385 ; Seawood v. Bone, 13 Q. B. D. 179. Chap. XI.] LEASES. 119 \a fide employed by him for reward in the taking and destruction of ground game (^). The Agricultural Holdings Act, 1883, which supersedes the A^ricul- Agricultural Holdings Acts of 1875 and 1876, materially alters tural the law of landlord and tenant with regard to four classes of ^^^ ^li^Z subjects, viz. : (1) the rights of the tenant with regard to compensation for improvements ; (2) the tenant's rights as to fixtures and buildings ; (3) the law of distress ; and (4) the length of the notice to quit in cases of tenancies from year to year. The Act applies to all holdings however small, of the following character, but to no other holdings, viz. : holdings which are either wholly agricultural or wholly pastoral, or in part agricultural, and as to the residue pastoral, or in whole or in part cultivated as market gardens. The Act enables a tenant when he leaves such holding to claim compensation for improvements made by him of the nature specified by the Act, provided they fall under the three classes enumerated in the note (^). With regard to the tenant's rights to fixtures and buildings erected on or after 1st of January, 1884, the Act provides (^) that all engines, machinery, fencing, fixtures, and buildings voluntarily erected by the tenant become, unless he be entitled to compensation for them, by special agreement, custom, &c., the (') 43 & 44 Vict. c. 47; and see agricultural or domestic purposes. Allhusen v. Brooking, 26 Ch. D. 559, Making of fences. Planting of hops, where it was held that the saving Planting of orchards or fruit bushes, clause with regard to leases and con- Eeclaiming of waste land. Warping tracts in force at the passing of the of land. Embankment and sluices Act applied to an agreement for a against floods, lease. By Part JI. of the Schedule notice {') 46 & 47 Vict. c. 61 ; and see as to the landlord is required ia the case to notice of claim for compensation, of drainage not less than two or more Be Paul. Ex parte Earl of Portar- than three mimths before executing lington, 24 Q. B. D. 247. The im- the work, so as to give the landlord provements specified in Part I. of the power of draining and charging the schedule to the Act to which the the tenant with not more tlian five consent of the landlord, or his agent per cent, interest, duly authorised in that behalf, is The improvements specified in required, are fourteen in number, Part III. of the Schedule to which viz. : — the consent of the landlord is not Erection or enlargement of build- required, are as follows : — ings. Formation of silos. Laying Boning of land with undissolved down of permanent pasture. Making bones. Chalking of land. Clay- and planting of osier beds. Making burning. Claying of land. Liming of water meadows or works of irriga- of land. Marling of land. Applica- tion. Making of gardens. Making tion to land of purchased artificial or or improving of roads or bridges. other purchased manure. Consump- Making or improving of watercourses, tion on the holding by cattle, sheep, ponds, wells, or reservoirs, or of or pigs, of cake or other feeding-stuff works for the application of water- not produced on the holding, power or for supply of. water for' Q) Sect; 34. 120 REAL PEOPERTT. [Book I. Agricul- tural Holdings Act, 1883. absolute property of the tenant and removable by him, subject to the landlord electing to exercise an option of purchase. The tenant must give the landlord one month's notice in writing of his intention to remove, he must also before removal pay all rent owing, do no avoidable damage in removing, and repair all damage done after removal; With regard to distress — a subject to which allusion has already been made — the principal changes which have been made in the law with regard to distress, are as follows : Only one year's arrears of rent can be recovered ; Agricultural or other machinery on hire, and live stock on hire for breeding purposes, are exempted absolutely from distress ; Agisted cattle, when a fair price is paid by the owner, are exempted sub modo or con- ditionally, that is, they are exempted in case other sufficient distrainable goods should be upon the premises, and even when dietrainable, are distrainable only for the amount due to the tenant from the owner for their keep (^). The change made by the Act with regard to the length of notice to quit is, that a year's notice is now necessary and sufficient, unless excluded by mutual written agreement of the landlord and tenant. The operation of the section, however, is excluded in case of the bankruptcy, &c., of the tenant (f). The Allotment Act, 1887 (^), which enables sanitary authori- ties to acquire lands for the purpose of providing allotments foT the labouring classes, and contains special enactments as to the use and letting of such allotments, provides that rent and possession may be recovered by the sanitary autho- rities in the same manner as in any other case of landlord and tenant. The Allotments and Cottage Gardens Compensation for Crops Act, 1887 (*), provides that upon the determination of the tenancy of a holding (^), the tenant shall be entitled, notwith- standing any agreement to the contrary, to obtain from the (') Sect. 45. See as to percentage for levying distress : PMUpps v. Reee, 24 Q. B. D. 17. O 46 & 47 Vict. V. 61, d. 33. It ■was held in Barlow v. Teal, 15 Q. B. Div. 501, that a tenancy under a written agreement from year to year until six months' notice should be given ia the usual vray to determine the tenancy, was not one where a half year's notice was by law necessary within the Agricultural Holdings Act, 1883, and that a year's notice was not necessary for the determination of the tenancy. (=) 50 & 51 Vict. c. 48. C) 50 & 51 Viet. 0. 26. Q) Defined by the Act to mean an allotment or cottage garden. Allot- ment is defined as any parcel of laud of not more than two acres held by a tenant under a landlord, and culti- vated as a garden or as a farm, or partly as a garden and partly as a farm. Cottage garden id defined as an allotment attached to a cottage. Ohap. XL] LEASES. 121 landlord compensation in money for the following matters and things, that is to say : — (a.) For crops, including fruit growing upon the holding in the ordinary course of cultivation, and for fruit trees and fruit bushes growing thereon, which have been planted by the tenant with the previous consent in writing of the landlord, (b.) For labour expended upon and for manure applied to the holding since the taking of the last crop therefrom, in anticipation of a future crop, (c.) For drains and for any out-buildings, pigsties, fowl- houses, or other structural improvements made by the tenant upon his holding with the written consent of his landlord. In the ascertainment of the amount of compensation payable to the tenant under this Act, any sum due to the landlord in respect of rent or of any breach of the contract of tenancy or wilful or negligent damage committed or permitted by the tenant is to be taken into account in reduction of the amount of compensation. Prior to the Act, which shall next be noticed, when a mortgagee touk possession of land which was held under a contract of tenancy binding only upon the mortgagor, the tenunt lost his compensation because the claim was not enforceable against the mcirtgagee, although enforceable against the mortgagor. This evil is remedied by the Tenant's Compen- sation Act, 1890 (^), which provides that where a person under the Agricultural Holdings Act, 1883, and the Allotments and Cottage Garden Act, 1887, occupies land under a contract of tenancy with mortgagee the mortgagor (whether made before or after the passing of the g";,^'"'*^^^' Act) which is not binding on the mortgagee, then — (1) The occupier shall, as against the mortgagee who takes possession, be entitled to any compensation which is, or would but for the mortgagee taking possession be due to the occupier from the mortgagor as respects crops, improvements, tUlages, or other matters con- nected with the land. It is also provided that any sum ascertained to be due to the occupier for compen- sation or costs connected therewith, may be set off Compensa- tion to tenants, when C) 53 & 54 Vict. c. 57. The third section of this Act provides that where compensation for im- provements oompiised in Part I. or Part II. of the first schedule to the Agricultural Holdings (England) Act, ISS'S, is charged by an order under sect. 31 of that Act, tlie charge shall be a land charge within the meaning of the Land Charges Eegis- tration and Searches Act, 1888, and shall be registered accordingly. 122 £EAL PROPERTY. [Book I. against rent or other sum due from him in respect of the land, and charged and recovered as compensation in the manner provided, as if the mortgagee were the landlord. (2) Before the mortgagee deprives the occupier of the possession of the land otherwise than in accordance with the said contract, he shall give the occupier six months' notice in writing of his intenti>-ider briefly some points in connection with Covenants. the covenants usually inserted in leases. If a lessee covenant generally to repair, he must restore any premises which are destroyed by accidental fire, or by lightning or tempest. It has been decided that in order to constitute a breach of covenant for quiet enjoyment in a lease of land, it is sufficient that the lessee's ordinary and lawful enjoyment of the demised land be substantially interfered with by the acts of the lessor or those lawfully claiming under him, although neither the title to the land nor the possession of the land be otherwise affected (2). " It is in every case a question of fact whether the quiet enjoy- ment of the land has or has not been interrupted ; and where the ordinary and lawful enjoyment of the demised land is sub- stantially interfered with by the acts of the lessor, or those lawfully claiming under him, the covenant is broken, although neither the title to the land nor the possession of the land may be otherwise affected " (^). In a case decided in the year 1888, A. granted a lease to B., of two rooms with a covenant for quiet enjoyment. Then A. let a room above the two rooms to C. for dancing and other entertainments. B. brought an action against A. and C. (•) Oreswell v. Davidson, 56 L. T. upon-Tweed, 13 Q. B. D. 547. (N.S.) 811; following Darlington v. Q) Sanderson y. Mayor 0/ Berwich- Hamilton, Kay, 550. upon-Tweed, 13 Q. B. D. 551 ; Bobm- C) Sanderson y. Mayor of Berwick- son v. Kilvert, 41 Ch. D. 88. 128 REAL PROPERTY. [Book I. Implied warranty. Statute of Uses. for an injunction to restrain such use of the upper room, alleging that the dancing over his head and the behaviour of visitors on the stairs was a breach of the covenant and a nuisance. The Court pointed out that the covenant — that the premises should be quietly possessed and enjoyed — did not mean that the possession must be undisturbed by noise, but that it must be without interference, without interruption of possession, and decided that the covenant had not been broken (^). An interesting question with regard to the liability of a lessee came before the Court of Appeal in 1881. The plaintiff in the action had demised premises to the defendant for a term of years by deed containing a covenant by the defendant for the pay- ment of the rent reserved. The defendant assigned the term and his assignee surrendered a portion of the premises to the plaintiff. In an action on the covenant the plaintiff claimed to recover the amount of the apportioned rent for the part of the premises not surrendered. It was decided that the liability of the defendant on the covenant was not extinguished by the surrender of part of the demised premises, but that he still remained liable to the amount claimed (2). Where a house is let unfurnished there is no implied warranty that it is reasonably fit for habitation (f). If, however, the house be let furnished there is an implied condition that it is reasonably fit for occupation and comfortable habitation when the tenancy commences (*). The Housing of the Working Classes Act, 1890 (*) provides (sect. 75) that in any contract made after the lith of August, 1885, for letting a house or part of a house for habitation by persons of the working classes there shall be implied a condition that the house is at the com- mencement of the holding in all respects reasonably fit for human habitation. The Statute of Uses applies to the creation though not to the assignment of a lease, and the lessee at once by force of it acquires the legal estate in the premises for the term granted. In the ordinary case of a lease under the common law the Q) Jenhins v. Jackson, 40 Ch. D. 71, where the head-note should be corrected so as to show that B. brought the action against A. and 0. C) Baynton v. Morgan, 22 Q. B. D. 74. (') HaH V. Windsor, 12 M. & W. 68 ; Manchester Bonded Warehouse Co. V. Carr, 5 C. P. D. 507 ; 49 L. J. (C.P.) 809; aiesler v. Fowell, 52 L. T. 722. C) Wilson V. Finch-Hatton, 46 L. J. (Ex.) 489 ; 2 Ex. D. 336 ; Smith V. Marrdble, 11 M. & W. 5. 53 & 54 Vict. c. 70, superseding the provision in 48 & 49 Vict. 0. 72, 8. 12. Chap. XI.] LEASES. 129 interest of the lessee is not complete until lie enters into possession; until then his interest is said to be an interesse termini. Difficulties formerly arose in cases where a landlord sold property, which was subject to a lease, to diflerent purchasers,, whether the purchasers on the one hand or the tenant on the other could take advantage of the covenants and provisions. This difficulty began to be seriously felt at the time of the dissolution of the monasteries, where lands which had been leased by the monks passed largely into the hands of the paten- tees of the Crown, and was then dealt with by Act of Parliament. Various statutes which are now of little more than historical Convey- interest were subsequently passed dealing with the subject ; they ^'"''"^^gsi are now practically superseded by the provisions of the Con- g^ {q h ' veyancing Act. These provisions are as follows : Section 10 12. provides that " rent reserved by a lease, and the benefit of every covenantor provision therein contained, having reference to the subject-matter thereof, and on the lessee's purt to be observed or performed, and every condition of re-entry and other condition therein contained, shall be annexed and incident to and shall go with the reversionary estate in the land, or in any part thereof, immediately expectant on the term granted by the lease, not- withstanding severance of that reversionary estate, and shall be capable of being recovered, received, enforced, and taken advan- tage of by the person from time to time entitled, subject to the term, to the income of the whole or any part, as the case may require, of the land leased." The next section enacts that " the obligation of a covenant entered into by a lessor with reference to the subject-matter of the lease shall, if and as far as the lessor has power to bind the reversionary estate immediately expectant on the term granted by the lease, be annexed and incident to and shall go with that reversionary estate, or the several parts thereof, notwithstand- ing severance of that reversionary estate, and may be taken advantage of and enforced by the person in whom the term is from time to time vested by conveyance, devolution in law, or otherwise ; and, if and as far as the lessor has power to bind the person from time to time entitled to that reversionary estate, the obligation aforesaid may be taken advantage of and enforced against any person so entitled." The effect of these provisions may be illustrated as follows : — If A. be entitled to a certain property and gives B. a lease and then sells the property subject to the lease, one half to 0. and the other half to D., C. and D. stand with regard to the beneiit VOL. I. K 130 REAL PEOPERTT. [Book I. and the Imrden of the covenants in the lease in precisely the Bame position as A. did before he sold ('). The next section deals with conditions and rights of entry as follows : " Notwithstanding the severance by conveyance, sur- render, or otherwise, of the reversionary estate in any land comprised in a lease, and notwithstanding the avoidance or cesser in any other manner of the term granted by a lease as to part only of the land comprised therein, every condition or right of re-entry, and every other condition, contained in the lease, shall be apportioned, and shall remain annexed to the severed parts of the reversionary estate as severed, and shall be in force with respect to the term whereon each severed part is reversionary, or the term in any land which has not been surrendered, or as to which the term has not been avoided or has not otherwise ceased, in like manner as if the land com- prised in each severed part, or the land as to which the term remains subsisting, as the case may be, had alone originally been comprised in the lease." These three sections apply only to leases made after the com- mencement of the Act. (1st Jan. 1882) (^). Enlarge- A novel provision has been also iotroduced by the Convey- ancing Act (^) with regard to the enlargement of terms of years. Sect. 65 now provides that when there is a residue unexpired of not less than 200 years of a term, which, as originally created, was for not less than 300 years, without any trust or right of redemption affecting the term in favour of the freeholder or other reversioner, and without any rent, or merely a pepper- corn or other rent having no money value incident to the rever- sion, the term may be enlarged by means of a declaratory deed into a fee simple by (1) Any person beneficially entitled in right of the term to possession of any land comprised in the term ; or (2) By a trustee of the term ; or (') Davidson's Concise Precedents, non-performance of any covenant or 15tli ed. pp. 38^0 ; Gierke and contract entered into by a tenant or Brett's Conveyanci-Qg Acts, 3rd ed. lessee in reference to any dwelling- p. 72, et seq. Si e Municipal Per- house in respect of wliioh an order is manmt Invedment Building Society made by a local authority under this V. Smith, 22 Q. B. D. 70. part of this Act; and if any owner (2) It may be pointed out in con- is obliged to take possession of any nection with the subject of remedies dwelling-house in order to comply tor breach of covenant that sect. 48 of with any such order, the taking pos- the Housing of the Working Classes session shall not affect his right to Act, 1890 (53 & 54 Vict. c. 70), pro- avail himself of any such breach, vides tliat nothing in this part of this non-observance, or non-performance Act bhall prejudice or interfere with that may have occurred prior to his the right or remedies of any owner so taking possession, for the breach, nou-observance, or (^) 44 & 45 Vict. c. 41, s. 65. raent of terms Chap. XL] LEASES. 131 (3) By the personal representative of the owner of the term. The Act, moreover, provides that the estate in fee simple acquired by enlargement shall be subject to all the same trusts, powers, executory limitalions over, rights, and equities, and to all the same covenants and provisions relating to user and enjoyment, and to all the same obligations of every kind as the term would have been subject to if it had not been enlarged (^). The following statutes also require to be noticed in con- nection with the subject of leases : — The statute 5 Eich. 2, stat. 1, c. 8, provides that "none from statutes henceforth make any entry into lands and tenements, but in concerning case where entry is given by the law, and in such case not with strong hand, nor with multitude of people, but only in peace- able and easy manner." It has been decided in this Act that a licence by the tenant to the landlord to make a forcible entry is void (^). A statute of George II. (4 Geo. 2, c. 28, s. 1) enacts that in case any tenant or tenants for any term of life, lives, or years, or other person or persons who are or shall come into possession of any lands, tenements, or hereditaments, by, from, or under, or by collusion with such tenant or tenants, shall wilfully hold over any lands, tenements, or hereditaments, after the determination of such term or terms, and after demand made and notice in writing given for delivering the possession thereof, by his or their landlords or lessors, or the person or persons to whom the remainder or reversion of such lands, tenements, or hereditaments shall belong, his or their agent or agents there- unto lawfully authorized ; such person or persons so holding over shall during the time the person or persons entitled are kept out of possession pay at the rate of double the yearly value of the lands so detained, and there shall be no relief in equity against such penalty (^). (') The Conveyancing Act, 1882, (^) Edwich v. Hawkes, 18 Ch. D. s. 11, provides that, " Section sixty- 19y ; and see Seddall v. Maitland, five of the Conveyancing Act of 1881 17 Ch. D. 174. shall apply to and include, and shall (^) See cases on this section : Ked- be deemed to have always applied to man & Lyon, 3rd ed. 328, et seq. It and included, every sucii term as in must be borne iu mind that this is a that section mentioned, whether penal statute, and is therefore con- having as the immediate reversicm strued strictly. An action accordingly thereon the freehold or not ; but not does not lie under it against a weekly (1) any term liable lo be determined or quarterly tenant : Lloyd v. Rosbee, by re-entry for condition broken ; or 2 Camp. 453 ; Wilhiason v. Hall, 3 (2) any term created by sub-demise Bing. (N.C.) 508. The holding over outof a superior term, itself incajiable must be contumacious: Wright v. of being enlarged into a fee simple." Smith, 5 Esp. 203. K 2 132 BEAL PBOPERTT. tBooK I. Another statute of the same reign to which allusion has already heen made (arde, p. 116 (11 Geo. 2, c. 19, s. 18)) pro- vides that in case any tenant shall give notice of intention to quit the premises at a timn mentioned in such notice, and shall not accordingly deliver up the possession thereof at the time in such notice contained, then the tenant, or his executors or administrators, shall from thenceforward pay to the landlord double rent, to be recovered at the same time and in the same manner as the single rent might have been recovered Q-"). It must be borne in mind that if a tenant holds under an agreement fur a lease, and it is a case in which specific perform- ance would be ordered by the Court, the Court looks upon that as done which ought to be done, and considers that the tenant stands in precisely the same position as if the lease had been executed (f). Before taking leave of the subject of leases, it must be pointed out that, the Conveyancing Act, 1881, s. 7, provides that in a conveyance of leasehold property for valuable consideration other than a mortgage, a covenant by a person who conveys, and is expressed to convey, " as beneficial owner," shall be implied as to the validity of the lease (^). The summary process now provided for the recovery of land by landlord against tenant is hereafter considered in the book dealing with Practice (*). (') The notice to quit need not be 41 Ch. D. 248. See further, Brett's in writing: Timmins v. Eowlinson, Leading Cases in Modern Equity 3 Burr. Iti03; see also Johnstone v. p. 135. Hudleston, 4 B. & 0. 922 ; Booth v. Q) Olerte and Brett's Convey- Macfarlane, 1 B. & Ad. 904. ancing Acts, 3rd ed. pp. 53, 60 C^) Walsh V. Lonsdale, 21 Ch. Dir. (<) See post, pp. 704, 724, et sea 9; iowtto- V. iZeoTOr, 37 W. R. 465; f ' ff ' ' 1 ( 133 ) CHAPTEE XII. Settlements. The homely word " settlement," as Mr. Vaizey tells us in his Definition learned work upon the subject, has been put to various technical of settle- usages in the language of the law Q). Attention has already "*"'' been directed (ante, p. 27), to the peculiar statutory definition of the term " settlement " (^) contained in that important Act of Parliament, the Settled Land Act, 1882, to which allusion has already been made, and to which we shall presently refer some- what more in detail in bhe latter portion ot this chapter. For the purpose with which we are at present concerned, viz., the settlement of property, a "settlement" has been well defined by the author to whom we have just referred, as "a legal act designed to regulate during a specified period the enjoyment of property, and to provide during the same period for the safe custody and prudent management of the subject-matter of that property." A settlement has been more briefly defined by Mr. Davidson, as "a deed whereby the destination or devolution of real or personal estate is settled" (^). The great majority of settlements, as pointed out by the same authority, originate " either in marriage and the consequent obligation to provide for a wife and family or the desire to prevent the alienation of a family estate." It deserves to be borne in mind that the Married Women's Property Act, 1882, has not materially Married affected the necessity or expediency of making a settlement, as Women's that Act, while it protects the property of the wife against the ^'♦''^/J^o husband, does not fulfil the main object of a settlement, viz., " the securing of a certain provision for the issue of the mar- riage, which will be safe against the engagements of the husband, and of the wife also (*)." (') Vaizey on Settlements, vol. i. wliich is attached a right to be main- p. 1. "Settlement" is defined in taiiied by that piirish. Mr. Whartim's Law Lexicon as fol- (^) See a'so as to definition of lows: — 1. The act of giving possession settlement, Settled Laud Act, 1890, by legal sanction ; a jointure gjanted 53 & 54 Vict. c. 69, s. 4, post, p. 152. to a wife ; a family arrangement of (') Davidson's Conveyancing, vol. property. '^. The obligation of a iii., part 1, p. 1. person on becoming a pauper to (*) Prideaux's Conveyancing, 14th remain in a particular parish to nl. vol. ii, p. 286. 134 MEAL PROPERTY. [Book I. Divisions The main division of settlements is into (1) Settlements for ments'"' value, i.e. settlements made in consideration of money or mar- riage, or other valuable consideration on the one hand, and (2) Voluntary settlements on the other. Settlements may also be classified with reference to their subject-matter as settlements of personalty and settlements of real estate. Between settlements of personalty and settlements of land, there are, as Mr. Vaizey tells us, usually two broad distinctions. The first is that, in the case of settlements of personalty the parties do not, unless with regard to chattels, which are in the nature of heirlooms (see ante, p. 2), desire to retain the par- ticular subject-matter which is settled, but regard the property merely as an investment. The other distinction is that personal property is not, like real, settled, so that after the death of the parents it shall devolve, subject to charges for the other children, on the eldest son, but is so settled that it may be divided, subject to the power of appointment reserved to the parents, equally among the children. The highest and most valuable consideration for a settlement is marriage. It must, however, be borne in mind that there may be a variety of valuable considerations for settlements uncon- nected with marriage, e.g. agreements for re-settlements between father and son, payment of debts or some modification of the interests which the husband and wife respectively possess in property : — " It is settled that if husband and wife, each of them having interests, no matter how much, or of what degree, or of what quality, come to an agreement which is afterwards embodied in a settlement, that is a bargain between husband and wife, which is not a transaction without valuable consideration " (}). The law with regard to re-settlements of family estates was much considered in a case which came before the Court in 1889, where the principle was laid down that in such cases the Court gives weight to considerations which in other matters would not be allowed into the scale. In all cases where the father obtains a benefit the Court loots jealously at the transaction, but it is not essential that the son should have independent advice (^). Although as has been pointed out marriage is the highest and most valuable consideration known to the law for a settle- ment, yet it is clearly settled law that " Where there is {') Per James, L.J., in Teasdale v. Q) Hdblyn v. Eoblyn, 41 Oh. D. Braithwaite, 5 Ch. I). 630. 200. marriage. Chap. XII.] SETTLEMENTS. 135 evidence of an intent to defeat and delay creditors, and to make the celebration of marriage part of a sclieme to protect pro- perty against the rights of creditors, the consideration of marriage cannot support such a settlement " (^). On the other hand, where a marriage settlement is impeached Considera- hy creditors of the husband, as the wife is a purchaser for value, *""' ?^ the settlement cannot be set aside unless she be proved to have been a party to the fraud. In Mr. May's words (^), when the marriage itself is honest, the question must be, not whether the settlement is a fraud on the creditors, but whether it can be set aside without defrauding the wife, or if the marriage is after December 31, 1882 (when the Married Women's Property Act, 1882, came into force) the party to it who is innocent of the fraud. The subject is well illustrated by a case decided by the Court of Appeal in 1877. The facts, so far as material for our present purpose, are as follows : Mr. Crawford, who was carrying on business as a flax spinner, and who was at the time hopelessly insolvent, became engaged to be married to a Belgian lady who was imperfectly acquainted with English. The lady had no property, and Mr. Crawford arranged a marriage with her on the terms that he should settle £20,000 on her, and he so informed her. He then went to a respectable solicitor, and told him, what was wholly untrue, viz., that he was indebted to his intended wife in the sum of £20,000, and in consideration of the debt and marriage then intended and about to be solemnized, he covenanted to pay within a short period of time this sum of £20,000 to the trustees named in the settlement upon trust that as soon as he should become owner in fee simple of a mill estate which he had contracted to purchase, the trustees should advance him the £20,000 on the security of it. Trusts were then declared of the £20,000 for the wife for life, with remainder to himself for life, with remainder in trust for the children of the marriage, and in default of children, for the wife absolutely. The wife was wholly ignorant of the husband's insolvency, and understood nothing about the recitals, &o., except only that £20,000 was to be settled. After the marriage the niill was purchased pursuant to the agreement, and was then mortgaged to the trustees for £20,000, but no money actually passed. Crawford afterwards became a bankrupt, and the trustee in his bankruptcy commenced an action to set aside the mortgage and the settlement. The Court decided that notwithstanding the (') ColumUne v. Fenhall, 1 Sm. & G. 8 Eq. 46. 228 ; and see Buhner v. Hunter, L. E. Q) May on Voluntary Settlementa. 136 REAL PROPERTY. [Book I. falsity of the recitals the mortgage was valid so far as concerned the interests of the wife and children. Sir George Jessel, in delivering judgment expressed himself as follows : — " The allej^ation against Crawford is made out. Bui the wife did not know it, she was no party to it. She says she believed Mr. Crawford to be a man wealthy and prosperous ; he was the owner of one very large mill employing a great number of hands; he was senior partner in a firm which owned another large mill, and all that she expected wfl,s a settlement of £20,000. She gave valuable consideration — consideration of marriage. Whether that recital were in or were out of the settlement the covenant to settle the £20,000 in consideration of the marriage, would have been a covenant for value, and would have prevailed against creditors. Why should the mere fact of the insertion of an inaccurate or untrue recital vitiate the settlement, as regards the wife, who was ignorant and innocent of the fraud ? I cannot see why, and I entirely concur with the Vice-Chan- cellor in the conclusion he came to, that the settlement was for value given by the wife, namely, the consideration of marriage, and that she was no party to the fraud, and that it is unimpeachable on the part of the creditors " (i). The reader's attention may now be directed to the various forms in which property, personal or real, may be settled on marriage (^). Settlement The usual form of a marriage settlement of personalty other altv!'^™' tlian leaseholds, is somewhat as follows: The settlement is made between the intended husband of the first part, the intended wife of the second part, and the trustees of the third part. If the property to be settled is in possession, e.g. a sum of stock, it is usually transferred beforehand, and there is a recital to that effect. If it be reversionary property, it is assigned by the deed itself. The settlement then declares the trusts on which the trustees are to hold it. These are, first, either to retain the trust funds in their actual state of invest- ment, or to sell them and invest the proceeds in certain specified securities, and pay the income, if it has been agreed that the wife should take the first life interest, to the wife during the joint lives of husband and wife without power of anticipation, and then to the survivor of them. If the husband takes the first life interest, the trust is for the husband for life, and if the wife survives him, to her for life ('). alty. (') Kevan v. Oi-awford, 6 Ch. D. (3) See as to stamp duty, Attomey- 29- General v. Theobald, 24 Q. B. D. 557 ; (^) See as to real and personal Ounslow v. Inland Revemoe Commis- settlements, Davidson,. vol. ill. p. 3. doners, 2i Q. B. D. SSl^affd. [1891] Chap. XIL] SETTLEMENTS. 137 On the death of tlic survivor the trust property is to bo held in Settlement trust for the issue of the marriage as the husband and wife jointly °*',P"''*°"- by deed, or the survivor of them by deed or will, may appoint, and in default of appointment in trust for the children of the marriage in equal shares, the sons taking as they attain tlie age of twenty-one, the daughters as they attain that age or marry. These trusts are followed by what is called a " hotch-pot " Q-) clause, which provides that, in the absence of a direction to the contrary, no child to whom an appointment has been made shall share in the unappointed part of the trust fund, without first throwing his appointed share into the common stock ; and an " advancement " clause which empowers the trustees, with the consent of the tenant for life for the time being, to advance an amount not exceeding the presumptive share of any child for his or her advancement, e.g., to apprentice or otherwise start him or her in life. In one well-known case, where the clause em- powered trustees to apply the moiety of a fund for the " settle- ment or advancement or otherwise for the benefit " of an adult, as they should think fit, the late Sir George Jessel authorised the trustees to pay his debts (2). It was formerly usual to insert maintenance and accumulation clauses, but these are now almost invariably omitted, the Conveyancing Act, 1881, containing ample provisions for the purpose (^). The settlement then pro- ceeds to declare what shall be done with the trust property after the death of the parents in case there shall be no issue of 1 Q. B. 239. The usual practice pay to the infant's parent or guar- is that each party has the first life dian, if any, or otherwise apply for interest in the property which he or towards the infant's maintenance, or she brings into settlement, but education, or benefit, the income of Mr. Prideaux expresses an opinion that property, or any part thereof, that where the wife's property is large, whether there is any other fuml and the husband has little or nothing, applicable to the same purpose, or and is in no business or profession, any person bound by law to provide this course is not desirable. for the infant's maintenance or educa- (') See as to explanation of " Hotch- tion, or not. pot," note, p. 343. The trustees are to accumulate the {'') Lowther v. Sentinck, h. E. 19 residue of the income in the way of Eq. 166. compound interest, by investing in (') Sect. 43 of the Conveyancing authorized securities and to hold these Act, 1881, which applies to instru- accumulations for the benefit of the ments of any date, but is to apply person who ultimately becomes en- only so far as a contrary intention is titled to the property from which notexpressed, provides that where any the same arise: see Re Judkin's property is held by trustees in trust Trusts, 25 Oh. D. 743 ; Be Thatcher's ioT an infant, either for life, or for Trusts, 26 Ch. D. 426 ; Be Vichson, any greater interest, and whether 29 Ch. D. 331. See Wells v. Wells, absolutely, or contingently on his 43 Oh. D. 281, where it was said attaining the age of twenty-one years, that the Conveyancing Act was in- or on the occuixence of any event tended to shorten and simplify con- before his attaining that age, the veyances, nut to alter the devolution trustees may, at their sole discretion, of property. 138 SEAL PnOPERTT. [Book I. Settlement of person- alty. After- acquired property. the marriage. The usual trust is that it shall revert, as to the husband's trust fund to him absolutely, and as to the wife's trust fund after the death of the husband, and such failure of issue in trust for such persons as the wife shall, when discovert by deed or whether covert or discovert by will or codicil, appoint and in default of appointment, if the wife shall survive the husband then in trust for the wife as her separate property, but if the husband shall survive the wife, then in trust for her next of kin, as though she had died intestate and without having been married (i). The settlement concludes by directing that the power of appointing new trustees shall be exerciseable by the husband and wife during their joint lives, and by the survivor during his or her life (^), leaving any subsequent appointment that may become necessary to be made under the provisions of s. 31 of the Conveyancing Act, 1881, as to which, see ;po8t, pp. 636, 696. The clauses formerly inserted giving power to trustees to give receipts, compound, &c., are now omitted in reliance on the Conveyancing Act, 1881, ss. 36, 37 (jpost, pp. 531, 632), which make ample provision for this purpose, and what were called the trustee indemnity clauses, declaring in effect that trustees should not be liable for any loss except such as was incurred by their own individual neglect, are also omitted, being now contained in s. 31 of Lord St. Leonards' Act (22 & 23 Vict. c. 35). This section, however, affords no substantial protection to trustees, in fact it rather tends to mislead them into supposing their liability in equity to be less than it really is (^). It may be here mentioned that the duties, powers, and liabilities of trustees are very materially altered by an Act passed in the year 1888, which is considered somewhat in detail in a later portion of this work, and that an Act passed in the year 1889 {post, p. 626) deals specially with the subject of investment of trust funds by trustees (f). If one of the trustees be a solicitor, it is usual to insert a clause enabling him to charge for his professional services {post, p. 840). A clause which is very often inserted in marriage settlements provides for the settlement of after-acquired property of the wife ; the object being to impress upon such property the trusts of the settlement. This clause is usually drawn so as only to (') See as to trust for wife's next of kin, Clarke v. Hayne, 42 Cli. D. 529. (^) See as to appointment of new trustees, Slceat's Settlement, 42 Ch. D. 522. (^) An indemnity clause to be really of value must be carefully and specially framed : see Wilkins v. Sogg, 3 Giff. 116; 8 Jur. (N.S.) 25; Pass V. Dundas, 29 W. E. 332. (') See Warman v. Warman, 43 Ch. D. 296. Chap. XII.] 8ETTLEMENTS. 139 apply to property over a certain amount, and not to apply to jewellery or Bmall chattels in some such form as the following : " If the said (wife) shall at one and the same time become seised of, or possessed of, or entitled to real or personal property of the value of £200." Considerable care is required in the wording of a proper clause, as very difficult questions have from time to time occupied the attention of the Courts with respect to it (1). In some cases it is considered desirable to make the interest Hnsband's conferred upon the husband under the settlement determinable d"termin- ehould he become a bankrupt or attempt to charge or alienate it. able on The authorities on this subject are summed up by Mr. Prideaux \^^l ^^ in a series of propositions, of vrhich the following are the most important : — (1) That where the property settled comes from the wife, or from any other source than the husband himself, a gift over on the husband's bankruptcy or alienation is valid (2). (2) That virhere the property settled comes from the husband himself, such a gift over is invalid as against his trustee in bankruptcy, but good as against his alienees. (3) Where the husband receives part of his vsdfe's fortune on marriage and settles property of his own upon himself for life, with a gift over on bankruptcy, &c., the wife is considered as a " purchaser " to the extent of her fortune received by the husband, and accordingly the gift over is to that extent valid. (4) A mere condition forbidding alienation annexed to the gift of a life interest, unless followed by a gift over, or something equivalent to it, is inoperative. Formerly the law would seem to have been that the effect of a dissolution of marriage by reason of the husband's misconduct was to forfeit his interest under the settlement, but it is now estab- lished that under such circumstances no forfeiture is worked ('). The frame of a settlement of real estate varies usually accord- Settlement ing to the amount of the property to be settled. A large estate of ''<'<'^' is usually settled "strictly," as it is called, according to the form which we shall presently mention. But if the property is only small, the usual practice is to employ what Mr. Davidson (') See the cases collected in Swift v. Wenman, L E. 10 Eq. 1.5 Prideaux on Conveyancing, 14th ed., Fussell v. Dowding, L. E. 14 Eq. 421 vol. ii., p. 241, et seq, ; Be Be Bos' Fitzgerald v. Chapman, I Ch. D. 563 Trust, 31 Ch.X). 81; Fishery. Shirley, Burton v. Sturgeon, 2 Ch. D. ,S18 43 Ch. D. 290. See Wigney v. Wigney, 7 P. D. 177 O See further, Prideaux'a Con- Bulhnore v. Wynter, 22 Ch. D. 619 veyancing, 14th ed. vol. ii. p. 237. see, as to variation of settlement by ('; Jessop V. Blake, 3 Giff. 639 ; Divorce Court, post, p. 1036. 140 REAL PBOPERTY. [Book I. Covenant implied by Convey- ancing Act. calls the artifice of a trust for sale and declaration of trusts cf the proceeds, i.e., to convey it to trustees upon trust to sell with the consent of the tenants or tenant for life. The trusts of the money to arise by the sale are declared either by the deed of conveyance or a deed of even date therewith. These trusts do not differ in substance from those of a common personalty settle- ment, as stated above. 1'he deed or deeds also give the trustees power to lease until sale and declare that the rents and profits are in the meantime to be applied in the same way as income arising from an investment of the sale moneys (^). Let us now assume that it is desired to draw a marriage settlement in a case where there is a real estate of great value coming from the husband's side. In that case the property would be limited somewhat in the following manner : — (1) To the Tise that the wife may receive during the joint lives of herself and her husband an annual sum by way of pin money. (2) To the use of the husband for life. (3) To the use that the wife, if she should survive her husband, may receive a jointure rent-charge during her life to commence on the husband's death. (4) To the use of the trustees for a term to secure portions for younger children of the marriage. (5) Tothe use of first and other sons successively in tail male. (6) To the use of sons in tail general. (7) To the use of daughters of the marriage as tenants in common in tail, with cross-remainders between them. (8) The ultimate remainder is to the use of the settlor in fee. The trusts of the portions term are then declared. This is followed by the appointment of trustees of the settlement for the purposes of the Settled Land Act, and of section 42 of the Conveyancing Act. Certain clauses may be added extending the powers of the Settled Land Act. Powers are not unusually inserted enabling the husband to jointure a future wife and to charge portions for the children of a future marriage. In settlements prior to the Conveyancing Act, the settlor usually entered into the same covenants as those which were given by an ordinary vendor on a sale. The covenant implied by the Conveyancing Act, when a person conveys and is ex- pressed to convey " as settlor " (which is now usually relied on), is as follows : — That he, and every person deriving title under (') Sec Forms exix., cxx, ; Davidson's Concfso Precedents, 15th cd. Chap. XII.] SETTLEMENTS. 141 him, by deed, or act, or operation of law in his lifetime subsequent to the settlement, or by testamentary disposition or devolution in law on his death, will, from time to time, and at all times, after the date of the settlement, at the request and cost of any person deriving title thereunder, execute and do all such lawful assurances and things for further or more perfectly assuring the settled property to the trustees and those deriving title under them, as shall be reasonably required (s. 7, sub-s. 1, E). If copyholds {post, p. 184) are to be settled along with the Copyholds, freeholds, there will be a covenant to surrender them to the use of the trustees on trusts to correspond with the uses of the free-' holds. This might be done in some such form as follows : — " To the use of the said (the trustees) their heirs and assigns, according to the custom of the said manor, by and under the accustomed rents, fines, suits, and services, and upon such trusts, and subject to such powers, as shall as nearly correspond with the uses, trusts, and powers hereinbefore limited and contained of the said premises hereinbefore granted, as the different qualities of the estates and the rules of law and equity will permit," and in the meantime the trustees are directed to hold the land as though a surrender had been actually made. Where leaseholds are settled along with freeholds they are Leaseholds, usually assigned to the trustees to be held by them upon trusts corresponding to the uses, trusts, &c., limited and declared concerning the freeholds expressed to be thereby granted as nearly as the different tenure and quality of the premises and the rules of law and equity will permit, but not so as to increase or multiply charges or powers of charging, and so nevertheless that the said leasehold premises shall not vest absolutely in any person made tenant in tail male or tail general by purchase of the settled land, unless he shall attain the age of twenty-one years, but on his death under that age, shall go, devolve, and remain in the same manner as if they had been part of the settled freeholds Q). The circumstances under which the Court will annul a settle- ment which has been entered into in contemplation of a marriage which never takes place were considered in a case which came before the Court in 1886 (2). There an intended wife and her father executed the engrossment of a settlement of, among other things, funds which were to be provided by the father and the present and after-acquired property of the intended wife. The engrossment was given into the custody of the solicitors of the Annulment of settle- ment. (') See Davidson on Settlements, vol. iii. Part I. p. 593, et seq. ; Part II. p. 1131. O Bond\'. F«//occ?,32 Ch.D.238. 142 EEAL PROPERTY. [Book I. Volunteers, Voluntary andfrtiudu- lent settle- ments. intended husband ; it was not executed by him or the trustees, and the engagement was subsequently broken off by agreement. Pearson, J., in delivering judgment, said that it was always considered a matter of difficulty how far the Court could declare a marriage settlement absolutely null and void because the marriage did not take place at the time. It was the duty of the Court to see that everything done was done fairly and honestly, and that an attempted revocation of a settlement was not a revocation simply because the parties desired to make different terms from what they desired at the time the settlement was executed. In the present case the judge considered that under the exist- ing circumstances, as three and a half years had expired since the execution of this inchoate settlement, he was entitled to come to the conclusion that even if a marriage did take place between the parties, it would take place under such different circumstances that it would be, strictly speaking, not the same marriage, but another marriage than the one then intended, and under these circumstances he ought to declare that the deed was not binding and ought to be delivered up. Settlements sometimes provide for persons who are not within the consideration of the marriage, and only come within the bargain made by the parties. Such parties are called " volun- teers." In a case which came before the Court of Appeal in 1882 the ultimate trust in default of children was for the next of kin of the wife. There was no possibility of issue in this case, and the question was whether this trust could be revoked so as to entitle the husband and wife to the corpus of the settled fund. The Court of Appeal answered this question in the negative. Sir George Jessel, in delivering judgment, said: "In this case a trust was declared by the settlement for the next of kin of the lady, and the fund has been transferred to the trustees. The fact of their being volunteers does not enable the trustees to part with it without the consent of their cestuis que trust. That has been the rule ever since the Court of Chancery existed " (^). Let us now briefly consider the law with regard to voluntary and fraudulent settlements. The statute 13 Eliz. c. 6 (made perpetual by 29 Eliz. c. 5), enacts that grants, and conveyances of lands or goods, or any profit thereof, made with intent to delay, hinder, or defraud creditors, shall be utterly void against (■) Paul V. Paul, 20 Ch. D. (C.A.) 742. And see also Muclcie v. Herbert- son, 9 App. Cas. 303; Be Cameron, 37 Ch. D. 32. Chap. XII.] SETTLEMENTS. 143 such ci-editors, &c. A section however provides that the Act is not to extend to any estate or interest in land for good (i.e. valuable) consideration and bona fide conveyed to any person not having at the time notice of the fraud (}). Another statute of the same reign, 27 Eliz. c. 4, provides that all conveyances of lands, tenements, and hereditaments made with intent to defraud purchasers, and all conveyances with any clause of revocation at the grantor's pleasure shall be void against subsequent purchasers. It will be observed that the statute protecting creditors deals with personal as well as real estate, while that with regard to purchasers speaks only of lands, tenements, and hereditaments under which copyholds and lease- holds are included. It is settled law that any mere voluntary conveyance, unless perhaps in favour of a charity, is fraudulent within the meaning of the 27 Eliz. even although made by the direction of the Court (2). In order, however, that the Voluntary statute should apply, the voluntaiy conveyance and subsequent ^-^^^^^ sale must be made by the same person (5), and accordingly, if there be first a voluntary conveyance to A., and then one to B., A.'s title would be good even against a subsequent purchaser for value from B. (*). It must also be borne in mind that a voluntary conveyance is good against the grantor. The law is that anybody of full age and sound mind who has executed a voluntary deed by which he has denuded himself of his own property, is bound by his own act, and if he himself comes to have the deed set aside — especially if he comes a long time afterwards — he must prove some substantial reason why the deed should be set aside (^). It is not essential that there should be a power of revocation inserted in a voluntary settlement (*). " It is established," said Lord Hatherley, " by the authorities (') The preamble of this Act re- society can be maintained or oon- cites that its object is for the avoid- tinued. See the effect of these words ing and abolishing of feigned, covin- considered : In re Johnson. Golden ons, and fraudulent feoffments, as v. Gillam, 20 Ch. D. 389, 392. well of Lmdd and tenements as of (^) Dart's Vendors and Purchasers, goods and chattels, devised and con- 6th ed. pp. 1003, 1008, where it is triived of malice, fraud, covin, collu- pomted out that the question as to sion, or guile, to the end, purpooe, whether charities are excepted is and intent to dela}', hinder, or de- still unsettled, fraud creditors and others of their (^) Godfrey v. Foole, 13 App. Gas. just and lawful actions, suits, debts, 497. "&c., not only to the let or hindrance Q) Doe d. Newman v. Busliam, of the due couise and execution of 17 Q. B. 723. law and justice, but also to the over- (') Henry v. Armstrong, 18 Ch. D. throw of all tiue and plain dealitjg 668. . . . between man and man without (") Hall v. Hall, L. B. 8 Oh. 430. whii.'h no commonwealth or civil 144 BEAL PROPERTY. [Book L that, in tlie absence of any such direct proof of intention, if a person owing debts makes a settlement which subtracts from the property which is the proper fund for the payment of those debts, an amount without which the debts cannot be paid, then, since it is the necessary consequence of the settlement ("sup- posing it effectual) that some creditors must remain unpaid, it would be the duty of the judge to direct the jury that they must infer the intent of the settlor to have been to defeat or delay his creditors, and that the case is within the statute." A voluntary settlement may be set aside under 13 Eliz. c. 5, without proof of actual intention to defeat, hinder, or delay creditors, if, under the circumstances, the instrument will neces- sarily have that effect (i). It is now clearly settled by a series of authorities that a man is not entitled to go into a hazardous business, and immediately before doing so to settle all his property voluntarily, his object being, in Sir George Jessel's words, " If I succeed in business, I make a fortune for myself. If I fail, I leave my creditors unpaid. They will bear the loss." That is the very thing which the statute of Elizabeth was meant to prevent (2). Sjatutes of In summing up the law as settled by the cases decided on the two Statutes of Elizabeth, Mr. May lays down the two following propositions, which wiU, he tells us, give the key to eliciting "a satisfactory and harmonious principle from many decisions which might otherwise appear unintelligible or con- tradictory " (»). 1. In order to decide whether a disposition of property is void as to creditors under the statute 13 Eliz. c. 5, the state of cir- cumstances at the time the conveyance is executed must be regarded. 2. In order to determine under the statute 27 Eliz. c. 4, whether a disposition of property is void as against a subsequent purchaser, the circumstances at the time when the purchaser assumed that character must be louked at, and considered in relation to the previous disposition which is impeached as fraudulent. With regard to the question whether a settlement is voluntary, it is a well-established principle that so long as there is some consideration, and in the absence of fraud, the Court does not " weigh in golden scales," the quantum of the consideration Elizabeth. (') Freeman v. Fope, L. R. 5 Cli. .^3S, woiih, ] 9 Oh. D. 588. and see lUdler v. Ridler, 22 Cli. D. 82. (=) May on Voluntary Settlements, (^) Mackayy. Douglas,lj. R. 14 Kq. 2nd ed. p. 15. lOl) ; Ex parte Russell. In re Butter- Chap. XII.] SETTLEMENTS. 145 which has passed. Thus, in an oft-quoted case, the settlement of leaseholds was held to be an assignment for ^alue, on the ground that liability was attached to the assignee for payment of rent and observance of covenants (i). Attention must also here be directed to the provisions of the Bank- Bankruptcy Act, 1883 C), with regard to voluntary settlements. ,003°''^'^*' That Act provides that any settlement of property not being (1 ), a settlement made before and in consideration of marriage, or (2), made in favour of a purchaser or incumbrancer in good faith and for valuable consideration ; or (3), a settlement made on or for the wife or children of the settlor of property which has accrued to the settlor after marriage in right of his wife, shall, if the settlor becomes bankrupt within two years after the date of the settlement, be void against the trustee in the bankruptcy, and shall, if the settlor becomes bankrupt at any subsequent time within ten years after the date of the settlement, be void against the trustee in the bankruptcy unless the parties claiming under the settlement can prove (1) that the settlor was at the time of making the settlement able to pay all his debts without the aid of the property comprised in the settlement ; and (2) that the interest of the settlor in such property had passed to the trustee of such settlement on the execution thereof (see jposi, p. 922). It is also provided that any covenant or contract made in con- sideration of marriage for the future settlement on or for the settlor's wife or children of any money or property wherein he had not at the date of the marriage any estate or interest, whether vested or contingent, in possession or remainder, and not being money or property of or in right of his wife, shall, upon his becoming bankrupt before the property or money has been actually transferred or paid pursuant to the contract or covenant, be void as against the trustee in bankruptcy (see further, post, p. 922). The Settled Land Acts ('). Next after our review of the principal features of the law as Settled to settlements it will be appropriate for us to direct the reader's ^^^^ ^<^^'- attention to the legislation which is specially concerned with (') Price V. Jenldns, 5 Ch. D. 619 ; C) 46 & 47 Vict. 0. 52, s. 47. Harris v. Tubh, 42 Ch. D. 79, where (') 45 & 46 Viot. c. 38; 47 & 48 the cases are collected, and the ques- Viot. c. 18; 50 & 51 Vict. c. 30; tion whether the rule on this point 52 & 58 Vict. u. 36 ; 5.T it 54 Viot. is confined to cases under 27 Eliz. c. 4, c. 69. is considered. VOL. I. I' 146 REAL PROPERTY. [Book I. settled land. , In a fotmer chapter (ante, p. 27), allusion has been made to the various powers conferred upon tenants for life and other limited owners by the Settled Land Act, 1882, and it is now proposed to consider briefly the principal provi- sions of the extremely important series of enactments which are to be cited together as the Settled Land Acts, 1882 to 1890. The general scope of the Settled Land Acts may be briefly described as follows : It is to enable the tenant for life or " other limited owner" Q) of the land to deal with it as if he were an absolute owner subject to such provisions and restrictions as will secure the interests of those who are entitled in remainder. It was said by Lord Eldon, years ago, that the most improvident course that could be adopted was to intrust the tenant for life with the execution of a pov?er of sale ; " for (he went on to say) it is generally the interest of the tenant-for-life to convert the estate absolutely into money, (') Sect. 2, sub-s. 6 of the Settled Land Act, 1882, provides that if in any ease there are two or more per- sons entitled as tenants in common or as joint tenants, or for other con- current estates, they together consti- tute the tenant for life for the pur- poses of the Act. By sect. 58 the term " tenant for life " includes the following persons, when the estate or interest of each of them is in posses- sion : — (i.) A tenant in tail. Under this term is to be included a tenant in tail who is by Act of Parliament re- strained from barring or defeating his estate tail, and although the reversion is in the Crown, and so that the exercise by him of his powers under the Act shall bind the Crown, but not a tenant in tail ■where the land in respect •whereof he is so restrained was purchased with money provided by Parliament in consideration of public ser- vices (see aide, p. 40) ; (ii.) A tenant in fee simple, with an executory limitation, gift, or disposition over (see ante, p. 71) ; (iii.) A person entitled to a base , .fee, although the reversion is in the Crown, and so that the exercise by him of his powers under this Act shall bind the Crown (see ante, p. 40) ; (iv.) A tenant for years deter- minable on life, not hold- ing merely under a lease at a rent ; (v.) A ti'uant for the life of an- other, not holding merely under a lease at a rent; (vi.) A tenant for his own or any othi.-r life, or for years determinable on life, whose estate is liable to cease in any event during that life, or to be defeated, or is subject to a trust for ac- cumulation of income ; (vii.) A tenant in tail after possi- bility of issue extinct ; (viii.) A tenant by the curtesy ; (ix.) A person entitled to the in- come of land under a trust or direction for payment thereof to him during his own or any other life, whether subject to ex- penses of management or not, or until sale or for- feiture of the land. The next sections (59 and 60) pro- vide for cases where the person who is in his own right seised of or en- titled in possession to land is an infant. Sect. 61 deals with the case of a married woman, and sect. 62 . with that of a lunatic tenant for life. Chap. XII.] SETTLEMENTS. 147 either witli a view to sell another estate to his family, or for the ordinary purpose of getting a better income during his life." This would, doubtless, be true as a general prin- ciple if in the exercise of his powers the tenant for life were not kept in check by prudential safeguards, but the Legislature has taken care in the present instance to make ample provision for the protection of the remaindermen. Every tenant for life under a settlement, no matter what its date may be, has (along with a variety of subsidiary powers) power to sell the settled land, " or any easement, right, or privilege of any kind over or in relation to the same." He may enfranchise copyholds held of any " settled" manor; he may effect exchanges and make partitions ; he may grant leases for any purpose whatever, whether involving waste or not, for any term not exceeding — in the case of a building lease, ninety-nine years ; in the case of a mining lease, sixty years, and in case of any other lease twenty-one years. He may also grant licences to copyholders to lease. He may rais^! money by mortgage, for equality of exchange or partition, subject as to all these powers to the conditions and restrictions prescribed by the Acts ('). (') The following more articulate enumeration of the powers cunferred by the Settled Land Act, 1882, upon a tenant for life under a settlement may be found convenient : — To sell, enfranchise, exchange and concur in partition (sect. 3) ; and see sects. 5, 6, 10, and 12 of the Settled Land Act, 1890. To grant building.miningand other leases (sects. 6, 12) ; and see sects. 7 and 8 of the Settled Land Act, 1890. To accept surrenders of leases, and make new leases (sect. 13). By sect. 17, in sale, exchange, par- tition, and mining lease, the surface and minerals may be dealt with apart. To grant licences for leasing to copyholders (sect. 14). To appropriate land for streets and open spaces on or in connection with sales or grants, or building purposes, or building leases (sect. 16). To raise money by mortgage for enfranchisement or for equality of ex- change or partition (sect. 18) ; and see sect. 11 of the Settled Land Act, 1890. To transfer incumbrances on sale, exchange, or partition, with consent of incumbrancer from one part of the settled land to another (sect. 5). To convey the settled land in com- pletion of the exercise of powers of sale, lease, &c. (sect. 20) ; and see sect. 6 of the Settled Land Act, 1890. To execute deeds, &c., in exercise of powers (sect. 65). To direct the investment and ap- plication of capital money (sect. 22) ; and see sects. 13, 14, and 15 of the Settled Land Act, 189U. To execute improvements autho- rized by the Act defined by sect. 25 (sect. 29) ; and see sect. 13 of the Settled Land Act, 1890. To enter into and vary and rescind contracts (sect. 31) ; and see sect. 6 of the Settled Land Act, 1890. To cut timber, ripe and fit for cutting, with consent of the trustees or under an order of the Court, even when the tenancy for life is impeach- able for waste (sect. 35). To sell or purchase chattels settled or to be settled on trust, but only under an order of the Court (sect. 37) ; and see as to cases where order of the Court is required, sect. 6 Settled Land Act, 1884. See as to the pre- vious law in respect of such chattels : Fane v. Fane, 2 Ch. D. 711 ; B'Eijn- court V. Gregory, 3 Oh. D. 635. It has been pointed out that the policy of the Act, which seems to be L 2 148 BEAL PBOPERTT. [Book I. Safeguards against abuse of powers by tenant for life. Capital money. The tenant for life is prevented from abusing his powers by the following provisions of the Acts : — Every sale must he made at the best price that can reason- ably be obtained. Every exchange and partition must be made for the best consideration in land, or in land and money, which can reasonably be obtained (^). When the land is leased, every lease must be by deed and be made to take effect in possession not later than twelve months after its date, and must reserve the best rent that can be obtained, having regard to any fine or money laid out or to be laid out for the benefit of the settled land, and generally to the circumstances of the case. The lease must also contain a covenant by the lessee for payment of the rent, and a condition of re-entry on the rent not being paid within the specified time, which is not to exceed thirty days. A counterpart of the lease is to be executed by the lessee and delivered to the tenant for life (^). It has been laid down in a recent case that a tenant for life has now under the Settled Land Act, 1882, an absolute, and (except in the cases pointed out by the Act) an unfettered right to sell the settled land without the consent or control of the trustees of the settlement, unless they have reason to believe that any intended exercise of the power is improper (f). Capital money arising under the Act must be paid either to the trustees of the settlement or into Court (*), and be applied according to the direction of the tenant for life, or of the Court in one or more of the following modes : — (1) In any of the " authorized modes of investment." (2) In discharge, purchase, or redemption of incumbrances affecting the inheritance, or whole estate settled, or of land-tax, to entrust the tenant for life with all the administrative powers of an abso- lute owner, is strikingly exemplitied by the section regulating the invest- ment and appliration of capital money arising under the Act. At the option of the tenant for life the capital money is to. be paid to the trustees or into Court ; according to Ms direction, the trustees are bound to apply any money in their hands in any of the authorized modes ; and no change can be made in the invest- ments without his consent : Gierke's Settled Land Act, p. 79. (') Settled Land Act, 1882, s. 4, sub-ss. 1, 2. {') Settled Land Act, 1882, s. 7. (') In cases where the trustees have reason to believe that any intended exercise of the power is improper, they can apply to the Court under sect. 44 of the Act. The fact that at the time the tenant for life enters into a contract for sale there are no trustees of the settle- ment under the Act, or, when there are any, the fact that no notice has been given them by the tenant for life, under sect. 45, sub-seot. 1, of his intention to proceed to a sale, will not prevent the tenant for life making a statutory title : Hatten v. Busiell, 38 Ch. D. 334. O 45 & 46 Vict. 0. 38, sb. 21, 22. Chap. XII.] SETTLEMENTS. 149 rent-charge in lieu of tithe, Crown rent, chief rent, or quit-rent, charged on or payable out of the settled land. (3) In payment for any improvement authorized by the Act ; or (4) for equality of exchange, or partition of settled land. (5) In purchase of the seignory of the settled land, being freehold, or of the fee-simple of such land being copyhold. (6) In purchase of the reversion or freehold in fee of the settled land, being leasehold for years, or life, or years determin- able on life. (7) In the purchase of land in fee-simple, or of copyhold or customary land, or of leaseholds held for sixty years or more, unexpired at the lime of purchase, subject or not to exceptions or reservations of mines or minerals, or of rights of working them. (8) In purchase, either in fee-simple, or for a term of sixty years or more, of mines and minerals, convenient to be held or worked with the settled land, or any easement, &o., convenient to be held with such land for mining or other purposes. (9) In payment to any person becoming absolutely entitled, or empowered to give an absolute discharge. (10) In payment of costs, charges, and expenses of or in- cidental to the exercise of any of the powers, &o., of the Act. (11) In any other mode in which money produced by the exercise of a power of sale in the settlement is applicable there- under. The Settled Land Act, 1884 (s. 4), provides that a fine re- ceived on the grant of a lease under any power conferred by the Act shall be capital money. A long list of " authorized improvements " for which capital money may be applied is given in sect. 25 of the Settled Land Act, 1882 (1). The Settled Land Act, 1890 (sect. 13), makes the following additions to the list of authorized improvements : (i.) Bridges. (ii.) Making any additions to or alterations in buildings reasonably necessary or proper to enable the same to be let. Q) Sect. 1 of 50 & 51 Vict. c. 30, of defraying the expenses of such provides as follows : " Where any improvement, any capital money ex- improvement of a kind authorised pended in redeeming such rent- by the Act of 1882 has been or may charge or otherwise providing for be made either before or after the the payment thereof shall be deemed passing of this Act, and a rent- to be applied in payment for an charge, whether temporary or per- improvement authorised by the Act petual, has been or may be created of 1882." The next section provides in pursuance of any Act of Parlia- that s. 28 of the Settled Land Act, ment, with the object of paying off 1882, is to -apply to improvements any moneys advanced for the purpose within the section just g,uoted. 150 REAL PROPERTY. [Book I. Settled Land Act, 1889. Principal mansion- house. (iii.) Erection of buildings in substitution for buildings within an urban sanitary district taken by a local or other public authority or for buildings taken under compulsory powers, but so that no more money be expended than the amount received for the buildings taken and the site thereof, (iv.) The rebuilding of the principal mansion house on the settled land. It is however provided that the sum to be applied in this last case shall not exceed one half of the annual rental of the settled land. It is also provided by the Settled Land Act, 1890 (ss. 14 and 15), with regard to the application of capital money, that all or any part of any capital money paid into Court may, if the Court thinks fit, be at any time paid out to the trustees of the settle- ment for the purposes of the Settled Land Acts, 1882 to 1890. The Court may, in any case where it appears proper, make an order directing or authorising capital money to be applied in or towards payment for any improvement authorised by the Settled Land Acts, 1882 to 1890, notwithstanding that a scheme was not, before the execution of the improvement, submitted, for approval, as required by the Act of 1882, to the trustees of the settlement or to the Court. The Settled Land Act, 1889, (i) which is to be construed as one with the Settled Land Acts, 1882-1887, provides that any building lease, and any agreement for granting building leases, under the Settled Land Act, 1882, may contain an option, to be exercised at any time within an agreed number of years not exceeding ten, for the lessee to purchase the land leased at a price fixed at the time of the making of the lease or agreement for the lease, such price to jbe the best which, having regard to the rent reserved, can reasonably be obtained, and to be either a fixed sum of money, or such a sum of money as shall be equal to a stated number of years' purchase of the highest rent reserved by the lease or agreement, and that such price when received shall for all purposes be capital money arising under the Settled Land Act, 1882. The powers of the tenant for life in respect of sale, exchange, and leasing, are subject to a most important restriction. The Settled Land Act, 1890 (2), provides that, Notwithstanding anything contained in the Act of 1882, the principal mansion house (if any) on any settled land, and the pleasure grounds and (') 52 & 53 Vict. u. 36. O 53 & 54 Vict. c. 69, s. 10, re- pealing s. 15 of the Settled Land Act, 1882. Chap. XII.] SETTLEMENTS. 151 jparle, and lands (if any) usually occupied therewitli, shall not be sold, exchanged, or leased by the tenant for life without the consent of the trustees of the settlement or an order of the Court. " Where a house is usually occupied as a farmhouse, or where the site of any house and the pleasure grounds and park and lands (if any) usually occupied therewith do not together exceed twenty-five acres in extent, the house is not to be deemed a principal mansion house within the meaning of the section." In one case leave to sell a manpion-house, &c., was granted on the ground that, owing to ill-health and permanent resi- dence elsewhere, the tenant for life was unable to reside in it, and because, as the estate was in proximity to a large town, the bulk of the estate could not be advantageously sold without the mansion-house and adjoining lands (i). The tenant for life must also give the trustees and their Notice of solicitor a notice of his intention to sell. At the date of any ^^^^■ such notice there must not be less than two trustees unless a contrary intention is expressed by the settlement (^). But it is provided by the Settled Land Act, 1884, that this notice may be a general one, and that the trustees may waive notice, or accept a notice shorter than a month's notice. And here it will be desirable to notice that the definition of Trustees of " the trustees of the settlement " which is given in the Act must be carefully borne in mind (^). It comprises the following persous : (1) Trustees, with a power of sale of settled land : (2) Trustees, with a power of consent to, or approval of, the exercise of such a power of sale. (3) The persons declared by the settlement to be trustees thereof for purposes of the Act. It is also provided by the Settled Land Act, 1890 (sect. 16), that " where there are for the time being no trustees of the settlement within the meaning and for the purposes of the Act of 1882, then the following persons shall, for the purposes of the Settled Land Acts, 1882 to 1890, be trustees of the settle- ment; namely, (i.) The persons (if any) who are for the time being under the settlement trustees, with power of or upon trust for sale of any other land comprised in the settlement the settle- meDt. (•) Be Brown's Will, 27 Oh. D. 179. power must be a present power : C) Settled Land Act, 1882, s. 45. Wheelwright v. Walker, 23 Ch. D. (') 45 & 46 Vict. c. 38, s. 2 (8), 752 ; and see Constable v. Constable, under which it was held that the 32 Oh. D. 238. 152 REAL PROPEBTT. [Book I. and subject to the same limitations as the land to be* sold, or with power of consent to or approval of the exercise of such a power of sale, or, if there be no snob persons, then (ii.) The persons (if any) who are for the time being under the settlement trustees with future power of sale, or under a future trust for sale of the land to be sold, or with power of consent to or approval of the exercise of such a future power of sale, and whether the power or trust takes effect in all events or not." It is also provided (sect. 17) that all the powers and provi- sions of the Conveyancing Act, 1881 {post, p. 685), with refer- ence to the appointment, discharge, and retirement of trustees, are to apply to trustees for the purposes of the Settled Land Acts, 1882 to 1890, whenever appointed, discharged, or retiring, and whether appointed by the Court or by the settlement, or under provisions contained in the settlement. It must not be forgotten that, as nothing can be done in pur- suance of the powers conferred by the Settled Land Acts, unless there be in existence trustees of the settlement within the scope of these definitions or descriptions, the first step that must be taken in case there are no such trustees, is to apply to the Court for their appointment. The tenant for life must also, at the request of a trustee, furnish him with such particulars and information as may be required by him from time to time with reference to sales, ex- changes, partitions or leases effected or in progress, or imme- diately intended (i). Powers of The powers of the tenant for life cannot be assigned, released, tenan or ^^ forfeited, and do not pass to a person as being by operation of law, or otherwise, assignee of the tenant for life, but remain still exeroiseable by the tenant for life (f). And it is expressly pro- vided that any contract not to exercise them, or any prohibition or limitation of their exercise, is void. The Settled Land Act, 1882, s. 30, contains a provision that the rights of any person being an assignee for value of the estate or interest of the tenant for life are not to be prejudiced. The Settled Land Act, 1890 (s. 4), however, provides that — " (1) Every instrument whereby a tenant for life, in considera- tion of marriage or as part or by way of any family arrange- ment, not being a security for payment of money advanced, makes an assignment of or creates a charge upon his estate or (') SetUed Land Act, 1884, s. 5. Q) SetUed Land Act, 1882, a. 50. Chap. XIL] SETTLEMENTS. 153 interest under the settlement is to be deemed one of the instru- ments creating the settlement, and not an instrument vesting in any person any right as assignee for value within the mean- ing or operation of s. 50 of the Act of 1882." This provision is to apply to every disposition before as well as after the passing of the Act, unless inconsistent with the nature or terms of the disposition. In cases of conflict between the provisions of a settlement and the provisions of the Act as to the powers of the tenant for life, the provisions of the Act are to prevail ; and, accord- ingly, notwithstanding anything there may be in a settlement, no express power given to the trustees can be exercised wijthout the cimsent of the tenant for life, or those persons who together fill that character. In exercising the powers given him by the Act, the tenant for life must have regard to the interests of all parties entitled under the settlement, and is deemed to have the duties and liabilities of a trustee for those parties (i). The tenant for life is, said Chitty, J. (2), to have regard to the interests of other persons, and he is to be deemed to be a trustee in the exercise of the powers for those persons. He is not to exercise this power simply for his own benefit. The tenant for life has the absolute right to sell, though it may be suggested he is selling out of ill-will or caprice, or because he does not like the remainderman ; because he desires to be relieved from the trouble of attending to the management of land, or from any other such object or with any such motive. The object of the section (when read in connection with sect. 54) is that the tenant for life must pursue his powers according to the Act. He must sell for the best price, and if he does not, and there is any corrupt or underhand bargain between him and the purchaser, then neither is his sale good, nor does the purchaser obtain a good title. With regard to dealings between the tenant for life and the estate, the Settled Land Act, 1890 (sect., 12), contains the follow- ing important provision : — " When a sale of settled land is to be made to the tenant for life, or a purchase is to be made from him of land to be made subject to the limitations of the settlement, or an exchange is to be made with him of settled land for other land, or a parti- tion is to be made with him of land an undivided share whereof is subject to the limitations of the settlement, the trustees of (1) Settled Land Act, 1882, s. 53. (f) Cardigan v. Cunon-Howe, 30 Ch. D. 539, 540. 154 EEAL PROPERTT. [Book I. Trust for sale. Tenant for life. the settlement shall stand in the place of and represent the tenant for life, and shall, in addition to their powers as trustees, have all the powers of the tenant for life in reference to nego- tiating and completing the transaction." Sect. 63 of the Settled Land Act, 1882, provides that lands subject to a trust or direction for sale and for the application of the moneys arising from the sale or the income thereof for the benefit of any person or persons for life, or any other limited period, and whether absolutely, or subject to any trust. for accumulation of income, or to any other restriction, shall be "settled land." The instrument under which the trust arises is to be deemed to be a settlement, and the person or persons beneficially entitled to the income is, or are, to be deemed tenant for life. The trustees who have power to sell, or consent to a sale, are, for the purposes of the Act, trustees of the settlement. The effect of this section has been very materially modified by the Settled Land Act of 1884 (i), which provides that the powers thereby conferred are not to be exercised except with leave of the Court, and that any consent not required by the terms of the settlement is not to be required by force of the section. Before the Settled Land Act, 1882, large though rather onerous powers had been granted to limited owners for the improvement of settled land by the Improvement of Land Act, 1864. These powers are now extended by the Settled Land Acts, and rendered much more favourable to the tenant for life, and although in some cases it may still be desirable to employ the provisions of the Improvement of Land Act, they are superseded by those of the Settled Land Acts. Questions have several times arisen as to who is tenant for life. It has been decided that a man who is entitled to the income subject to incumbrances is to be deemed tenant for life though the estate is so heavily charged that he derives no income from it (2). On the other hand it has beea held in another case, that a trust, although it be to last during the life of A., to apply the rents and profits of an estate for the benefit of A. and of his wife and his children, if any, does not constitute A., or A. and his wife together, a tenant for life, or a person with the powers of a tenant for life (^). C) 47 & 48 Vict. c. 18, ss 6, 7. (2) Re Jones, 26 Ch. Div. 736; Cardigan v. Curzon-Howe, 40 Oh, D. 341. (') In re Atkinson. Bruce, 31 Ch. Div. 577. Atkinson v. CuAP. XII.] SETTLEMENTS. 155 The ebtate of a tenant by the curtesy is to be deemed an estate arising under a settlement made by his wife (}). A married woman entitled to the income of land for her sepa- Expendi- rate use is tenant for life even though she be restrained from trust" anticipation. If, however, the lady be not entitled for her money. separate use, the powers belong to her in conjunction with her husband (f). When the tenant for life is an infant the powers are to be exercised by the trustees of the settlement or by such person as the Court may appoint. "When he is a lunatic the powers are to be exercised by his committee (^). A very interesting question came recently before the Court with reference to the power to expend trust money for the preservation of settled property. Land and money were vested in the trustees of a settlement for the benefit of the husband and wife for their lives, and after their deaths for the children of the marriage. Certain farm buildings on the estate were BO much out of repair as to render the farm untenantable, and the application was for leave to expend certain trust funds in repairs and improvements (*). It was pointed out by the Court that there were many de- cisions, starting from a case decided by the Court of Appeal in 1871, as from a corner-stone, in which the Court had held that, where there was a power to purchase real estate, that power might be well exercised in the erection of buildings on a property already in settlement, as that was really equivalent to a purchase of real estate (^). These cases, however, the judge said had no application to the matter before the Court, as there was no trust or power in the settlements enabling the trustees or the tenant for life to purchase land or to dip into the capital for the purposes of repairs. The Court, however, considered that it had power under its " original jurisdiction " to authorise the required expenditure, and the application was accordingly allowed. The following are some of the more important cases on the Cases on Settled Land Acts -.—Mackenzies' Trusts, 23 Ch. D. 750 (Trustees' Settled investments) ; WheelwrigJit v. Walker, 23 Ch. D. 752 (Notice to trustees) ; Me Beck, 24 Ch. D. 608 (Costs), but see Cardigan v. (1) 47 & 48 Vict. c. 18, s. 8. 512. (2) Settled Land Act, 1882, s. 61, (») Be Leigh's Estate, L. E. 6 Ch. Bub-ss. 2, 3, 6. 887, aad see Drake v. Trefusis, L.K. (3) Sects. 61, 62. 10 Ch. 364, (■") Conway v. Fenton, 40 Ch. D. 156 MEAL PROPERTT. [Book I. Cwzm-Eom, 40 Ch. D. 338, aflGid. 41 Ch. D. 375 ; Be Earl and Webster, 24 Ch. D. 144 (Trust for sale) ; J)uke of Newcastle's Estate, 24 Oh. D. 129 (Exercise of powers, &c.) ; Be Chaytor, 26 Ch. D. 651 (Power of sale) ; Taylor v. Fonda, 25 Ch. D. 646 (Trnstees for sale) ; Be Jones, 26 Ch. D. 736 (Tenant for life) ; Be Knatchhull, 29 Ch. D. 688 (Payment of charges) ; Be Houghton, 30 Ch. D. 102 (Improvements) ; Be Bivett-Carnac, 30 Ch. D. 136 (Title of honour) ; Be Paget, 30 Ch. D. 161 (Tenant for life, forfeiture for non-residence, and see Be Haynes, 37 Ch. D. 306) ; Cardigan v. Curzon-Eowe, 30 Ch. D. 531 (Pendency of action) ; Be Clitheroe, 31 Ch. D. 135 (Tenant for life) ; Be Bidge. Eellard v. Moody, 31 Ch. D. 504 (Tenant for life— Waste) ; Constable v. Constable, 32 Ch. D. 233 (Trustee for sale); Be Sebright, 33 Ch. D. 429 (Tenant for life— Mortgage) ; Be Eotchkin, 36 Ch. D. 41 (Pay- ment for improvements out of capital money) ; Be Lytton,\ 38 Ch. D. 20, 26 (Extra expenditure for improvements) ; Eatten v. Bussell, 38 Ch. D. 334 (Eelative powers of tenant for life and trustees of settlement) ; Be Tennant, 40 Ch. D. 594 (Investments) ; Be Lord Stamford's Settled Estates, 43 Ch. D. 84 (Powers of tenant for life, &c.) ; Be Newton's Settled Estates, W. N. (1890) 24 (Im- provements). The provisions of the Settled Land Act, 1882, have heen amended by the Housing of the Working Classes Act (63 & 54 Vict. o. 70), as regards erection of buildings for the working classes. ( 157 ) CHAPTER XIII. Wills. A will is defined by Mr. Jartnan as " an instniment by which Definition a person makes a disposition of his property to take effect after his decease," and which is in its own nature ambulatory and revocable during his life. " It is this ambulatory or revocable quality," Mr. Jarman goes on to say, " which forms the charac- teristic of wills, for though a disposition by deed may postpone the possession or enjoyment, or even the vesting until the death of the disposing party, yet the postponement is in such a case produced by the express terms and does not result from the nature of the instrument " (}^. A codicil, in the modern acceptation of the term, is " an Definition addition made by the testator, and annexed to, and to be taken "^ codicil, as part of, a testament being for its explanation or alteration or to make some addition to, or else some subtraction from, the former disposition of the testator " (2). A codicil is part of the will, and the will with the codicil or codicils makes but one testament. When real property is given by will, it is said to be " devised ; " when personal property is so given, it is said to be " bequeathed." With regard to the form of a will, the law does not require Form of that any particular form should be adopted, provided that it is ™'^'- the intention of the deceased to make a " posthumous des- tination of his property," and that the instrument should only operate after his death, and if this appears to be the nature of its contents, some contrary designation bestowed on it by the maker will be disregarded. Thus, it has been held that a deed poll or an indenture, a deed of gift, a bond, marriage settle- ments, letters, drafts on bankers, the assignment of a bond by indorsement, and promissory notes are testamentary disposi- tions (^). It must, however, be borne in mind, that in such cases (') Jarman on Wills, vol. i. 4tli ed. Be Blackburn, 43 Ch. D. 75, where it p_ 16. was lield that the codicil had the Q) Williams on Executors, 8th ed. effect of reiterating the will, p. 8. The word "codicil '' is derived (^) See Milnes v. Foden, 15 P. D. from codicillus the diminute of codex. 105 ; In the Goods of Slinn, 15 P. D. See Justinian Instit. lib. ii. cap. 25 ; 156. 158 REAL PMOPEBTT. [Book I. the formalities required by the Wills Act as to execution and attestation must be complied with (^). An infant cannot make a will (see post, p. 961, as to who may make a will). Early The early histoiy of wills may be told sufficiently for our vvTur^ ° present purpose in a very few words : — Prior to the statute passed in the 32nd year of the reign of Henry 8, known as the Statute of Wills, there was no power, unless in some few exceptional cases, to devise leal estate, but this difficulty was evaded by the ingenious device of uses (ante, p. 17), as the Court of Chancery enforced devises of uses. When, however, the Statute of Uses was passed,. 27 Henry 8, c. 10 (ante, p. 17), which turned all u.-divided into, first, powers appendant and annexed to the estate; secondly, powers in gross: Tudor's Eeal Property Cases, vM supra. C) A general devise or bequest operates as an execution of a general power, unless "contrary" intention appears : 1 Vict. c. 26. s. 27 ; see as to effect of codicil, Me Blackburn, 43 Ch. D. 75. C) Sugden on Powers, p. 394; Farwell on Powers, p. 7. Chap. XIV.] POWERS. Ill from the date of the instrument creating the powers, and the time is reckoned as commencing from the date of the instrument creating it if a deed, or the death of the testator in the case of a will. It should also be borne in mind that if the power assume to enable the donee to transgress the rule against perpetuities, and he exercises the power within due limits, the exercise is valid (I). The Bankruptcy Act, 1883 (2) (sect. 44), comprises in the property divisible among the bankrupt's creditors, the capacity to exercise and to take proceedings for exercising all such powers in or over or in respect of property as might have been exercised by the bankrupt for his own benefit at the commence- ment of his bankruptcy, or before his discharge, except the right of nomination to a vacant ecclesiastical benefice. Where a general power of appointment is exercised by will, the property is rendered assets for payment of debts (f). There are three requisites to the valid creation of a power : namely, (1) sufficient words to denote the intention; (2) an apt instrument ; and (3), a proper object (f). But no technical or express words are necessary, either in a deed or in a will, to create a power, if the intention be clear (^). A power may be exercised excessively. (1) With regard to the objects, i.e. when persons are included who were not con- templated in the creation of the power. For instance, in the leading case of Alexander v. Alexander (^), it was decided that under a power to appoint among children an appointment to grandchildren was invalid. It was decided, however, in the same case that such an exercise of the power would be valid, if made with concurrence of the true object of the power, e.g. if upon marriage of a child, a parent with power to appoint amongst children, only appointed, with the consent of the child, to the intended husband and issue of the marriage, such an arrangement being regarded as first an appointment, and then a resettlement by the object of the power. (2) With regard to the amount of the subject appointed. (3) Where conditions Bank- ruptcy Act, 1883. Requisites for creation of power. Excessive exercise of power. (■) See Whitly v. Mitchell, 42 Ch. D. 494 ; affirjiied 44 Ch. D. 85. {^) 46 & 47 Vict. c. 52, and see Nichols to Nixey, 29 Ch. D. 1005, ■where it was held that a trustee could not exercise the power after the debtor's deatli. Q) Fleming v. Buchanan, 3 De G. M. & G. 976, and jee as to married women : Re uarvey, V6 VOL. I. Ch. D. 216; Hodges v. Hodges, 20 Ch. D. 749 (and cases cited), and sect. 4 of the Marric-d Women's Pro- perty Act, 1882. (^) Sugden on Powers, p. 102. (') Farwell on Powers, p. 29. (") 2 Ves. Sen. 640 ; and see notps to Tudor's Eeal Property Cases, 3rd ed. p. 395. N 178 REAL PROPERTY. [Book I. Illustra- tions. Appoint- ment. are annexed to the appointment which are not authorized by the power. The second may be illustrated by a case decided by Sir George Jessel. A testator who had power to appoint £7000 by will, thought he had power to appoint £10,000; and made a will appointing sums of £1995, £4000, £4000, and £5. The appointee of one of the £4000 died in the lifetime of the testator. Sir, George Jesse], in delivering judgment said that, if nothing more had happened than that the testator had appointed £10,000 instead of £7000, it was quite clear that all the gifts must have abated, because there was not enough to pay the bequests in full. But one of the appointees has died, which augments the fund, exactly in the same way as if the testator had given pecuniary legacies of greater amount than his whole personal estate ; and then one of these legatees had died. In that case the personal estate would have been augmented for the benefit of the other legatees, and the appointees here are in the same position (1). The decision of the Court accordingly was that the other appointees and not the persons who would have been entitled in default of appointment were to receive the £4000. The third case may be illustrated as follows : Suppose a power to a man to appoint £1000 among his children; if the father gives the £1000 to his children and annexes a condition that they shall release a debt owing to them or pay money over, the appointment of £1000 would be absolute, and the condition would be only void (^). The exercise of a power is commonly called an " appointment." Where the instrument by which a power is created does not specify the mode in which the appointment is to be made, or the formalities to be observed in the exercise of the power, the appointment may be made either by deed or by will, or by any other writing. But if there be express directions on any of these points in the instrument creating the power, the re- quirements of the power must be strictly complied with, except where the defective execution of the power may be aided {post, p. 182), or by one of the statutory provisions to which we shall now refer. The Wills Act, 1 Vict. c. 26, s. 10, provides that no appoint- ment made by will in exercise of any power shall be valid, unless executed in the manner in which wills generally are thereby required to be executed ; and that a will so executed (1) Bales V. Drahe, 1 Ch. D. 219. Q) Alexander v. Alexander, 2 Ves. Sen. 640. Chap. XIV.] POWERS. 179 shall, as regards the execution and attestation thereof, be a valid exercise of a power of appointment by will, notwithstand- ing some other or additional formality shall have been required by the instrument creating the power. And by Lord St. Leonards' Act (22 & 23 Vict. o. 35, s. 12) it is provided with regard to appointments otherwise than by will, that a deed executed, and attested by two or more witnesses in the manner in which deeds are ordinarily executed and attested shall, as regards execution and attestation, be a valid exercise of a power of appointment, although some other or additional formality of execution or attestation or solemnity shall have been expressly required by the instrument creating the power. A power is often framed so as to authorise an appointment to Exclusive some one or more of the obiects to the exclusion of the others, '^PP"'"'' , . . ment. and this is called " an exclusive appointment." Prior to 1830, in oases where powers were not exclusive, the rules of equity and law were at variance on the subject. At law, a shilling out of £100,000 was sufficient, but in equity such an appointment was treated as illusory. In 1830 an Act was j)assed by Lord St. Leonards (i) providing that no appointment should be in- validated or impeached on the ground that an " unsubstantial illusionary or nominal" share alone was appointed. This Act has now to a great extent been supeiseded (^) by the Powers Law Amendment Act, passed the 30th of July, 1874, which provides that no appointment thereafter made in exercise of any power to appoint any property real or personal amongst several objects, should be invalid at law or in equity on the ground that any object of such power had been altogether ex- cluded, but that every such appointment should be valid and effectual, notwithstanding that any one or more of the objects should not thereby, or in default of appointment, take a share or shares of the property which was subject to such power. 'I'he Act, however, includes a proviso that nothing therein con- tained shall prejudice or affect any provision in any deed, will, or other instrument creating any power which shall declare the amount or share or shares from which no object of the power shall be excluded, or some one or more object or objects of the power shall not be excluded. It is now provided by the Married Women's Property Act, Married 1882, that the execution of a general power by will of a married Women's woman shall have the eifect of making the property appointed Act''l882 (') 11 Geo. 4, and 1 Wm. 4, e. 46. v. Bunn, L. E. 17 Eq. 405; In re Sugrlen on Powers, 8th ed. 449. Capon's Trusts, 10 Ch. D. 484. (;') 37 & 38 Vict. c. 37. Gainsford N 2 180 BJEAL PBOPERTT. [Book I. Convey- ancing Act, 1881 and 1882. Wills Act. Geneial devise. liable for her debts and other liabilities in the same manner as her separate estate is made liable under the Act. The Conveyancing and Law of Property Act, 1881, now provides that, where a power or trust is given to or vested in two or more executors or trustees jointly, then, unless the contrary is expressed in the instrument, if any, creating the power or trust, the same may be exercised or performed by the survivor or survivors of them for the time being (^). Sect. 6 of the Conveyancing Act, 1882, which is retro- spective, provides that a person to whom any power, whether coupled with an interest or not, is givfen, may, by deed, dis- claim the power, and after disclaimer, shall not be capable of exercising or joining in the exercise of the power. On such disclaimer the power may be exercised by the other or others, or the survivor or survivors of the others of the persons to whom this power is given, unless the contrary is expressed in the instrument creating the power (^). Where a person has a general power of appointment exercis- able by will, and by his will he gives all his, estate or all his property in general terms, but does not expressly refer to the power, will this general gift operate as an exercise of the power of appointment? Under the former law it did not, but extended only to the testator's own property. But as this construction of such a gift tended frequently to defeat the intention of testators, it was provided by the Wills Act that a general gift of the real or personal estate of a testator should be construed to include any real or personal estate which he might have power to appoint in any manner he might think proper, and should operate as an execution of such power, unless a contrary intention should appear by the will (S). In a recent case, where a testatrix having a general power of appointing by will made a general devise of her property without expressly referring to the power, the Court, in deliver- ing judgment, said : It is useless to speculate about the intention of the testatrix. The Court may have a strong suspicion that the testatrix did not intend to exercise what is called a general power of appointment, and if she had been told that she had (1) 44 & 45 Vict. u. 41, s, 38. See as to tlie law applicable to the exe- cutorships and trusts which are ex- cepted from the operation of this section, which applies to executor- ships and trusts constituted after or created by instruments coming into operation after the commencement of the Act, 1st Jan. 1882 : Gierke and Brett's Conveyancing Act, p. 142, et seq. (") 45 & 46 Vict. 0. 39 ; and see Me Eyre, 49 L. T. (N. S.) 259. C) 1 Vict. c. 26, s. 27 ; Ee Phillips, 41 Gl). D. 417; Phillipsy. CayUy, i3 Cli. D. 222. Chap. XIV.] POWERS. 181 done so, she would have been very mucli surprised to hear it. But the statute renders any such speculation fruitless (i). In a case which came before the Court of Appeal in 1889 (2) Special a testator, who had no real estate of his own, but had a special P"*^'^'''^* power of appointing a life interest in certain real and personal estate to his widow, bequeathed all his real and personal estate to his widow absolutely, but without referring in any way to the special power or the property comprised therein. The Court of Appeal held that the will did not operate as an exercise of the special power. One of the judges, in delivering judgment, expressed himself as follows : " We must bear two things in. mind. Pirst, that sect. 27 of the "Wills Act only applies to a general power of appointment, as to which a general devise operates as an exercise of the power, unless there is some indica- tion in the will of a contrary intention. Secondly, that, as regards special powers, the old law applies, which is that you must find some indication, either by reference to the power or by reference to the property, of an intention to exercise the special power. Anything which shewed that the testator had the power in his mind would be enough. But if you cannot find anything to shew that the testator had the special power in his mind, it would be straining language to say that the devise would be an exercise of that power." It is a long-established principle of the law that a power of Bond fide appointment must be exercised bond fide for the end designed, po^gj^*^ ° The law on this subject was stated by the House of Lords in a celebrated case as follows : " A party having a power like this (i.e. a limited power) must fairly and honestly execute it, with- out having any ulterior object to be accomplished. He cannot carry into execution any indirect object, or acquire any benefit for himself either directly or indirectly. It may be subject to directions or limitations ; but it must be a pure, straightforward, honest dedication of the property, as property, to the person to whom he affects or attempts to give it in that character. He must act with good faith and sincerity, and with an entire and single view to the real purpose and object of the power, and not for the purpose of accomplishing or carrying into effect any bye or sinister object (sinister in the sense of being beyond the purpose and intent of the power) " (^). (1) In re Jones, 34 Ch. D. 65, 67, Be Mills, 34 Ch. D. 186. See also and see In re Gibbe's Settlement. In re Wells. Hardisty v. Wells, 42 White V. Bandolf, 37 Oli. D. 143. Cb. D. 646. O In re Esther Williams. FoulJces (^) Duke of Portland v. Topham, V. Williams, 42 Oh. D. 93, approving 11 H. L. C. 32. execution aided. 182 REAL PROPERTY. [Book I. A power of appointment was exercised by codicil under an-ange- ments which involved a threat to revoke the will previously- made unless the proposed arrangements were carried into effect. The Court decided that the appointment proceeded upon a bargain which was contrary to the nature of the power, and was there- fore invalid Q-"). Defective The Court will not relieve against the non-execution of a power, but when a power has been executed, but not in the form prescribed, the Court will in certain cases " aid the defec- tive execution of the power." It must be shewn that the donee of the power had a clear intention to exercise it and that the defect is not of the essence of the power, and then if the exercise of the power be in discharge of a moral or natural obligation and there be no countervailing equity, the defective execution will be aided. This aid has been granted in favour of: (1) purchasers (under w^hich term mortgagees and lessees are included); (2) creditors; (3) charities; (4) wives; (5) legitimate children Q). This doctrine of the Court may be illustrated by a well- known case. A lady, having a power of appointment by deed or will over certain leasehold property, which in default of appointment was vesled absolutely in her, wrote and signed an unattested paper, by which, after referring to the property in terms sufficient to identify it, she proceeded : " If I die suddenly, I wish my eldest son to have it. My intention is to make it over to him legally if my life is spared." She died within three months, leaving this memorandum among her papers, and without having otherwise exercised her power. The Court of Appeal decided that the memorandum was a defective execution of the power, and that equity would relieve against the defect in favour of the eldest son (f). Lord Justice James, in delivering judgment, said : " In favour of purchasers or children, the Court relieves against the defective execution of a power, provided it sufficiently appears that there was an intention on the part of the donee to give the property which he had power to dispose of. Here the lady had power to give the property by an instrument sealed and de- livered. By an instrument nut sealed and delivered she expresses her intention that her son shall have the property (') In re Kirwan's Trusts, 25 Ch. D. and Tudor's Leading Cases ; Ken- 373, and see Jn re Deane. Bridger v. nard v. Kennard, L. E. 8 Ch. 227; Deane, 42 Cli. D. 9 ; Burnaby v. Me Kirwan's Trusts, 25 Ch. 1). 373. BailUe, 42 Cli.D. 282; Be Crawshay, (=) Kennard v. Kennard, L. K. S 43 Ch. D. 615. Oh, 227. (2) See Toilet v. Toilet, 1 White Chap. XIV.] POWERS. 183 wMch is subject to the power, and the case is one in which a Court of Equity will relieve against the defective execution.'' No aid will however be afforded to a husband, a grandchild, a natural child, or cousin, a brother or sister, a nephew or niece or a volunteer, even although such a volunteer be the creator of the power (i). Where there is complete execution of a power, and something ex abundanti added, which is imptoper, there the execution shall be good, and only the excess void ; but where there is not a complete execution of a power, and the boundaries between the excess and execution are not distinguishable, the execution will be bad (^). (') Farwell on Powers, p. 276, where the authorities are collected. (-) The law with regard to revo- cations and new appointments was considered in Wilson v. Kenrick, 31 Oh. D. 658, and there summed up in the thiee following propositions : — (1) Where under a power to ap- point a definite fund among special objects an appointment is made of aliquot parts of the fund, or of parts of the fund exhausting the whole by- one instrument, or by several instru- ments, which form one transaction and ought to be construed together, there frimd facie there is no priority, and the several parts of the fund, if the fund proves deficient, must abate rateably. (2) Where under a like power several sums are appointed by succes- sive independent deeds, there primd fa^ie the sums or parts appointed, not being aliquot parts, have priority according to the dates of the deeds. (3) Where under a power an ap- pointment authorized by the power is made reserving a power of revocation and new appointment, and subse- quently an instrument of revocation and new appointment is executed, the new appointment operates as an exercise of the original power. See further on tlie subject of powers, Eenty v. Wrey, 21 Ch. D. 332 ; Brett's Leading Oases, p. 225 ; Me Mills, 34 Oh. D. 186 ; Cooke v. Cooke, 38 Ch. D. 202; Be Brough, 38 Oh. D. 456; Whelan v. Palmer, 89 Ch. D. 649; Be Deane, W. N. (1888) 249; (1889) 107. ( 184 ) Definition. Sketch of the law as to copy- holds. CHAPTEE XV. Copyholds. Copyholds are defined as lands expressed to be held (1) at the will of the lord ; (2) by copy of Court roll ; (3) according to the custom of the manor, subject to the rent and services to be paid or rendered to the lord. The history of copyholds may be told sufficiently for our present purpose in a few words. The tenure of the copyholders was originally a mere occupa- tion licence from a feudal lord to the villein who cultivated that part of his estate which was not granted to free tenants. Portions of the demesne lands of manors were then held by the villeins or bondsmen on a base tenure. These tenancies were at first actually, as they still are nominally, at the will of the lord, but gradually by custom the tenants acquired permanent rights. Custom developed into right. The will of the lord which had originated the custom came at last to be controlled by it. The word villenage as applied to this tenure fell into disuse, and it came to be called " copyhold," from the fact of the instrument of title to the tenant's estate being a copy of the Court roll or book of the manor in which dealings with the copyhold lands are recorded. Thus, to quote from a well-known writer on Copyholds, has the law supported and strengthened the estate of the tenant, though it still regards him as holding (nominally) at the will of the lord. The tenant has long ceased to be subject to the caprice of his lord. The grant by the lord is solely dependent on his option, but from the very time of the grant, and, in consequence of the very act, the copyholder ceases to be a mere tenant at the will of the lord ; he is no longer subject to his caprice. The lord has granted him his estate, and the law has established it. The absolute control of the lord has fled, and the tenant is in by the custom. Hence he is no longer said to hold merely " at the will of the lord," but " at the will of the lord according to the custom of the manor " (^\ (') Watkins on Copyholds, vol. i. p. OS. Co. Cop. ij. 9, Tr. p. (j. " Oopyhold(ira,'' said Sir Edwajcl Coke, writing of tlie state of tlie law Chap. XV.] COPYHOLDS. 185 There are three kinds of customary tenure for copyholds : Varieties (1.) Copyholds proper or pure copyholds which are described ofcusto- as parcel of the manor held at the will of the lord, according to X&alxe. the custom of the manor ; (2.) Customary freeholds, or customary-holds, which are described as parcel of the manor held according to the custom thereof, but not at the will of the lord ; (3.) Tenant-right estates, being the customary freeholds in some manors in the north of England (^). The principal characteristics or incidents, as they are called, of copyholds are : 1. They are technically held at the lord's will. 2. The tenants cannot commit waste as the mines, minerals. Incidents and timber, even though it be planted by the tenant, belong to f ij'''^' the lord. Besides his right to the timber, trees, and minerals, the lord of the manor is also entitled to the benefit of the various other incidents subject to which copyhold estates are held. Thus, the lord is entitled to all escheats and forfeitures of copyhold estates, and, in many instances, to rents of small amounts, and reliefs, payable by the tenant. 3. The tenants cannot lease the lands for more than a year, unless there be a special custom, without the lord's licence. 4. Copyhold lands are also by special custom subject to a peculiar incident, said to have been introduced by the Danes, viz., that on the death of a tenant the lord becomes entitled to his best beast or chattel, then in the tenant's possession, as a heriot, as it is called. Sometimes a pecuniary composition is payable in Heu of a heriot (^). 6. A sum of money called a fine is payable to the lord on every transfer of the tenancy of the land, whether by alienation or death. The fine may be either fixed in amount by custom, or " arbitrary." In the latter case it was originally such a sum as the lord might choose to exact, but in modern times it has in his own day, " now stand upon a sure ground ; now they weigh not their lord's displeasure ; they shake not at every sudden blast of wind ; they eat, di'ink and sleep securely ; only having a special care of the main chance, namely, to perform carefully what duties and services soever their tenure doth exiict and custom doth require; then let lord frown, the copyholder cares not, knowing himself, safe." (') The law with regard to tenant right estates was considered by Lord Ellenborough in Doe d. Bray v. Huntington, 4 East, 271, who stated that although they seemed to want some of the qualities and characteris- tics of copyholds, yet notwitlistauding all these anomalous " circumstances," it was now settled beyoud question that they were not freeholds, but that they fell within the same considera- tion as copyholds. (^) See Lord Zouclie v. Dalhiac, L. R. 10 Ex. 172 ; Owen v. De Beau- voir, 16 M. & W. 547, 566. 186 REAL FROPEBTY. [Book I. Incidents of copy- holds. Restraint on the creation of copy- holds. Timber, trees and minerals. ■been fixed at a BUin not exceeding two years' improved value of the land. It was decided by the Court of Appeal that the lord is only entitled to a fine when the legal estate is transmitted, and that if there be only a covenant to surrender or a devolution of the equitable estate, the legal estate still remaining in the person admitted as tenant on the rolls, no fine can be claimed Q). 6. If on the death of a copyhold tenant the person next entitled to the land does not seek admittance as tenant, the lord, after certain formalities, may seize the land quo usque, that is, until some tenant claims to be admitted to the land. . No land can be copyhold unless it be demesne land of a manor held by villein tenure ; except that, until the recent legislation to which we shall next allude, the lord of the manor might, under certain conditions, grant portions of the waste lands of the manor to be held as copyhold. But by the Copyhold Act, 1887 (2), it is provided that, after the passing of that Act, it shall not be lawful for the lord of any manor to make grants of land not previously of copyhold tenure to any person to hold by copy of court roll or by any tenure of a customary nature without the previous consent of the Land Commissioners, who, in giving or withholding their consent, shall have regard to the same considerations as are to be taken into account by them on giving or withholding their consent to any inclosure of common lands ; and that whenever any such grant has been lawfully made the land therein comprised shall cease to be of copyhold tenure, and shall be vested in the grantee thereof to hold for the interest granted as in free and common socage. The law with regard to the rights of the lord and the copy- holder respectively in respect of timber and minerals, was considered by Sir George Jessel in an elaborate judgment, from which the following statement of the law is taken : — The estate of a copyholder in an ordinary copyhold is an estate in the soil throughout, except as regards for this purpose timber, trees, and minerals. As regards the trees and minerals the property remains in the lord, but in the absence of custom he cannot get either the one or the other, so that the minerals must remain un worked, and the trees must remain uncut. The possession is in the copyholder ; the property is in the lord. If a stranger cuts down the trees, the copyholder can maintain an action for trespass against the stranger, and the lord can maintain an action for the value of the trees. If the lord cuts down the trees, the copyholder can maintain an action for C) Sail V. Bromley, 35 Ch. D. 642. Q) 50 & 51 Vict. 0. 73. s. 6. Chap. XV.] COPYHOLDS. 187 trespass against the lord ; but if the copyholder cuts down the trees, irrespective of the question of forfeiture, the lord can' bring his action against the copyholder. The law with regard to minerals is as follows : If a stranger Minerals. takes the minerals, the copyholder can bring an action for trespass against the stranger for interfering with his possession, and the lord may bring an action against the stranger to recover the minerals. The same rule applies to minerals as to trees. If the trees are once cut down, the lord cannot compel the copyholder to plant another. The latter has a right to the soil of the copyhold where the tree stood, including the stratum of air which is now left vacant by reason of the removal of the tree. So, if the lord takes away the minerals, the copyholder becomes entitled to the possession of the space where the minerals formerly were, and he is entitled to use it at his will and pleasure. If there be a shaft made for working the mines, the copyholder may descend in the shaft, and either walk about in the space below or use it for any other rational purpose (y). The general rule is that the same words are requisite to Estates in create certain estates of copyholds as are necessary to the copyholds. creation of the same estates of freehold lands. By the force, however, of a particular custom, estates may be otherwise created : e.g., by special custom, an estate of inheritance may be created by the words " to him and his " (aibi et suis) ; or to him and his assigns (sibi et assignatis), or similar words. In some manors the words to A. and his "sequels in right" are used instead of the technical word " heirs " ; and in others, in addition to it; as " to A. his heirs and sequels in right" are used instead of the technical word " heirs " to create an estate in fee simple (^). It is not necessary in a surrender of copyholds that the name Surrender of the person for whose benefit the surrender is made should be ? ?y^' precisely mentioned. It is sufficient if the grantee can be (') Eardley v. Oranville (3 Ch. D. underlying mineral layer or stratum. 826, 832, et seq.). In this case Sir That underlying stratum remains in GeiTge Jessel exjalained and illus- the grantor. But in the case of a copy- trated the law as to copyholders' holder, that is not so, because the rights in respect of mines, as laid copyholder, tliough he has no pro- down by Lord Campbell in Bowser perty in the stratum in the sense of V. Maeltan, 2 De (i. F. & J. 427, as being entitled to take the minerals, follows : — bas property and possession in this " If a freeholder grants lands, ex- sense, that the moment the minerals cepting mines, he severs his estate are taken away the space is in his vertically, i.e. he grants out his estate possession, and he only can interfere in parallel horizontal layers, and the with it, the lord having no right to grantee only gets the parallel layer do so." granted to him and does not get any C) Watkins on Copyholds, 172. 188 EJEAL PEOPEBTT. [Book I. Surrender of copy- holds. Statute of Uses and Dower Act. Wills Act. Convey- ancing Act, 1881. Estates tail in copy- holds. certainly ascertained. Thus, says Mr. Watkins, a surrender to the Lord Archbishop of Canterbury, the Lord Mayor of London, without mention of Christian name, or surname, or to the use of the next of my blood, or mj' brother and sister, if I have but one sister, is good ; or to the use of my son W., where there are more sous W. than one if collateral circumstances can relieve the uncertainty, are good. A surrender to the use of him who shall come next into St. Paul's is valid, but a surrender to the use of my cousin or friend is so uncertain that no subsequent manifes- tation of intention can strengthen it (^). "It is a general rule that no statute relating to lands or tenements, in which those of a customary tenure are not ex- pressly mentioned, shall be applied to customary estates, if such application would be derogatory to the customary rights of the lord or tenant " (^). Accordingly, the Statute of Uses and the Dower Act (^) do not apply to copyholds. The Wills Act (*), however, expressly provides that a general devise which would describe a customary copyhold, or leasehold estate, if the testator had no freehold estate which could be described by it, shall be construed to include the customary, copyhold, and leasehold estates, to which such description shall extend, as well as free- hold estates, unless a contrary intention shall appear by the will. Under the present law, however, the Wills Act enables every person to dispose by will of all his real estate of the nature of customary freehold, or tenant right, or customary or copyhold, which if not so disposed of would devolve upon his customary heir (i.e., heir by the custom of the manor), notwithstanding that the testator may not have suiTendered the same to the use of his will, or, notwithstanding that, being entitled as heir, devisee, or otherwise to be admitted thereto, he shall not have been admitted thereto Q). The Conveyancing and Law of Property Act, 1881, " does not profess to touch customary or copyhold lands, except whore they can be dealt with as freeholds " ("), By general custom, copyhold estates may be held in foe simple for life, or years, or at will ; though chattel interests in copy- holds are not often met with. But estates tail in copyholds exist only in manors where they are allowed by special custom, called a " custom to entail." In the absence of such custom, a gift of copyholds to a person and the heirs of his body creates (') Watkins on Copyholds, p. 171. (f) Burton's Compendium of Keai Properly, p. HSS. (=) 27 Hen. 8, c. 10. (<) 3 & 4 Wm. 4, c. 105. Q) 7 Wm. 4, and 1 Vict. c. 26, s. 3. (°) Wolstenholme & Turner's Cou- veyancing Acts, note to s, 7 (5). Chap. XV.] COPYHOLDS. 189 an estate in fee simple conditional — similar as regards the right Estates tail of alienation to the like estate in freeholds prior to the statute de J^.^fP^" donis conditionalibus (see ante, p. 34) Q), but dissimilar as regards the lord's right to the timber and the minerals, and the tenant's liability, whatever his estate may be, to forfeiture of the land to the lord for waste, either voluntary or permissive, on his part. If an estate be given to a copyholder and the heirs of his body (or by other words which by the custom are equivalent, see ante, p. 187), in a manor where there is a custom to entail, he may, if the estate be legal, bar the entail by surrender. If the estate tail be equitable he has the option of barring the entail either by deed enrolled on the Court rolls of the manor or by surrender (2). Disentailing assurances of copyholds under the Act must be enrolled on the Court rolls within six months after execution, except in manors where conveyances have not usually been entered on a Court roll or similar record (^). It was decided that a declaration of trust as to copyholds by a tenant in tail was not a " disposition" within the Fines and Eecoveries Act, and therefore inoperative as an assurance to bar an estate tail. In the same case it was also held a disentailina: assurance by an equitable tenant in tail of copyholds which was not entered upon the court-rolls of the manor within six months after execution, was void (*). In a case which came before the Court in 1889 the facts were as follows : The tenant in tail in possession of copyhold land, held of a manor where there was custom to entail, devised all the real estate of or to which he should be seised or entitled at the time of his death to two trustees, their heirs and assigns, upon certain trusts declared by the will. After the death of the testator the trustees were, as such devisees, admitted tenants of the copyhold land, to hold the same to them, their heirs and assigns, upon the trusts of the will. The lord of the manor afterwards executed an enfranchisement (not under the Copy- hold Acts) to the trustees, and they executed a conveyance to the only daughter of the testator (who was his heiress in tail) in fee. Under the trusts of the will the daughter had become (') A manor must have two free- (=) Elton on Copyholds, p. 280; holders at least. A court baron is as to stewards' duties, Honeywood v. the cliief prop of a manor which no Foster, 30 Beav. 1 ; Reg. v. lugle- sooner faileth than the manor itself wood, H Dowl. P. 0. 693. cometh to an end. If there be no (*) Oi-een v. Patterson, 32 Ch. Div. copyholders, tlie manor ceases to be a 95. See also Honeywood v. Foster, miinor in the proper sense, and be- 30 Beav. 1 ; and Gibbons v. Snape, conies only a manor in reputation. 1 D. J. & S. 621. (2) 3 & 1 Wm. 4, 0. 74, s. 50. 190 REAL PBOPEBTY. [Book I. solely beneficially entitled to the real estate which passed under the devise to the trustees. It was held on the authority of cases of long standing, that the entail was barred, and that the daughter was entitled in fee simple Q). Enfran- The 1st section of the Copyhold Act, 1887, provides that on chisement {he admittance of any tenant after 31st December, 1887, the holds steward of the manor shall be bound without any further charge, to give to the tenant so admitted or enrolled a notice in the form or to the effect prescribed, informing him that he is entitled to have the land enfranchised on paying compensation and fees, and stating how the compensation may be fixed (2). Enfranchisement is defined by Mr. Watkins as " the changing of the tenure from base to free " (f). In a case which came before the Court in 1889, the facts were as follows (f) : — ■ A contract in writing had been entered into for the sale of a mansion and estate, and the question to be determined was whether a good freehold title was shewn. The lands, which were formerly copyhold had been treated as freehold for upwards of one hundred years. No claim had been made on the part of the lord of the manor, and the only intimation that the land was copyhold was in recitals to' that effect, and a covenant to surrender contained in recent deeds to which the lord was neither " party nor privy." Under these circumstances the Court decided that the recitals must be treated as a " complete mistake," and that enfranchisement must be presumed. It is now provided by the Conveyancing Act, 1881, that where land of copyhold or customary tenure has been converted into freehold by enfranchisement, then under a contract to sell and convey the freehold, the purchaser shall not have the right to call for the title to make the enfranchisement (^). In modern times a number of statutes — known collectively as (') Ex "parte School Board for the enfranchisement of your land. London. In re Bart, 41 Oh. D. 547. If the steward neglects to serve such f ) 50 & 51 "Vict. c. 73, s. 1. The notice he shall not be entitled to any following is the form given in the fee for that admission." Act : " Take notice that if you desire Q) "Watkins on Copyholds, p. 556, that the copyhold land which you hold et seq. of this manor of shall become (*) Be Lidiard and Jackson's and freehold, you are entitled to enfran- Broadley's Contract, 42 Ch. D. 254. chise the same upon paying the C) 44 & 45"V'ict. 0. 41,s. 3, sub-s. 2. lord's compensation and the steward's It was decided in a case arising fees. The lord's compensation may on this section that a purchaser of be fixed either by agreement between copyholds is not entitled on comple- the lord and you, or by any valuer tion of a contract for enfranchise- appointed by yourselves, or through ment, to an undertaking from the the agency of the Land Commis- lord's trustee to uses for safe custody siuners, to whom you may make of the documents of title to the manor, application, if you think iit, to effect and of the Court rolls, relating to Chap. XV.] COPYHOLDS. 191 the Copyliold Acts, 1841 to 1887 — have heen passed with the Enfran- view of facilitating both the comnmtation of manorial rights and chisement the enfranchisement of copyhold land, that is, the conversion of holds. the tenant's interest into an interest in land of freehold tenure. Under the last of these Acts, either the lord or the tenant may require and compel the extinguishment of heriots, quit rents, free rents, or other manorial incidents, in consideration of a pecuniary compensation or rent-charge payable to the lord (i). Enfranchisement of copyholds may be effected independently of the above Acts by a simple conveyance of the freehold from the lord to the tenant, if both parties consent thereto ; but for this purpose it is obvious that the lord must be capable of con- veying the fee simple of the land, and must not be under any personal disability with respect to conveying. But an enfran- chisement may be effected under the Copyhold Acts, 1841-1887, notwithstanding that the lord has only a limited estate in the manor, or that either the lord or tenant is under any disability, and either lord or tenant may compel an enfranchisement. Under the last of these Acts, on the admittance of any person as tenant, the steward of the manor is bound to give him notice of his right to enfranchise the land. The same Act also provides that, subject to the right of the tenant to pay the amount of the compensation for the enfranchisement in a gross sum, it is to take the form of a redeemable rent-charge on the land, and the enfranchisement is to be effected by an award of enfranchise- ment made by the Land Commissioners. The same Act contains provisions for a general enfranchisement of all coj)yhold lands in a manor by a single award of the Land Commissioners whers the same is desired by not less than two-thirds in number of the ■ copyholders of the manor. The rights of the lord to the mines and minerals in and under copyhold land, and certain other rights of the lord and tenant remain unaffected by an enfran- chisement under the Copyhold Acts ; and the Copyhold Act, 1887, preserves the lord's right of escheat for want of heirs to the same extent as if the land had not been enfranchised (2). The position of the Land Commissioners whose powers are Land Com- now transferred to the Board of Agriculture (3) was fully con- missioners. sidered in a case which came before the Court of Appeal in 1889. The Court there decided that the Land Commissioners the land enfranchised. The most to safe custody : In re Agg-Gardner, which he is entitled is an acknowledg- 25 Ch. D. 600. ment by the lord and the trustee to (") 50 & 51 Vict. c. 73, b. 7. uses of the purchaser's right to pro- C] Sects. 4 and 5 : see as to rent- ductioaofthe documents and delivery charges and boundaries, Searle v. of copies thereof, with an undertak- Cooke, 43 Oh. D. 519. in" from the lord himself for their (^ 52 & 53 Vict. c. 30. Act, 1887. 192 BEAL PBOPERTT. [Book I. have power, if it appears to them that the valuation of the valuers or umpire appointed under the Act is imperfect or erroneous, whether it be too great or too small, to remit it for reconsideration ; and in case of the refusal or neglect of the valuers or umpire to amend it, the Commissioners may consider the matter and determine the valuation for themselves (i). Copyhold One of the judges of the Court in delivering judgment reviewed the policy of the Copyhold Acts in general, and the Act of 1887 in particular, as follows : " The Act of 1887 is one of a group commonly referred to as the Copyhold Acts. There are half-a-dozen of them ; they begin in 1841, and go on 1843, 1844, 1852, 1858, and 1887, and sect. 50 in the Act of 1887 says this is to be one of that group of Acts. It is necessary, there- fore, not only to look at the language of sect. 11, but also to see what light is thrown upon that section by the other Acts. The scheme of the legislature appears to have been from first to last that the Commissioners, first of all the Copyhold Commissioners, and now the Land Commissioners, should be the persons who in the final resort should decide the matters which arise under those Acts. It must be borne in mind that these Acts are applicable not only between people who are sui juris, and can make bargains for themselves, but to tenants for life, and infants, and in all sorts of cases where persons are not capable of making bargains, and the ultimate decision appears to me from first to last to rest with the Commissioners. . . . The key to the whole thing is this^ — that the award which is effective is not the award of the valuers, it is the award of the Commissioners. That is so from first to last. It is their decision and their award which binds the parties " (^). Section 45 of the Copyhold Act, 1887, provides that the 30th section of the Conveyancing and Law of Property Act, 1881 Qpost, p. 533), shall not apply to land of copyhold or customary tenure vested in the tenant on the Court rolls of any manor upon any trust or by way of mortgage. This section was con- sidered by the Court in a very recent case, in which it was decided that the effect of the enactment is to repeal entirely s. 30 of the Conveyancing Act, 1881, as regards copyholds, so that when a sole trustee of copyholds had died between the commencement of the Conveyancing Act, 1st January, 1882, and the passing of the Copyhold Act, the legal estate in the copy- holds, which had by the Conveyancing Act devolved upon the persona] representatives, was, on the passing of the Copyhold (•) Eeq. V. Land Commissioners, 23 v. Land Commissioners of Enaland, Q. B. D.'59 23 Q, B. D. 64. (2) Per Lindlcy, L.J., in Tlie Queen Chap. XV.] COPYHOLDS. 193 Act, divested from them, and vested in the customary heir or devisee Q-). Copyholds may he held, like freeholds, either in severalty or Estates in jointly, and either in possession or in expectancy, and either for '^"''^ ° '' a legal and equitable, or a merely equitable, estate. In the case of an equitable estate in copyholds, the trustee in whom the legal estate is vested is of course a tenant on the court-rolls of the manor. Curtesy and dower (freebench as it is called) do not exist in copyholds in the absence of special custom. Where freebench exists it generally consists of a life interest in one divided third part of the lands. The descent of copyholds is governed by custom. An in- Descent of teresting case on this subject may here be noticed. The facts <=<'Py''°l<'^' were as follows : — The custom of a manor was stated to be that all copyholds descended to the youngest son or daughter, brother or sister, uncle or aunt. A tenant died intestate seised of customary lands of the manor leaving neither son, daughter, brother, sister, uncle, nor aunt, but leaving sons of deceased uncles. The Court decided that the youngest son of the youngest uncle was not entitled, and that the heir-at-law was entitled to the lands (^~). The judge in delivering judgment said : — " Here is a custom of a manor which is as much a part of the law of the realm as any other law by whatever authority it is established. The Courts take notice of borough English and of gavelkind, and have several times recognised these particular customs. Nor has any one ever questioned that the customs of a manor are of equal authority with, and as equally binding as the common law. Their antiquity is perhaps greater than that which can be ascribed to the common law. It was admitted by Chief Justice Cockbum, in Muggleton v. Barnett, that customs are a law of themselves, and I know of no mode of construing customs but the literal mode. " The custom of the manor is, that upon the death of a tenant his youngest son, if there be one, shall take ; if not, his youngest daughter, if there be one ; if uot, his youngest brother or sister, uncle or aunt, if any such there be ; but if there be none there is an end of the custom. It is as if it had never existed, and the inheritance must descend according to the course of the common law." (') In re Mill's Trusts, 37 Ch. D. personal rppresentatives before the 312, affirmed 40 Ch. D. 14; and see passing of the Copyhold Act would, Ee Franklyn's Mortgages, W. N. however, be unaffected by that Act. (188H) 217. The validity of any die- (^) In re Smart. Smart v, Smart, position of the property made by the 18 Ch. D. 165, 170. VOL. I. ( 194 ) CHAPTEE XVI. Incoepoeeal Heeeditaments. Definition. An incorporeal hereditament is defined by Blackstone as a right issuing out of a thing corporate (whether real or peisonal) or concerning or annexed to, or exercisable within the same. This is illustrated by the case of an annuity charged on land. Here we have the corporeal thing itself on the one hand, which can be seen and touched, and on the other hand, the incorporeal thing, the right — something collateral to the land, which can never be the object of sense, and is not capable of being shewn to the eye, or of being delivered into bodily possession. Incor- poreal hereditaments are either appendant, appurtenant, or in gross Qy The principal kinds of incorporeal hereditaments which are of importance at the present day are easements, advowsons, tithes (now chiefly tithe-rent charges), rents and commons (^). Advowsons and tithes may be discussed moro appropriately in the portion of this work devoted to Ecclesiastical Law (jpost, pp. 1136, 1140). The other classes of incorporeal hereditaments which we have mentioned shall now be briefly considered in their order. Easements. An easement {^) is a privilege without profit, existing in respect of their several tenements, which the owner of one neighbouring tenement, which is called the dominant tenement, has over another, which is called the servient tenement, to compel the owner thereof to permit to be done, or to refrain from doing, something on such tenement for the advantage of the dominant owner. An easement has indeed been described as rather a fringe to property than property itself (*). Principal kinds of incorporeal heredita- ments.' (') Williams' Eeal Property, pt. ii. cap. 4, ad init. (^) Under tlie term incorporeal hereditamente, Mr. Joshua ■Williams places remainders and reversions, and treats of the incorporeal here- ditaments above-mentioned as purely incorporeal. (^) Tudor's Eeal Property, 3rd ed. 166; Sury v. Pigot ; Gale on Kasements, 6tli ed. by G. Cave, p. 6, to which reference is hereafter made in this chapter, citing Termes de la Ley, tit. Easements. (') An easement differs from an obligation, inasmuch as it gives a right over the land of another, while an obligation gives >■• right against the owner. An easement differs from a licence in a similar way. Both the benefit and the burden of an easement are Chap. XVI.] INCOREOBEAL HEREDITAMENTS. 195 The essential qualities qf easements, jiroperly so called, are Easements thus distinguished in Gale on Easements (i). 1. Easements are incorporeal. 2. They are imposed upon corporeal property, and not upon the person of the owner. 3. They confer no right to a participation in the profits arising from the servient tenement. 4. They must be imposed for the benefit of corporeal pro- perty. 6. There must be two distinct tenements, the dominant to which the right belongs, and the servient upon which the obligation is imposed (2). Easements are divided into affirmative and negative. Those coming under the head of affirmative easements authorize the commission of acts, which, in their very inception, are positively injurious. The following are some of the instances of affirma- tive easements mentioned in the standard work on the subject. Eights of way (3). Eight to make a surface uneven by working mines in such a manner as to let it down. Eight to go on a neighbour's close, and draw water from a spring there. Eight to use or to affect water of a natural stream in any manner not justified by natural right. Eight to discharge water or other matter on to a neighbour's land. Eight to carry on an offensive trade (*). Negative easements are injurious consequentially only — re- stricting the owner of the soil in the exercise of the natuial rights of property. The principal negative easements are stated in Gale on Easements to be the acquired right to receive light and air by windows, and the acquired right to support of neigh- bouring soil ('). Easements may also be divided into continuous and dis- annexed to land, while a licence, Q) Gale on Easements, 6tli ed. unless coupled with a grant, is per- p. 19, et seq. sonal to both grantor and grantee, and (') See Thomas v. Owen, 20 Q. B. D. neither binding on the assignee of 225 ; Roe v. Siddons, 22 Q. B. D. 224. the licence, nor generally assignable (■•) And see, for a lengthy enumera- by the licensee : Gale on Easements, tioii of such easements : Gale, 6th td. 6th ed. p. 2, citing Kensit v. Great p. 20. Eadtrn Railway Co., 27 Ch. Div. 122. (") See on this subject Lord Black- (') Gale on Easements, dth edit. burn's judgment in Dalton v. Angus, p. 6, et seq. (cited with approval 6 App. Caa. 740, 821. Mounsey v. Ismay, 3 H. & C. 486). 196 REAL PBOPEMTT. [Book I. Easements. Provisions of Con- veyancing Act, 1881, as to ease- ments. contimious, and into apparent and non-apparent servitudes or easements. Continuous easements are tkose of which the enjoyment is or may be continued without the necessity of any actual interference by man, as a waterspout, or right to light and air. Discontinuous easements are those the enjoyment of which can only be had by the interference of man, as rights of way or a right to draw water. Apparent easements are those the existence of which is shewn by external works, as a window, a watercourse. Non-apparent easements are those which have no external sign of their existence, as the prohibition to build on particular land, or to build above a certain height. Easements are created, or arise, either by express grant, or by implied grant, or by prescription. An express grant of an easement, unless by will, must be made by deed of grant. The Conveyancing Act (i) now provides with regard to cases after the commencement of the Act, 1st of January, 1882, that a conveyance of freehold land to the use that any person may have, for an estate or interest not exceeding in duration the estate conveyed in the land, any eapement, right, liberty, or privilege in, or over, or with respect to that land, or any part thereof, shall operate to vest in possession in that person that easement, right, liberty, or privilege, for the estate or interest expressed to be limited to him. Prior to this enactment, an easement, or other similar interest could not be created by limi- tation of a use under the Statute of Uses (as to which, see ante, p. 17). An equitable right to an easement may however be created by an agreement (^). An easement or gwasi-easement may arise by implied grant where the owner of property sells and conveys a portion of that property, reserving the remaining portion to himself. The rules respecting the implication of an easement under such cir- cumstances were stated in a well-known judgment by the late Lord Justice Thesiger, as follows : — " Two propositions may bo stated as the general rules governing cases of this kind. " The first of these rules is, that on the grant by the owner of a tenement of part of that tenement as it is then used and enjoyed, there will pass to the grantee all those continuous and apparent (1) 44 & 45 Vict. 0. 41, b. 62. l^) See Gale on Easements, 6fh ed. pp. 25, 58, anil see MoMamts v. Cooke, 35 Cb. D. 681. Chap. XVI.] INCORPOREAL HEREDITAMENTS. 197 easements (by whicli, of, course, I mean quasi easements), or, in Easements, other -words, all those easements which are necessary to the reasonahle enjoyment of the property granted, and which have been and are at the time of the grant used by the owners of the entirety for the benefit of the part granted. " The second proposition is that, if the grantor intends to reserve any right over the tenement granted it is his duty to reserve it expressly in the grant ('). " By an implied obligation or an implied right I mean this : an obligation or right arising not from the express words of an instrument, nor from that which, having regard to the circum- stances, must be considered the true meaning and effect of the words in the instrument ; but that obligation or that right which results from the position into which the parties have placed themselves by the contract. For instance, where one man grants to another a house, then prima facie he cannot interfere with that which he has granted ; there is an implied obligation on him not to interfere with that which he has granted ; namely, the house and enjoyment of the house. That obligation arises, I repeat, not from any interpretation of the conveyance, but from the duty which is imposed on the grantor in consequence of the relation which he has taken upon himself towards the grantee " (^). An easement also arises by implied grant in the case of what is called an easement of necessity. An instance of an easement of this kind occurs in the case of a grant of land to which access can be obtained only by passing over other land of the grantor, the grant being implied of a right of way over the grantor's land to the land granted. The principal easements which are regarded by Mr. Gale as of sufficient importance to require separate discussion are rights to water, rights to light and air, rights of way, rights to support from adjoining soil and houses (^). The right to receive a flow of water in a natural stream, and Water. transmit it in its accustomed course, is an ordinary right of property — a natural right; the right to interfere with the accustomed course, either by penning it back upon the land (') Wheeldan v. Burrows, 12 Ch. D. legalisation of private nuisances, and 31 49. as to the rights analogous to ease- Q) Birmingham, Dudley, and Dis- ments connected with party walls and trict Banking Company v. Boss, 38 fences, as to which, see Watson v. Oh Div 295 312. Gray, 14 Ch. D. 192; Buchan v. (3) Gale on Easements, 6th ed., Artleit, W. N. (1888) 76. see also Chapters v. and vi. as to 198 :REAL PR0FERT7. TBooK i: Eights of riparian pro- prietors. above, or transmitting it altered in quality or quantity to an extent not jiistified by natural right, is an easement (^). The kw with reference to the rights of upper and lower riparian proprietors is summed up in Swindon Waterworks Company V. Wilts and Berks Ganal Navigation Company (^), where it is regarded as so well settled in its general aspects as not to require the citation of authorities. After speaking of the ordinary rights of the lower , liparian proprietor, viz. that he is entitled to the accustomed flow of the water for the ordinary purposes for which he can use the water, if it be quite consistent with the right of the upper owner also to use the water for all ordinary purposes, namely, as has been said ad lavandum et ad potandum, whatever portion of the water may be thereby exhausteil, and may cease to come down by reason of that use, the Lord Chancellor (Cairns) proceeded as follows : — " But, further, there are uses no doubt to which the water may be put by the upper owner, namely, uses connected with the tenement of that upper owner. Under certain circumstances, and provided no material injury is done, the water may be used and be diverted for a time by the upper owner for the purpose of irrigation. The exhaustion of the water which may thereby take place may be so inconsiderable as not to form a subject of complaint by the lower owner, and the water may be restored after the object of irrigation is answered, in a volume sub- stantially equal to that in which it passed before. Again, it may well be that there may be a use of the water by the upper' owner for manufacturing purposes, so reasonable that no just complaint can be made upon the subject by the lower owner. Whether such a use in any particular case could be made for manufacturing purposes connected with the upper tenement would, I apprehend, depend upon whether the use was a reason- able one. Whether it was a reasonable use would depend, at all events in some degree, on the magnitude of the stream from which the deduction was made for this purpose over and above the ordinary use of the water." In an imiiortant case which came before the Court of Appeal in 1884, the owner of land not abutting on a river with the license of a liparian owner, took water from the river, and after using it for cooling certain apparatus, returned it to the river un- polluted and undiminished, and it was held that a lower riparian owner could not obtain an injunction against the landowner so taking the water, or against the riparian owner through whose land it was taken. (') Gale on Easements, 6th ed. p. 212. C) L. E. 7 H. L. 702. Chap. XVI.] INCOEPOREAL HEREDITAMENTS. IQOf Lord Justice Lindley, in delivering judgment, said that an Eipaiian argument had been put that a man who was not a riparian P™P"etor. proprietor had no right to take water from a stream at all, and that if a riparian proprietor found any one who was not a riparian proprietor taking water from the stream, although he was not damnified, he might maintain an action. This, he said, would lead to the absurd consequence that if there were a riparian proprietor near the mouth of the Mississippi, and some- body a thousand miles up diverted the water, an action might be maintained, although there was no damage. Finally, the Court declined to agree to the proposition that riparian proprietors in a stream were a class of persons in the nature of a close borough, and that any one of them had a right to object to the intro- duction, into that class, of persons who had got no property bordering on a stream (i). The right to light will be hereafter considered {^post, p. 592), Air. but a few words may be said with regard to the right to air. It is now settled by modern decisions that the right of user of air must be confined to that which comes through a definite aperture. The leading authority of modern times is the case of Webb V. Bird (2), where it was held that an action did not lie for obstruction of the currents ol air to a windmill. A right to lateral support from adjoining land may be Lateral acquired by twenty years uninterrupted enjoyment for a ^"PP"'^ • building proved to have been newly built, or altered so as to increase the lateral pressure at the beginning of that time ; and it is so acquired if the enjoyment is peaceable and without deception or concealment and so open that it must be known that some support is being enjoyed by the building Q). " Eent " may be defined generally as a fixed tribute, issuing Kent. out of lands and tenements corporeal, as part of their actual or possible profits. It is usually, though not necessarily, payable in money (*). There were, at common law, three kinds of rents : rent- service, rent-charge, and rent-seek, but the last-mentioned is Q) Kensitv. Great Eastern Eailway 740. Support may be lateral or Co., 27 Ch. D. (C.A.) 122 : see as to vertical, or partly lateral and partly rights of riparian owners, Bourhe v. vertical. The law as to support is Davis 44 Ch. D. 110; Booth v. elaborately discussed: McSwinney Rattg, 15 App. Caa. 188. on Mines, 286-354. (2) 10 C. B. (N.S.) 268 ; 13 C. B. (*) Burton's Compendium. As to (N.S.) 841 ; and see Bryant v. Le- rents generally : see Cluns Case, fever, 4 C. P. Div. 172 ; Harris v. and notes thereto, in Tudor's Real De Pinna, 33 Cli. Div. 238; Bass v. Property Cases, 284; Edwards' Com- Gregory, 25 Q. B. B. 481. pendium of the Law of Property in (2; Dalton v. Angus, 6 App. Cas. Land, part 2. ch. iii. 200 BEAL PROPERTY. [Book I. Rent. now olDsolete. Kent service is the rent due from a tenant to the person of whom he holds his land. Such, for instance, is the ordinary rent due from a tenant to his landlord. This rent was originally called rent-service, as being a service incident to the tenure of land. A right of distress for the rent is inseparably incident to rent-service (see as to distress, ante, p. 116). A rent-charge is a rent granted by an owner of land to be payable out of his land, with a power of distraining for the same. A rent-charge may be granted for a term of years, for life, in tail, or in fee simple. At common law a power to distrain for rent, thus granted, was not incident thereto unless an express power of distress accompanied the grant of the rent. But by a statute of George II. (^), a power of distress was made incident to this and other kinds of rent. Moreover, the Conveyancing Act, 1881 (^), gives to the person entitled to a rent-charge a power of distraining where the rent, or any part of it, is in arrear for twenty-one days ; and where the rent, or any part of it, is in arrear for forty days, a power to enter on the land and receive the rents and profits thereof, until the arrears of the rent, with all costs and expenses occasioned by non-payment, are fully paid ; and in the like case also a power to demise the land by deed to a trustee on trust, by mortgage, sale, or demise, for the whole or any part of the term, or by receipt of the income thereof, or by all or any of those means, or other reasonable means, to raise and pay the annual sum and all arrears thereof due, or to become due, with costs and expenses, and the surplus, if any, of the money raised is to be paid " to the person for the time being entitled to the land therein comprised in reversion, immediately expectant on the term thereby created." A rent-seek, or bare rent, was nothing more than a rent for the recovery of which no power of distress was given either by common law or agreement of the parties. But by the statute of George II., already mentioned, a power of distress is made incident to all such rents. Common. Common is a right that one or more persons may have to take or use a portion of the lands, waters, woods, or produce of the lands of another (^). Provisions of Convey- ancing Act, 1881, as to rent- charges. (') 4 Geo. 2, 0. 28. (2) 44 & 45 Vict. c. 41, s. 44. See as to rent-cliarge. Be Wall, 59 L. J. Oh. D. 183. (') Ae to commons generally : see Tyrringham's Case, and notes thereto, Tudor's Keal Property Cases, 3rd ed. p. 120 ; Edwards' Compendium of Law of Property in Land, part 2, ch. V. Chap. XVI.] INOORPOBEAL HEREDITAMENTS. 201 Common is chiefly of four sorts : common of pasture, of Common, piscary, of turbary, and of estovers. Common of pasture is a right of feeding one's beasts on another's land. Common of piscary is the right of fishing in another's waters. Common of turbary is the right of cutting turf on another's land. Common of estovers is the right of cutting wood on another's land for certain purposes. Common of pasture over the waste lands of manors is appen- dant by law to estates held by freehold tenants of manors ; and by special custom copyholders may have the same right. A right of common of any kind may be acquired as appur- tenant to an estate in land, either bj' express grant or by pre- scription ; and common " in gross," that is, not attached to the ownership of land, may be acquired in the same way. The common law as to acquisition by prescription (see ^post, p. 208) has been altered by the Prescription Act (2 & 3 Wm. 4, c. 71), as regards rights of common. By this Act a right of common or other profit or benefit from or upon land (except tithes, rent, and services) may be acquired by thirty years' enjoyment, in some circumstances, and, under other conditions, by sixty years' enjoyment. Various provisions have been made by statute for the en- closure of waste lands, over which rights of common are enjoyed by persons. The principal statutes dealing with the subject now in force are the Enclosure Act, 1845, and statutes amending that Act (^). The reader who desires further information on the subject of easements is referred to Gale on Easements, 6th ed. by G. Cave, notes. Sury v. Pigot, Tudor's Eeal Property. It has been decided that grants by way of sale of rights and easements of laying and maintaining pipes in land, are not "conveyances of property" within Sched. I. Part i. of the Conveyancing Act, 1881 (post, p. 845), and consequently the scale is not applicable to solicitors' charges in respect of such grants (^). The following cases may be usefully consulted : — Barhshire v. Gruhb, 18 Ch. D. 616 (Eight of way — where the previous authorities are considered) ; Hollins v. Verney, 13 Q. B. D. 304 (Question of uninterrupted enjoyment of right of way) ; Bayley (') 8 & 9 Vict. c. 118. see as to production of documents, (2) In re Stewart, 41 Ch. D. 494 : Jones v. Watts, 43 Oh. D. 574. 202 REAL PBOPERTT. . [Book I. V. Great Western Bailway Co., 26 Ch. D. 434 (Eiglit of way) ; SerffY. Acton Local Board, 31 Ch. D. 679 (Way of necessity); Lemaitre v. Davis, 19 Cli. D. 281 (Eight to support from build- ings) ; Birmingham, Dudley and District Banleing Co. v. Boss, 38 Ch. D. 295 (Light); Brown v. Alabaster, 37 Ch. D. 490 (Eight of way — Implied grant) ; Bussell v. Watts, 10 App. Cas. 590 (Light — Implied reservation). ( 203 ) CHAPTER XVII. Statutes of Limitation and Presceiption. One of the securities which the law affords for the enjoyment Principle on which the law is of real property is the limitation of the time during which a claim for its recovery may be enforced against the possessor, based. Tor this purpose various statutes have been passed at different times. " If time," said Lord Plunket, " destroys the evidence of title, the laws have wisely and humanely made length of possession a substitute for that which has been destroyed. He comes with his scythe in one hand to mow down the monuments of our rights, but in his other hand the law-giver has placed an hour- glass by which he metes out incessantly those portions of dura- tion which render needless the evidence that he has swept away"e). It has been said (^) that the Statutes of Limitations, being as Interpreta- they were emphatically termed by Lord Kenyon, " Statutes of *'™ °f , Eepose," " passed for the quieting of men's estates, and the Limita- avoiding of suits," ought to be liberally interpreted ; but the tio^s. tendency of modem decisions would seem to be fo give them a strict interpretation, the Courts proceeding on the principle that the defence of the Statute of Limitations, though it may often be a righteous one, is yet a creation of statute, and not to be extended to oases not within the enactment (2). Every species of prescription by which property is acquired or lost is founded on this presumption, that he who has a quiet and uninterrupted possession of any thing for a certain number of years is supposed to have a just right, without which he would not have been suffered to continue in the enjoyment of it ; for a long possession may be considered as a better title than can commonly be produced, as it supposes an acquiescence (') See for another version of this bell's judgment in Bright v. Legerton, celebrated passage which was de- 2 De G. F. & J. til7. livered in an address to a jury : (') Tolson v. Kaye, 6 Moore, 558. Taylor on Evidence, 8th ed., note, (^) Per Lord Cranworth, Boddam p. 102, last edition. The idea of the v. Morley, 26 L. J. Oh. 438, 447. passage is reproduced in Lord Camp- perty. 204 REAL PROPERTY. [Book I. in all other claimants, and that acquiescence also supposes some reason for which, the claim was forborne. The object of all Statutes of Limitation, said Lord St. Leonards, is to prevent claims at great distances of time when evidences are lost, and in all well regulated countries the ques- tion of possession is held to be an important point of policy ('). Rights of With regard to the rights of the Crown, the law proceeds on the Crown. ^^ principle nullum ten/pus occurrit regi, and accordingly no Statute of Limitations affects the Crown without express mention. By a statute of Geo. III., as amended by 24 & 25 Vict, c. 62, however, the claims of the Crown to recover lands or here- ditaments, or their profits (except liberties and franchises), are barred after the lapse of sixty years from the time when adverse possession was taken. Claims to With respect to other claims to real property the principal i,!tti''°" statutes now in force are the Limitation Acts of 1833, and the Eeal Property Limitation Act, 1874 (^), the latter shortening the period of limitation prescribed by the former. Under these Acts no person can bring an action for the recovery of lands unless within twelve years next after the time at which the right to bring such action shall have first accrued to him, or to some person through whom he claims (^). As to estates in reversion or remainder, or other future estates, the right is deemed to have first occurred at the time when any such estate has become an estate in possession (^). But, by the Act of 1874, where the person last entitled to any particular estate on which any future estate was expectant was not in possession of the land, &c., at the time when his interest determined, then the action must be brought within twelve years next after the time when the right to recover the land first accrued to the person whose interest has so determined, or within six years next after the time when the estate of the claimant has become vested in possession, which ever shall be the longer period (5). It is provided, however, that where an acknowledgment in writing of the title of the person entitled is given to him or his agent, signed by the person in possession, &c., the right to recover the land shall be deemed to have first accrued at the time when such acknowledgment was given («). And if when the right (') Trustees of Dundee Harhour v. 37 & 38 Vict. o. 57, s. 1 ; Sands to Dougall, 1 Mae(i. H. L. 0. 321. Thompson, 22 Ch. D. 614. (2j 3 & 4 Wm. 4, c. 27 ; 37 & 38 (*) 3 & 4 Wm. 4, c. 27, a. 3. Vict. c. 57. See Mayor of BrigMon l^) 37 & 38 Vict. c. 57, a. 2 ; Pedder V. Guardians of Brighton, 5 C. P. D. v. Sunt, 18 Q. B. D. 565 368 ; Webster v. Southey, 36 Ch. D. 9. («) 3 & 4 Wm. 4, c. 27, s 14 (=) 3 & 4 Wm. 4, c. 27 and c. 42 ; fraud. Chap. X VII.] STATUTES OF LIMITATION. 205 to bring the action first accrues tlie person entitled is under Persons disability to sue by reason of infancy, coverture (if a woman j, \^l '^' idiocy, lunacy, or unsoundness of mind, six years are allowed from the time when the person entitled shall have ceased to be under any disability, or shall have died, notwithstanding the period of twelve years may have expired, yet so that the whole period do not, including the time of disability, exceed thirty years (^). Moreover, in any case of a concealed fraud, the right Concealed of any person to bring an action for the recovery of any land or rent, of which he, or any person through whom he claims, may have been deprived by such fraud, is deemed to have first accrued at and not before the time at which such fraud shall be, or with reasonable diligence might have been, first known or discovered ; except as against a hona fide purchaser for valuable consideration who was not a party to, and had no knowledge of, the fraud (^). The period within which actions may be brought to recover Mortgages, money secured on mortgages, judgments, liens, and charges on land and legacies is now governed by the Eeal Property Limita- tion Act, 1874, which came into operation on the 1st of January, 1879, and which is to be read in connection with the Statutes ot Limitation, 3 & 4 Wm. 4, c. 27, and 1 Vict. c. 28. Sect. 8 of the Act of 1874 provides that " no action or suit or other proceeding shall be brought to recover any sum of money secured by any mortgage, judgment, or lien, or otherwise charged upon or pay- able out of any land or rent at law or in equity, or any legacy, but within twelve years next after a present right to receive the same shall have accrued to some person capable of giving a discharge for or release of the same, unless in the meantime some part of the principal money or some interest thereon shall have been paid, or some acTcnowledgment of the right thereto shall have been given in writing, signed by the person by whom the same shall be pay- able, or his agent, to the person entitled thereto or his agent, and in such case no such action or suit or proceeding, bat within twelve years after such payment or acknowledgment, or the last of such payments or acknowledgments, if more than one, was given." It has been laid down that the principle on which all Statutes of Limitation are based, is that any payment to " take a case out of the statute," as it is called, must amount to an acknowledgment by the person making the payment of his liability, and an admission of the title of him to whom he pays. (•) 3 & 4 Wm. 4, 0. 27, s. 16 ; Vict. c. 57, a. 9. and see as to express trusts, Patrick (^) 3 & 4 Wm. 4, u. 27, s. 26. V. Simpson, 24 Q. B, D. 128 ; 37 & 38 206 EEAL PROFERTT. [Book I. and accordingly a payment of rent by a tenant was lield not to be sufScient {}). Not very loug after the Eeal Property Limitation Act, 1874, came into operation the following important point was decided with regard to it : — Mortgage A mortgagee brought his action on the covenant for paymt-nt debt. Qf t]]ie amount which he had lent, with interest and costs. The defence was that no part of the principal or inteiest had been paid for more than twelve years before the commencement of the action, and the defendant claimed the benefit of the Eeal Pro- perty Limitation Act, 1 874, and of all Statutes of Limitation (^). The Court of Appeal decided that, although twenty years is the time allowed for suing on a covenant, the effect of this section is, after twelve years from the last payment of interest or acknowledgment in writing of the debt, to bar not only the remedy against the land which is mortgaged, but also the per- sonal remedy of the mortgagee upon the covenant. A further point upon the construction of this statute was settled by a case which came before the Court in the same year (^). In this case, in which the mortgage was effected by a conditional surrender of copyholds (ante, p. 99), the cove- nant to pay the mortgage debt was contained in a bond which was given by the mortgagor at the same time by way of collateral security. The Court decided that the fact that the mortgage was secured not by a covenant in the mortgage deed, but by a collateral bond made no difference, and that conse- quently the debt was barred as twelve years had elapsed since tlie last payment of interest or written acknowledgment of the mortgagee's debt. To hold otherwise, the Court of Appeal said in a subsequent case, would be to give a different effect to an instrument because it was not written on the same sheet of paper. An important distinction was, however, taken in a case which occurred some years afterwards. In this case a surety had given a collateral bond to secure a mortgage debt, and the bond was conditioned to be void on payment by the mortgagor of principal and interest. The Court of Appeal lield that this was not a proceeding to recover money secured on land, but to recover damages, because another person failed to pay money (•) Sarlock v. Asliberry, 19 Cli D. form in which the plaintiff inge- 539 ; Heath v. Pugh, 7 App. Cae. 235. niousty, but, as the result proved, un- (_") Sutton V. Sutton, 22 Oli. Div. buccc-ssfully, brought his action. 51 1 ; and see Brett's Leading Cases in (') Fearnside v. Flint, 22 Ch. Div. Modern Equity, p. 126, where atten- 579. See Hughes v. Coles, 27 Ch. D. tion is directed to the very peculiar 231 ; Me Blackford, 27 Ch. D. 676. Chap. XVII.] STATUTES OF LIMITATION. 207 secured on land, and that it did not come witliin the scope of the Eeal Property Limitation Act, 1874 Q). The Eeal Property Limitation Act, 1874, further provides Charge on that no action, suit, or other proceeding shall be brought to '*'"'• recover any sum of money or legacy charged upon, or payable out of, any land or rent, at law or in equity, and secured by an express tru»t, or to recover any arrears of rent or of interest in respect of any sum of money so charged or payable and so secured, or any damages in re.spect of such arrears, except within the time within which the same would be recoverable if there were not any such trust (^). The Act of 1874 also provides that when a mortgagee is in possession of the mortgaged land, the mortgagor shall not bring an action to redeem the mortgage but within twelve j'ears next after the time when the mortgagor obtained possession, or next after a written acknowledgment of the mortgagor's right to redeem signed by the mortgagee has been given to the mortgagor or his agent {f). By the Limitation Act (3 & 4 Wm. 4, c. 27 (*) ), the time for Right of bringing an action to enforce the light of presentation to a P5<=senta- benefice is limited to sixty years, or three successive adverse incumbencies, whichever be the longer period, with an extreme limit of one hundred years of successive adverse incumbencies, unless the benefice has been since possessed under a rightful presentation. The Judicature Act, 1 873, enacted that no claim of a cestui que Judicature trust against his trustee for any property held on an express ^'^^' ■'■^''^• trust, or in respect of any breach of such trust, should be held to be barred by any Statute of Limitations Q). The effect of this enactment was to extend the provisions of the former Statute of Limitations with regard to land to personal property (^). It is now provided by the Trustee Act, 1888, with regard to Trustee proceedings commenced after the 1st of January, 1890, that in '^'^'^' ^^^^* any action or other proceeding against a trustee or any person claiming through him (excerpt where the claim is founded upon any fraud or fraudulent breach of trust to which the trustee was party or privy, or is to recover trust property, or the proceeds thereof, still retained hy the trustee, or previously received by the trustee. (■) In re Powers. Lindsell v. (*) Sect. 30, ei seg. Dart's Vendors Phillips, 30 Ch. Div. 291. See also and Purchasers, 6th ed. 452, 453. MeStep}iens,'i3 0h.D.39; Be Frisby, (') 36 & 37 Vict. c. 66, s. 25, 43 Oil. D. 106 sub-s. 2. (2) 37 & 38 Vict. 0. 57, s. 10. («) Banner v. Berridge, 18 Ch. D, C) Ibid. s. 7, 254. 208 REAL PROPERTY. [Book I. and converted to Ms use) all rights and privileges conferred by any statute of limitations shall be enjoyed in the like manner and to the like extent as they would have been enjoyed in such action or other proceeding if the trustee or person claiming through him had not been a trustee or person claiming through Mm. The section also provides that if the action or other proceeding is brought to recover money or other property, and is one to which no existing statute of limitation applies, the trustee or person claiming through him shall be entitled to the benefit of and be at liberty to plead the lapse of time as a bar to such action, or proceeding in the like manner and to the like extent as if the claim had been against him in an action of debt for money had and received, but so nevertheless that the statute shall run against a married woman entitled in posses- sion for her separate use, whether with or without a restraint upon anticipation, but shall not begin to run against any beneficiary, unless, and until the interest of such beneficiary shall be an interest in possession Q). No beneficiary, as against whom there would be a good defence, by virtue of this section shall derive any greater or other benefit from a judgment or order obtained by another beneficiary than he could have obtained if he had brought such action or other proceeding, and this section had been pleaded. Prescrip- The law with regard to prescription, with reference to rights tion. of an incorporeal character, is now governed to a great extent by the Prescription Act, 2 & 3 Will. 4, c. 71, which was passed in 1832, to shorten prescription in the following cases (2) : — 1. With regard to rights of common or other profits or benefits from or upon land (except tithes, rents, and services). 2. Ways or other easements, water-courses, or the use of any water. The enjoyment of an easement in order that a right to it may be conferred by length of time, must be continuous, open, peaceable, and " as of right." In the language of the Eomau law, which is in precise accord with the English on this subject, the enjoyment must be " nee vi nee clam nee precario " (^). 3. The access and use of light to and for any houise, work- shop, or other building. As to rights of common, &c., the Act provides that where (') 51 & 52 Vict. c. 59, s. 8. p. 203. The distinction between (') See as to prescription at com- casements and profits a prendre, " the mon law, notes to the statute in right to take something out of tlie Shelford's Real Property Statutes. soil,'' (e.g. right of pasture, digging (') Gale on Easements, 6th ed. sand), must be borne in mind. Chap. XVIL] STATUTES OF LIMITATION. 209 such a matter has been enjoyed by a person claiming right thereto, without interruption, for a period of thirty years next before the commencement of an action in which the matter has been brought into question, the oLiim shall not be defeated merely by proof that it was first taken or enjoyed at some time prior to the commencement of that period, though it shall remain liable to be defeated in any other way in which it was defeasible before the Act ; and when such right, profit, or benefit shall have been enjoyed for the full period of sixty years, it shall be deemed absolute. The provision with regard to ways, easements, and water- cou'ses, is similar, with the variation of twenty and forty years instead of thirty and sixty. With regard to light, the Act provides that when the access Light, and use of light to and for any dwelling-house, workshop, or other building, shall have been actually enjoyed therewith for the full period of twenty years without interruption, the right thereto shall be deemed absolute and indefeasible, any local usage or custom to the contrary notwithstanding, unless it shall appear that the same was enjoyed by some consent or agree- ment, expressly made or given for that purpose by deed or writing ('). i (') Sollins V. Verney, 13 Q. B. D. eluding the celebrated case of Flight 304, where the previous oases, in- v. Thomas, are considered. VOL. I. ( 210 ) Married Women's Propertr Act, 1882. Law in- dependent of Married Woinen*s Property Act. CHAPTER XVIII. Married Women's Property. The law witli regard to the property of married women has been practically revolutionised by the Married "Women's Pro- perty Act, 1882, which Ciune into operation on the 1st of January, 1883. It will, however, be necessary to state briefly the law on the subject which exists independently of that im- portant statute, as it still applies to a considerable number of cases. In order, we are told in Mr. Macqueen's ' Eights and Lia- bilities of Husband and Wife,' to understand the doctrine of the common law upon the subject of the wife's chattels personal in possession, it is necessary to bear in mind that, according to a legal fiction of the ancient jurists, the husband and wife became one person in law, or rather, the personality of the wife was merged in that of the husband. This prin- ciple was carried out to its logical result so far as rights of property were concerned ; but it was qualified, if not aban- doned, when it was necessary to consider the acts of the wife. As to these, the wife was regarded as distinct from her husbanci, but so entirely under his power and control, that she could do nothing of herself, but everything by his licence and authority (see, as to the application of this principle to the wife's criminal liability, jjosi, p. 1166 (i)). Marriage, it is stated in Cote upon Littleton, " is an absolute gift of all chattels personal in possession in the wife's own right, whether the husband survive the wife or no." The former law with regard to the personal property of married women was in fact quaintly expressed in the saying : " Husband and wife are one, and the husband is that one" (^). With (') Macqueen's Husband and Wife, p. 19 '3rd ed., liy J. C. & E. B. Euss<-ll), to which I must acknowledge my obligations in connection with this cliapter C) Co. Litt. 300. A somewhat similar idea is to be found in tlie follnwing lines which Shakespeare has put into the mouth of Petruchio : " I will be master of what is mine own; She is my goods, my chattels; she is my house, My household stuff, my field, my barn. My horse, ray ox, my ass, my any thing." — Shakespeare. Taming of the Shrew, Act iii., sc. ii. Chap. XVIII.] MARRIED WOMEN'S PROPERTY. 211 regard to choses in action, i.e. debts, money on deposit, bills of exchange, &o., the law was that they became the property of the husband if he reduced them into possession, e.g. by receipt Reduction of a debt. The law as to what amounted to i eduction into into pos- possessiun htis been summed up as follows : — Nothing has ever been held to amount to retluctinn into possession of a wife's choses in action which does not give the husband for .-ome moment of time absolute dominion over the property without any con- cunenre of the wife (i). With regard to chattels real which belonged to the wife Chattels before marriage, the law was that the husband might dispose i'**^- of them at his pleasure, either absolutely or by way of mort- gage, but he could not dispose of them by will. If the husband survived the wife, the wife's chattels real became his absolutely in his marital right (^). If, on the other hand, the husband died without having aliened them, the wife was entitled to them by survivorship. As to her real e^tale, the husband was entitled to the freehold, and took the rents and profits during the coverture. A rigid adherence to the rule of common law as to the unity of husband and wife was obviously the fruitful souice of much injustice to the wife. To remedy this, the two great doctiines Separate of (1) the " separate use," and (2) the restiaint on anticipation, "'•'* ^""^ were introduced into the law. In former years (said a gi eat judge, ^^ antici- the bite Loid Justice James), and down to times within my pation. recollection, judges of what used to be the Common Law Courts of this realm delighted in ap[)lying, rigidly and strictly, a seiies of rules and maxims which their predecessors had delighted themselves in devising ; although they did not alwuy.-i commend themselves to the aiiprehension of the million. Anmngst those maxims was one by whii-h a mariied woman was held incapable of taking a gift, either from her husband or from a sti anger — holding that in tlie one case it remained and in the other became the husband's propurty : " but the Court of Chancery (a very great Court in its day, although it has now ceased to exist) invented that blessed word and thing ' the separate use of a married woman,' and as that Court never allowed itself to be impeded or obstructed by mere technicalities, it provided, whenever it was necessary, that the husband should be made a trustee of whatever property came to him in his marital right, which ought to be so held." 48. (') Nicholson v. Drury, 7 Ch. D. 8. (^) Donne v. Hart, 2 Russ. & My. 360 ; Duberley v. Day, 16 Beav. 33 ; Be Bellamy, 25 Ch. D. 620, where tlie authorilies are colkcted. 212 REAL PBOPERTT. [Book I. Restraint on antici- pation. Married Wqmen's Property Act, 1882." " The legal right was nut interfered with, but the hushand was made a trustee for his wife " (^). The Conrt of Equity then went further still by allowing a married woman to be restrained from anticipating her property. The law of this country, said the late Sir George Jessel (f), declares " all property shall be alienable ; but there has been one exception to the general law, for a restraint on anticipation or alienation was allowed in the case of a married woman. That was purely an equity doctrine, the invention of the Chancellors, and is an exception to the general law which says that property shall not be inalienable. That exception was justified, on the ground that it was the only way, or at least the best way, of giving property to a married woman. It was considered that to give it to her with- out such a restraint would be practically to give it to her husband, and therefore to prevent this, a condition was allowed to be imposed resiraining her from anticipating her income and thus fettering the free alienation of her property." The equitable doctrine of " separate use " was, as we have seen, originally a creation of the Court of Chancery. In latter years it has been made the subject of express legislation in various statutes culminating in the Married Women's Property Act, 1882 (^), which came into operation on 1st Januaiy, 1883. The object of this Act, as it has been judicially stated, is not to destroy the " doctrine of the common law by which there was what has been called a unity of person between husband and wife, but to confer in certain specified cases new powers upon the wife and in others new powers upon the husband, and give to them in certain specified cases new remedies against one another " (*), not to place the feme coverte in the position of the feme sole purely and simply (5), but to extend the right of acquiring property and to confer powers of disposition over it, when acquired, either by act inter vivos, or by will. Section 1 (1) provides that a married woman shall, in accor- dance with the provisions of the Act (e), be capable of acquiring. (') Per James, 1,.J., Ashworth v, Putram, 5 Cii. D. 041. (^) See Re MicUey, Bucldon v. Bay, 11 Oil. D. C45, 649; see as to tlie liistory, &c., of tlje doctrine of re- straint on anticipation : Prett's Lewd- inf? Cases in Equily, p. 230, et seq. (^) Tlie Divorce and Matrimonial Causes Act, 20 & 21 Vict, c. 85; i;lie Married Women's Property Act, 1870, 3a & 34 Vict. c. 93 ; the Mar- ried Women's Property Act (1870) Amendment Act (1874), 37 & 38 Vict. c. 50. e) Per Wills, J., ButUr v. Butler, 14 Q. B. D, 835,836; see albo Be Jupp, 39 Oil, D. 148. C) Myles V. Burton, 14 L. E. Ir, (') See as to tlie effect of these words, He Cuno, 43 Ch, D. 12. Chap. XVIII.] MARRIED WOMEN'S PROPERTY. 213 holding, and disposing by will or otherwise, of any real or personal property as her separate property, in the same manner as if she were a feme sole, without the intervention of any - trustee. The capacity of a married woman, as it was said in a very Capacity of recent case, to take property is only altered between herself and, "'*"''«<' r f J J women to her husband C^). "The true view," it was there stated, " ap- hold pro- pears to be that the wife had unlimited capacity before the Act to P^'''y- acquire property, but that upon its acquisition the marital right of the husband gave him certain interests in it which the Act- has interfered with. That seems to me to be the extent to which her status, if that be the right word, is intended to be altered." "But for collateral purpnses, that is, for any purposes in re.--peot of property, except altering her right to property as between herself and her husband, I do not find in the Act any intimatiim of an intention to chHnge her legal position. If that had been the intention, I should have expected to find in the Act an express provision to the effect, for example, that in all questions relating to property the husband and wife should be considered, not only as between themselves, but also as between them and third persons, two separate individuals, and that the old law of unity of persons should be abolished." In a case decided in 1889, where a testator gave the residue of his estate unto " William B., Elizabeth B., his wife, Sarah B., wife of Henry K., Jane B.,the wife of George D., George Dixon B., Cyrus C, and Charlotte C. his wife, to be equally divided between them, share and share alike," it was held that the residue was divisible into sevenths, each husband and each wife taking a separate share (2). The general principle of the law, as stated by Lord Thuilow just one hundred years ago, is that property the moment it can be enjoyed must be enjoyed with all its incidents (3). The sub-section in question, accordingly, having enlarged the Disposition capacity of a married woman to acquire property, also expressly "f property- gives the correlative right of disposition " by will or other- ^amen^^ wise." But although the right of testamentary disposition is thus conferred on married women " in wide words " by the (1) Re Jupp, 39 Ch. D. 148, 151 ; 12 Ch. D. 306, where the previous see also Re March, 24 Ch. D. 222 ; authorities are considered. 27 Ch. D. 166, see ante, p. 63. (^) Fettiplace v. Gorges, 1 Ves. C) In re Dixon. Byram v. Tull, Jun. 49. women s will: 214 BEAL PBOVERTY. [Book I. Married Women's Property Act, 1882, it must be alwaj's care- fully borne in mind tliat the wills of married women " will not in all respects have the same effect as those of spinsters " (^). Marr'ed Thus it has been held in Re Price, Stafford v. Stafford (f), that a married woman is only enabled to dispose by will of property of which she is seised or possessed during coverture, and as a consequence a will made by a married woman during coverture must be re-executed after she has become discovert, in order to render it effectual to dispose of property acquired after the coveitiire has come to an end (^). Again, in a case where balances of accounts and investments kept in the joint names of husband and wife survived to the wife, and the wife died five days after her husband, the Court decided that these balances were excluded from the operation of a will she had executed during coverture (*). A third illustration of this principle is afforded by a case decided in 1887. An Act passed in 1803 excluded (with perhaps some lack of gallantry, not only in principle but also in the language em- ployed by the draftsman) " Women covert without their hus- bands," along witii "infants and persons of non-sane memory," from the privilege of making gifts, grants, and alienations by deed enrolled, or will executed three months before death, of lunds not exceeding five acres, or goods and chattels not exceed- ing £500, towards building any church or cliapel (f). It was held that the Married Women's Property Act did not operate so as to repeal the exception contained in the previoun enactment, and that accordingly a gift by will by a married woman of £300 to be applied in the erection of a new church was invalid ("). Liability of Polio wir]g on this provision as to the acquisition, &c., of property, comes a power to contract and a concurrent liability, for the Act provides (in sub-sect. 2 of the 1st section) that a married woman shall be capable of entering into and rendering herself liable in respect of and to the extent of her separate property on any contract, and of suing and being sued, either in contract or in tort, or otherwise, in all respects as if she married women, (') Be Smith. Clements v. Ward, perty Act, 1882, see Theobald on 35 Oil. Div. 589. -Wills, o. 3, and Macqueen's Husband O 28 Ch. D. 709 and Wife. C) In re Cum. Mansfield v. Mans- ^ Be Young. Try e\. Sullivan, 28 field, 43 Oh. D. 12, followins Willock Cli. D. 705. V. Noble, L. E. 7 H. L. 580. As to (») 43 Geo. 3 e. 108. the wills of man-ied women, indepen- (=) Be Smith's Estate. Clements v. dently of the Married Women's Pro- Ward, 35 Ch. D. 589. Chap. XVIIL] MARRIED WOMEN'S PROPERTY. 215 were a feme sole, and her Imsband need not be joined with her Liability of as plaintiff or defendant, or be made a party to any action or -n-omen. other legal proceeding brought by or taken ajiiainst her ; and any damages or costs recovered by her in any such action or proceeding shall be her separate property ; and any damages or costs recovered against her in any such action or proceeding shall be payable out of her separate property, and not other- wise. The meaning of these words has been carefully considered in several cases. The words, it was said in one case, " are clear that a married woman can enter into and render herself liable as if she were a, feme sole, not upon any contract, but only upon contracts in respect of her separate estate" Q-). The Act, it was said, in another cnse, is an Act in favour of the wife, and it does not affect the liability of the husband, " except in those instances where there is a specific limitation." It was accord- ingly decided that the liability of a husband for his wife's wrongful acts still remains, and a plaintiff may sue the husband and wife joinily, or the wife alone, for wrongs committed by her after marriage (^j. A married woman can sue her husband for arrears of main- Actions by tenance, due under a contract for separation, by way of com- ™^''"sd promise of legal proceedings (^). She can maintain an action for slander (*), for trespass against her separate pioperty (f), for assault and false imprisonment C^), probably for libel on her trade ('), and even for a tort committed before the Act came into operation (^). In a case decided in 1886 the question arose whether a married woman was entitled to maintain an action for assault and false imprisonment committed before 1st January, 1883, when the cause of action had accrued more than four years before suit, and it was held that as the action was brought within four years after 1st Jan., 1883, when she became dis- covert by the operation of the Married Women's Property Act she was entitled to maintain the action (^). As a married woman may " sue and be sued " in all respects Actiona by and against married (') DraycottY. Sarrison,n Q.B.I). (') McGregor v. McGregor, 21 women. 152. Q. B. D. 424. (2) Serolca v. Kattenburg, 17 (*) Weldon v. Neal, 32 W. E. 828. Q. B. D. 179. It was decided in (») Weldon v. De Bathe, 14 BaMn v. Hughes, 31 Ch. D. 390, tliat Q. B. D. K39. a husband's liability for breaolies of (") Lowe v. Fox, 15 Q. B. D. 667. trust by tbe wife extends to breaches (') Summers v. City Sank, L. E. aiising from negligence, and is not 9 C. P. 580. con lined to losses occasioned by active (•) Weldon v. Winslow, 13 Q. B. D. misconduct. See, as to wife's liability, 785. JIale V. Sheldrake, W. K. (1889) 27. (.") Lowe v. Fox, 15 Q. B. D. 667. 216 SEAL PEOPEMTY. [Book I. as if she were a feme sole, she is not required to give security for costs, even though she has no separate estate (*). But where she sues by a next friend security may he ordered (2). The power of " suing and being sued," however, only relates to matters affecting the married woman personally. She cannot therefore fill the oflflce of next friend or guardian ad litem (^). One of the objects aimed at by the Act was the protection and security of the wife's separate estate. It has been decided (*) that a wife cannot take criminal proceedings against her husband for a defamatory libel upon her concerning her profession of a vocalist ; although it was left undecided by the Court whether an action for the libel could be maintained. Where a married woman was in sole possession of a house, being the product of money earned by her own exertions, the Court of Appeal held that she might maintain an action for trespass against a person who had entered the house against her will, but with the authority of her husband. Lord Justice Lindley observed that " whatever his (the husband's) rights are, he cannot authorize anybody to intrude on the possession of his wife's separate property " (^). And where a house was settled upon a married woman for her separate use, and she and her husband were living apart, an interim injunction was granted to restrain the husband from going to and using the house for his own purposes (^). But this jurisdiction will only be invoked to preserve the separate property, and not to prevent a husband from enjoying the society of his wife. A married woman may still be sued, for any liability either in contract or in tort incurred before marriage, and her separate property is the fund primarily liable for any judgment and costs recovered in respect thereof ('). Her husband is also under a similar liability to the extent of all property he acquires or becomes entitled to through his wife ("). The husband and the wife may be sued either separately or jointly for such ante- nuptial liabilities, and where the husband's liability is estab- (') Be Isaac. Jacob v. Isaac, 30 sufSoient publication : see Wennhah Ch. D. 418. V. Morgan, 20 Q. B. D. 635, and post, (') Be Tlwmpson. Stevens v. p. 457. Thompson, 38 Cb. D. 317. (') Weldon v. De Bathe, 14 Q. B. D. (3) Be Duke of Somerset, 34 339. Ch. Div. 465. (") Symonds v. Hallet, 24 Ch. Div. (*) Beg. V. Lord Mayor of London, 346. 16 Q. B. D. 772. And see Summer (') 45 & 46 Viet. 0. 75, s. 13. V. City Banlc, L. E. 9 C. P. 580. As (») Sect. 14, and a^e De Stacpoole to whether tlie communication of a v. De Stacpoole, 87 Cb. T>. 139, libel from husband to the wife is Chap. XVIII.] MARRIED WOMEN'S PROPERTT. 217 listed there will be a joint judgment against him personally and against the wife as to her s^ parate property (').. The law with regard to the husband's liability for his wife's Ante- ante-nuptial debts was much considered in a case which came j"/'*'"'^' before the Court of Appeal in 1889 (2). In this case a judgment had been recovered by the plaintiff in an action brought a*;ainst a married woman in respect of an ante-nuptial debt of the wife's. Tlie judgment, however, remained unsatisfied, because she had no separate e.state. An acticjn was afterwards brought by the plaintiif against the husband, who had acquired property from his wife to an amount exceeding the debt. The Court decided that the judgment recovered against the wife was no defence to the action against the husband. It was, however, decided in the same case that a husband cannot he made liable uuder the pro- visions of the Married Women's Property Act, 1882, for an ante-nuptial debt of the wife which accrued due against the wile more than six years before the commencement of the action. In this case the law on the subject was reviewed by Lord Justice Lindley as follows : — " Tlio Married Women's Property Act, 1882, has entirely altered the law as regards the liabilities of husbands for their wives' ante-nuptial debts. First, he can now be sued without her, and whether she be alive or dead. Secondly, he can be sued with her under s. 15, if the plaintiff seeks to establish his claim wholly or in part against both hus- band and wife ; but in this case the judgments may be separate, Hlthough, to , the extent to which they are both liable, the judgment may be 'a j(jint judgment against the husband personally, and against the wife as to her separate property.' What the word 'joint' means in this sentence is not clear. Thirdly, the husband's liability is no longer unlimited • as at common law ; it is limited to the value of the wife's property which he may have acquired (see s. 14). Fourthly, as between him and her he is entitled to be indemnified out of her separate property (see s. 13)." The Act provides that " any damages and costs recovered " Damages against the married woman are to be "payable out of her '""^ "^"^ ^" separate property and not otherwise." A judgment against a married woman accordingly does not create a personal liability, but, to borrow a phrase from a judg- ment in a leading case on the ttubject, " a proprietary liability " in respect of her separate property (f). (') 45 & 46 Viot. u. 75, s. 15. Q. B. D. 548; Jay v. EoUnson, 25 C) Beck V. Pieroe, 23 Q. B. D. Q. B. D. 467. 316, and see Axford v. Reed, 22 C) Scottv. MorUy,20Q,,B.'D.12i. 218 REAL PB0PEET7. [Book I. Form of judgment. Debtors Act. Contracts of married women. The proper fonn of final judgment against a married woman tinder sect. 1, sub-sect. (2) of the Married Women's Property- Act was settled by the Court of Appeal (') as follows : " Jt is adjudged that the plaintiff do recover £ and costs (to be taxed) against the defendant (the married woman), such sum and costs to be paid out of her separate property, as hereinafter mentioned, and not otherwise. And it is ordered that execution hereon be limited to the separate property of the defendant (the married woman) not subject to any restriction against antici- pation, unless, by reason of sect. 19 of the Married Women's Property Act, 1882, the property shall be liable to execution, notwithstanding such restriction " (seeposi, p. 221 ). In that case also it was decided that a married woman is not within the Debtors Act, 1869, and could not be committed under its provision for disobedience to an order for pay- ment (2). A husband can now maintain an action against his wife and charge her separate estate with money lent by him to her after marriage, and tor money paid by him for her after marriage at her request (^). Every contract entered into by a married woman is now to be deemed to be a contract entered ■ into by her with respect to and to bind her separate property, unless the contrary be shewn, but the practice rules no longer require that it should appear on the face of the writ that sho is suing or sued in respect of her separate estate (*). Again, the Married Women's Propeity Act, 1882, provides that every contract (which by the 24th section is defined to include the acceptance of any trust or of the ofBce of executrix or administratrix) entered into by a married womnn with respect to and to bind her separate property shall bind not only (>) Scott V. Morley, 20 Q. B. Div. 120, 132, and see Leak v. Driffield, 24 Q. B. D. 98 ; Holtby v. Hodgson, 24 Q. B. D. 103. Q) The Court will direct an en- quiry of wliat the separate estate consists, and appoint. a receiver who will receive what would otherwise be paid to the married woman : McGarry v. Wliite, 16 L. E. Ir. ;h22 (where the plaintiff was appointed receiver). See also Beckett v. Tasker, 19 Q. B. D. 7; Re Pearce and Waller, 24 Ch. Div. 408 ; Re Duke of Somerset, 34 Oh. D. 465. (') Butler V. Butler, 16 Q. B. D. 374. A married woman can give a sole undertaking as to damages : Re Prynw, 53 L. T. (N.S.) 465 ; and a husband can enforce against her such imdertalciug given to the Court upon obtaining an injunction again>-t liim: Sunt v. Hunt, 54 L. J. Ch. 289. (•") Miirried Women's Property Act, 18(^2, s. 1, sub-s. 3. Central OfBce Practice Eules, 5, see as to state- ment of cLiim : Tetley v. Griffith, 57 L. T. (N.S.) 673; Be Roper, lioper V. Doncaster, 39 Ch. D. 482; Leak v. Driffield, 24 Q. B. D. 98. Chap. XVIII.] MARRIED WOMEN'S PROPERTY. 219 the separate property wliicli Bhe is possessed of or entitled to at the date of the contract, but also all separate property which she may thereafter acquire Q). This sub-section very materially alters the law laiii down in the well-known case of Pihe v. Fitzgihbon (2) decided in the year 1881. The Court of Appeal there decided that where a mariied woman has separate property, and is restrained from anticipating, the only separate property which can be reached i-i the separate property or the residue of the separate property that she had at the time of contracting the engagements which ir, is sought t(j enforce. The eifect of this sub-section is, that when the married woman has " unsettled separate property " (3) upon which section 19 (jpost, p. 221) would be inoperative, a contract entered into by her binds not only the separate property she is possessed of at the date of the contract, but all separate property thereafter acquired during the coverture (*). A very important limitation with regard to the liability of a married woman's separate property has, however, been estab- lished by recent decisions. In order that her contract should bind her future separate property it must be entered into at a time when she has existing separate property. In order to entitle a plaintiff to succeed he must plead aud prove the exiist- eucB of some separate property at the time of entering into the alleged contract (*). The 5th sub-section renders a married woman who carries on a trade separately from her husband liable to bankruptcy in respect of her separate estate (see post, p. 901). Sect. 2 of the Act introduces a very important change by providing that every woman who marries after the commence- ment of this Act shall be entitled to have and to hold as her separate property and to disjjose of in manner aforesaid all real (') Sect. 1, sTib-s. 4r. under which the summonses ■were to (^) 170h. D. 454, 461. be withdrawn, the parties were to (^) See Ee Armstrong, 21 Q. B. D. live apart, the husbaad was to allow 264. This sectioji is not retrospective : the wife a weelily sum for mainten- see Conolan v. Leyland, 27 Ch. D. ance, ami the wife was to indemnify 632; Turiibullv. For7nan,15Q,.B.I>. the husband against any debts she 234. might contract, the Court decided (') Beckett v. Tasker, 19 Q. B. D. that the parties had power to validly 10. enter into such a contract without O Falliser v. Gurney, 19 Q. B. D. the intervention of a trustee, and 519 ; Be Shakespear, 30 Ch. D. 169. that accordingly an action brought In a recent case where a hus- by the wife for arrears of mainten- band and wife had taken out cross- ance was maintainable : McGregor v. summonses for assaults, and then McGregor, 20 Q. B. D. 529 ; afiirmed, entered into a verbal agreement 21 Q. B. D. 424. 220 REAL PROPERTY. [Book I. Loan by husband to wife. Powers. Settle- ments. and personal property wbicii shall belong to her at the time of marriage, or shall be acquired by or devolve upon her after marriage, including any wages, earnings, money, and property gained or acquired by her in any employment, trade, or oc- cupation, in which she is engaged, or which she carries on separately from her husband, or by the exercise of any literary, artistic, or scientific skill. Sect. 3 provides that any money or other estate of the wife lent or entrusted by her to her husband for the purpose of any trade or business carried on by him, or otherwise, shall be treated as assets of her husband's estate in case of his bank- ruptcy, under reservation of the wife's claim to a dividend as a creditor for the amount or value of such money or other estate after, but not before, all claims of the other creditors of the husband for valuable consideration in money or money's worth have been satisfied. This section only applies where the husband is a sole trader, and accordingly where a married woman lent her own money to a trading partnership of which her husband was a member, she was entitled on the bankruptcy of the partnership to prove against the joint estate in competi- tion with other creditors Q"). Sect. 4 provides that the execution of a general power by will by a married woman shall have the effect of making the property appointed liable for her debts and other liabilities in the same manner as her separate estate is made liable under this Act. Under the previous law there was some conflict of opinion, where the power of appointment was only by will, whether in the absence of fraud a married woman's property was rendered liable to meet her engagement, but all such doubts are now completely set at rest by this section (2). Sections and 19 of the Act muot be considered together. Section 5 deals with the question of property acquired after the Act. The 19th section saves existing settlements and the power to make future settlements. Sect. 5, dealing with the case of those who have entered into (') In re Tuff. Ex parte Notting- ham, 19 Q. B. D. 88, and see In re Tidswell, 35 W. E. 669; 56 L. J. (Q.B.) 549, where it was held that a wife may prove for money lent to her husband for private as distinguished from trade purposes ; and see Be Genese, 16 Q. B. D. 700. (^) See as to general power of apjjointment, ante, p. 176. See John- son V. Gallagher, 3 D. P. & J. 494. See also Be Armstrong, 17 Q. B. D. 521, Fry, Ij.J., where the autliorities are fully discussed. London Chartered Bank v. Lempriere, L, E. 4 P. C. 572 ; Be Sarvnj. Godfrey v. Harben, 13 Ch. D. 216; Hodges v. Hodges, 20 Ch. D. 749, and as to bankruptcy, post, p. 919. Chav. XVIIL] married WOMEN'S PROPERTY. 221 tlie matrimonial state before 1st Jannary, 1883, provides : " Every ■woman married before the commencement of this Act shall be entitled to have and to hold and to dispose of in manner aforesaid as her separate property all real and personal property her title to which whether vested or contingent, and whether in possession, reversion, or remainder, shall accrue after the com- mencement of this Act, including .any wages, earnings, money, and property so gained or acqijired by her as aforesaid." The Court of Appeal decided in the leading case on this subject that where a woman, married ia 1871, had, before the 1st of January, 1883, acquired a title to property, such property was not made her separate estate under this section merely by falling into possession after the Act. " The object of these words," said the Court of Appeal, " is to make it clear that all property in which the married woman iirst acquires a title after the commencement of the Act comes within the ojieration of this section, whatever the nature of that title may be " Q). If, however, the property when it falls into possession is subject to a settlement, the operation of this section will be excluded, by reason of section 19, which preserves all rights acquiied under settlements (^). Sections 12 & It) confer to some extent reciprocal rights on Criminal husband and wife with regard to property, but it is to be W"'^'^^'^- obseiwed that the wife has civil and criminal remedies against, the husband for the protection and security of her separate pro- perty, w^hile by sect. 16 the husb.md has only criminal remedies against the wife. The wife's criminal remedies, however, do not exist when she and her husband are living together. It is only when the husband has deserted or is about to desert his wife that redress by criminal proceedings is open to her. In any criminal proceedings authorised by the Act, husband and wife are now competent and admissible to give evidence as witnesses against each other, and are, except when defendants, compellable to give evidence (^). Section 19 (*) provides that nothing in this Act contained shall Settle- interfere witli or affect any settlement or agreement for a settle- '"<^"*'^- ment made or to be made, w^hether before or after marriage, respecting the property of any married woman, or shall interfere Q) Reid v. Eeid. 31 Oh. Div. 402 ; Act, 1884 (47 & 48 Vict. cap. 14), and see as to spes successioms. Be passed in consequence of Reg. v. Parsons, 45 Ch. D, 51. BrittUton, 12 Q. B. D. 206. Q) See post. sect. 19. and Saneoclc C) See Jayv. Robinson, 25 Q. B. D. V. Hancock, 3S Ch. D. 78. 467. (0 The Married Women's Property 222 REAL PROPERTY. [Book I. Settle- with or render inoperative any restriction against anticipation ""'^ °' at present attached or to he hereafter attached to the enjoy- ment of any property or income by a woman under any settle- ment, agreement for a settlement, will, or other instrument; but no restriction against anticipation contained in any settle- ment or agreement for a settlement of a woman's own property to be made or entered into by herself shall have any validity against debts contracted by her before marriage, and no settle- ment or agreement for a settlement shall have any greater force or validity against creditors of such woman than a like settlement or agreement for a settlement made or entered into by a man would have against his creditors. In a case in which a married woman became entitled, on the denth of her father in 1884, to a share of personalty not limited to her separate use, the question arose whether this was bound by a covenant to settle after-acquired property contained in an ante-nuptial settlement made in 1873, or whether it became the separate property of the wife under sect. 5. The Court decided that the property was bound by the covenant ('), and laid down the principle that the effect of sect. 19 is to modify the operation of sect. 5, so that pursons interested under a settle- ment of a married woman's property are not by sect. 5 deprived of any benefit to whiuh they would have been entitled if it had never been enacted. Liability of ipj^g principle on which a husband is held liable on his wife's husband. . j , i • , • i ■ i . , i . cimtncts IS that she is acting as his agent and with his autho- rity e). This subject received very careful consideration in the House of Lords in 1880, in the case of DebenJiam v. Mellon, when the judgment pronounced in 1864 in the well-known case of Jolly V. Bees was upheld, and the following important principles were laid down : — Where the husband neither does, nor assents to, any act to show that he has held out his vsdfe as his agent, to pledge his credit for goods supplied on her order, the question whether she bears that character must be examined upon the circumstances of the case. That question is a question of fact. The manage- ment of the husband's house w(juld raise a presumption of agency as to matters necessarily connected with that manage- (') Re Wliilalcer. Clirutian v. Q. B. D. 273 ; afl3rmlng 17 Q. B. D. Whitalcer, 34 Ch. Div. 227; Ranrock 176. V. Hancock, 38 Ch. D. 78 ; where the (") Macqneen's Husband and Wife, cases on tlie subject aie discussed ; 3,d ed. p. V/3 ; Manhy v. Scott, Smith's and Be Queade, 33 W. R. 816, dis- Lending Cases, vol. i. ; Jolly v. Bees, approved ; and sec Ee Armstrong, 21 \5 C. B. (N.S.) 628. Chap. XVIII.] MARRIED WOMEN'S PROPERTY. 223 ment, which miu;ht not be got rid of by a mere private arrange- Liability of ment between husband and wife. But it would be otherwise "^ ^° ' where such management did not exist Q-'). In this case Lord Selborno expressed himself as follows : " According to all the authorities, there is no such mandate in law from the fact of marriage only, except in the particular case of necessity ; a necessity which may arise when the husband has deserted the wife, or has by his conduct compelled her to live apart from him, without properly providing for her, — but not when the husband and wife are living together, and when the wife is properly maintained ; because there is, in that state of circumstances, no prima facie evidence that the husband is neglecting to discharge his necessary duty, or that there is any necessary of^casion for the wife to run him into debt, for the purpose of keeping herself alive, or supplying herself w^ith lodging or clothing." Sects. 6, 7, 8, 9, contain provisions with regard to stocks, &c.. Stock, standing in the name of a married woman, or which are trans- shares, &c. ferred to her ; unless tbe contrary is shown she is to be deemed beneficially entitled thereto for her separate use, and her separate estate alone is liable to answer any liability incident thereto. No corporation or company is, however, compelled to admit a man ied woman to be a holder of any shares or stock to which any liability may be incident contrary to its ci institutional regulations. A married woman will have the benefit of these provisions in the case of her being jointly interested with any other persons or person, other than her husband, in stocks, &c., and it will not be necessary for her husband in resp&;t of her interest to join in transfers, whether the account is joint or separate. Sect. 10 provides for the case of an investment by a married woman of her husband's money without his consent. The Court has power to transfer such an investment to the husband, and it is provided that nothing in the Act shall give validity as against the husband's creditors to any gift by a husband to his wife if the gift continues in the order and dispo- sition or reputed ownership of the husband or to any invest- ment by the husband in the name of his wife in fraud of his creditors, but the money may be followed as if the Act had not been passed. A married woman has express power by sect. 11 of the Married Insurance. Women's Property Acf, 1882, to effect a contract of insurance on (1) Her own life ; or (2) her husband's life for her separate use, and " the same and all beriefit thereof shall enure accordingly." (') Vebenliam v. Mellon, 6 App. Cas. 24, 31. 224 SEAL PBOPEBTT. [Book I. Insur Power to determine questions. Married woman executrix, administra- trix, or trustee. Support of husband, &c. If the policy on either life is effected for her separate use, it will form pait of her separate estate, and he liable to her debts. A husband or wife may effect a policy on his or her own life for the benefit of (1) The other of them, i.e., the husband on the wife's life, or the wife on the hnsband's life, or (2) Their children, or any of them, or (3) The other of them and their children, or any of them. The policy must express for who^e benefit it is efiected, and a trust will then be created in favour of the objects named, and the policy moneys will not form part of the estate of the insured, nor will they be subject to his or her debts so long as any object of the trust remains unperformed (^). Where a policy is effected and the premiums are paid with intent to defraud the creditors of the insured, the crediiors have a charge on the policy money to the amount of the premiums so paid (2). Sect. 17 expressly enables any judge of the High Court of Justice to determine all questions between husband and wife as to the title to or possession of property. Either party may require the dispute to be heard in private, and any order made is subject to appeal in the same way as any other order made by the same Court would be (f). Sect. 18 enables a married woman who is an executrix or administratrix or a trustee to sue and be sued, and to join in and make transfers of stucks without her husband, as if she were a, feme sole ; the concurrence of the husband in an administration bond is therefore no longer necessaiy (^). Before the Married Women's Pioperty Act, 1882, a wife was not bound to maintain her husband or even to contribute to the isuppoit (if the family. A married woman having separate property is now liable to the parish for the maintenance of her husband, her children, and (') Sect. 11 Married WoiiK-n's Pro- perty Act, 1882. In a case where the policy was effected by a husband for the "benefit of his wife and chil- dren," the words were construed as giving the wife a life interest with remainder to the children ; Re Adams' Policy, 23 Oh. Div. 525. But in a subsequent case it was held that the widow and children took as joint tenants: Re Seyton, 34 Oh. Div. 511. See as to appointment of new trustees. Re Soutar's Policy Trusts, 26 Ch. D. 236 ; Scuultze v. Hchullze, 56 L. J. D. (Ch.) 356. C^) See Holt v Everall, 2 Ch 2i:6. C) Phillips V. PMlUps. 13 P. D. 220; Wood v. Wood, 14 P. D. 157, where it was held that the registrar liad no jurisdiction. Tliere are also pi'oyloions in this section for the dec! ion of such questions by county conrt judges in England, and judges of the civil bill courts in Ireland. C) Re Hawksworth, 83 L. T. 80 ; Re Ayres, 8 P. D. 168. Chap. XVIII.] MARRIEB WOMEN'S PROPERTY. 225 grandchildren just as the husband is now liable. But it is ex- pressly provided that nothing in the Act shall relieve the husband from any liability imposed on him by law to maintain the children or grandchildren Q"). It is also provided that for the purposes of the Act the legal personal representative of any married woman shall in respect of her separate estate " have the same rights and liabilities and be subject to the same jurisdiction as she would be if she were living " (2). It has been decided that although the law casts upon a husband the duty of burying his wife, he is not always bound to do so at his own cost. So, where a married woman exercised a general power of appointment by will, and appointed her husband executor, but omitted to mention the payment of her funeral expenses, the husband was allowed to retain them out of the appointed fund, though her estate was insufficient for her creditors (f). Closely connected with separate estate is the subject of pin- Pin-money, money, which is defined as a provision for the wife's dress and pocket, to which there is annexed a duty of expending it on her " personal apparel, decoration, or ornament " (f). If the wife permit her pin-money to run in arrear, it would seem that should she survive her husband she would be entitled to demand only one year's arrear of the amount due before his death (f). The subject of the wife's equity to a settlement, which was Equity to a formerly a prominent cardinal doctrine of the Courts of Equity, ^*' '^°"^" " is now of comparatively slight practical importance. As the law now stands, the question can only arise when the marriage was contracted and the title to the property acquired before the 1st of January, 1883. The principle on which the Court proceeded was that he who seeks equity must do equity, and the rule was that, whenever a husband sought the assistance of a Court of Equity to recover property, the Court, as the price of its assistance, obliged him to make a provision for the wife if she required it. The wife could actively assert this equity as plaintiff. The equity was personal to the wife, and she could waive it, but unless she waived it, it always extended to the children of the marriage. In one of the last cases upon the subject of equity to a settle- ment, where the fund in question was about £1500, producing an (>) Sects. 20, 21. 658. (2) Sfct. 23. (*) Peacock v. Monk, 2 Ves. Sen. (=) In re M^Myn, 33 Ch. D. 577. 190 ; Thrupp v. Marman, 3 My. & K. (<) Howard v. Digbij, 2 CI. & F. 513. VOL. I. Q 226 BEAL PEOPERTY. [Book I. Equity to a settle- ment. Fraud on marital rights. Parapher- Tialia. Acknow- ledgment of deeds. income of not over £60, and where the husband had persisted in disregarding an order of the Court for restitution of con- jugal rights, and declared that his wife and he should not live together again, the Court considered that the conduct of the husband amounted to " aggravated misconduct," and that, under all the circumstances of the case, the whole fund ought to be settled on the wife and children (}). The amount to be settled i.s in the discretion of the judge, who will take into account all the circumstances, ex. gr., a previous settlement, or any property of the wife's which had previously been acquired by the husband. The amount generallj' settled is one-half, in some cases a larger proportion, and, under special circumstances, the whole fund, ex. gr., the husband's insolvency or cruelty, &c., or where the husband had already received part of the fund, or the whole fund. Another doctrine of equity which has become, if not wholly obsolete, at all events of very slight practical importance, since the revolutionary changes introduced by the Married Women's Property Act of 1883, is that of "fraud on marital rights." The leading case on this subject is that of the Countess of Strathmore v. Bowes, where a settlement made by a lady, who, in Lord Thurlow's opinion, had only marriage in general as her object, as she was disposed to marry any person but not to part with her fortune, was under the circumstances not set aside (^). The paraphernalia of the wife are such articles of personal apparel, personal ornament, and persona] convenience suitable to her rank and degree, as she continued to use during the marriage. Down to the year 1833 a married woman could only convey her interest in real estate by a, fine levied in the Court of Com- mon Pleas with the concurrence of her husband. A fine was a fictitious suit commenced and then compromised by leave of the Court whereby the lands were acknowledged to be the right of one of the parties ; and when a married woman was a party it was necessary that she should be examined separately from her husband to ascertain that she joined in the fine of her own free will and not through compulsion. In the year 1833 this clumsy process was abolished by the Fines and Eeooveries Act (3 & 4 Wm. 4, c. 74 (ante, p. 35, et seq.)), and in lieu of it was substituted a deed executed by the married woman with her husband's concurrence. The deed miist, however, be acknow- (') Eeid V. Eeirl. 33 Ch. D. 220. Tuilor's Leading Cases, vol. i ; Boxall C) Strathmore V. Bowes, 1 yes. Jnv. v. Boxall, 27 Cii. D. 22(1. 22, and boo notes theroto ; White and Chap. XVIII.] MARRIED WOMEN'S PROPERTY. 227 ledged before a judge or two commissioners (now one commis- sioner), who, before taking the acknowledgment, satisfies himself by separately examining the woman that she freely consents to the deed. The law with regard to the acknowledgments of deeds by married women is now of very little practical importance, as all property which belongs to women married after 31st December, 1882, or acquired by them after 31st December, 1882, is their separate property, and may consequently be disposed of by them, as if they were femes soles, without any acknowledgment. The practice on this subject has been altered by the 7th section of the Conveyancing Act, 1882, by the abolition of certificates of acknowledgment, and the substitution of one commissioner for two (1). One of the essential purposes of the separate examination of the wife is to ascertain what is the bargain between her and the husband — that is, whether the purchase-money is to belong to him or not. Accordingly, in a case when a married lady had acknowledged the conveyance before the commissioners, and had, on being separately examined by them, refused any provision out of the purchase-money or otherwise, she was treated as having given up to her husband all claim upon the purchase- money and as having no further interest in it in any way, and that though a portion of the money had been left outstand- ing in the hands of trustees as an indemnity fund against an annuity charged on the estate (^). The 39th section of the Conveyancing Act, 1881 (which came Removal of into operation on the 1st of January, 1882), confers a com- restraint pletely new power upon the Court with reference to property pation. settled upon married women with restraint upon anticipation by providing that : Notwithstanding that a married woman is restrained from anticipation, the Court may, if it thinks fit, where it appears to the Court to he for her benefit, by judgment or order, with her consent, bind her interest in any property. The section however applies only to judgments or orders made after the commencement of the Act (^). Suppose there is a bequest to a married woman for her Restraint on antici- pation. (') 45 & 46 Vict. c. 39, s. 7 ; and (') See the numeroua cases on see Be Docwra, 29 Ch. D. 693 ; and as this section reviewed : note to Gierke to County Courts, 51 & 52 Vict. c. 44, and Brett's Conveyancing Acts, g ]^y^ p. 161, and see Be Little. Sarrison (2) Tennent v. Welch, 37 Ch. D. v. Harrison, 40 Ch. D. 418 ; Latham 622, where the law on the subject is v. Latham, W. N. (1889) 171. reviewed. Q 2 228 REAL PBOPERTT. [Book I. separate use absolutely, and this is followed by a clause restrain- ing her from anticipation; is the restraint on anticipation effectual, or can she claim that the fund should be paid over to her ? This question gave rise to a good deal of conflict which may now be considered as settled. The principle upon which the Court proceeds is, what was the intention of the testator, did he intend that the legatees should have the capital paid over to them, or did he intend that the trustees should retain the fund in their hands with a restraint against the married women anticipating their shares ? (i) Settled Sect. 61 of that extremely important statute, the Settled ■^gg2 Land Act, 1882, contains a provision that a married woman, if entitled for her separate use, is to have the powers of a tenant for life under the Act without her husband ; but if not entitled for her separate use, then along with her husband, and that the provisions of the Act are to apply to her alone, or to her and her husband, as the case may be. It is also provided by the same section that a restraint on anticipation in the settlement is not to prevent the exercise by a married woman of any power under the Act. In a case where a testator bequeathed a share of his residuary personal estate in trust for his son for life, and after his decease in trust for any wife of the son's for life, it was held that a woman from whom the son had been divorced previous to the testator's death was not entitled to the income (2). The law as to a widow's rights when her husband dies intestate is considered hereafter (p. 341, et seq.). As questions concerning the property of married women are of extreme importance and frequent occurrence, the following list of statutes specially referring to that subject may be of service : 3 & 4 Will. 4, c. 74 (Fines and Eecoveries Act), sects. 77 et seq. ; and see Be Docwra, 29 Ch. D. 693 ; 3 & 4 WUl. 4, c. 105 (Dower Act) ; 18 & 19 Vict. c. 43 (Infants' Settlement Act (;post, p. 612)) ;. 20 & 21 Vict. c. 67 (Malins' Act, as to reversionary interests) ; C) Re Sown, 27 Ch. D. 41], and (') Be Morrieson, 40 Ch. D. 30, ob- aee Be Tippelt's andNewbould's Con- serving on Bullmore v. Wynter, 22 tract, 37 Ch. D, 444, and casea there Ch. D. 619. referred to. Chap. XVIII.] MABBIED WOMEN'S PBOPERTT. 229 20 & 21 Vict. c. 85 (Divorce Act (amended by 21 & 22 Vict. c. 100) enabling the Court to grant protecting orders) ; 33 & 34 Vict. c. 93, and 37 & 38 Vict. c. 50 (Married Women's Property Acts, 1870 and 1874). Both re- pealed (but with a saving clause) by sect. 22 of the Married Women's Property Act of 1882. 37 & 38 Vict. c. 78, sect. 6 (Vendor and Purchaser Act) ; 44 & 45 Vict. c. 41 (The Conveyancing Act), sects. 39 and 40; 45 & 46 Vict. 0. 38 (Settled Land Act, 1882) ; 45 & 46 Vict. 0. 75 (The Married Women's Property Act, 1882) ; 46 & 47 Vict. c. 52 (Bankruptcy Act, 1883), sects. 29 and 47, as to settlements. 46 & 47 Vict. c. 61 (Agricultural Holdings Act, 1883), sect. 26 ; 49 & 50 Vict. 0. 52 (Married Women (Maintenance in case of Desertion) Act, 1886), enabling women who are deserted to summon their husbands for maintenance : Pope v. Pape (20 Q. B. D. 76) ; 53 & 54 Vict. c. 29 (The Intestates' Estate Act, 1890), post, p. 341, et seq. ( 230 ) Mortmain'' and Chari- table Uses Act, 1888. CHAPTER XIX. Chaeities and Mortmain. In a former portion of this work (ante, p. 49), some allu- sion has been made to the subject of charities, and it is now proposed to devote a short chapter to the consideration of some of the leading principles of the law connected with that difBcult and important subject, so far as it is concerned with property, and also of the law as to mortmain which is usually associated with the law of charities, and has been dealt with along with it by the legislature in the important statute to which we shall now refer. The subject of gifts to charities and the law as to mortmain is now to a great extent controlled by a Consolidating and Amending Act, which was passed in the year 1888, under the title of the Mortmain and Charitable Uses Act, 1888 (51 & 52 Vict. c. 42). As this statute repeals, though with a large measure of sub- stantial re-enactment, a very considerable portion of the previous legislation upon the subject of charities and mortmain, and practically forms the existing code of statute law on these subjects, it will be desirable to consider its provisions in some detail. This Act is divided into four parts. The first part deals with assurances in mortmain. Alienation in mortmain, in mortud manu, is defined by Blackstone to be an " alienation of lands or tenements to any corporation, sole or aggregate, ecclesiastical or temporal " (y). The origin of the term " mort- main " is stated by Lord Coke to be that the lands were said to come to hands which were dead as far as the Lord was con- cerned, i.e., yielded no service inasmuch as the lords lost their escheats, wardships, &c. (2). The present statute enacts that where land is assured to a corporation in mortmain otherwise C) 2 Bl, Com. 268. (f) Part of the present Act repro- duces tlie old statute De Viris Keligiosis [repealed iu the schedule]. The power to grant licences in mort- niuiu, preserved by the present Act (s. 2), was first made the subject of enactment by 7 & 8 Wm. 3, c. 37. See for the history of this, Tudor's Charit- able Trusts, 3rd ed. byL. S.Briatowe and W. I. Cook. Chap. XIX.] CHARITIES AND MORTMAIN. 231 than under the authority of a statute for the time being in force, or of a licence from the Queen (power to grant such licence being by s. 2 given to her Majesty), the land so assured may be forfeited from the date of such assurance. If the land be held directly from the Crown it is forfeited to the Crown ; if from one or more mesne lords, to such mesne lord or lords, provided entry under the forfeiture is made within certain periods. If there be no such entry the forfeiture is to the Crown. No entry for forfeiture under this part of the Act is to merge, or extinguish, or otherwise .affect any rent or service which may be due in respect of any land to her Majesty or any otlier lord thereof (s. 3). The second part of the Act treats of assurances to charitable uses, and re-enacts with slight modification the Act 9 Geo. 2, c. 36, commonly, but inaccurately, referred to as the Statute of Mortmain. The law as to charities is to a very large extent a creation of statute. Charities are largely controlled by statute : (1) in their very definition ; (2) with regard to dispositions of property for their benefit ; (3) with regard to their regulation and control. With regard to the meaning of " charity," Sir William Grant What is in an oft-quoted judgment, Morice v. Bishop of DurMm (^), said : "^^"^-y ^ " That word in its widest sense denotes all the good affections men ought to bear towards each other ; in its most restricted and common sense, relief of the poor. In neither of these senses is it employed in this Court. Here its signification is chiefly derived from the Statute of Elizabeth. Those purposes are charitable which the statute enumerates, or which by analogies are deemed within its spirit and intendment ; and to some such purpose every bequest to charity generally shall be applied." The statute here referred to is 43 Eliz. c. 4. The charitable objects enumerated in the Statute of Eliza- beth, the archaic language of which is specially preserved in the present Act, are as follows : " Eelief of aged, impotent, and poor jjeople, maintenance of sick and maimed soldiers and mariners, schools of learning, free schools and scholars in universities, repair of bridges, ports, havens, causeways, churches, sea-banks, and highways, education and preferment of orphans, relief, stock or maintenance for houses of correction, marriages of poor maids, ■ supportation, aid and help of young tradesmen, handicraftsmen, and persons decayed, relief or redemption of prisoneis or cap- (') 3 Vcs. at p. 405. 232 BEAL PROPERTY. [Book I. What are charities ? Trusts for tombs. tives ; aid or ease of any poor inhabitants concerning payment of fifteens, setting out of soldiers, and other taxes." (') What are charities within the intendment of the Statute of Elizabeth ? Here we embark upon a wide sea of decisions which have established that not only are trusts for the benefit of the poor and relief of the sick, aged and infirm, charitable, but also trusts for such general purposes as the advancement of educa- tion or religion, the general benefit of the inhabitants of a place, or even of a limited class of persons, provided the individuals are not ascertained. Thus it has been held that gifts for the erection of waterworks for the use of the inhabitants of a town ; to be applied for the good of a place ; for charities and other public purposes in a parish ; for the general improvement of a town; for the establishment of a life-boat; or of a botanical garden ; to the trustees and for the benefit of the British Museum; to the Eoyal, the Geographical, and the Humane Societies are charitable (^). On the other hand, bequests for the purposes of general benevolence and liberality, which need not necessarily include any charitable object, are not charitable. An immediate gift to the poor relations or kindred of the testator, or of any one else, whether made directly or entrusted to the discretion of the executors, or any other person or persons, is a private gift and not a charity (^). A bequest for the support of a tomb inside a church is charitable, while a bequest to support one outside is not (*). In a case which came before the Court in 1889 in which it was also decided that a tiust for the maintenance of specified horses and hounds so long as they should live, &c., was not a charity, the law as to trusts for tombs was summed up as follows : " There is not the least doubt that a man may if he pleases give a legacy to trustees upon trust to apply it in erecting a monument to himself, either in a church or in a churchyard, or even in un- consecrated ground, and I am not aware that such a trust is in any way invalid, although it is difficult to say who would be the cestuis que trust of the monument. In the same way I know of nothing to prevent a gift of a sum of money to trustees, upon trust, to apply it for the repair of such a monument. In my opinion such a trust would be good, although the testator must Q) This enumeratioii of charitable objects is preserved by sect. 13 of 51 & 52 Vict. c. 42. (2) Jaiman on "Wills, 4th ed. 208, and I'udoi's Charitable Trusts, 3rd ed. chapter i., passim. C) Tyssen's Charitable Trusts,151. (*) See the numerous cases on this subject collected in Tudor's Charit- able Trusts, 3rd ed. p. 7 i Me Vaughan, 33 Ch. D. 187. Chap. XIX.] CHARITIES AND MOBTJUAIN. 233 be careful to limit the time for wHch it is to last, because as it 18 not a charitable trust, unless it is to come to an end within the limits fixed by the rule against perpetuities, it would be illegal. But a trust to lay out a certain sum in building a monument, and the gift of another sum in trust to apply the same to keeping that monument in repair, say for ten years, is, in my opinion, a perfectly good trust, although I do not see who could ask the Court to enforce it " (i). In a case decided in 1889 it was held that a direction that the interest of a fund should be for ever divided into annuities of £10 each, and be paid half-yearly to persons not under fifty years of age and members of a particular religious denomination, was good as a charitable gift for the benefit of " aged " persons within 43 Eliz. c. 4 (2). The provisions of the present Act with regard to assurances Mortmain for the benefit of charities, and with the conditions under andCharit- which alone such assurances may be made, are as follows : ^^t 1888. Subject to the savings and exceptions contained in the Act, every assurance of land or of any interest in land to or for the benefit of any charitable uses, and every assurance of personal estate to be laid out in the purchase of land to or for the benefit of any charitable uses, shall be made in accordance with the requirements of this Act, and unless so made shall be void. They must take effect in possession for the charitable uses declared immediately from the making thereof, and they must not contain any power of revocation, reservation, condition, or provision for the benefit of the assuror, or of any person claiming under him. Exceptions to the latter part of this rule are permitted where the assurance is voluntary so far as to allow grants and reservations of a peppercorn or other nominal rent, of mines and minerals, of any easement or building covenants, and the like. When the assurance is in good faith on a sale for full and valuable con- sideration, a further relaxation is permitted, namely, that part or all of that consideration may consist of a rent, rent-charge, or other annual payment reserved to the vendor or any other person with or without a condition of re-entry on non-payment. As to the formalities necessary to such assurances, the great point is that, save in the excepted cases, they can never be made by will. Where the property is anything except land of copyhold, or customary tenure, or stock in the public funds, the assurance must be made by deed executed in the presence of at least two (') In re Dean. Cooper-Dean v. (_') Be Wall. Fomeroy v. Willway, Stevens, 41 Oli. U. 552. 42 Ch. D. 510. 234 REAL PROPERTY. [Book I. witnesses, whether the assurance be for full and valuable con- sideration or not. Where the assurance is not for full and valuable consideration, when the property conveyed is anything real or personal, except stock in the public funds, the assurance must be made at least twelve months, and when it is stock in the public funds it must be transferred in the public books kept for the transfer of stock, at least six months, before the death of the assuror ; and in all assurances to charitable uses, whether they be for valuable consideration or not, and whether they be of real or personal property (stock in the public funds excepted), the assurance, or the deed setting forth the uses, must be enrolled in the central office of the Supreme Court of Judicature within six months after the execution thereof. Provision is made for enrolling, in certain cases, where enrolment within this time has been omitted. Unless all the requirements of this part of the Act are fulfilled, assurances to charitable uses are to be void. Object of The object of the Legislature in this matter was stated by a the Act. great judge in commenting on the provisions of the now repealed Act (i), in words which seem equally applicable to the present condition of law, as follows : — • " The mischief, and sole mischief, which the legislature set itself to prevent, was to prevent the increase of inalienable land through the weakness of, or practice upon, dying persons, or through posthumous charity. And upon examination of the enactments it will be found that the Act is in entire consistency with the recital. In the Act there is no prohibition of gifts of land by deed inter vivos, but there are regulations securing that such gifts shall not be in substance posthumous merely by avoiding the form. There is no prohibition of any amount of testamentary charity confined to pure personal property (2)." A bequest of money to be laid out in building or establishing a charitable institution (f) is held prima facie to imply a direction to purchase land, and to be therefore void. Thus in a case which was decided in 1889, since the passing of the Mortmain and Charitable Uses Act, 1888, it has been decided that a bequest of bank annuities " towards the establishment " of a school is void under the present Act (*). A bequest to build or establish a charitable institution is, how- ever, good if the testator shows a clear intention that land shall (1) 9 Geo. 2, c. 36. & S. 484. (2) Per Lord Justice James, ^iiree {*) Be Goldsmith, W. N. (1889) V. Raim, 9 Ch. D. 337, 34.'). 196 ; Re De Bomz, 5 T, L. K. 000. (') Tatham v. Brummond, 4 D. J. Chap. XIX.] CHARITIES AND MORTMAIN. 235^ not be purchased. It has accordingly been decided that a bequest of money to be employed in the building, e.g., of alms- houses, should a site be provided by some one else within a reasonable time, is valid Q) . The third part of the Act deals with exemptions. Assurances Mortmain of land not exceeding twenty acres for any one public park, two ^^^ Chaiit- acres for any one public museum, or one acre for any one school- ^^^ jggg house, may be made by will, and assurances of land to any extent for these objects may be made by deed. It is however provided that the vsdll or deed must be executed at least twelve months before the death of the assuror, or (and this is a novel provision introduced by the present Act) be a reproduction in substance of a devise made in a previous will in force at the time of such reproduction, and which was executed not less than twelve months before the death of the assuror. It is also provided that the assurance must be enrolled in the books of the Charity Commissioners within six months, in the case of a will, after the death of the testator, or, in case of a deed, the execution of the deed. The second part of the Act is not to apply to gifis of land or personal estate to be laid out in the purchase of land, or to or in trust for the universities, or any of the colleges or houses of learning of the universities of Oxford, Cambridge, London, Durham, and Victoria University, or to or in trust for the colleges of Eton, Winchester, and "Westminster, "for the better support and maintenance only of the scholars upon the foundation " of these last-mentioned colleges, and Keble College. It is also not to apply to assurances, otherwise than by will, for full and valuable consideration, of land not exceeding in extent two acres, to trustees on behalf of any society, or body of persons associated together for religious purposes, or for the promotion of education, art, literature, science or other like purposes, and for the erection of a building for such purposes, or any of them, or whereon a building used, or intended to be used, for such purposes, or any of them, has been erected. In certain cases charities are exempted from the operation of the law prohibiting gifts of land by special Act of Parliament, or charter, or custom (2). The law on this subject may be illus- (') Fhilpot V. St. George's Hospital, Lands held for ecclesiastical, parn- 6 H. L. C. 338 ; Chamherlayiie v. ohial, or charitable purposes may Brockett, L. B. 8 Ch. 206 ; Ee White's to the extent of one acre, subject to Trusts, 33 Ch. D. 449. the provisions of the Act, be con- (^) See Tudor 'a Charitable Trusts, veyed to any library authority, and 3rd ed. pp. 428, 429, 432, et seq. held by it without any licence in Vurther exLnii>tions are also created mortmain : .^3 & 54 Vict. c. 68, s. 8. by the Working Classes' Dwellings See also the Open Spaces Act, IbDO Act, 1890 (53 & 54 Vict. c. 16). (53 & 54 Vici c. 15). 236 REAL PROPERTY. [Book I. Mortmain trated by a case decided in 1874 Q). The Act of Parliament abfe*^Ds"s'" "^^licli incorporated the Westminster Hospital empowered it by Act, 1888. will, gift, purchase, or otherwise to obtain, acquire, hold and retain land for the purposes of the charity ; and also by will, gift, purchase, or otherwise to obtaia, acquire, hold and maintain for the purposes of the charity any kind of personal estate, including moneys secured on mortgage or charged on land. It was decided that these words implied a power to devise land for the use of the charity. " It is clear," said the judge, '" that if no one could give any land to the charity by will, it could not take any land by devise, and could never become possessed of any. I think, therefore, that, in order to give the words of the Act any effect, I must hold that persons are at liberty to devise land for its benefit." The fourth and last part of the Act is supplemental. It declares that the Act does not extend to Scotland and Ireland. It contains a saving clause for existing charters, licences, and customs, enabling land to be assured and held in mortmain, and for every right, obligation, or liability acquired, secured, or incurred under any enactment, which it repeals. The effect of this is to preserve the ancient custom of the city of London, enabling citizens and freemen of London to devise lands in the city of London in mortmain ; but it must be borne in mind that this power is only to devise to civil and not to charitable corporations. Licences to hold lands in mortmain contained in any charter or statute are also saved. The Act declares, further, that Acts not by it repealed, referring to Acts repealed, are to be construed as referring to it. Finally, in a schedule, it enume- rates the Acts wholly or partially repealed. Of these there are sixteen, the more important of which is the 9 Geo. 2, o. 36, commonly called the Mortmain Act {^'). (') Perring v. Trail, L. E. 18 Eq. hereditaments, corporeal and incor- 88 ; see also Bdbimon v. Governors of poreal, of whatsoever tenure, and any London Hospital, 10 Hare, at pp. 24, estate and interest in land. Now it 25; Harrisonv. Corporation of South- must be borne in mind that the ampton, 2 Sm. & Giff. 387 ; and Imck- former Mortmain Act (9 Geo. 2, cra/< V. Pn'dAam, 6 Ch. D. at pp. 212, c. 36) received a very strict inter- 213. pretation, and that the doctrine of Q) An extremely important ques- impure personalty, as it has been tion, and one which wiU in all pro- called, renders void not only gifts of babiUty require to be settled by land, any estate or interest in it, but judicial decision, has been raised also a variety of gifts where the suh- •with reference to the meaning of the ject-matter of the gift affects land, present Act, when considered in the and has a tendency to bring land liglit of the previous decisions on the into mortmain. Thus gifts of rents old Mortmain Act of George II. and profits not in arrear, growing What is " land " ? Land is defined crops, money secured by mortgage or by the Act to include tenements and charge of land, money to arise from Chap. XIX.] CHABITIES AND MORTMAIN. 237 It must be pointed out before leaving this portion of our subject that gifts to charity which are not within the statutory- prohibitions are regarded with special favour by the Court. This favour is exhibited in a variety of cases which may be next stated as follows : (1) The celebrated doctrine of cy-pres, to which we shall have occasion hereafter to refer, is perhaps the strongest illustration of the peculiar favour with which gifts to charities are regarded Q (post, p. 538) ). The cases upon this important subject establish the following proposition, viz., that where a testator has manifested a general intention of charity, the Court will support it if no particular object be named, or if the particular objects mentioned by him subsequently fail. (2) The rule against perpetuities has no application to trusts in favour of charities (2). (3) Defective executions of powers, as has already been pointed out (ante, p. 182), in favour of charities are aided. We shall hereafter have occasion to consider the rule that assets are not marshalled in favour of charities, though the Court will obey a direction to marshal (post, p. 553). The following cases may be usefully consulted on the subject of charities : Champney v. Davy, 11 Ch. D. 949; Me Harris, 15 Ch. D. 561 ; Be Hill's Trusts, 16 Ch. D. 173; Emley v. Davidson, 19 Ch. D. 156 ; Jervis v. Lawrence, 22 Ch. D. 202 ; Cavendish v. Cavendish, 24 Ch. D. 685 ; 30 Ch. D. 227 ; Broadbent v. Barrow, 29 Ch. D. 560 ; Cornford v. Elliot, 29 Ch. D. 947 ; In re White's the sale of land, even if the oonver- veyed to trustees, upon trust to apply siim had been directed by a former two-fourtlis of the income for tlie instrument, liens for unpaid purchase purpose of maintaining, supporting, money, &c., have been held to be and advancing the missionary esta- included within its provisions. It blishmenta among heathen nations of would seem probable that, as no tlie Protestant Episcopal Church, change is expressly made by the known as the Moravians, one-fourtti present Act, the judge-made law on for the maintenance, support, and the subject remains intact. The education of the children of ministers point is, however, by no means free and missionaries of the Church, and from doubt : Tyssen's Charitable the remaining fourth to the mainte- Bequests, p. 561, el seq. nance of establishments for the resi- The question what is the meaning deuce and support of single persons of the term "charitable purposes" belonging to the Church. The Court was considered by the Court of of Appeal decided that the trustees Appeal in the year 1888, in connec- were entitled to the allowance. The tion with the Income Tax Act of Queen v. Commissioners of Income 1842, which directs allowances to be Tax, 22 Q. B. D. 296. made in respect of the duties in that (') See cases on this subject (post, schedule on, inter alia, the rents and pp. 538-540), and Tudor's Charituble profits of lands, tenements, heredita- Trusts, 3rd ed. p. 146, et seq.; Tyssen's ments, or heritages vested in trustees. Charitable Trusts, p. 440, et seq. for charitable purposes, so far as the (^) Attmney-General v. Webster, same are applied to " charitable pur- 20 Eq. 483. poses." Freehold estates were con- 238 REAL PROPERTT. [Book I. Trusts, 33 Ch. D. 449 ; Be Christmas. Martin v. Laeon, 33 Cli. D. 332 ; Briscoe v. Jackson, 35 Ch. D. 460 ; Bavenscroft v. Workman, 37 Ch. D. 637 ; Buckley y. Boyal National Life-boat Institution, 43 Ch. D. 27 ; In re Dean. Cooper-Dean v. Stevens, 41 Ch. D. 562. See also on the subject of charitable trusts : Tudor's Charitable Trusts, by L. S. Bristowe and W. I. Cook ; Tyssen's Charitable Bequests, p. 194, et seq. ; Jarman on Wills, 4th ed. vol. i. p. 208 ; Be Fleetwood, 15 Ch. D. 594, 609 ; Stone v. Attorney-General, 28 Ch. D. 464 ; Vaughan v. Thomas, 33 Ch. D. 187 ; Lea v. Coohe, 34 Ch. D. 528 ; In re St. Botolph's &c.. Estates, 35 Ch. D. 142 ; Ohert V. Barrow, 35 Ch. D. 472 ; Webster v. Southey, 36 Ch. D. 9 ; In re St. Stephen's, Coleman Street, 39 Ch. D. 492 ; Wilson v. Barnes, 38 Ch. D. 507 ; In re Christchurch Inclosure Act, 38 Ch. D. 142 ; and see also the reluctant decision : Be Wall, 59 L. J. Ch. D. 172 ; Be David, 43 Ch. D. 27 ; Bendall v. Blair (as to consent of Charity Commissioners before bringing action), 45 Ch. D. 139 ; Be Thompson, Bedford v. Teal, 45 Ch. D. 161. ( 239 ) BOOK II. PERSONAL PROPERTY. CHAPTEE I. Intkoductory. Thus far our attention has been to a great extent confined to Division of real property, under which head it was thought convenient to P"^'^""^' . propcrtv, consider leaseholds or " chattels real." Our present subject is " personal property," which, though comparatively insignificant in the early period of English law, has in modern days become of at least as much importance as real property. The considera- tion of the subject may perhaps be best begun by directing the reader's attention to the various classes into which personal property is divided. " The things which come to executors," as an old writer says quaintly and well ; that is to say, the personal property of a testator " are of great multiplicity, and would make a large and confused heap if tied together in one bundle or lump. I will therefore divide and sort them out in parts after the best manner I can." Let us follow this precedent, and just consider the divisions of personal property. Personal property is usually divided into two classes — 1. Corporeal chattels or choses in possession, or, as they are generally called, goods and chattels (^), i.e., things capable of motion, or of being moved, which may be perceived by the senses, seen, touched, taken possession of. 2. Incorporeal chattels or choses in action, such as debts, stock in the public funds, shares in companies, debentures, &c., &c. (^). " There always," said Lord Blackburn in delivering judg- ment in 1886 in a great case in the House of Lords, " was a (') The word " chattels," accord- property includes a thing in action. ing to Sir E. Coke, is a French word In the Wills Act (1 Vict. c. 26), s. 1, signifying goods. According to personal estate includes in addition Blackstone, the word is derived from to leaseholds and other chattels real the Latin word catalla, which pri- " moneys, shares of government and marily signified only beasts of hus- other funds, securities for money (not bandry or cattle, but in its secondary being real estates), debts, choses in sense was applied to all moveables action, rights, credits, and goods." in general. See as to assignments of choses in C) In the Married Women's Pro- action, post, p. 266. perty Act (45 & Hi Vict. o. 75), a. 24, 240 PERSONAL PROPERTT. [Book II. property. Division of difference between personal property, such as to be capable of personal ^jgj^g gtolen, taken, and carried away, and so to be the subject of larceny at common law, and to be capable of being seized by the sheriff tinder a fi. fa., and other kinds of personal property. Personal property of the first sort, when belonging to a married woman, vested at once in the husband. The others the husband might reduce into possession, but did not have till he had done so. And when new kinds of property, like stock in tbe funds, or in more modem times shares in companies, were created, questions arose as to whether they were within the principle of being in possession or not ; but till the phrase was used in the Bankruptcy Act of 1869 it never became important to inquire whether they were to be called things in action or not " (}'). A difficulty which exists in making a strictly logical classifi- cation of the various descriptions of personal property arises from the fact that when the foundations of our law were laid several classes of personal property, which have since then become of great importance, were non-existent or of compara- tively little moment. These are denominated by Mr. Joshua Williams (in analogy to the division of real estate into corpo- real and incorporeal) " incorporeal personal property," and under this head he places those important classes of personal property, Patents, and Copyright, which are hereafter considered (jpost, pp. 287, 319). A great number of important questions which concern per- sonal property will be more conveniently considered hereafter, when we come to speak of contracts. There are, however, (') Per Lord Blackburn ia The Colonial Bank v. Whinney, 11 App. Cas. 426, 439. In this important case it was decided that shares in an incorporated company transferable only by deed were clioses in action within tlie meaning of the Bank- ruptcy Act, 1883, s. 44, eub-s. 3. In the Court of Appeal, Fry, L.J. (whose judgment, dissenting from that of the majority of the Court, was upheld by the House of Lords) expressed himself as follows : " According to my view of that law, all personal things are either in possession or in action. The law knows no tertium quid between the two. 'No chattel,' says Lord Coke, in Fulwood's Case, ' either in action or possession, shall go in succession,' as if the two alter- natives were the only possible ones. ' Property in chattels personal,' says Blackstone, 'may be either in pos- session, which is where a man hath not only the right to enjoy, but hath the actual enjoyment of the thing; or else it is in action ; where a man hath only a bare right, without any occupation or enjoyment,' and so Lord Hardwicke, in the great case of Byall V. Bowles, speaks of personal property whether in possession or action only, as equivalent to all kinds of personal property. The expression choses in suspense isfound in Brooke's Abridgment, in conjunction with clioses in action, but so far as I can understand the two expressions are synonymous": 30 Ch. D. 285. See as to interpleader (post, p. 764 \ in respect of choses in action : Rohinson V. Jenkins, 24 Q. B. D. 275. Chap. I.] INTBODUCTORY. 241 certain broad principles in relation to tlie law wliicli it will be desirable for us to consider in tbis portion of our work. A sale of personal property is defined by Mr. Benjamin in Sale of his able treatise to be "a transfer of the absolute or general pjop™ty property in a thing for a price of money." To constitute a valid sale, adds the same authority, there must be a concurrence of the following four elements, viz. : (1st) parties competent to contract ; (2nd) mutual assent ; (3rd) a thing, the absolute property in which is transferred from the seller -to the buyer ; and (■ith) a price in money paid or promised. The circumstance that an absolute property is so transferred dis- tinguishes the contract of sale from such a transaction as that of a pawn, when a special property only is transferred ; the fact that a price is paid constitutes an essential difference between a sale and dealings with personal property by way of exchange, gift, &c.(i). At common law the only requisite to the complete validity of a sale of personal property of any value was the mutual assent of the contracting parties. This rule has been very greatly modified by the provisions of the Statute of Frauds and Lord Tenterden's Act (post, p. 372, et seq.). But, when the provisions of those enactments do not apply, the law is that whenever a bargain is made for the purchase of specific goods, where nothing remains to be done, and nothing is said about payment or delivery, the property passes immediately to the purchaser. All future risk as to the goods is cast upon the purchaser, though he cannot remove them without paying the price. " The very appropriation of the chattel,'' as was said by Baron Parke, "is equivalent to delivery by the vendor, and the assent of the vendee to take the specific chattel and to pay the price is equivalent to his accepting possession. The effect of the contract, therefore, is to vest the property in the bargainee " (^). A most important principle which may also here be noticed is that it is a general rule of the law that no man can sell goods and convey a valid title to them unless he be the owner, or lawfully represent the owner. Nemo dat quod non habet. Accordingly, an innocent person who buys goods from one not the owner obtains no property whatever in them (3). To this rule, however, there are several important exceptions, the chief (') Benjamin on Sale, 4tli ed. p. 1. 5 A. & E. 313, 340, and see pod, I') Benjamin on Sale, 4th ed. p. 379, et seq. pp. 4, 278, et seq, citing Simmons v. O Benjamin on Sale, 4tli ed. Sioift, 5 B.&C. 862 ; Dixon v. Yates, pp. 6, 7. VOL. I. a 242 PERSONAL PROPEBTT. [Book II. of which relate to (1) negotiable instruments {post, p. 256), and (2) sales in market overt. The privilege of market overt is, however, for the benefit of innocent purchasers only, it does not extend to innocent vendors. This is illustrated by a case cited by Mr. Benjamin (i), where it was decided that public salemasters who had innocently sold stolen animals were liable to the owner. Nor does it avail in the following cases : — 1. If the buyer knew that the goods were not the seller's, or was guilty of any fraud ; 2. If the goods were the Sovereign's property ; 3. If the sale took place in a back room or concealed place — for the goods must be publicly exposed for sale ; 4. If the sale took place between sun-setting and sunrise ; 6. Where the treaty was begun out of market overt ; 6. If the vendor is a pawnbroker. It was decided by Lord Mansfield that a sale by sample is not a sale in market overt (^). Market overt in the country is confined to special days and places which are specified by charter or prescription. In the City of London every weekday is market day, and every shop where goods are exposed publicly is market overt for such articles as the owner professes to trade in. It must, however, be borne in mind that the position of the innocent purchaser in a market is liable to be impeached under the provisions of the Larceny Act, 1861. That Act provides (^) that if any person guilty of stealing, taking, obtaining, extorting, embezzling, converting, or disposing of, or knowingly receiving any chattel, money, valuable security, or other property whatsoever, shall be indicted for such offence by or on the behalf of the owner of the property, or his executor or administrator, and convicted thereof, in such case the pro- perty shall be restored to the owner or his representative, and in every case in this section aforesaid, the Court before whom any person shall be tried for any such felony or misdemeanor shall have power to award from time to time writs of restitution for the said property, or to order the restitution thereof in a summary manner. The law in connection with this subject was much considered (') Belaney v. Wallis, 14 L. R. Ir. Scattergood v. Sylvester, 15 Q. B. ,506 ; 31 ; Benjamin on Sale, 4th ed. p. 9. Lindsay v. Gundy, 1 Q. B. D. 348 ; (2) Hill V. Smith, 4 Taunt. 532. 2 Q. B. D. 96; 3 App. Oas. 459. Q) 24 & 25 Vict. c. 96, s. 100 ; Chap. I.] INTRODUGTORT. 243 in a case whicli came before the House of Lords in 1887. In that case, the owner of goods, induced by fraud, parted with them under a voluntary contract of sale, which vested the property in the fraudulent purchasers. The goods were then sold in market overt to a purchaser without notice of the fraud. The fraudulent purchasers were afterwards, upon the prose- cution of the original owner, convicted of obtaining the goods by false pretences. The judge before whom the prisoners were tried refused to make an order of restitution. The House of Lords decided with very great reluctance that, under the above Act, the property in the goods revested in the original owner upon conviction, and that he was entitled to recover them from the innocent purchaser Q-). Among other exceptions to the general rule that none but the owner can pass the property, there may also be noticed hondfide sales of valuable securities, sales by pawnees, by public officers under the authority of the law, and by order of the Court (2). Yet another exception is afforded by the power of the master Power of of a vessel to whom the law entrusts an authority to sell the ™^^^^^ "' goods of the owner of the cargo in case of absolute necessity ; as, for instance, where inability to carry the goods to their destination, or otherwise to obtain money indispensable for repairs to complete the voyage is established. The purchaser, however, has no title, unless such necessity is shown to have existed (f). Another most important class of exceptions from this general principle is afforded by the law relating to factors, which has been recently consolidated and amended by the Factors Act, 1889, which came into operation on the 1st of January, (') Bentley v. Vilmont, 12 App. that is, has authority to sell so as to Cas. 471. It is pointed out in Ben- bind the owners of the goods en- jamin on Sale, that the statutory trusted to him for a different purpose, title to the goods only dates from namely, carriage to their port of the conviction of the fraudulent destination, only where there is a buyer, and the order for restoration necessity for that course, and that it can only be made against the person lies on those who claim the title to who then has the goods in his posses- cargo, as purchasers from the captain, sion, and that accordingly a hond to prove that this necessity clearly Jide purchaser who deals with the existed ; further, that it is not suifi- goods in the interval between the cient to prove that the master thought sale and the conviction is not liable he was doing the best for all con- to the real owner. cemed, or even that the course C) See, further, Benjamin on Sale, adopted was, so far as can be ascer- 4tli ed. p. 15, et seq. taiiied, the best for all concerned" : (^) " The rule laid down in the per Cotton, L.J., in Atlantie Mutual cases where the sales of cargo have Assurance Co. v. North, 16 Oh. D. been questioned, is, that the master 474, 481, where the authorities are becomes agent for sale of the cargo, reviewed. r. 2 244 PERSONAL PROPERTY. [Book II. 1890 (1). The Act commences with a series of definitions, some of which are simply declaratory of the old law, while others introduce considerable changes. (1.) "Mercantile agent" is defined to mean a mercantile agent having in the customary course of his business as such agent authority either to sell goods, or to consign goods for the purpose of sale, or to buy goods, or to raise money on the security of goods : (2.) A person is to be deemed to be in possession of goods or of the documents of title to goods, where the goods or documents are in his actual custody or are held by any other person subject to his control or for him or on his behalf : (3.) The expression " goods " includes " wares and mer- chandize " : (4.) " Document of title " includes any bill of lading, dock warrant, warehouse-keeper's certificate, and warrant or order for the delivery of goods, and any other document used in the ordinary course of business as proof of the possession or control of goods, or authorizing or purporting to authorize, either liy indorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented : (5.) "Pledge" includes any contract pledging, or giving a lien or security on, goods, whether in consideration of an original advance or of any further or continuing advance or of any pecuniary liability : (6.) The expression " person " includes any body of persons corporate or unincorporate. The Act then proceeds to make the following important provisions with regard to dispositions by mercantile agents : — (1.) Where a mercantile agent is, with the consent of the owner, in possession of goods or of the documents of title to goods, any sale, pledge, or other disposition of the goods, made by him when acting in the ordinary course of business of a mercantile agent, shall, subject to the provisions of this Act, be as valid as if he were expressly authorized by the owner of the goods to make the same ; provided that the person taking under the disposition acts in good faith, and has not at the time of the disposition notice that the person making the disposition has not authority to make the same. (2) Where a mercantile agent has, with the consent of the (1) 52 & 53 Vict. 0. 45, (repealing to Scotland by the Factors (Scotland) the wiLole of the four Acts euume- Act, 1890 (53 & 54 Vict. o. 40), sub- rated in the schedule, viz., 4 Geo. 4, ject to certain provisions mentioned c. 83 ; 6 Geo. 4, c. 94 ; 5 & 6 Vict. in the let section. c. 39 ; 40 & 41 Vict. c. 39), extended Chap. I.] INTRODUCTORT. 245 owner, been in possession of goods or of the documents of title to goods, any sale, pledge, or other disposition, which would have been valid if the consent had continued, shall be valid notwithstanding the determination of the consent : provided that the person taking under the disposition has not at the time thereof notice that the consent had been determined. (3.) Where a mercantile agent has obtained possession of any documents of title to goods by reason of his being or having been, with the consent of the owner, in possession of the goods represented thereby, or of any other documents of title to the goods, his possession of the first-mentioned documents shall, for the purposes of this Act, be deemed to be with the consent of the owner. (4.) For the purposes of this Act the consent of the owner shall be presumed in the absence of evidence to the contrary (i). Attention may now be directed to some very recent enact- ments which specially affect the law and practice relating to personal property. An important change was introduced in 1889 with regard to stamping contracts or agreements for the sale of certain classes of property. The Eevenue Act, 1889, s. 15, sub-s. (1), enacts that any C) 52 & .53 Vict. c. 45, ss. 1 and 2. The principal points dealt with in the rest of the Act concern pledges of documents of title to goods, and pledges of goods, the Act limiting in certain cases the right of the pledgee, &c. The Act also protects contracts entered into by clerks of mercantile agents, and deals with dispositions by sellers and buyers of goods in the following manner : — • It provides (sect. 8) that where a person, having sold goods, continues, or is, in possession of the goods or of the documents of title to the goods, the delivery or transfer by that per- son, or by a mercantile agent acting for him, of the goods or documents of title under any sale, pledge, or other disposition thereof, or under any agreement for sale, pledge, or other disposition thereof, to any person receiving the same in good faith and without notice of the previous sale, shall have the same effect as if the person making the delivery or trans- fer were expressly authorized by the owner of the goods to make the same. The converse case of a buyer ob- taining possession is dealt with in the next section as follows : — Where a person, having bought or agreed to buy goods, obtains with the consent of the seller possession of the goods or the documents of title to the goods, the delivery or transfer, by tliat person or by a mercantile agent acting for him, of the goods or documents of title, under any sale, pledge, or other disposition thereof, or under any agreement for sale, pledge, or other disposition thereof, to any person receiving the same in good faith and without notice of any lien or other right of the original seller in respect of the goods, shall have the same effect as if the person making the delivery or transfer were a mercantile agent in possession of the goods or documents of title with the consent of the owner. There are also important provisions with regard to stoppage in transitu, and the rights of owners against agents which shall be noticed here- after (pp. 435, et seq., 421), when we come to speak of contracts. 246 PERSONAL PROPERTY. [Book II. contract or agreement made in. England or Ireland nnder seal, or under hand only, or made in Scotland, with or without any clause of registration, for the sale of any equitable estate or interest in any property, or for the sale of any estate or interest in any property except lands, tenements, hereditaments, or heri- tages, or property locally situate out of the United Kingdom, or goods, wares, or merchandise, or stock, or marketable securities, or any ship or vessel, or part interest, share, or property of or in any ship or vessel, shall be charged with the same ad valorem duty, to be paid by the purchaser, as if it were an actual conveyance on sale of the estate, interest, or property agreed or contracted to be sold. The next sub-section deals with cases where a purchaser resells before the property has been conveyed or transferred to him, and provides that where the purchaser has paid the said ad valorem duty, and before having obtained a conveyance or transfer of the property, enters into a contract or agreement for the sale of the same, the cont:fact or agreement shall be charged, if the consideration for such sale is in excess of the consideration for the original sale, with the ad valorem duty payable in respect of such excess consideration, and in any other case with' the fixed duty of ten shillings or of sixpence, as the case may require, according to the law in force prior to the passing of the Customs and Inland Eevenue Act, 1889 Q^. Q) 52 & 53 Vict. c. 42. The 4th (5.) Provided also that where any sub-section of this section (sect. 15) such contract or agreement is stamped provides that a contract stamp shall with the said fixed duty according be sufficient for the purposes of pro- to the law in force as aforesaid, and ceedings to enforce specific per- a conveyance or transfer made in formance {post, p. 572), or recover conformity with the contract or agree- damages for the breach thereof. ment is presented to the said Com- Other eub-sections of this im- missioners for stamping with the ad poriant section provide as follows : — valorem duty chargeable thereon (3.) Where duty shall have been under the said law within the period duly paid in conformity with the fore- of six months after the fir»t execution going provisions, the conveyance or of the contract or agreement, or transfer made to the purchaser or within such longer period as the said sub-purchaser, or any other person Commissioners may think reasonable on his behalf or by hia direction, in the circumstances of the case, the shall not be chargeable with any said conveyance or transfer shall be duty, and the Commissioners of In- stamped accordingly, and tlie same, land Eevenue, upon application, and the said contract or agreement, either shall, under the provisions of shall be deemed to be duly stamped, sect. 14 of the Stamp Act, 1870, Notliing in this proviso shall alter or denote the payment of the ad valorem affect the provisions of the said law duty upon the conveyance or transfer, as to the stamping of a conveyance or shall transfer the ad valorem duty or transfer after the execution thereof, thereto upon production of the con- (6.) Provided also, that the ad tract or agreement, or contracts or valorem duty paid upon any such oon- agreemeuts, duly stamped. tract or agreement forsale as aforesaid Chap. L] INTBODUGTORY. 247 Another change lately made by the Legislature in respect of another description of personal property may here be noticed. Consols, in the old sense of the term, are numbered among the things that were, by virtue of the National Debt Conversion Conversion Act, 1888 (51 & 52 Vict. c. 2), and the National Debt Eedemp- "f ^^^ols- tion Act, 1889 (62 & 53 Vict. c. 4), by which provision has been made for the conversion and redemption of Consolidated Three Per Cent. Stock and Eeduced Three Per Cent. Stock, and their conversion into Two and three-quarters Per Cent. Con- solidated Stock, as they are called. Attention has already been directed (ante, p. 6, et seq.) to a considerable number of marked distinctions between real and personal property. Foremost among these is that which arises when owners of these different classes of property die intestate (see ante, p. 50, post, p. 341). The two classes of property are, Eeal and however, for practical purposes in many points similar to each P'^i'^"'^^' other. Personal estate can, like real estate, be held by one person as legal owner in trust for another, and can be owned in severalty or by persons as joint tenants or tenants in common. Like real estate, personal estate can be sold, mort- gaged, settled, and disposed of by will. Some portions of the law relative to personal estate have accordingly already been dealt with in connection with real estate, but some other portions will now be separately noticed (J-). In dealing thus with the personal property portion of our work the following order will be adopted : — Our first subject shall be certain classes of personal property Subjects which from their peculiar character seem to require a separate <^°''s>''^''^"' treatment. Under this head we shall speak of ships and horses. Secondly, we shall speak of choses in action, under which head fall policies of insurance, stocks, shares in companies, and debentures. Thirdly, we shall speak of incorporeal personal property, includ- ing patents, designs, trade-marks, copyright. Fourthly, we shall deal with the mode of assuring personal property by bills of sale ; and lastly, with the rules which govern the descent of personal property when the owner dies intestate. shallbereturntdby the said Commis- and interpretation as in -the Stamp sioners in case the contract or agree- Act, 1870. inent be afterwards rescinded or (') In settlements of real estate, annulled, or for any other reason be legal estates are given to the persons not substantially performed or carried whom the settlor desires to benefit, into effect, so as to operate as or be while in settling personal property followed by a conveyance or transfer. the property is assigned absolutely to (7.) Words and expressions in this the trustees, and the interests of the section shpH have the like meaning beneficiaries are eq^uitable only. ( 248 ) CHAPTER II. Ships. A very important class of things in possession requiring special notice are ships. As ships differ widely in their nature and the conditions to which they are subject from any other class of property known to the law, it has been the policy of the law to deal with them in a peculiar and exceptional manner. Ships the Ships are accordingly subject to special legislation, contained s*'loial°^ in a series of Acts called the " Merchant Shipping Acts, 1854 legislation, to 1890 " (^). Every British ship, with the exceptions of certain small vessels, is required jto be registered (^). The conse- quences of non-registration are pointed out hereafter (p. 251). It was pointed out by the late Lord Hatherley, then Vice-Chancellor Page Wood, in a celebrated judgment, that " there are two objects of public policy to which the statutes with regard to the registration of ships are directed. One which may be termed a national policy, relating to the interests of the nation at large, and carried out by prescribing the condi- tions which shall entitle any ship to the privileges of the British flag. The other, concerning the rights of individuals, which is effected by provisions specifying what shall and what shall not be deemed proper evidence of title, as between persons who may deal with property of this description " (^). " Where a purchase is made without notice of fraud for a valuable consideration,^ and the purchaser has got his name upon the register, it is not competent to the Court to look (■) 17 & 18 Vict. c. 104 ; 18 & 19 (1) Coasting vessels not exceeding Vict. c. 91; 25 & 26 Vict. c. 63; fifteen tons burden employed 30 & 81 Vict. c. 124: 31 & 32 Vict. Ih the United Kingdofti or a c. 129 ; 32 Vict. c. 11 ; 34 & 35 Vict. British possession ; clOO; 35&36 Vict. c. 73; 36&37 (2) Coasting and fishing vessels Vict. c. 88; 39 & 40 Vict. c. 80; not exceeding thirty tons 43 & 44 Vict. cc. 18,22,43 (Carriage burden employed on the of Grain Act, 1880); 46 & 47 Vict. shores of Newfoundland and c. 41 ; 00 & 51 Vict. c. 62 ; 52 & 53 the Gulf of St. Lawrence Vict. CO. 46, 68, 73 ; 53 Vict. c. 9 (as (17 & 18 Vict. o. 114, o. 19). to compulsory marking of load line). (') Liverpool Borough Bank v. Q) The two classes of vessels not Turner, 1 J. & H. p. 159. required to be registered are — Chap. II.] SHIPS. 249 behind the regieter for the purpose of dispossessing the innocent purchaser whose name is then on the register. He combines both a legal and equitable title, of which it is not competent to this Court to dispossess him " Q-). Ships, except those which are so new that they have never British and been registered, are divided, so far as they have been dealt with foi'^ign by Statute law, into two classes — British and Foreign. A ship is not to be deemed a British ship unless she is owned by- (1) Natural-born British subjects ; (2) Persons made denizens by letters of denization or pro- perly naturalized ; (3) Bodies corporate having their principal place of business in the United Kingdom or some British possession. But if a natural-born subject has taken an oath of allegiance to a foreign sovereign he is not qualified to own a British ship unless he subsequently takes an oath to her Majesty, and is resident in her Majesty's dominions. Alho denizens must either be resident in her Majesty's dominions, or be members of a factory or house carrying on business in her Majesty's dominions, and have taken the oath of allegiance after being made denizens (2). The Naturalization Act, 1870 (^), does not affect the disability of an alien to own a British ship. An officer of customs cannot grant a clearance or transire enabling a ship to proceed to sea as a British ship, unless she has already been registered as such. The registrar of every British port, who is the principal Registra- ofScer of customs when theie is such an official, or in anj' ''"'■ British possession where there is no customs officer the governor or administrator is required to keep a register book, and to enter therein on the application of the owners of any Biitish ship or their agents, the particulars required to be registered (*) as follows : — (1) The name of the ship and port of registry, (2) Description of the ship. (3) Her master's name. (4) The particulars as to her origin stated in the declaration of ownership. (5) Her owners' names, and the proportions in which they are interested in the ship (s). (>) The Sorlock, L. E. 2 P. D. 243. p. 54. f ) 17 & 18 Vict. c. 104, s. 18. (*) 17 & 18 Vict. c. 104, ss. 30, 33. (3) 33 & 34 Vict. u. 14, see ante, (^) 17 & 18 Vict. c. 104. s. 42. 250 PERSONAL PBOPEBTT. [Book IL Shares in The property in a ship is divided into Bixty-four shares ('), ^'''P^- and not more than sixty-four persons may be registered as owners of a ship (^). No person is entitled to be registered as owner of any fractional part of a share, but any number of persons not exceeding five, who are considered as one person, may be registered as joint owners of a share or shares in a ship (^). The national character of a British ship is also guarded by stringent provisions in the Merchant Shipping Act, 1854. If any person uses the British flag and assumes the British national character on board any ship owned, in whole or in p^rt, by persons not qualified to own a British ship, except for the purpose of escaping capture by an enemy, or by a foreign ship of war in exercise of some belligerent rights, the ship shall be forfeited to her Majesty (^). A similar penalty is imposed if the master or owner of a British ship attempts to conceal her nationality, or to assume a foreign character, &c. (^). Property, Property in ships may be acquired in four ways : by con- • . J struction, by purchase, by operation of law, or by capture and condemnation. "Where a ship which is being built for a pur- chaser is paid for in instalments at diiferent stages of the con- struction, the property in the portions completed, "the growing chattel," to borrow Lord Campbell's phrase, will vest in the purchaser as they are paid for C*). The law on this subject was summed up in a case decided by the House of Lords in 1886, as follows: — " Where it appears to be the intention, or in other words the agreement, of the parties to a contract for building a ship, that at a particular stage of its construction, the vessel, so far as then finished, shall be appropriated to the contract of sale, the property of the vessel as soon as it has reached the stage of completion will pass to the purchaser, and subsequent additions made to the chattel thus vested in the purchaser will, accessione become his property " ('). Sale of A ship may be sold like any other chattel, either by private contract or public auction. But in addition to the contract it is provided by the 85th section of the Merchant Shipping Act, 1854, that a registered ship or any share therein shall be trans- Q) 17 & 18 Vict. 0. 104, s. 37. 942 ; Wood v. Bell, 6 E. & B. 772. C) 43 & 44 Vict. 0. 18, s. 2. (') Seath v. Moore, 11 App. Gas. (0 17 & 18 Vict. 0. 104, s. 37. 350 ; Semble, the principles applicable C) 17 & 18 Vict. c. 104, s. 103. tothe sale of partsof a shipareequally (>) Tlie Annandale, 2 P. D. 179, applicable to the sale of parts of any 218. corpus manufactum in course of oon- (") See Woods v. Russell, 5 B. & E. stiuctiou. Chap. IL] SHIPS. 251 ferred by bill of sale, which must be in the form provided, containing a description of the ship sufficient for identification, and which must be entered in the register book at the ship's port of registry (i), the transferee having first made the declara- tion required by the Act. Bills of sale are entered in the Bills of register book in the order of their production to the registrar (^). **'°- Where the property in any ship or share in a ship becomes transmitted by operation of law, such as death or bankruptcy, the registrar will, upon receipt of a declaration in the form provided, and containing the requisite facts and particulars made by the person or persons entitled, register such person or persons as owners (^). But if any person in whom any property in a ship or share in a ship becomes thus vested is not qualified to own a British ship, the Court has power to order a sale of the property so transmitted (^). A registered ship, or any share in one, may be made a security for a loan or other valuable consideration, but the instrument of hypothecation must be in the form and comply with the conditions required by the Act (*), and must be duly registered. Mortgages are registered in the order of time in which they Mortgages. are produced to the registrar, and are entitled to priority according to the date of registration, and not of the instruments themselves, so that in the case of ships " tacking " (ante, p. 109), does not exist (^). A ship which ought to be registered, if unregistered, cannot be recognised as a British ship. She is thereby excluded from the statutory provisions limiting the responsibility of her owners (2>ost, p. 1057) ; she is stripped of the protection of the British flag ; and if she uses that flag on board, and assumes the British national character, she is exposed to forfeiture (f). Prior to the Merchant Shipping Act, 1862, equitable right Equitable could not be enforced against ships. rights. " Under the Merchant Shipping Act of 1854," said Chief Baron Pollock, in delivering judgment in a well-known case ('), " much hardship arose, because a man might buy a vessel and pay for it, and yet if he was in any way prevented from registering it the former owner had the vessel as well as the money, and for this very reason the sect. 3 of Act of 1862 was passed, expressly giving force to equitable rights." This section provides "that, (') 17 & 18 Vict. c. 104, B. 57. ship, CoUman v. CJiamherlain, 25 (2) 17 & 18 Viot. c. 104, ss. 58, 59, Q. B. D. 328. 60. C) 17 & 18 Viot. 0. 104, s. 69. (3) 17 & 18 Vict. c. 104, 8. 62. («) Maolanhlan on Shipping, p. 76. (^) 17 & 18 Vict. c. 104. s. 66 ; see (') Stapleton v. Waymen, 12 W. K. as to what passes by mortgage of a 318. 252 PERSONAL PROPERTY. [Book II. without prejudice to the powers of disposition, and of giving receipts conferred by the Merchant Shipping Act, 1854, on registered owners and mortgagees, and without prejudice to the exclusion of unqualified persons from the ownership of British ships, equities may be enforced against owners and mortgagees of ships in respect of their interest therein in the same manner as equities may be enforced against them in respect of other personal property." An interesting question with regard to nationality arose in a case in which a ship had been built in this country in order to be sold to a Turkish company and to be delivered to their representatives at the Golden Horn. The Court decided that this ship was not a British ship within the meaning of the Merchant Shipping Act, 1854, and that accordingly the pro- visions as to assignment and registration of that statute did not apply to her. The statute the Court said was intended to apply to ships intended to be the property of a British owner. That was not the case here. As soon as the vessel crossed the sea she was intended to be transferred to a foreign owner, and never intended from that hour to be a British ship (^). The theory of the register fixes the maximum fraction of pro- perty and the maximum number of several owners that can appear on the register, the object being that the title may be so simple and obvious as to be a " matter of eyesight." As how- ever the record of title is local, and it might be desirable to sell or mortgage the property at a distance, certificates of sale and mortgage were devised by means of which the authentic register with all its contents and authority may be submitted to the eyes of the distant purchaser or mortgagee without with- drawing it from those who desire to consult it at the home port (2). In this chapter we have dealt with ships solely in connection with the subject of property (^). A great variety of interesting questions which arise with regard to them will be more appro- priately considered in other portions of this work, and chiefly in that which deals with the subject of Admiralty {post, p. 1048). (') Vnion Batik of London v. (') See, as to exemption from stamp Lenanton, L. E. 3 C. P. D. 24H. duty, Stamp Act, 1870, schedule O Slaclachlan on Shipping, p. 75. (general exemptions). ( 253 ) CHAPTER III. Horses. The sale of horses was made the subject of special legis- Statutes lation more than three centuries ago : the reason assigned by ^J *° ^^'^ Blackstone being " because a horse is so fleet an animal that the stealers of them may flee far off in a short space, and be out of the reach of the most industrious owner." A purchaser gains no property in a stolen horse unless he buys in a fair or market, in compliance with the provisions of the statutes of Philip and Mary and Elizabeth, to which we have alluded (^). These statutes provide that the horse which is for sale shall be openly exposed in the time of such fair or market, for one whole hour, between ten in the morning and sunset, in the public place used for such sales, and not in any private yard or stable ; and afterwards brought by both the vendor and vendee to the book-keeper of such fair or market ; that toll be paid, if any be due, and if not, one penny to the book-keeper, who shall enter down the price, colour, and marks of the horse. The statute of Elizabeth enacts that the toll-keeper or book-keeper shall take upon himself " perfect knowledge " of the vendor, and " of his true Christian name, surname, and place of dwelling or residence "; or that the vendor shall bring to the keeper one sufficient and credible person that can testify that he knows the vendor, and in such case the name and residence of the person so testifying, as well as those of the vendor, are to be recorded in the book, and the " very true price or value " given for the horse; and in case of failure to comply with these provisions, the sale is to be void. Even if the horse be sold pursuant to these statutes, the pioperty of the owner is not taken away, if within six months after the horse is stolen he puts in his claim before some magis- trate where the horse shall be found, and within forty days more proves it to be his property by the oath of two witnesses, and tenders to the person in possession such price as he bond fide paid for him in market overt. C) 2 & 3 Ph. & M. 0. 7, and 31 Eliz. c. 12. 254 PERSONAL PROPERTY. [Book II. Effect of statutes. The effect of these statutes was considered by Lord Blackburn, then Mr. Justice Blackburn, in the year 1873. The mare in question in the action had been turned out by the defendant in a public park, was found out of the park, and was then sold at public auction by the " pinner " of the park, who was unable to find the owner. After an intermediate sale she was sold in market overt to the plaintiff, and was subsequently claimed and taken possession of by the defendant. There was no proof that the formalities which the statute of Elizabeth requires upon the sale of horses at fairs and markets had been observed. The Court delivering judgment said : — The onus of shewing that the formalities required by the 31 Eliz. c. 12, s. 2, have been observed at the sale of this mare lies upon the plaintiff. I shall not draw the inference that those formalities have been observed, it would be most unusual if the fact were so, and the effect of the statute is, that unless those formalities have been observed the sale confers no more title on the plaintiff against the defendant, the true owner, than if the sale had taken place out of market overt (^). Where the requisites of the statutes have not been dxily observed the owner may retake his horse at any time wherever he fi.nds him, or bring an action if he chooses (^). As many questions arise with regard to unsoundness in horses, the reader's attention may be well directed to the law as to unsoundness as settled by decisions. Warranty. A man who buys a horse warranted sound, must be taken as buying him for immediate use, and has a right to expect one capable of that use, and of being immediately put to any fair work the owner chooses. The rule as to unsoundness is that if at the time of sale the horse has any disease, which either actually does diminish the natural usefulness of the animal, so as to make him less capable of work of any description; or which, in its ordinary progi-ess, will diminish the natural useful- ness of the animal ; or if the horse has, either from disease (whether such disease be congenital or arises subsequently to its birth), or from accident, undergone any alteration of structure, that either actually does at the time or in its ordinary effects (•) Mora-n v. Pitt, 42 L. J. Q. B. 47. (2) 2 & .S Ph. & M. c. 7 (1555) ; and 31 Eliz. c. 12 (1589). The statutes generally extend to horsps wrongfully taken, though not stolen. Chitty's Statutes, Tol. iv. p. 305, et seq. Benjamin on Sale, pp. 13, 14, where it is pointed out that the provisions have been found so effective in put- ting an end to the mischief which they even intended to prevent, that there are very few modem cases on the subject. See Joseph v. Adkins, 2 Stark. 76 ; Lee v. Bayea, 18 C. B. 599. Chap. HI.] H0BSE8. 255 will diminish the natural usefulness of the horse, such a horse is unsound Q). Ilaving thus sketched the law as to living horses, it remains to briefly notice the effect of very recent legislation with regard to the flesh of horses which are dead. An Act which came into operation on the 29th of September, Sale of 1889, and which is to be cited as the " Sale of Horseflesh, &o., E°gu^yo*'„ Eegulation Act " (2), provides that no person shall sell, offer. Act. expose, or keep for sale any horse-flesh for human food, elsewhere than in a shop, stall, or place over or upon which there shall be at all times painted, posted, or placed in legible characters of not less than four inches in length, and in a conspicuous position, and so as to be visible throughout the whole time, whether by night or day, during which such horse-flesh is being offered or exposed for sale, words indicating that horse-flesh is sold there. The next section provides that no person shall supply horse- flesh for human food to any purchaser who has asked to be supplied with some meat other than horse-flesh, or with some compound article of food which is not ordinarily made of horse- flesh. The word " horse-flesh " is somewhat curiously defined by Definition the Act to include the flesh of asses and mules, and shall mean '^ "/\°'-'^'!" horse-flesh, cooked or uncooked, alone, accompanied by or mixed with any other substance ; and its provisions are enforced by stringent provisions by which the offender can be summarily brought to justice. (') KiddeUy. Burnand,9'M..& W. horse waa a "defect" in the condi- 670 ; Coates v. Stephens, 2 M. & Rob. tion of such plant, within the mean- 137 ; and see Oliphant on Horses, ing of s. 1 of the Employers' Liability pp. 71, et seq., and passim ; and see Act, 1880. See as to question of nou- in the same treatise an enumeration return of a horse being under the under nearly all the letters of the circumstances no bar to an action in alphabet, and conaideration of the the warranty, Chapman v. Withers, various diseases to which horse-flesh 20 Q. B. D. 824; and as to sale of is heir. In Yarmouth v. France, 19 a horse under Order L., E. S. C, 1883 Q. B. D. 647, it was held that a (post, p. 792), Bartholomew v. Free- horse which injured the plaintiff was man, 3 0. P. D. 316. " plant " used in the business of the (^) 52 & 53 Vict. c. 11. defendant, and that the vice in the ( 256 ) Bilh of Exchange Act, 1882. General rule of law. Negotia- able in- struments. CHAPTEE IV. Negotiable Instruments. The law with regard to negotiable instruments has been to a very large extent practically codified by the Bills of Exchange Act, 1882 (45 & 46 Vict. c. 61), which came into operation on the 18th of August, 1832, and extends to Ireland and Scotland as well as to England (^). The general rule of the law of England is that no man can acquire a title to a chattel personal from any one who has him- self no title to it, except only by sale in market overt, but the great exception to this rule is the negotiable instrument " being clearly transferable by any person holding it, so as by delivery thereof to give a good title to any person honestly acquiring it." The next question is, what instruments may with propriety be termed negotiable. And to this it may be answered that whenever an instrument is such that the legal right to the pro- perty secured thereby passes from one man to another by the delivery thereof, it is, properly speaking, a negotiable instru- ment, and the title to it will vest in any person taking it hond fide, and for value, whatever may be the defects in the title of the person transferring it to him. An instrument is called negotiable when the legal right to the property secured by it passes by its delivery (^). " The general rule of law,'' said Mr. Justice Willes in an oft- quoted case, " is undoubted, that no one can transfer a better title than he himself possesses : Nemo dat quod non hahet. To this there are some exceptions, one of which arises out of the rule of the law merchant as to negotiable instruments. These being part of the currency are subject to the same rule as money ; and if such an instrument be transferred in good faith for value before it is overdue, it becomes available in the hands of the holder, notwithstanding fraud, which would have rendered it unavailable in the hands of a previous holder (^). " If a negotiable 20 Q. B. D. 232, 238, citing with approval the statement of the law given above from Miller v. Bace, Smith's Leading Cases, vol. i. 9th ed. p. 491. C) Whittler v. Forsler, 14 0. B. (N.S.) 218. (') The present Act deals only with bills, notes and cheques. It does not affect the law as to the issue of bank notes — see " savings " sect. 97 — nor does it deal with other negotiable instruments. (^) Landau and County Banldng Co. V. London and Biver Plate Bank, Chap. IV.] NEGOTIABLE INSTRUMENTS. 257 instrument remains current, even though it has been paid, there IS nothing to prevent a person to whom it has been indorsed for value without knowledge that it has been paid from suing " (i). The object of the law merchant, said Byles, J., as to bills and notes made or become payable to bearer, is to secure their circu- lation as money; therefore honest acquisition conveys title. To this despotic but necessary principle the ordinaiy rules of the common law are made to bend. Negligence in the maker of an instrument payable to bearer makes no difference in his liability to an honest holder for value ; the instrument may be lost by the maker or stolen from him, still he must pay. The negligence of the holder, on the other hand, makes no difference in his title. However gross the holder's negligence, if it stop short of fraud he has a title (^). A bill of exchange is defined by the Act as " an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is ad- dressed to pay on demand or at a fixed or determinable future time a certain sum in money to or to the order of a specified person, or to bearer " (^), and an instrument which does not comply with these conditions is not a bill of exchange. An inland bill is a bill which is, or on the face of it purports to be, both drawn and payable within the British Islands, or drawn within the British Islands upon some person resident therein. Any other bill is a foreign bill; but unless the contrary appear on the face of the bill the holder may treat it as an inland bill (*). No particular form of words is necessary to render a Bill of Exchange valid. The following is an ordinary form : — London, January 1, 1888. £100 Os. Qd. Three months after date pay to my order the sum of one hundred pounds. Value received. William Smith. To Messrs. Thompson & Son. (1) Per Lord Esher, Glasscocle v. Balls, 24 Q. B. D. 13, 15, see post, p 266 (2) Swan V. North Bnttsh Co., 2 H & C 184; but see Earl of Slieffield T 'joint Stodc Co., 13 App. Cas. 383, followed Simmons v. Londxm Joint Stock Bank, W. N. (1890) 70, 221. C) Sect. 3 (1) (2). Au order to pay out of a particular fund is not uncon- ditional within the meaning of the VOL. I. section ; but an unqualified order to pay, coupled with (a) an indication of a particular fund out of whioli the drawee is to re-imburse himself or a particular account to be debited with the amount, or (6) a statement of the transaction which gives rise to the bill, is unconditional. (0 Bills of Exchange Act, 1882, sect. 4. Reason of the law. Definition of bill of exchaDge. Inland bill. Foreign bill. Form of bill of exchange. 258 PERSONAL PBOPERTT. [Book II. Bill of The date, consideration and place, where drawn, or where exchange, payable are generally inserted, but none of them are essential (^). The original parties to a bill of exchange are the drawer, the drawee, and the paj'ee. The person giving the order or direction to pay is the drawer. The drawee is the person on or to whom the order or direction is given. On his acceptance of the biU (as hereafter described) he becomes the acceptor. The law then presumes that he is the principal debtor on the bill. The drawee must be named or otherwise indicated in a bill with reasonable certainty. A bill may be addressed to two or more drawees, whether they are partners or not, but an order addressed to two drawees in the alternative, or to two or more drawees in succession, is not a bill of exchange (^). If a bill is not payable to bearer the payee must be named or otherwise indicated therein with reasonable certainty. A bill may be made payable to two or more payees jointly, or it may be made payable in the alternative to one or two or one or some of several payees, and may be made payable to the holder of an office for the time being. Where the payee is a fictitious or non-existing person the bill may be treated as payable to bearer (^). A very interesting question arose with regard to the liabilities of a banker in a case which has been very recently decided by the House of Lords (^). In this case, the plaintiff, who traded under the name of V agliano Brothers, claimed that it might be declared that he was entitled to be credited by the defendants, the Bank of England, with the amount of £71,500, alleged by him to have been wrongfully and without his authority debited to his account. It appeared that Vucina & Co., who were foreign correspond- ents of the plaintiffs, were in the habit of drawing upon them, sometimes making the bills payable to the order of C. Petridi & Co., another foreign firm. A clerk in the plaintiff's employ- ment forged the signature of Vucina & Co. to bills purporting to be drawn on the plaintiffs by Vucina & Co. to the order of C. Fetridi & Co., and resembling those which Vucina & Co. (1) Sect. 3 (4). If dated, the date is Q) Sect. 7. presumed to be the true date. A (*) Vagliano Brothers v. Governors bUl may be ante-dated or post-dated, of Bank of England, 22 Q. B. D. 103 and under the present law dated on affirmed 23 Q. B. D. 248, reversed by a Sunday. the majority of the House of Lords, C^) Bills of Exchange Act, 1882, March 5, 1891. B. 6. Chap. IV.] NEGOTIABLE INSTRUMENTS. 259 were in the habit of drawing on the plaintiffs, and placed Bill of among the plaintiffs' correspondence counterfeit letters of exchange, advice with respect to these bills resembling those ordinarily- received from Vuoina & Co. By these means, the clerk pro- cured the genuine acceptances of the plaintiffs to the bills which he had forged. He then forged upon the bills indorse- ments purporting to be those of the payees named therein ; and was paid by the cashiers of the defendants across the counter the amounts for which the bills were drawn. The majority of the Court of Appeal decided that the defendants were not pro- tected by the provision in the Bills of Exchange Act, that when the payee is a fictitious or non-existing person, the bill may be treated as payable to bearer, that " fictitious " means fictitious to the knowledge of the party sought to be charged upon a bill, and that the defendants were not entitled to debit the plaintiffs with the amount of the forged bills. This decision was reversed by the majority of the House of Lords. The ground on which their decision was based was stated by Lord Selborne as follows : " I cannot however agree with the opinion that in the cases which do fall within the third sub-sect, of sect. 7, knowledge on the part of the acceptor that the payee is a fictitious or non-existing person is still necessary. Such a qualification of the express words of the statute cannot properly, in my judgment, be implied from the earlier authorities which treated knowledge as necessary. Those authorities were no doubt within the view of the legislature ; and all reference to the necessity of knowledge being here omitted, I think the omission must be taken to have been deli- berate and intentional, and that there is no sound principle on which what is so omitted can be supplied by construction. I think it right to add that in point of principle it seems to me neither unjust nor unreasonable that the rights and liabilities of third parties should in such a case depend upon the facts rather than upon an inquiry into the acceptor's state of mind." Some of the other members of the House of Lords based their deci- sion chiefly on the ground that the mode in which the plaintiffs had conducted their business had facilitated the perpetration of the frauds by means of which the clerk had obtained payments from the bank. A bill may be accepted — (1) Before it has been signed by the drawer, or while otherwise Accept- 1 , ance. incomplete. (2) When it is overdue, or after it has been dishonoured by a previous refusal to accept or by non-payment. s 2 260 PERSONAL PBOPEBTT. [Book H. Accept- The acceptance of a bill is defined by the Act to be the anc«. signification of the drawee of his assent to the order of the drawer ; the acceptance must be written on the bill and signed by the drawee. The drawee then becomes " the acceptor " (}). (1) An acceptance is either (a) general, or (6) qualified (2). (2) A general acceptance assents without qualification to the order of the drawer. A qualified acceptance is one which, in express terras, varies the effect of the bill as drawn. A qualified acceptance may be : — (a) Conditional, i.e. an acceptance only payable on a certain event, e.g. the delivery of certain goods. (h) Partial, i.e. to pay part only of the amount of the bill. (c) Local, i.e. to pay only at a particular specified place ; but an acceptance to pay at a particular place is a general acceptance, unless it expressly states that the bill is to be paid there only, and not elsewhere. (d) Qualified as to time. • (e) The acceptance of some one or more of the drawees, but not of all. Indorse- Now suppose that William Smith signs his name on the back ment. p£ ^^ l^j^^ pf exchange, and hands it to James Thompson, William Smith is the indorser, and James Thompson is the indorsee, and the signature itself is called " an indorsement." An indorsement in order to operate as a negotiation must comply with certain conditions : — • (1) It must be written on the bill itself and be signed by the indorser. The simple signature is sufficient (^). (2) It must be an indorsement of the entire bill and not a partial indorsement, e.g. an indorsement dealing only with a part of the amount payable (^). An indorsement may be, (1) in blank, (2) special, and (3) re- strictive. When an indorsement is made conditionally the condition may be disregarded. (') Sect. 7 (1), and see as to time (*) Where a bill is payable to the for acceptance, sect. 18. order of two or more payees, or in- (^) See Becroix, Verley et die v. dorsees who are not partners, all must Meyer & Co., 25 Q. B. D. S43. indorse, unless the one indorsing has Q) An indorsement written on an authority to indorse for the others, allonge, i.e. a paper annexed to the Where, in a bill payable to order, the bill when there are a series of in- payee or indorsee is wrongly deslg- dorsements, or on a " copy " of a nated, or his name is mis-spelt, he bill issued or negotiated in a counti-y may indorse the bill as therein de- where " copies " are recognised, is scribed, adding, if he think fit, his deemed to be written on the bill proper signature, itself. ment. indorse- ment. Chap. IV.] BEQOTIABLE INSTRUMENTS. 261 An indorsement in tlank specifies no indorsee, and the bUl is Indorse- then payable to bearer. ™^'''- A special indorsement specifies the person to whom, or to Special whose order, the bill is to be payable. indorse- Any holder of a bill may convert a blank indorsement into a special indorsement by writing above the indorser's signature a direction to pay the bill to, or to the order of, himself or some other person. If a bUl be indorsed in snch form as " Pay D. for the account Restrictive of X.," or "Pay D. or order for collection," the indorsement is restrictive. Every contract on a bill, whether it be the drawer's, the acceptor's, or an indorser's, is incomplete and revocable, until delivery of the instrument in order to give effect thereto (^) ; delivery is defined to mean transfer of possession, actual or con- constructive, from one person to another (2), and when a bill is transferred from one person to another in such a manner as to constitute the transferee the holder of the bill it is said to be " negotiated." The Act expressly provides that capacity to incur liability Liability as a party to a bill is co-extensive with capacity to contract, *"^ '''^'■ and that the fact that a bill is drawn or indorsed by one who has no capacity or power to incur liability on a bill, e.g. an infant, minor, or corporation, is not to affect the liability of any other party to the bill (3). Thus if I receive a bill to which a company, which is not authorised so to contract, or an iflfant is a party, and this bill is indorsed to me by John Smith, who is under no such incapacity, John Smith is liable, though the company, or infant, as the case may be, is not. The law presumes that consideration for a bill of exchange or Considera- promissory note has been given, that any party whose signature ''""^ P''^' appears on the bill is a party for value, and that any holder is a holder in due course. Fraud, duress, or force and fear or illegality, shift the burden of proof and oblige the holder to prove that value in good faith has been given for the bill. The consideration may be any consideration sufficient to support a simple contract or an antecedent debt or liability (*). Three days called days of grace are in every case, where the Days of (') 45 & 46 Vict. c. 61, s. 21. is proved tlie burden of proof is on (2) Ibid. sect. 2. tlie liolder to prove botli that value (^) Ibid. sect. 22. has been given and that it has been C) Ibid. sect. 30, the phrase given in good faith without notice " holder in due course " explained in of the fraud : Tatam v. Haslar, 23 sect. 29 (1) is now substituted for land Q. B. D. 345. fide holder for value. When fraud 262 PERSONAL PEOPERTT. [Book II. Acceptance per proc. Overdue bill. Dis- honoured bill. bill is not payable on demand or does not otherwise provide, added to the time of payment as fixed by the bill, and the bill is due and payable on the last day of grace (}). A person may accept or sign a biU by procuration or per proc. as it is generally called, i.e. as agent for another. A signature by procuration operates as notice that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his authority (^). A party taking a bill which is overdue takes it, as was said in a well-known case, " with a blot on it " (^). Where an overdue bill is negotiated, it can only be negotiated subject to any defect of title affecting it at its maturity, and thenceforward no person who takes it can acquire or give a better title than that which the person from whom he took it had (^). A bill is dishonoured in two cases : (1), when it is not paid after due presentment, and (2), when presentment is excused and the biU is overdue and unpaid. The effect of dishonour by non-payment is that the holder has then, subject to the provi- sions of the Acts as to notice, an immediate right of recourse against the drawers and indorsers. Notice of dishonour must be given to the drawer and each indorser, and if such notice is not given, the party to whom the notice is not given is dis- charged. When a bill is dishonoured by non-acceptance and due notice thereof is given, it is unnecessary to give notice of subsequent dishonour by non-payment unless the bill has been accepted in the meantime. The notice may be either written or oral (5). (') Sect. 14, which see as to cases where the last day of grace falls on Sunday, Christmas Day, &c., or a Bank Holiday, and as to computation of time generally. And note that days of grace are hot under the present law allowed in respect of bills or notes payable at sight, and these are included in bills and notes payable on demand. (^) Sects. 25 and 26, an agent or person in a representative capacity ought always expressly to state that he signs for or on behalf of a prin- cipal, or in a representative character, e.g., "for Johns & Co., A. B," as otherwise he may be personally liable. C) A bill payable on demand is deemed to be overdue within the meaning and for the purposes of this section, when it appears on the face of it to have been in circulation for an unreasonable length of time. What is an unreasonable length of time for this purpose is a question of fact: sect. 3, 8ub-s. 3. C) Sect. 36, sub-sect. 2. (') See sect. 47, et seq., and see as to dishonour, Notice of Dishonour, Byles on Bills, 14th ed. p. 218, et seq. and p. 293. The failure of the holder of a bill of exchange, after the exercise of reasonable diligence, when the bill is dishonoured, to find the drawer at the address which he has given, will not dispense with notice of dishonour if the holder discovers the drawer's address before the commencement of the action : Studdy v. Beesty, 60 L. T. 647. Chap. IV] NEGOTIABLE INSTRUMENTS. 263 The Customs and Inland Eevenue Act, 1890, provides that " no stamp duty shall be chargeable upon a bill of exchange drawn in the United Kingdom for the sole purpose of remitting money to be placed to any account of public revenue " Q). Cheques.— A cheque is defined by the Act to be a bill of Cheque, exchange drawn on a banker payable on demand. If a cheque is not presented within a reasonable time from the drawing thereof, and the drawer had the right at the time of such presentment, as between him and the banker, to have the cheque paid, and suffers actual damage through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer is a creditor of such banker to a larger amount than he would have been had such cheque been paid. In determining what is a reasonable time, regard shall be had to the nature of the instrument, the usage of trade and of bankers, and the facts of the particular case, and the holder of such cheque as to which such drawer is discharged shall be a creditor in lieu of such drawer of such banker to the extent of such discharge and entitled to recover the amount from him (^). With regard to what is a reasonable time, the rule established by the decisions is, that when the person taking the cheque of the banker on whom it is drawn lives in the same place, the person taking the cheque has the whole of the banking hours of the next business day within which to present the cheque (3). When, however, the person taking the cheque, and the banker on whom it is drawn, do not live in the same place, the rule is that the person taking it ought to send it to his banker or agent by the next business day's post, and he should present it the next business day in order to charge the drawee if the bank fails (*). The authority of a banker to pay a cheque drawn on him by his customer ceases upon — (1) Countermand of payment. (2) Notice of the customer's death (^). A cheque may be crossed either specially or generally. (>) 53 Vict. 0. 8, s. 21. 7 M. & G. 1061. (2) 45 & 46 Vict. c. 61, s. 74. A (') Riekford v. Bidge,2 Camp. 537; post-dated cheque bearing a penny Hare v. Henty, 10 0. B. (N.S.) 65 ; stamp is valid and negotiable : Hitch- Bailey v. Bodenham, 16 C. B. (N.S.) cock V. Edwards, 60 L. T. (N.S.) 636. 288 ; Heywood v. Pickering, L. E. 9 (=) Boddington v. Sohlentur, 4 B. & Q. B. 428. Ad. at p. 759 ; Rdbson v. Bennett, 2 (=) Sect. 75. Taunt. 388 ; Alexander v. Birchfield, 264 PERSONAL PROFERTT. [Book H. Crossing A cheque is crossed generally when the words " and Corn- cheque, pany," or any abbreviation thereof, between two parallel trans- verse lines, either with or without the words " not negotiable," or when the transverse lines simply, with or without the words " not negotiable," are inserted on its face. A cheque is crossed specially by writing across its face the name of a banker either with or without the words " not negotiable.'' If a cheque is uncrossed, the holder may cross it generally or specially, and if it is crossed generally he may cross it specially. And whether crossed generally or specially the holder may add the words " not negotiable." If a cheque is crossed specially the banker to whom it is crossed may cross it again specially to another banker for collection, and in cases where a cheque is crossed generally, or where a cheque is crossed specially to more than one banker, except when crossed to an agent for collection, being a banker, the banker on whom it is drawn must refuse payment thereof. If a banker pays a cheque crossed generally otherwise than to a banker, or if crossed specially otherwise than to the banker named thereon, he is liable to the true owner of the cheque for any loss he may sustain owing to the cheque having been so paid. But if the cheque at the time of presentment appears not to have been crossed, or to have a crossing which has been obliterated, then the banker, if he pays the cheque in good faith and without negligence, is under no liability what- ever (1). If a banker on whom a crossed cheque is drawn, in good faith and without negligence, pays it, if crossed generally to a banker, and if crossed specially to the banker to whom it is crossed, or his agent for collection, being a banker, the banker paying the cheque, and, if the cheque has come into the hands of the payee, the drawer shall respectively be entitled to the same rights and are placed by the Act in the same position as if payment of the cheque had been made to the true owner thereof (^). If a banker receives, in good faith and without negligence, payment for a customer of a cheque crossed generally or specially to himself, and the customer has no title or a defective title thereto, the banker does not incur any liability to the true owner by reason only of having received such payment (f). (') 45 & 46 Vict. u. 61, s. 79. (3) Sect. 82: {j') Sect. 80. Chap. IV.] NEGOTIABLE INSTRUMENTS. 265 It has been settled by a celebrated case in the House of Position of Lords (1), that the relation between a banker and his customer banker. 18 merely one of debtor and creditor. There is no fiduciary relation between them. The banker simply receives money from his customer on condition of paying it back when asked or when drawn upon by the customer. The banker is bound by his contract to honour the customer's cheque provided that he has sufficient funds in hand (2), and if the banker dishonours a customer's cheque without due cause he is liable to an action (3). Promissory Notes. — A promissory note is defined by the Act Promissory to be " an unconditional promise, in writing, made by one °'''*^" person to another, signed by the maker engaging t© pay, on demand or at a fixed or determinable future time, a sum certain, in money, to or to the order of a specified person or to bearer " (*). A promissory note is inchoate and incomplete until delivery of it to the payee or bearer (^). Two or more persons may make a promissory note, and their liability is to be joint or several according to its tenor (^). If a note payable on demand has been indorsed it must be presented within a reasonable time of the indorsement, and if it be not so presented the indorsee is discharged. In determining what is a reasonable time in this case, as in the case of a cheque, regard is to be had to the nature of the instrument, the usage of trade, and the facts of the particular case ('). If in the body of the promissory note it is made payable at a particular place, it must be presented at that place in order to render the maker liable. Presentment for payment is also necessary in order to render the indorser of a note liable Q). In a case decided in 1889, the facts shortly stated were as follows : The plaintiff who was the indorsee of a promissory (') Foley V. Hill, 2 H. L. 0. 43. BrooTis v. MitclieU, 9 M. & W. 15. (^) JSopkinson v. Forster, L. K. 19 (') Sect. 87. The section goes Eq. 76. on to provide that where the note is in (') Marzetti v. Williams, 1 B. & Ad. the body of it payable at a particular 414. place, presentment at that place is (■*) 45 & 46 Vict. c. 61, s. 83. necessary in order to render an in- Q) Sect. 84. dorser liable, but when a place of (^) When a note runs " I promise payment is indicated by way of to pay," and is signed by two or more memorandum only, presentment at persons, it is deemed to be joint and that place is sufficient to render the several. indorser liable, but a presentment to (') Sect. 86. As to what is a the maker elsewhere, if sufficient in reasonable time : see Chartered Banh other respects, shall also suffice. V. Dickinson, L. B. 3 P. C. 574,; 266 PERSONAL PROPERTY. [Book II. note payable on demand sued tte maker thereof. The defen- dant had given as further security for the debt a mortgage of certain property. The mortgage had been transferred, and the amount secured by the promissory note thus paid off. The original payee of the note subsequently indorsed it to the plaintiff for value without knowledge of the circumstances. The Court decided that the note not having been paid or returned to the maker was still current at the time of the endorsement, and that the plaintiff as a hond fide indorsee for value was entitled to recover upon it Q-). When the holder of a bill at or after its maturity absolutely and unconditionally renounces his rights against the acceptor, the bill is discharged. The renunciation must be in writing unless the bill is delivered up to the acceptor, and it has been decided that the renunciation in writing required by the statute must be in itself a record of the renunciation, not a memorandum or note of the renunciation or of an intention or desire to renounce (2). The provisions of the Act with regard to bills of exchange apply with the necessary modifications to promissory notes (^). Assign- It will be convenient for us here to notice the important pro- choses in visions of the Judicature Act with regard to the assignment of action. choses in action. The 25th section of the Judicature Act, 1873 (sub-sect. 6), provides that any absolute assignment, by writing under the hand of the assignor (not purporting to be by way of charge only), of any debt or other legal chose in action, of which express notice in writing shall have been given to the debtor, trustee, or other person from whom the assignor would have been entitled to receive or claim such debt or chose in action, shall be, and be deemed to have been, effectual in law (subject to all equities which would have been entitled to priority over the right of the assignor if the Act had not been passed), to pass and transfer the legal right to such debt or chose in action from the date of such notice, and all legal and other remedies for the same, and the power to give a good discharge for the same, without the concurrence of the assignor. It is important to observe that the assignment must be absolute, i.e., not by (') Glasscock v. Balls, 24 Q. B. D. (1) Presentment for payment. 13. (2) Acceptance. (^) In re George. Francis v. Bruce, (3) Acceptance supra protest. 44 Oh. D. 627. (4) Bills in a set. (') Sect. 89. The following pro- Neither need a foreign note which visions as to bills of exchange do is dishonoured be protested, not apply to promissory notes : — Chap. IV.] NEGOTIABLE INSTRUMENTS. 267 way of charge, and in writing under the hand of the assignor, Assign- and that express notice thereof in writing must be given Q). ™*°' "^ C/10S6S ifli C) 36 & 37 Vict. c. 66, 8. 25, sub- s. 6. The section goes on to make provision that if the debtor, trustee, or other person liable in respect of such debt or chose in action shall have had notice that such assign- ment is disputed by the assignor or any one claiming under him, or of any other opposing or conflicting claims to such debt or chose in action, he shall be entitled, if he think fit, to call upon the several persons making claim thereto to interplead concerning the same, or he may, if he think fit, pay the same into the High Court of Justice under and in conformity with the provisions of the Acts for the relief of trustees. Bur- linson V. Sail, 12 Q. B. D. 347 ; Knill V. Prowse, 33 "W. E. 163 ; Be Sutton, 12 Ch. D. 175 ; Beading v. School Board for London, 16 Q. B. D. 686 ; Harding v. Harding, 17 Q. B. D. 442 ; Bead v. Brown, 22 Q. B. D. 132. action. 268 PERSONAL PROPEBTT. [Book II. Insurance and as- surance. Definition. CHAPTEE V. Policies of Insueance. A very important description of personal property whicli we shall now proceed to consider is that of policies of insurance, or, as they may be more accurately denoted, policies of insurance and assurance. The term " assurance " is, in strictness, applied only to the contract of life insurance ; the term " insurance," is properly reserved for the other forms of the contract, hut the distinction is not very much observed, and is constantly neglected, even in judicial expositions of the law. The general idea of the contract of insurance may be conveyed to the mind of the reader by a definition which has been com- mended alike for its logic and its comprehensiveness. Insurance, with the exceptions which we shall next notice, is a contract whereby one for a consideration undertakes to compensate another for a loss (i). A contract whereby one party, in con- sideration of a stipulated sum, undertakes to indemnify the other against certain perils or risks to which he is exposed, or against the happening of some event. The attention of the reader ought, however, at once to be directed to the fact that a very important distinction exists between the contract of life insurance on the one hand, and the contracts of marine and fire insurance on the other. The con- tracts of marine and fire insurance are essentially contracts of indemnity, while it was conclusively settled in the year 1854, by a case to which we shall presently refer, that the contract of life insurance is a mere contract to pay a certain sum on the death of a certain person, and has in its nature nothing whatever to do with indemnity. The contract of insurance against accident is also not in ihe nature of indemnity (jpost, p. 278). (') May on Insurances, citing the definition of Koocus, " Asseouratio est contractus, quo quia aliense rei periculum in se suscepit, obligando se sub certo pretio ad eum conipen- eandum si ilia perierit." Marshall on Marine Insurance. In Ex parte Ibbetson, 8 Oh. D. 519, where the question arose on the meaning of tho Bankruptcy Act, 1869, s. 15, it was decided tliat a policy of insurance is a " thing in action." Chap. V.] POLICIES OF INSUEANOK 269 The principle of indemnity implied in tlie contract of in- surance leads to certain consequences, which may be shortly stated as follows : — • 1. The amount which the insured can recover is limited to his actual loss, which may he recovered either by payment or reinstatement. No more than this can be commonlj' recovered, and if more is recovered, the insurer, if he paid in ignorance, may get the amount so paid back. 2. If the thing insured is only partially destroyed, or deteriorated, the insured can only claim the value of the injury actually done unless he surrenders the thing insured to the insurer. This is the doctrine of abandonment, the prin- ciple of which applies to all insurance of property, though chieiiy to marine insurance (i). 3. The insured cannot " take with both hands." If he has ways and means independent of the insurer to repair his loss, he must either cede such ways and means to the insurer on being paid in full the amount of his loss, or he must exercise such ways and means for the benefit of the insurer. The principle on which this is founded is called " subrogation " (2). This doctrine has been judicially defined or described as follows : — " The doctrine is well established, that where something is insured against loss, either in a marine or in a fire policy, after the assured has been paid by the insurers for his loss, the insurers are put into the place of the assured with regard to every right given him by the law respecting the subject-matter insured, and which contract is affected by the loss or the safety of the subject-matter insured by reason of the peril insured against." The contract of marine insurance has been defined as one whereby one party for a stipulated sum undertakes to indem- nify the other against loss arising from certain perils or sea risks to which his ship, merchandise, or other interest may be exposed during a certain voyage, or a certain period of time (^). The insurers are called " underwriters," because they subscribe the policy ; and if the ship or goods insured are wholly or partially destroyed, perish, or are lost in whole or in part, each underwriter has to contribute rateably to the loss. The voynge must be a legal voyage. The losses which are usually covered by a policy of marine insurance are perils of the (') Porter on Insurance, pp. 4, 5 ; Darrell v. TihUtts, 5 Q. B. D. 560 ; Castellain v. Preston, 11 Q. B. D. 380. C) Arnold on Marine Insurance, Conse- quence of principle of indem- nity. Subroga- tion. Marine insurance. 15. See as to concealment of material facts, post, p. il8. (^) Smith's Mercantile Law, bk. 2, oh. iv. 270 PERSONAL PROPERTY. [Book II. Subjects of marine insurauce. Marine policies. sea, fire, capture, arrest, restraints and detainments, pirates, negligence of crew, barratry, and all other perils, losses and misfortunes ('). The result of the authorities bearing on the question what may be the subject of marine insurance has been summed up in a standard work (2) as follows :— " Ships, goods, or special property therein, e.g. that of a carrier, or money expended by a captain for the ship's use, his commission and privileges, expected profits, bottomry, or respondentia interest, freight, have all been held fit subjects of marine insurance. Under the term ' freight ' may be insured the benefit an owner would derive from carrying his own goods in his own vessel ; but in order to recover under a policy upon freight, the assured must prove that, but for the intervention of a peril insured against, some freight would have been earned, by showing, either that some goods were put on board, or that there was some contract for so doing. In a word, any person who has an interest in the subject-matter of insurance may be insured to the extent of that interest ; and any person may be said to have an interest who may be injured by the risks to which that subject-matter is exposed, or would only, but for them, have a moral certainty of advantage." The contract of marine insurance, in order to be valid, must be embodied in a policy, the essential parts of which are the risk, the names of the subscribers or underwriters, and the sums insured (f). Marine policies are of two classes : " open " policies, i.e. where the value of the thing insured is not inserted in the polioy, and must consequently in the event of loss be proved at the trial ; and " valued," i.e. where the value of the thing insured is agreed by the parties and included in the policy (*). Marine policies in blank are void. The law on this subject is contained in a statute of Geo. 3 (^), which provides as foUows ; — " It shall not be lawful for any person or persons to make or effect, or cause to be made or effected, any policy or policies of assurance upon any ship or ships, vessel or vessels, or upon any goods, merchandises, effects, or other property whatsoever, without first inserting, or causing to be inserted, in such policy (') Newson's Law of Shipping and Marine Insurauce, bk. 2, cli. .v pp. 250-262. (2) Smith's Mercantile Law, 10th ed. pp. 401-403. Q) No action can be maiutained on "a slip." Fisher v. Liverpool Marine Inmranee Co., L. K. 9 Q. B. 418. (■■) Lidgelt v. Secretan, L. E. 6 C. P. 616; Burnand v. BodocanacM, 7 App. Cas. 333. (0 28 Geo. 3, c. 56. Chap. V.] POLICIES OP INSURANCE. 271 or policies of assurance the name or names or the usual style Marine and firm of dealing of one or more of the persons interested in insurance. such assurance, or without, instead thereof, first inserting or causing to he inserted in such policy or policies of assurance the name or names or the usual style and firm of dealing of the person or persons residing in Great Britain, who shall receive the order for and effect such policy or policies of assurance, or of the person or persons who shall give the order or direction to the agent or agents immediately employed to negotiate or effect such policy or policies of assurance." In order that an assignment of a marine policy should he Assign- valid there must he (a), an assignahle interest in the assign- ™ent of ment; (6), the risk insured against must still be pending; P° "^y* (c), there must he an insurable interest in the thing insured transferred to the assignee Q). The assignee may sue in his own name, but the defendant may set up any defence which would have been valid in an action by the assignor (2). And here it may be well to point out the distinction between " particular " and " general average." Particular average is the loss accidentally and proximately Particular caused by the perils insured against, to the subject-matter of average, the insurance ; which loss, instead of falling on all interested in the voyage, falls solely on the owner of the property lost. General average is a contribution by the owners of the ship, General freight, and cargo, to compensate the owner of a particular part of average, the ship or cargo whose property was sacrificed for their common good, ex. gr., a jettison of cargo. The whole adventure must have been in imminent danger of being lost for a right to general average to exist ; for the sacrifice must have been for the general good (^). Simple or particular average, said Lord Stowell (*), is not a (') Newaon's Law of Shipping and in fire policies is quite a different Marine Insurance, p. 219; North of thing from average in marine policies. England Oil Cake Go. v. Archangel "In the latter it means a rateable Insurance Co., L. K. 10 Q. B. 255. contribution to the damage caused to (2) 31 & 32 Vict. u. 86. part of the adventure by a common (=) The law of general average is peril, i.e., the whole adventure is derived from the Lex Bhodia, which dealt with in soUdo, and any loss is provided " ut si levandse navis gratis, treated as lost by all, to be appor- jaetus meroium factus sit omnium tioned among the co-adventurers or contributione sarciatur quod pro their insurers, if any ; whereas the omnibus datum est," on the principle conditions of average in fire assurance that in the moment of jeopardy every aim at lessening the indemnity pay- one would, as Lord T enterden said, able to the assured." Porter on adopt the words of the Latin poet. Insurance, p. 249 ; see, as to Average, " fundite quse mea sunt etiam pul- Price & Co., and Others v. The Al cherrima." Ships' Small Damage Insurance As- (*) The Copenhagen, 1 0. Rob. 293. sociation, Limited, 22 Q. B. D. 588 : It has been pointed out that average a case decided in 1889 by the 272 PERSONAL PROPERTY. [Book II. Particular average. Fire in- surance. very accurate expression ; for it means damage incurred by or for one part of the concern, which that part must bear alone ; so that in fact it is no average at all ; but still this expression is sufficiently understood and received into familiar use. The loss of an anchor or cable, the starting of a plank, are matters of simple or particular average, for which the ship alone is liable. Should a cargo of wine turn sour on the voyage, it would be a matter of simple average, which the goods alone must bear. Policies of fire insurance now usually contain certain conditions declaring the terms on which the insurance is effected, limiting the responsibility of the insurer, and imposing duties on the insured. These conditions may relate : (1) to the making of the contract ; (2) to the right of action ; (3) to the forfeiture of the contract ; (4) to the settlement of disputes, and (5) to the time of making the claim. A usual proviso in fire policies is that, on happening of a loss, a notice in writing must be given within fifteen days at latest, with particulars, values, vouchers, and a statutory declaration of the truth of the account. The law with regard to this condition was stated in a recent case by the House of Lords, as follows : " It has long been the practice of companies insuring against fire, for the purpose of their own security, to incorporate in their policies by reference to their proposals various stipulations for matters to be done by the assured making a claim before the company is to pay him, and to make the fulfilment of those conditions a condition precedent to their obligation to pay. There was much controversy on the subject about a century ago, but since the case of Worsley v. Wood it has been settled law that this mode of protecting themselves which the companies have adopted is effectual " Q). Court of Appeal. In this case the action was upon a policy of marine insurance in which the insurance was expressed to be against all losses which could not be recovered under an ordinary Lloyd's, or a similar policy of insurance by reason of the insertion therein of the clause, "warranted free from average under three pounds per cent., unless general or the ship be stranded, sunk, or burnt." The ship sustained parti- cular average damage, and further damage which constituted a general average loss. The Court of Appeal decided, that the general average loss could not bo added to the parti- cular average loss for the purpose of ascertaining the percentage under the memorandum, and the particular average loss being under three per cent., the plaintiffs could not recover it under the ordinary Lloyd's poHoy, and therefore were entitled to recover under the policy effected with the defendants. See also as to average, Marine Insurance Co. v. China, &c., Co., 11 App. Gas. 573. (') London Guarantee Co. v. Feam- ley, 5 App. Gas. 911, citing Worsley V. Wood, 6 T. R. 710. See as to arbitration clause, Viney v. Bignold, 20 Q. B. D. 172. Chap. V.] POLICIES OF IN8UBANCE. 273 Tho word " fire " in policies of insurance is to be construed in Fire in- its ordinary sense. In order that the insurers should be liable, ^"'^°<^^- there must be actual ignition, and the loss must be the efibct of the ignition. Thus, when sugar was injured by heat, or the value of treacle diminished by contraction arising from heat, it was held that there was no loss by fire. Given, however, that the loss has happened by fire, the origin of the fire is immaterial. It matters not, as was forcibly stated in an American case, how the flame was kindled, whether it be the result of accident or design, whether the torch be applied by the honest magistrate or the wicked incendiary ; whether the purpose was to save the city, as in New York, or the country, as at Moscow. The Trustee Act, 1888 (i), provides that it shall be lawful Trustee for, but not obligatory upon, a trustee to insure against loss or ' damage by fire any building or other insurable property, to any amount (including the amount of any insurance already on foot), not exceeding three equal fourth parts of the full value of such building or property, and to pay the premiums for such insurance out of the income thereof, or out of the income of any other property subject to the same trusts, without obtaining the consent of any person who may be entitled wholly or partly to such income. It is however provided that the section shall not apply to any building or property which a trustee is bound forthwith to convey absolutely to &nj cestui que trust upon being requested so to do. The contract of life insurance has been judicially defined as Definitions follows : " It is," said Baron Parke, in Dalby v. India and London ?* ' "^ insm'iince. Life Assurance Company (^j, " a mere contract to pay a certain sum of money on the death of a person, in consideration of the due payment of a certain annuity for life, the amount of the annuity being calculated in the first instance according to the probable duration of the life, and when once fixed it is constant and invariable. The stipulated amount of the annuity is to be uniformly payable on one side, and the sum to be payable, in the event of death, is always (except where bonuses have been given by prosperous offices) the same on the other." The contract of insurance, said Sir George Jessel (3), is a purchase of a reversionary sum in consideration of a present (') 51 & 52 Vict. c. 59 ; and see aa tion takes no account of cases where to insurance by mortgagee, sect. 23 of bonuses are applied in reduction of the Conveyancing Act, 1881 : West- premiums. See aa to conclusion of minster Fire Office v. Glasgow, &c., contract, Canning v. Farquhar, 16 Society, 13 App. Gas. 699. Q- B. D. 727. (2) 15 C. B. 387. It may be pointed (') Fryer v. Morland, 3 Ch. D. out that the latter part of this defini- 688. VOL. I. T 274 PERSONAL PBOPEBTT. [Book II. payment of money, or, as is generally the case, on the payment of an annuity during the life of the person insuring. Insurable Wager policies, viz., policies effected by persons who have interest. ^q interest in the subject-matter insured, are forbidden as to ships and their cargoes by a statute of Geo. II. (i) A statute passed in the subsequent reign (14 Geo. 3, c. 48), called the Gambling Act, forbids insurances upon lives and other events unless there be an insurable interest. The interest must be a pecuniary one. A person is presumed to have an interest in his own life. A parent has not, however, merely by virtue of the parental relationship an interest in the life of his child. A son has an insurable interest in the life of a father who supports him, but not in the life of a father whom he supports. A creditor, unless the debt be an illegal one, has an insurable interest in the life of his debtor, and a surety in that of the principal creditor (2). The law with regard to the question whether the contract of life insurance is a contract of indemnity has had a curious and interesting history. In the well-known case of Oodsall v. Boldero, decided in 1806, a creditor who had insured the life of the celebrated William Pitt brought an action on his death on the policy. The creditor had had an insurable interest in Mr. Pitt's life at the time of the insurance in 1803, but subsequently, when Mr. Pitt's debts were paid by the nation through his executors, the question arose whether the creditor could recover on the policy, and Lord Ellenborough decided that he could not. This case was treated as law until 1864, when it was overruled by the unanimous decision of six judges in Dalhy v. Tlie India and London Life Assurance Go. (^). Policies of With regard to the assignment of life policies and the aT'Tsbt rights of assignees, the Policies of Assurance Act, 1867 (^), ' ' provides that any person or corporation entitled, by assignment or other derivative title, to a policy of life assurance, and possessing at the time of action brought the right in equity to receive, and the right to give an effectual discharge to the assurance company liable under such policy for moneys thereby assured, shall be at liberty to sue in the name of such person or (■) 19 Geo. 2, c. 37. (0 15 0. B. 365 ; Smith's Leading (^) See WortMngton v. Curtis, Oases, vol. ii. 1 Ch. D. 419, and cases collected in Q) 30 & 31 Vict. c. 144. See as Crawley on Life Insnranoe, p. 24, to condition against assignment. He et seq. ; and see as to insurances Turcan, 40 Oh. D. 5 ; and as to as- under the Married Women's Property signment abroad void by foreign law, Act, 1882, ante, p. 223. Lee v. Abdy, 17 Q. B. D. 309. Chap. V.] POLICIES OF INSUBANOE. 275 corporation to reco'Ver such moneys, but that any defence on equitable grounds may be pleaded. The same Act also provides that no assignment of a policy of Assign- life assurance shall confer on the assignee therein named, his ™«"' "f executors, administrators, or assigns, any right to sue for the ' ° ^'' "^^" amount of such policy, or the moneys assured or secured thereby, until a written notice of the date and purport of such assign- ment shall have been given to the assurance company liable under such policy at their principal place of business for the time being, or in case they have two or more principal places of business, then at some one of such principal places of business, either in England, or Scotland, or Ireland, and the date on which such notice shall be received shall regulate the priority of all claims under any assignment; and a payment bond fide made in respect of any assurance company before the date on which such notice shall have been received shall be as valid against the assignee giving such notice as if the Act had not been passed. The Act also provides that any such assignment may be made either by indorsement on the policy or by a separate instrument in the words or to the eifect set forth in the schedule to the Act, such indorsement or separate instrument being duly stamped. Notices of assignment are to be acknow- ledged by the company on payment in each case of a fee not exceeding five shillings. A subsequent section provides that the date on which such notice should be received should regulate the priority of all claims under any assignment ; and that a payment bond fide made in respect of any policy by any assurance company before the date on which such notice should have been received should be as valid against the assignee giving such notice as if the Act had not been passed. The effect of this statute was considered in a case which came before the Court in 1885 (^), in which it was decided that a first incumbrancer who had not given the statutory notice was not to be postponed to a second incumbrancer who, having had notice of the prior incumbrance, had then given the office the statutory notice. The statute, the Court said, was not intended to affect the rights of persons claiming interest in the (') Newman v. Newman, 28 Ch. D. Crossley v. City of Glasgow Life 674. An agreement to execute a Assurance Co., 4 Ch. D. 421 ; Webster valid mortgage of a policy which ia v. British Mutual Life Assurance Co., deposited is not an assignment with- 15 Ch. D. 169 ; Curtiusv. Caledonian in the meaning of the Act : Spencer Fire and Life Insurance Co., 19 V. Clarke, 9 Oh. D. 137. And see Oh. D. 534. T 2 276 PERSONAL PROPERTY. [Book !!• Life As- surance Companies Acts. money outside the insurance office. It was intended to give a simpler remedy against an insurance office, and also to give facilities to insurance offices in settling claims by enabling them to recognise as the first claim the claim of the person who first gave such notice as required by the statute. It was not intended to enact that a person who had advanced money upon a second charge with notice of the first, and made subject to it, shonld, by giving statutory notice to the office, exclude the person who had the prior incumbrance. The law with regard to life assurance companies was mate- rially altered by the Life Assurance Companies Acts, 1870, 1872 (jpost, p. 658). The only provision which may here be noticed is that which is concerned with the subject of novation Novation, by policy-holders. On this subject, the Act of 1872 provides that no policy-holder of a company amalgamated with or trans- ferred to another shall, by reason of payment or premium, or any other act, be deemed to have abandoned any claim which he would have had against his original company on due payment of premiums to such company, or to have accepted in lieu thereof the liability of the other company, unless such abandonment and acceptance have been signified by some writing signed by him or his agent lawfully authorized. A usual clause in a life policy is that if the life assured die by his own hands, the hands of justice, or by duelling, the policy will be void ; but if any third party have acquired a hona fide interest therein, by assignment or by legal or equitable lien for a valuable consideration, or as security for money, the insurance thereby effected shall nevertheless to the extent of such interest be valid and of full effect. It has been decided that a person taking the policy as personal representative of the deceased is not within the benefit of this exception (i). In a case (^) where an assurance company advanced money to a man on a mortgage of real security, and on his effecting a policy on his life in their office for the amount of the loan, which was deposited with the company as collateral security, there was a clause of this description, and the insured committed suicide. The Court decided that the company and the assured stood in the same position as if the poHcy had been mortgaged to any third person ; that the company came within the exception in the condition ; and, therefore, that the policy was valid to the extent of the mortgage debt due to them at the death of the insured. Suicide, &c. (') Jaokson v. Fofster, 29 L. J. Q. B. 8. C) White V. British Empire Mutual Life Assurance Co., L. B. 7 Bq. 394. Chap. V.] POLICIES OF IN8UBANCE. 277 A very important provision witli regard to the stamp duty stamp on assignments of policies of life insurance is contained in the " Customs and Inland Eevenue Act, 1888. It enacts that no assignment of a policy of life assurance shall confer on the assignee therein named, his executors, administrators, or assigns, any right to sue for the money assured or secured thereby, or to give a Valid discharge for it, or any part of it, unless the assignment is duly stamped, and no payment shall be made to any person claiming under any such assignment unless the same is duly stamped. The section further provides that if any payment shall be made in contravention of this section, the stamp duty not paid upon the assignment, together with the penalty payable on stamping the same, shall be a debt due to Her Majesty from the company or person by whom such payment is made, and shall be recoverable as such accordingly Q-). The Trustee Act, 1888, contains a special clause with regard Trustee to policies of insurance. It enacts that (^) a trustee may appoint " ' a banker or solicitor to be his agent " to receive and give a discharge for any money payable to such trustee under or by virtue of a policy of assurance by permitting such banker or solicitor to have the custody of and to produce such policy of assurance with a receipt signed by such trustee, and no trustee shall be chargeable with a breach of trust by reason only of his having made or concurred in making any such appointment." It is, however, provided that nothing contained shall exempt a trustee from any liability which he would have incurred if this Act had not passed, in case he permits such money to remain in the hands or under the control of the banker or solicitor appointed as aforesaid for a period longer than is reasonably necessary to enable such banker or solicitor to pay the same to the trustee. A lien or charge is created upon the moneys secured by poli- Lien, cies in favour of persons who pay premiums to keep the policies on foot in four cases (^) : 1. Where the persons beneficially entitled to the policy are under a contract to this effect. 2. Where trustees expend their own moneys in keeping up policies of which they are trustees. 3. Where persons have, at the request of trustees, advanced (') 51 Vict. 0. 8, s. 19 : see as to Leading Cases in Equity, p. 262 et condition precluding stamp objec- seq. See also Falche v. Scottish tions, ante, p. 95. Imperial Insurance Co., 31 Ch. D. O 51 & 52 Vict. c. 59, s. 2, sub-s. 6. 234 ; Re Earl of Winchilsea's Policy {') In re Leslie. Leslie v. French, Trusts, 39 Ch. D. 168 ; Strutt v. 23 Oh. Div. 552, and see Brett's Tippett, W. N. (1890) p. 23. 278 PERSONAL PBOPERTT. [Book II. Conceal- ment of material facts. Accident insurance. money for such a purpose, and are consequently allowed to succeed to the trustees' rights. 4. Where mortgagees have paid premiums, they are entitled to add to this charge the moneys so expended. The law with regard to concealment of material fact vitiating the contract of insurance was carefully considered by Sir George Jessel in a case decided in 1879. In that case the defendant sent in a proposal to an assurance office for an assurance on his life. The following questions were then put to him : — " Has a proposal ever been made on your life at any other office or offices ? If so, when ? Was it accepted at the ordinary premium, or at an increased premium, or declined ?" The defendant's answer was : " Insured now in two offices for £1600, at ordinary rates. Policies effected last year " ; and the proposal was accepted. The office, however, subsequently ascertained the defendant's life had been declined by several offices, and they accordingly commenced an action asking the Court to declare that the contract for the insurance of the defendant's life was void. Sir Oeorge Jessel, in delivering judgment in the plaintiflfe' favour, expressed himself as follows : — " What is the principle on which the Court acts in setting aside contracts of assurance? As regards the general principle, I am not prepared to lay down the law as making any difference in substance between one contract of assurance and another. Whether it is life, or fire, or marine assurance, I take it good faith is required in all cases, and, though there may be certain circumstances from the peculiar nature of marine insurance which require to be dis- closed, and which do not apply to other contracts of insurance, that is rather, in my opinion, an illustration of the application of the principle than a distinction in principle " (^). Another form of insurance which may be briefly noticed is accident insurance. It has been defined as " a branch of life insurance by which persons are enabled to provide against loss to themselves or their families in case they are injured or disabled for a time, or permanently, or killed by some one or other cause operating on them from without " (^). Q) London Assurance Go.y. Mansel, 11 Gh. D. 363, 367. See, however, the observations of Lord Blackburn in Thompson v. Welms, 9 App. Cas. 671. (^) Porter's Laws of Insurance, 2ud ed. pp. 19, 45, et seq. ; and see Stoneham v. The Ocean, &o., Acaiclent Lisurance Co., 19 Q. B. D. 237. The Customs and Inland Eevenue ' Act, 1890 (.53 & 5-1 Vict. 0. 8), s. 20, pro- vides that " the stamp duty payable upon a policy of insurance for any payment or periodical payments agreed to be made during the sick- ness of any person or his incapacity from personal injury shall be one penny, and no further duty shall be payable upon any policy of insurance chargeable with duty under the Stamp Act, 1870, by reason of the same extending to any payment to be made during sickness or such in- capacity." Chap, vj POLICIES OF INSUBANOE. 279 The policy in its usual form is not a contract of indemnity. Accidental It simply provides for the payment of a fixed sum per week in insurance, case of injury, and a certain other fixed sum in case of death. Bodily pain and sufiering do not admit of exact valuation, and, as was stated by Baron Alderson, in an oft-quoted case, a person cannot be indemnified for loss of life (or limb) as he can in the case of a house or shop. An interesting case on the subject of accident policies came before the Court in 1889. A policy of insurance against acci- dental death or injury excepted from the risks insured against accidents happening " by exposure of the insured to obvious risk of injury." The insured met his death through attempting in broad daylight to cross the main line of a railway in front of an approaching train, by which he was run over and killed. There was no evidence that he was short-sighted or deaf. At the place where the accident happened there was no station, or proper crossing; and there was no obstruction to prevent a person about to cross from seeing an approaching train. There was no ground for imputing negligence to the servants of the railway company. It was held, that the risk incurred by the insured being one which either was obvious to him or would have been obvious to him, if he had been paying reasonable attention to what he was doing, the case came within the exception in the policy Q"). When the person insured is killed by accident, if an action is brought under Lord Campbell's Act (^post, p. 497) the insur- ance money is to be taken into account in calculating the damages. The Eailway Passengers Act, however, expressly provides that no contract of the company, nor any compensation received or recoverable by virtue of any such contract, shall prejudice or affect any right of action, &c., or demand, which any person, or his executors or administrators, may have against any other company, or any person under Lord Campbell's Act, or otherwise, for the injury, whether fatal or otherwise, in respect of which the compensation is received or recoverable. (') Cornish v. Accident Insurance surance Co., 6 H, & N. 839 ; L. J. Co., Limited, 23 Q. B. D. (C. A.) 453. (Ex.) 317 ; Winspear v. Accidental Tbe following cases on the subject Insurance Co., 6 Q. B. D. 42 ; Law- of accidental insurance may be use- rence v. Accidental Insurance Co.^ fully consulted : Fitton v. Accidental 7 Q. B. D. 216. In this case the Death Insurance Co., 17 C. B. (N.S.) Court proceeded on Lord Bacon's 122 ; 34 L. J. (C. P.) 28 ; Shilling maxim : " It were infinite for the law y. Accidental Death Insurance Co., to consider the ca.uses of causes and 1 F. &F. 116; Theobald v. Railway their impulsions one of another; Passengers' Assurance Co., 10 Exch. therefore it contenteth itself with the 45 ; Trew v. Railway Passengers' As- immediate cause." 280 PERSONAL PBOPEBTT. [Book II. Guarantee assurance. Construc- tion of policies. Another form of insurance policy is that which arises under a guarantee insurance, wherehy companies, for a pecuniary consideration, undertake, usually for a term of one or more years, the risks of suretyship (^). The Statute of Frauds (see post, p. 372) renders it necessary that the policy should be in writing. The ordinary rule of insurance law, that all material circum- stances known to the assured must be disclosed, does not apply in the case of guarantie policies {^). The concealment to avoid the contract of guarantee must be fraudulent, for such policies come within the law of suretyship, and not of insurance. How are policies of insurance to be construed ? " In the con- struction of policies," said Lord Mansfield, " the strictum jus or a^ex juris is not to be laid hold of; but they are to be construed largely for the benefit of trade and for the insured." Policies are therefore to be construed liberally. The law on this subject has been well stated as follows: — "In insuring policies it is always to be borne in mind that the object of insurance is indemnity from the risks attending some commercial adventure or operation which the owner of the subject of insurance is engaged upon. The assured, therefore, is not intended to be bound to make his mode of carrying out the adventure conform to the words of the policy, rigidly construed and confined to what is absolutely necessary ; but the general words of the policy are intended to be construed so as to conform to the usual and ordinary method of pursuing the adventure " {"). An important principle must also be borne in mind in constru- ing policies, the greater part of the printed language of them, being invariable and uniform, "has acquired from use and practice a known and definite meaning, and the words super- added in writing (subject, indeed, always to be governed in point of construction by the language and terms with which they are accompanied) are entitled, nevertheless, if there should be any reasonable doubt upon the sense and meaning of the whole, to have a greater effect attributed to them than to the printed words, inasmuch as the written words are the immediate language and terms selected by the parties themselves for the expression of their meaning, and the printed words are a general formula adapted equally to their case and that of all other contracting parties upon similar occasions and subjects " (*). (') Porter on Insurance, p. 465, et seq. (_') North British Insurance Co. v. Lloyd, 10 Ex. 533; L. J. 24 Ex. 14. (') Per Lord Penzance in Pearson V. Commercial Union Assurance Co., 1 App. Gas. 507. C) Robertson v. French, 4 East, 130, 135. Chap. V.] POLICIES OF INSURANCE. 281 The reader who desires further information on the diflScult subject of insurance is referred to Porter's Laws of Insurance, Fire, Life, Accident, and Guarantee; to Amould's Law of Marine Insurance ; Lowndes' Law of Marine Insurance ; Craw- ley's Law of Life Insurance ; Bunyon's Law of Life Assurance and Law of Fire Assurance ; Brett's Leading Cases in Modern Equity, notes to Leslie v. French, p. 262, et seq. ; and see pp. 264, 265, where the question whether an insurance company has the option of paying money into Court in conformity with the pro- visions of the Trustee Belief Act, even though there be no trust, is discussed. See, as to the statistics, &c., of insurance, &c. : Bournie's Insurance Directory. The following table of recent cases decided in connection with the law relating to insurance, which could not be appro- priately noticed in the text, may be found convenient. Marine Insurance. Hamilton v. Thames and Mersey Marine Insurance Co., 12 App. Cas. 484 ; Carmicliael v. Liverpool, &c.. Indemnity Associa- tion, 19 Q. B. D. 242 (questions as to damages insured against) ; London Steamship, &c., Co. v. Grampian, &c., Co., 24 Q. B. D. 663 (construction of policy money " which insured shall be liable to pay ") ; Pinlc v. Fleming, 25 Q. B. D. 396 (damages — proximate cause of loss) ; Hunter v. Northern Marine Insurance Co., 13 App. Cas. 717 ("insurance in port,'' and see Colonial Insurance Company of New Zealand v. Adelaide &c., Co., 12 App. Cas. 128) ; Brooking v. Maudslay, Son, & Field, 38 Ch. D. 636 (question as to cancellation of policy) ; Dufourcet v. Bishop, 18 Q. B. D. 373 (subrogation of insurers to rights of assured) ; United Kingdom Mutual Steamship Association v. Nevill, 19 Q. B. D. 110 (question of contribution in mutual association). Fire Insurance. KirhpatricJc v. South Australian Insurance Co., 11 App. Cas. 177 (appropriation of payments). Life Insurance. Board of Trade v. Block, 13 App. Cas. 570 (no jurisdiction to compel bankrupt to submit to medical examination (see post, p. 945), and see iJe Garneit, 16Q. B. D. 698); Grand Trunk Railway Company of Canada v. Jennings, 13 App. Cas. 800 (question as to 282 PERSONAL PROPERTY. pooK II. taking policy into account with regard to damages under Lord Campbell's Act (jpost, p. 497)); Mortgage Insurance Corporation V. Commissioners of Inland Mevenue, 21 Q. B. D. 352 (question as to stamp); Ee Argus Life Insurance Co., 39 Ch. D. 671 (transfer of business) ; Colquhoun v. Heddon, 25 Q. B. D. 129 (income tax payable by American insurance company). ( 283 ) CHAPTEE VI. Debentures. The next subject for our consideration is that of debentures, Definition "a class of securities of a somewhat anomalous description, "^'1''^°'^" tures. brought chiefly into vogue through the formation of com- panies " (}). What is a debenture? This is a question which has occa- sioned no slight trouble to the judges from time to time. It was pointed out in a case (^), decided in 1887, that the term " debenture " has never received a precise legal definition, that it was, comparatively speaking, a new term. The term " debenture " itself, the judge went on to say, imports a debt, an acknowledgment of a debt ; and, speaking of the numerous and various forms of instruments which have been called debentures without any one being able to say the term is incorrectly used, said, " I find that generally, if not always, the same instrument imports an obligation or covenant to pay." Thus, a memorandum of agreement between a company and several persons named in the schedule, and called the lenders, in which the company covenanted to pay the sum advanced with interest, and, as security for the payment thereof, charged all its undertaking, property, estate, and effects of every kind, was decided to be a debenture in the ordinary acceptation of the term (^). But in another case where the memorandum contained no > acknowledgment of any specific debt, or any covenant to pay, such memorandum was held not to be a debenture (^). A good general definition of a debenture is " an instrument in writing, generally under seal, creating a definite charge on a definite or (') Ca/vanagli on Money Securities, And little would be left you, I'm 2nd ed. p. 358. afraid, (^) Edmonds v. Blaina Furnaces If all your debts to Greece and Co., 36 Ch. Div. 215. Rome were paid." (^) The meaning of the word " de- — Cited in Edmonds v. Blaina Fur- benture " is well illustrated by a naces Co., L. E. 36 Ch. Div. 215, 218. passage from the writings of the cele- (*) Ashbury v. Biche, 7 H. L. 653 ^ brated Dean Swift in speaking of the and see Small v. Smith, 10 App. Cas. Mjiaoknowledged obligations of cer- 119; and. Baroness Wenloch y. River tain writers to their literary pre- Dee Co., 10 App. Oas. 354. Debeu- decessors. tures may be issued at a discount, " Your modern wits should each though shares cannot be : Tie Com- man bring his claim, pagnie Generale de Bellagarde, Camp- Have desperate debentures on your bell's Case, i Ch. D. 470. fame; 284 FER80NAL PROPERTT. [Book II. Principal kinds of debentures. Form of debenture. indefinite fund or subject of property, in favour of a given person or of a given person and his order or bearer, and consti- tuting a member in a series of similar instruments each entitling the original holder thereof to similar rights." Debentures made by a corporation must not exceed their borrowing powers. The Bills of Sale Act (1878) Amendment Act, 1882 {post, p. 338), provides that nothing therein shall apply to any debentures issued by any mortgage, loan or other incorporated company, and secured upon the capital, stock, or goods, chattels, and effects of such company (i). The principal kinds of debentures which are in general use are :• — (1) Debentures to registered holder ; (2) Debentures to bearer ; (3) Debentures to bearer capable of registration ; (4) Debentures to registered holder, but with interest coupons to bearer. And each of these kinds may be framed as — (a) " Mortgage debentures," i.e., debentures secured by mort- gage or charge contained in the debentures, or in a trust deed, or in both ; (6) " Naked debentures," i.e., debentures not secured by any mortgage or charge (^). The following form of mortgage debenture is taken from a well-known case on the subject : — "The Company, Limited. " Mortgage Debenture. " No. 404. £100 "By virtue of the powers contained in our articles of associa- tion, we, the Company, Limited, in consideration of the sum of £100 paid to us by A. B., of &c., are held and firmly bound, and do hereby for ourselves, our successors and assigns, charge the said undertaking, and all sums of money arising therefrom, and all the estate, right, title, and interest of the company therein, with the payment to the said A. B., his execu- tors, administrators, or assigns, of the said sum of £100, together with interest for the same at the rate of £6 per cent, by the year, the principal sum to be repaid on the of and the interest to be payable in the meantime half-yearly, on C) 45 & 46 Vict. 0. 43, sect. 17, Topham v. Greenside Glazed Fire Briok Co., 37 Ch. Div. 281 ; see also Levy V. Aheraorriss Slate and Slab Co., .^7 Ch. D. 260; Boss v. Army and Navy Hotel Co., 31 Ch. D. 432 ; Bead v. Joannon, 25 Q. B. D. 300 ; In re Standard Manufaoiuring Co., W. N. (1891) 22. C) Palmer's Company Precedent, p. 465, 5th ed. Chap. VI.] DEBENTURES. 285 the and in each year, until the repayment thereof. " Given under our common seal," &o. (i). Debentures charged on a company's " undertaking " or " estate and effects " constitute a floating charge only on the assets for the time being, leaving the company free to deal with the property in the ordinary course of business, as long as it remains a going concern, but attaching in preference to its general liabilities, so soon as the company is put an end to either by the appointment of a receiver in a debenture-holder's action, or by a winding-up order (2). The important questions whether debentures payable to bearer are negotiable instruments may here be briefly noticed. In the mercantile world, says Mr. Chadwyck Healy, it is the general practice to pass these instruments from hand to hand, and to accept the holder for the time being as entitled to receive payment of the debt, irrespective of any equities which may be subsisting between the company and any prior holder. " As to debentures executed since the Bills of Exchange Act, 1882," the same author goes on to say, " the doubt whether a (') In re Panama, New Zealand, and Australian Boyal Mail Packet Co., L. R. 5 Oh. 318. Debentures issued under the bor- rowing powers of companies may be divided into — 1. Tlrose issued by joint stock companies, registered under tlie Com- panies Acts, 1862 to 1886. 2. Those issued under tlie Mort- gage Debentures Acts, 1865, 1870. 3. Those issued in pursuance of the Companies Clauses Acts, 1845 and 1863. 4. Those issued in pursuance of the Commissioners Clauses Act, 1847. The following memorandum is sometimes placed on a debenture : — " This debenture is to be treated as negotiable, and ail persons are invited, as well by the company as by the owner thereof, to act accord- ingly, but the bearer may at any time write his name and address across the face of this debenture, and thereupon it shall cease to be nego- tiable, and shall be payable to the person whose name is so inscribed." — Palmer's Company Precedents, 5th ed. p. 471. C) Be Panama Mail Co., 5 Ch. App. 318; Florence Land Co., 10 Ch. D. 530 ; WJwalley Sillcstone Coal Co., 29 Ch. D. 715. A mortgagee of a trading company is entitled to have leave to continue an action to realise his security, notwithstanding that the company has been ordered to be wound up either compulsorily or under a supervision order, unless there be special circumstances, or unless the company can offer the mortgagee all that he is entitled to, by foreclosure or sale : Be David Lloyd & Co., 6 Ch. D. 339. Under the Eailway Companies Act, 1867 (30 & 31 Vict. c. 127), s. 4, a creditor, after obtaining judgment, may obtain the appointment of a receiver, and, if necessary, a manager of the under- taking. Be Manchester & Milford Bailway Co., 14 Ch. D. 645; Be Mersey Bailway Co., 37 Ch. D. 610; and see Gardner v. London, Chatham, and Dover Bailway Co., L. E. 2 Ch. 201 ; Attree v. Hawe, 9 Ch. D. 337. See also, as to railway debentures : Be Hull and Barnsley Bailway and Dock Co., 40 Ch. D. 119 ; and as to debentures generally : Thorn v. City Bice Mills Co., 40 Ch. D. 359 ; Blake y. Herts and Essex Waterworks Co., 41 Ch. D. 399. 286 PEB80NAL PROPERTY. [Book II. writing under seal can constitute a promissory note has been removed, and if and so far as any given debenture could be beld to be simply a promissory note, the incidents of negotiability would of course attach to it. With regard, however, to deben- tures not capable of being classed under the category of promis- sory notes — and it is believed they are very numerous — it may be doubted how far the practice to treat them as negotiable would be recognised in a Court of justice as an addition to the law merchant, and binding on all persons and for all purposes. . . . Whether or not it be ultimatelj' decided that debentures payable to bearer, not being promissory notes, have become negotiable instruments by the custom of merchants, it is, at all events, possible to frame such debentures in terms whereby many of the incidents of negotiability will be secured to them. Thus, there is no doubt that a company may so contract with its debenture-holders as to render itself unable to enforce equities subsisting between itself and any previous holder, and may also give a holder a right to recover in his own name " (^). (') Chadwyck Healy's Law and of dissentient debentures with regard Practice of Joint Stock Companies, to the reconstruction of a company : p. 151, et seq., where the authorities In re Empire Mining Co., 44 Oh. D. are collected. See as to the position 402. ( 287 ) CHAPTER VIT. Patents Q). A patent for an invention is a grant from the Crown to the Definition, author of a new and useful invention of the exclusive privilege of making, using, and selling that invention for a limited period. Such grants are made by literse patentes, i.e., letters-patent, from which the term patent is derived ; so-called, according to Blackstone, because "they are not sealed up, but exposed to open view, with the great seal pendent at the bottom, and are usually directed and addressed by the King to all his subjects at large." A patent is, however, now sealed with the seal of the Patent Office, instead of with the Grreat Seal as formerly, and the Act of 1883 provides that a patent so sealed shall have the same effect as if it were sealed with the Great Seal of the United Kingdom, i.e., " the patent proves itself, and cannot be denied " (2). The right to grant such monopolies is an ancient prerogative Statute of of the Crown, saved by a proviso in the Statute of Monopolies. Monopolies. This statute, passed in the twenty-first year of the reign of James I., declared that, subject to the all-important saving clause which shall next be noticed, aU monopolies, grants, and letters-patent for the sole buying, selling, making, working, or using of anything whatsoever within the realm, were contrary to the law and void (^). (') For a full account of the law had, in addition to his undoubted and practice and history of letters- right to grant special commercial patent for invention : see Edmunds privileges to particular places, long on Patents for Inventions. claimed a right to grant special com- C) Patents, Designs,' and Trade mercial privileges to particular sooie- Marks Act, 1883, s. 12. The present ties, and to particular individuals ; form which is sealed with the seal of how our ancestors, as usual, did not the Patent OflEice is given, Sched. I. think it worth their while to dispute to the Patents, Designs and Trade this claim till it produced serious Marks Act (46 & 47 "Vict. o. 57). inconvenience ; how at length, in the Hindmarch on Patents, p. 37. reign of Queen Elizabeth, the power C) See Macaulay's 'History of of creating monopolies began to be England,' vol. ii. p. 346, who tells grossly abused, and as soon as it us how the Sovereign of England began to be grossly abused, began 288 PERSONAL PROPERTY. [Book H. Statute of The saving clause in the Statute of Monopolies, on which the Monopolies. ^^^^ ^^^ important superstructure of the modem law of patents has been built up, partly by subsequent enactment, but chiefly by judicial decision, provides that the declaration before men- tioned shall not extend to any letters-patent and grants of privilege, for the term of fourteen years or under, thereafter to be made, of the sole worhing or making of any manner of new manufactures within this realm to the true and first inventor and inventors of such manufactures, which others, at the time of maldng such letters-patent and grants, shall not use, so that they be not contrary to the law or mischievous to the state, by raising prices of commodities at home, or hurt of trade, or generally inconvenient. " It is from the ancient power and prerogative of the Crown so saved and preserved that every patentee derives his monopoly " (}). The present Act (sect. 17) also provides that the term limited in every patent for the duration thereof shall be fourteen years. But if the patentee fails to make the prescribed payments within the prescribed time the patent ceases to exist. The day of the date is reckoned inclusively, so that the patent expires at midnight of the day before its fourteenth birthday (^). The law on the subject of Patents : their grant and protec- tion, and all other matters, is now regulated by the unrepealed sections of the Statute of Monopolies, and by the Patents, Designs, and Trade Marks Act, 1883 (which is mainly a consoli- dating Act (^), and repeals all the statutes enumerated in its 3rd Schedule), by the general rules of the Board of Trade there- under, and by the Amending Acts of 1885, 1886, and 1888 {^). The Patent Office is now under the immediate control of an ofiicer called the Comptroller-General of patents, designs, and to be queetioned ; how the Queen are valid at common law : Coke, 3 wisely declined the conflict, and the Inst. e. 85, pp. 181 and 184, but see jieople consequently did not require Webster P. 0. from her any express renunciation of (2) Patents, Designs, and Trade the disputed prerogative; how her Marks Act, 1883, s. 17. Russell v. successor readily granted oppressive Ledsam, l4 M. & W. 574. The patents of monopoly, and was at Comptroller has, however, a power length, in 1624, forced by the House when he is satisfied that the non- of Commons to give his assent to a payment was due to accident, mis- law which declared monopolies estab- take, or inadvertence, to enlarge the lished by royal authority to be null time. and void. Q) 48 & 49 Vict. c. 63 ; 49 & 50 (1) Sect. 6, 21 Jac. 1, o. 8. Per Vict. c. 37 ; 51 & 52 Vict. c. 50. James, L.J., Vm Eeyden \. Neusiadt, Sects. 10, 11 and 12 of the Statute 15 Oh. D. 230, 232. It is said that of Monopolies are repealed by the this statute is simply declaratory of Patents, &c., Act, 1883 (46 &47 Vict, the common law, and merely excepts c. 57). from its prohibitions such patents as Chap. VII.] PATENTS. 289 trade-marks, w'lio acts under the superintendence and direction of the Board of Trade Q). The first question to be considered in connection with the What in- subject of patents is, what inventions are patentable ? ^^ patent- " The inventions for which valid patents have been granted," able ? says Mr. Johnson (2), " may be roughly divided into the follow- ing classes: — " New contrivances applied to new objects or purposes (^) ; new contrivances applied to old objects or purposes (f) ; new combinations of old parts, the subject-matter consisting either of material objects or mechanical processes (^) ; new methods of applying an old thing (*) ; chemical processes usually but not always in combination with mechanical contrivances " ('). In point of law, as was said in Crane v. Price ('), the labour of thought, or experiments, and the expenditure of money, are not the essential grounds of consideration on which the question, whether the invention is or is not the subject-matter of a patent, ought to depend. For if the invention be new and useful to the public, it is not material whether it be the result of long experiments and profound research, or whether by some sudden and lucky thought, or mere accidental discovery. What is utility ? It is not mere commercial utility. " There What is utility ? (') Patents, Designs, and Trade regard to the payment of fees. The Marks Act, 1883, o. 82, suh-s. 3. A following are some of the principal very great change was introduced by fees now payable on and in connection the rules imder the Patents, Designs with letters patent : — and Trade Marks Act, 1883, with Up to Sealing. £ s. d, £ s. d. On application for provisional protection . . .10 On filing complete specification . . . .300 4 or On filing complete specification with first application . . 4 On appeal from Comptroller to law ofBcer. By appellant . . 3 On notice of opposition to grant of patent. By opponent . . 10 On hearing by Comptroller. By applicant and by opponent respectively 100 Before the expiration of the fourth, fifth, sixth, and seventh years from the date of the patent, £10 for each year. Before the expiration of the eighth and ninth years, £15 for each year. Before the expiration of the tenth, eleventh, twelfth, and thirteenth years, £20 for each year. C) Johnson's Patentee's Manual, 346; Crane v. Price, 1 W. P. 0. 5th ed. p. 18. 377. C) Sail V. Jarvis, 1 W. P. C. («) Boulton v. BuU, 1 Carp. 149 ; 100. Bussell V. Cowley, 1 W. P. C. 459. (<) Hill V. Thompson, 1 W. P. C. (') Muntz v. Forster, 2 W. P. C. 235. 103. (0 Spencer v. Jack, 3 De G. J. & S. («) 1 Web. P. C. 393. VOL. I. U 290 PERSONAL PROPERTY. [Book II. What is is," said the Lord Chancellor, in a case decided by the House of utility? Lords in 1881, " certainly authority for saying that an invention must be useful, although that word is not found in the statute. Baron Alderson once said if it was any use to the public, a new invention could not be said to be void for want of utility, and an admitted contribution to the useful arts of a new product can hardly be said to be of no use. I think what is so often referred to in patent cases as a ' laboratory experiment,' and as not admitting of the quality of utility, is intended to be applied to cases where really there is no product at all. Such an experiment proves the possibility of a product, but does not really practically produce one in such quantities and under such circumstances as reaUy to make it a product at all. The element of commercial pecuniary success has, as it appears to me, no relation to the question of utility in patent law gene- rally, though of course where the question is of improvement by reason of cheaper production, such a consideration is of tho very essence of the patent itself, and the thing claimed has not really been invented unless that condition is fulfilled " Q). " There cannot," as was said in a well-known case by Lord Abinger, " be a patent for applying a well-known thing which might be applied to 50,000 difierent purposes, for applying it to an operation which is exactly analogous to what was done before. It would be a very extraordinary thing to say, that because all mankind have been accustomed to eat soup with a spoon, that a man could take out a patent because he saj's you might eat peas with a spoon. Suppose a man invents a pair of scissors to cut cloth with, if the scissors were never invented before, he could take out a patent for it. If another man found he could cut silk with them, why should he take out a patent for that " ? (2) O Badische Anilin und Soda " Eoughening," said Lord Justice Fdbrik v. Levinstein, 12 App. Cas. Cotton, " is very old, and the rough- 710. ening of the stock of a gun is very (^) Be Losh's Patent. Losh v. old, and the twine on the handle of Hague, 1 W. P. C. 208. An interest- a cricket bat is of the same character, ing case with regard to what is fit The knob at the end is very old, and subject-matter for a patent was de- it is only putting on to the lawn- cided by the Court of Appeal in May, tennis bat that which is frequently 1889— Slazenfier v. Feltham, Cutler's on other handles somethiog like a Keporta of Patent Cases, vol. vi., walking-stick handle." " One's in- No. 17, p. 232— where the question stinct," added another of the judges, arose whether making grooves upon " rebels against the idea of extending the handle of a lawn tennis bat and the patent law to such things as this, the knob at the end to prevent the bearing in mind that the extension of slipping of the hand could be made the patent law to such a thing as the subject of a patent. The Court this, means that nobody can use such of Appeal decided, reversing the de- a thing as this unless he buys it of cision of North, J., that it could not. the patentee. There is a sort of Chap. VII.] PATENTS. 291 With regard to the question of what may be the subject of a What is patent, it must be borne in mind that there cannot be a patent P^t«itable? for a mere, or, as Lord Abinger expressed it, a " barren " principle. It must be clothed with a form and have given it body and substance in which the principle may live and produce the benefit which -you claim to result from it (i). The law with regard to " combinations " was very carefully Combina- reviewed by the Court of Appeal in a case decided in 1887, *'°°^- where it was pointed out that not only decided cases, but the reason of the case draw a broad distinction between combina- tions which are old as regards their elements, and old as regards the object to be attained, and combinations, which though old as regards the elements, are new as regards the mode of putting them together and new as regards the object to be attained (^). In this case it was pointed out that the object of the patent was not " putting fuel upon a fire, an act as old as it could be ; if not as old as Adam, as old as the time when Tubal Cain wrought in metal, or when Prometheus introduced fire to man- kind, but the automatic placing of coal on a fire by a peculiar process, and that that object was new." " With regard to combination, the question to be considered is, has the combination in substance been taken? Has the defendant, though not exactly taking the whole combination which has been patented, taken, by slight variations or by mechanical equivalents, the substance of it, so as to produce the same result by practically the same means ? " The rule of the Court on this subject, may be stated as follows : — " When the thing is wholly novel and one which has never been achieved before, the Court looks very narrowly and jealously on any other machine for effecting the same objects to see whether they are not colourable contrivances for evading that which has been done before. When the object itself is one which is not new, but the means only are new, the Court looks jealously at the claims of the inventor of the particular means seeking to limit the rights of the public at large for effecting that which has been commonly known to all the world long before " (f). rebellious feeling which is aroused intend to do it." by such a proposition. It is difiBcult (') Jupe v. Fratt, 1 W. P. 0. 145. to put it in language, because it is a Q) Proctor \. Bennis, 36 Ch. D. question of degree. It is an absurdity 740. Thomson y. Moore, 6 R. P.O. to ti-y and make out that that is a 426. thing which comes within the patent (^) Curtis v. Piatt, 3 Oh. D. 135, n. ; law. My view is very strong upon Clarice v. Adie, 2 App. Gas. 315 ; it although I feel a diflSculty in and see Lawson's Patent Act, 2nd ed. drawing the line ; and I do not p. 172. V 2 292 PERSONAL PROPERTY. [Book II. Publica- tion. Prior pub- lication. It is not competent to a man to take a well-known existing machine, and having made some small improvement to place that before the public, and say, " I have made a better machine." You must state clearly and distinctly what it is in which you say you have made an improvement (^). In a case decided in 1 889, in respect to a patent for improve- ments in weighing-machines, the law was summed up as follows by the Court of Appeal : — " A patentee is entitled to say, ' You must not take my exact combination.' He is entitled to say, ' You must not take a colourable imitation of my inven- tion.' He is entitled to say, 'You must not effect the same result by mechanical equivalents,' but he is not entitled to say, ' You must not attain the same result by mechanism which is practically different ' " (^). The consideration, said Lord Blackburn, for a patent is the communication to the public of a process that is new. If the public once becomes possessed of an invention by any means whatever, no subsequent patent for it can be granted, either to the true or first inventor himself, or any other person ; for the piiblic cannot be deprived of the right to use the invention, and a patentee of the invention could not give any consideration to the public for the grant, the public already possessing every- thing that he could give (^). The principle of the Court was well expressed by Grove, J., as follows :— " If the invention was in public use before, even by one person, the patent is bad. Mere private use in the closet, mere experimental working in a laboratory without publish- ing the invention, but keeping it a secret with a view possibly of a patent being taken out, would not invalidate it. But if it is once publicly used or sold in a shop, or publicly used in a carriage, or on the person, or in any such way, then the public have a right to it and the patent is bad " (*). The question of " prior publication " was very carefully con- sidered in the case of Harris v. Moihwell (^), which came before the Court of Appeal in 1887, and in which the prior authorities on the subject are reviewed. The facts of that case were as follows : " In December, 1878, and February, 1880, the speci- (') Per Lord Hatherley, in Harri- son V. Anderston Foundry Co., X App. Caa. 583. (^) Automatic Weighing Machine Co. V. Knight, 6 R. P. 0. 297, 309. (') Patterson v. Gas Light and Colce Co., 8 App. Cas. 239, 244, citing witii approval, Hindmaroh on Patents, p. 33. C) Young v. Rosenthal. 1 B. P. C. 29 32. (») 35 Oh. Div. 416. Chap. VII.] PATENTS. 293 fications, in the Gorman language, with drawings, of two Publica- patents taken out in Germany, were deposited and open for *''™" public inspection at the library of the Patent Office in London, and the journal published periodically by the Patent Commis- sioners, amongst the list of patents granted in Germany, contained entries of the particular patents, with a note in each case that the specifications as well as the list of applications might be consulted in the free public library of the office. The informa- tion supplied by the two German specifications was sufficient to enable a competent workman to put into practice the invention therein described Q). Under these circumstances the Court of Appeal in deciding that the patent was void, summed up the law on the subject to the following effect : — • Prima facie a patentee is not the first inventor, if before the date of his patent an intelligible description of his invention, either in English or in any other language commonly known in this country, was. known to exist in this country, either in the Patent Office or in any other public library to which persons in gearch of information on the subject would naturally go for information. But if it be proved that the foreign publication, although in a public library, was not in fact known to be there, the existence of the publication in this country is not fatal to the patent. Persons who may apply for a Patent. Any person, whether a British subject or not, may make Applica- application for a patent ; and if two or more persons make a ° "'■' joint application for a patent, a patent may be granted tathem jointly (^). A married woman, an infant, or a foreigner, may apply for and obtain the grant of a patent. The application must contain " a declaration to the effect that the applicant is in possession of an invention whereof he, or, in the case of a joint application, one or more fif the applicants claims or claim, to be the true and first inventor or inventors (^) ; and for which he or they desires or desire to obtain a patent, and must be accompanied by either a provisional or complete specification. The Comptroller is to refer every application to an examiner, who is to ascertain and report to him whether the nature of the application has been fairly described, and whether the (') Plimpton V. Malcolmson, 3 Trade Marks Act, 1883. Oil D. 531 ; Otto v. Steel, 31 Ch. D. (') Sect. 5. Patents, Designs, and 241. Trade Marks Act, 1883. (^) Sect. 4. Patents, Designs, and 294 PERSONAL PBOPEBTT. [Book II. application, specification, and drawings, are lodged in con- formity with the Patent Acts and rules. The Comptroller has power according to the report to refuse the application or require amendment. An appeal lies from the decision of the Comptroller to the Law Officer, i.e., the Attorney or Solicitor- General for the time heing (i). Who is a To determine who is, in any case, the " true and first "true and inyentor," we must have recourse to the judicial decisions ventor"? upon the meaning of these words in the proviso in favour of patents for inventions in sect. 6 of the Statute of Monopolies. These decisions were reviewed by the late Sir George Jessel, in a celebrated judgment, in the course of which he said : (^) " Shortly after the passing of the Statute of Monopolies, the question arose whether a man could be called a first and true inventor who, in the popular sense, had never invented anything, but who having learned abroad (that is out of the realm, in a foreign country, because it has been decided Scotland is within the realm for this purpose) that somebody else had invented something, quietly copied the invention and brought it over to this country, and then took out a patent. In the popular sense he had invented nothing. But it was decided, and now therefore is the legal sense and meaning of the statute, that he was a ' first and true inventor ' within the statute if the invention, being in other respects novel and useful, was not previously known in this country. ' Known ' being used in that particular sense as being part of what had been called the common or public knowledge of the country. That was the first thing. Then there was a second thing. Suppose there were two people, actual inventors, in this country who invented the same thing simultaneously, could either be said to be the true and first inventor ? It was decided that the man who first took out the patent was the first and true inventor. Then there was another point. If the man who took out the patent was not, in popular language, the first and true inventor, because somebody had invented it before but had not taken out a patent for it, would he still in law be the true and first inventor ? It was decided he would, provided the invention of the first inventor had been kept secret, or without being actually kept secret, had not been made known in such a way as to become (') Patents, Designs, and Trade accounted for to his satisfaction, to Marks Act, 1883, s. 7, sub-ss. 1, 2. cause a dnpUcate of it to be sealed. Sect. 37. The comptroller has power Q) Plimpton v. Malcolmson, 3 Ch. at any time, if a patent is lost or D. 531, 555. destroyed, or its non-production is Chap. VIL] PATENTS. 295 a part of the common knowledge or of the public stock of infor- mation. Therefore, in that case also, there was a person who was legally the first and true inventor, although, in common language, he was not, because one or more people had invented it before him but had not sufficiently disclosed it." Hence it appears that a " true and first inventor " within the meaning of the statute 2 James, c. 3, is : — (1) The actual inventor ; (2) The importer from abroad of a new manufacture ; Further a man may be a " true and first inventor," notwith- standing that he is assisted by workmen or others in his service in carrying his original conception into effect. Since the passing of the Patents, Designs, and Trade Marks Deceased Act of 1883, the legal representative of a person possessed of an inventors, invention who dies without making application for a patent, may, if application be made in the prescribed manner, within six months of the inventor's death, obtain a patent for his invention (^). The Specification. Every application for a patent must be accompanied by either Provisional a provisional or complete specification. specifica- The office of the provisional specification is to describe gene- rally and fairly the nature of the invention without entering into minute details as to the manner in which the invention is to be carried out. It must be accompanied by drawings if required (^). When accepted it gives provisional protection to an inventor, and enables him to improve or perfect by experi- ments his invention with a view to the filing of his complete specification so that he may be able to describe in the latter instrument the best mode known to him of practising his invention. A provisional specification, said Sir George Jessel, " was not intended to contain a complete description of the thing so as to enable any workman of ordinary skill to make it, but only to disclose the invention, fairly no doubt, but in its rough state, until the inventor could perfect its details" (f). (') The legal representative must 1890, makes the use of the form of declare in his application that he specification given in the 2nd Sche- believes the person whom he repre- dule to the rules compulsory, sents " to he the true and first in- Q) Perm v. Bibby, L. B. 2 Oh. 132 ; veutor of the invention." Bloxam v. Stonor v. Todd, 4 Oh. D. 58 ; In re EUee, 1 Web. P. 0. 132 ; Murter v. Newal and Elliot, i 0. B. (N. S.) Wells, 1 Web. P. C. 127. 293, cited in Siddell v. Vickers, 5 (2) Rule 6 of tlie Patent Rules, P. R. C. at p. 99. 296 PERSONAL PBOPSnTY. [Book II. A complete specification must particularly describe and ascertain the nature of the invention, and in what manner it is to be performed, and must be accompanied by drawings if required. The Act also declares that a specification, whether provisional or complete, must commence with the title and end with a distinct statement of the invention claimed (i). Complete j£ ^.j^g applicant does not leave a complete specification with specitica- *-^ . . , tion. his application, he may leave it at any subsequent time within nine months from the date of application, but unless a complete specification is left within that time the application is to be deemed to be abandoned. The time for hearing the complete specification may be extended for one month by the Comp- troller (2). The law with regard to discrepancies between the provi- sional and completed specification, has been well summed up as follows : — " If the complete specification sets out and claims an in- vention independent of that which is in the provisional specification, besides also describing that invention which is in the provisional specification, then the complete specification is bad. It would be equally bad if the invention described in the complete specification were a wholly difierent inven- tion from that described in the provisional specification, because, as has been said, the patent is not given them for the inven- tion which is described in the provisional specification. There- fore (I must try and say it again) if there were only one invention described in the provisional application, and only one in the complete specification, but those two inventions w^ere wholly and substantially diiferent, the patent would be bad. So if an invention is described in the provisional speci- fication, which invention is also desciibed in the complete specification, but in the complete specification another and distinct invention is described and claimed, then it is bad, because with regard to the second invention so described and claimed in the complete specification, there would be no pro- visional specification to cover it " (^). It was, however, decided in 1887 by the Court of Appeal (*) (') Patents, Designs, and Trade could make his invention intelligible Marks Act, 1883, s. 5, sub-ss. 4 and without them : Penn v. Bibby, L. K. 5. See form C. in the 2nd Schedule 2 Ch. 132. of Patent Rules, 1890, for the form C) Patents Act, 1885, b. 3. of complete specification to be em- (') Watling v. Stevens. K. Pat. ployed. Before the passing of Cases, vol. iii. p. 151. Patents, &e., Act, 1883, a patentee (*) Siddell v. Vickers, 39 Ch. D. was not compelled to illustrate his 92. Bpecification with drawings, if he Chap. VII.] PATEN18. 297 that the enactment that a complete specification must end with Complete a distinct statement of the invention claimed, is " directory ^p^^^''^" only, and that if letters patent have been granted, they will not be invalid because it has not been complied with." It was held also in the same case that the patent is not rendered invalid by the fact that the complete specification describes something different from anything specifically referred to in the pro- visional specification, provided that what is so described comes within the nature of the invention described in general terms in the provisional specification. " If," said Cotton, L. J., " both the modes described are really within the same invention, described though not minutely but in general terms in the provisional specification, then the patent will not be bad, simply because a different mode of carrying the same invention into operation is described in the complete specification, and even although that may be an improvement on what is described in his provisional specifica- tion ; because a patentee putting in a provisional speoificati6n shewing the nature of his invention is not bound to describe the way in which that can be carried into effect and operation, but if he does describe a way of doing it, and before he files his complete specification, he either finds out improvements in that way or a different way of carrying into effect that which is deticribed as his invention in the provisional specification, he is bound to give the public the benefit of what he has dis- covered as regards the mode of carrying the invention, the nature of which must be described in the provisional specifica- tion, into effect, even although there may be improvement and even invention which was not known to him at the time." Very great care is required in the preparation of a complete specification (^). The vagueness or generality of the provisional specification affords no ground for avoiding the patent, but the patent will be void unless the complete specification complies with the following conditions : — (a.) It must not only precisely describe and ascertain the nature of the invention, but it must also describe the mode in which the invention is to be practised (^) ; (&.) The mode in which the invention is to be performed must be so disclosed that a workman of ordinary intelligence, possessed of knowledge in the particular industry may, without invention, experiment, or addi- (') See Edmunds on Patents, pp. 1055 ; Rex v Whseler, 2 Bar. & Aid. 83, et seq. 354. C) Bailey v. Robertson, 3 App. Cas. 298 PERSONAL PBOFEBTT. [Book II. Construc- tion of specifica- tion. " Benevo- lent in- terpreta- tion." tion, construct the machine or produce the manufacture described in the specification Q) ; (c.) The invention, and the mode of carrying it out, must be so disclosed as to give the public the benefit of all the information acquired by the patentee in connection with his invention at the date of his complete specification (2) ; (d.") It must be free from ambiguity and equivocation, and must not mislead the public (8) ; (e.) It should distinguish what is new from what is old, and claim only what is new (*) ; (/.) The specification must end with a distinct statement of the invention claimed (^). This is usually carried out by short paragraphs called " claims " ; (g.^ The claim must not cover more than, or something different from, what is described in the specification, or something that is not workable (^) ; The construction of a specification is the province of the Court, but evidence will be heard in explanation of technical terms used in the arts, or phrases used in particular trades. The rules of construction applicable to specifiations a;re those applied to the interpretation of written instruments. The Court will, however, lean towards supporting a really new and useful invention ('). In a well-known case, the late Sir George Jessel laid down the principle on which the highest tribunals have repeatedly acted, in applying what was called a benevolent interpretation to specifications in certain cases : — " When the judges are convinced that there is a genuine, great, and important invention which, as in some cases, one might almost say produces a revolution in a given art or manu- facture, the judges are not to be astute to find defects in the specification ; but on the contrary, if it is possible, consistently with the ordinary rules of construction, to put such a construc- tion on the patent as will support it. They are to prefer that (') Neihon v. Harford, 8 M. & W. 806 ; Hex v. Wheeler, vbi supra ; Badische Anilin v. Levinstein, 12 App. Gas. 710. O Meg. V. Arlewriglit,! Web. P. C. 66 ; Lewis v. Marling, 10 B. & 0. 26. C) Crompton v. Ibhotson, 1 Web. P. 0. 83 ; Neihon v. Harford, ubi supra. (') Carpenter v. Smith, 1 Web. P. C. 532 ; Foxwell v. Bostock, i Be G. J. & S. 298; Clarh v. Adie, 2 App. Gas. 315. C) Patents Act, 1883, sect. 5, sub- sect. 5. C) Jordan v. Moore, L. E. 624 ; Mushton v. Crawley, 10 Eq. 517 ; Bloxam v. Elsee, 6 169. (') Harrison v. Anderson Co., 1 App. Gas. 581. IC. P. L. K. B.&O. Chap. VII.] PATENTS: 299 construction to another which might possibly commend itself to their minds if the patent was of little worth and of very little importance. There is, if I may say so, and I think there ought to be, a bias, as between two different constructions in favour of the real improvement and genuine invention to adopt that construction which supports an invention. Beyond that the rule ought not to go " (}). It must, however, be borne in mind that the great governing principle on which the Court proceeds IS simply to interpret the specification fairly. As was said by Lord Blackburn : " Whether it is for the interest of one side or the other, I apprehend the duty of the Court is fairly and truly to construe the specification, neither favouring the one side nor the other — neither putting an unfair gloss or con- struction upon the specification for the purpose of saving a patent if it is said that the patent is void, nor putting an unfair gloss or construction upon it in order to extend the patent and make it take in something which you may think was an unhandsome taking of the fruits of his invention from the patentee, if it is not really an infringement of the patent " (=). When the comptroller has received and accepted the complete Advertise- specification, he is to advertise its acceptance in the Illustrated ™^°'- Official Journal of Patents, and the application and specifica- tion, or specifications, with the drawings, if any, is to be open to public inspection (^). Any person may at any time within two months from the Opposition, date of the advertisement of the acceptance of a complete sijecification, give notice at the patent office of opposition to the grant of the patent on the following, but on no other, grounds : (1) on the ground of the applicant having obtained the inven- tion from him, or from a person of whom he is the legal repre- sentative; or (2) on the ground that the invention has been patented in this country on an application of prior date; or (3) on the ground that the complete specification describes or claims an invention other than that described in the provisional specification, and that such other invention forms the subject of an application made by the opponent in the interval between the leaving of the provisional specification and the leaving of the complete specification (^). (') Otto V. Linford, 46 L. T. (N.S.) Marks Act, 1883, s. 11, amended by 35^ 39. s. 4, Patenta, Designs, and Trade (2) Per Lord Blackburn in Dud- Marks Act, 1888. aeon v. Thomson, 3 App. Oas. 34. C) 51 & 52 Vict. c. 50, s. 4. (') Patents, Designs, and Trade 300 PERSONAL PROPERTY. [Book II. ment of patent. LiceDCes, Threats of legal pro- ceedings. A patent is invariably made expressly assignable by being granted to the patentee and his assigns. Patents may be assigned either by operation of law, as by death or bankruptcy, or by ordinary assignment. The assign- ment, if inter vivos, must be by deed. It bas been long established that upon a contract to assign a patent there is, in the absence of fraud, no implied warranty that the patentee was the first and true inventor (^). A patentee may assign his patent for any place in or part of the United Kingdom, or Isle of Man, as effectually as if the patent were originally granted to extend to that place or part only (2). Licences differ from assignments, inasmuch as in the cases of licences the patentee does not grant his whole interest, but merely the right to use the patent for the whole or part of the term, or for a district only, or indeed the licence maybe for the use of one part of the invention only. A new power, which however does not apply to patents granted before January, 1884, is conferred upon the Board of Trade of granting, on the petition of any person interested, compulsory licences in cases when it is proved that by reason of the default of a patentee to grant licences on reasonable terms, and that — (a) The patent is not being worked in the United Kingdom ; or (6) The reasonable requirements of the public with respect to the invention cannot be supplied ; or (c) Any person is prevented from working or using to the best advantage an invention of which he is possessed (3). A considerable change was made in 1883 in the law with regard to threats of legal proceedings for infringements of patents. The Act of 1883 provides that where any person claiming to be the patentee of an invention, by circulars, advertisements, or otherwise, threatens any other person with any legal pro- ceedings or liability in respect of any alleged manufacture, use, sale, or purchase of the invention, any person or persons aggrieved thereby may bring an action against him, and may obtain an injunction against the continuance of such threats, and may recover such damage (if any) as may have been C) Hall V. Conder, 2 C. B. (N.S.) 22 ; affirmed on appeal, 2 C. B. (N.8.) 67. Q) Patents, Designs, and Trade Marks Act, s. 36. (') Patents, Designs, and Trade Marks Act, 1883, s. 22. The order may be enforced by mandamus. There have been no compulsory licences granted under this section. Chap. VII.] PATENTS. 301 sustained thereby, if the alleged manufacture, use, sale, or purchase to which the threats related, was not, in fact, an infringement of any legal rights of the person making such threats : Provided that this section shall not apply if the person making such threats with due diligence commences and prosecutes an action for infringement of his patent (i). A considerable change is also made by the Act of 1883 with Rights of regard to the rights of the Crown in patents. It is now enacted ^^^ Crown. that a patent shall have, to all intents, the like effect as against her Majesty the Queen, her heirs and successors, as it has against a subject. The officers or authorities administering any department of the service of the Crown may, however, at any time after the application, use the invention for the services of the Crown on terms to be before or after the use thereof agreed on, with the approval of the Treasury, between those officers or authorities and the patentee, or, in default of such agreement, on such terms as may be settled by the Treasurj' after hearing all parties interested (^). In an action for infringement of a patent, the Court or a Certificate. judge may certify that the validity of the patent came in validity question ; and if the Court or a judge so certifies, then, in any subsequent action for infringement, the plaintiff in that action, on obtaining a final order or judgment in his favour, shall have his full costs, charges, and expenses as between solicitor and client, unless the Court or judge trying the action certifies that he ought not to have the same (^). A similar protection is now given to proprietors of registered trade-marks by the ISth section of the Act of 1888. With regard to the extension of the term of a patent the Act Extension of term, (') Patents, Designs, and Trade fides," Mr. Lawson says, " will ap- Marks Act, 1883, s. 32, and see as to parently henceforth be immaterial, the previous law : Halsey v. Brother- and the sole question wiU be ' aye or hood, 19 Ch. D. 386, affirming deci- no,' is there an infringement of any sion of Jessel, M.E., 15 Ch. D. 514 legal rights of the person making the (where the law as to slander of title, threats " : Lawson's Patent Acts, post, p. 471, is discussed), and on 2nd ed. p. 255. the present section : Sugg v. Bray, (^) Patents, Designs, and Trade 2 E. P. 0. 224; Kurtz v. Spence, Marks Act, 1883, ». 27. This does 5 K. P. C. 161 ; Ohallender v. Moyle, not apply to existing patents on 1st 36 Ch. D. 425 ; Combined Weighing January, 1884, or patents granted or and Advertising Co. v. Automatic applications pending : sect. 45, sub- Weighing Machine Co., 42 Ch. D. 665 ; sect. 2. See as to the previous law : Burney v. United Telephone Co., 28 Feather v. The Queen, 6 B. & S. 257 ; Ch. D. 94 ; Fusee Vesta Co. v. Bryant Dixon v. London Small Arms Co., 6 May, 4 K. P. C. 191 ; Colley v. 1 App. Gas. 632. Sart, 44 Ch. D. 179. "If the (') Patents, Designs, and Trade patentee who threatens, declines to Marks Act, 1883, s. 31. bring an action, the question of bona 302 PERSONAL PROPERTY. [Book II. Amend- ment of specifica- tion. provides that a patentee may, after due advertisement, present a petition to lier Majesty in Council praying that his patent may be extended for a further term ; such petition must be presented at least six months before the time limited for the expiration oi the patent. If the Judicial Committee of the Privy Council, who examine the merits of this petition, report that, having regard to all the circumstances, the patentee has been inade- quately remunerated by his patent, an extension of the term of the patent may be granted for a further time not exceeding seven years, or, in exceptional cases, to fourteen years, or a new patent may be granted for the term therein named, with such conditions, restrictions, and provisions as the Judicial Committee may think fit Q-'). An applicant or a patentee may from time to time, on com- plying with the prescribed conditions, obtain leave to amend his specification, including drawings forming part of it, by way of " disclaimer, correction, or explanation " (^). The Court has also power in an action for infringement of a patent, and in a proceeding for revocation of a patent, at any time to order that the patentee shall, subject to terms as to costs and otherwise, be at liberty to apply at the Patent Office for leave to amend his specification by way of disclaimer, and may meanwhile postpone the trial (^). Petition for revocation. Eevocation. The old action of scire facias for the revocation of patents had fallen into disuse, and was abolished by the Patent Act of 1883 (*). Eevocation of a patent may now be obtained on petition to the Court, and every ground on which a patent might at the (') Patent Act, 1883, a. 25, buIj-ss. 1,5. C^) Patent Act, 1883, s. 18 (1). Q) Patent Act, 1883, s. 19. A re- striction on the recovery of damages is introduced by sect. 20 of the Act of 1883, -which enacts that when an amendment by way of disclaimer, correction, or explanation, has been allowed under the Act, no damages shall be given in any action in respect of the use of the invention before the disclaimer, correction, or explanation, unless the patentee establishes to the satisfaction of the Court that his original claim was framed in good faith and with reason- able skill and knowledge. The exhibition, &c., of an invention at an industrial or international ex- hibition, either in or out of the United Kingdom, certified as such by the Board of Trade, if the con- ditions prescribed by the Act are complied with, does not prejudice patent rights. (Patents, Designs, and Trade Marks Act, 1883, s. 39, amended by sect. 3 of the Act of 1886.) (') Patents, Designs, and Ti-ade Marks Act, 1883, s. 26. It was decided in Morgan's Patent, 5 E. P. C. 186, that a petitioner being qualified to present a petition was entitled to impeach the patent on any lawful ground. Chap. VIL] PATENTS. -303 commeTicement of the Act be repealed by scire facias, is still available by way of defence to an action of infringement, and is also a ground of revocation. A petition for revocation of a patent may be presented by (a) The Attorney-General in England or Ireland, or the Lord Advocate in Scotland. (6) Any person authorized by the Attorney-G-eneral in England or Ireland, or the Lord Advocate in Scotland. (c) Any person alleging that the patent was obtained in fraud of his rights, or of the rights of any person under or through whom he claims. (d) Any person alleging that he or any person through whom he claims was the true inventor of any invention included in the claim of the patentee (^). (e) Any person alleging that he or any person under or through whom he claims an interest in any trade, business, or manufacture, had publicly manufactured, used, or sold within this realm, before the date of the patent, anything claimed by the patentee as his invention. The plaintiff must deliver with his petition particulars of the objections on which he means to relj', and no evidence shall, except by leave of the Court or a judge, be admitted in proof of any objection of which particulars are not so delivered (^). Where a patent has been revoked on the ground of fraud, the comptroller may, on due application by the true inventor, grant to him a patent in lieu of and bearing the same date as the date of the revocation of the patent so revoked, but the patent so granted shall cease on the expiration of the term for which the revoked patent was granted (5). A register of patent agents has been established, and it has Register of been enacted that after 1st July, 1889, no person shall be P*'«"''*- entitled to describe himself as a patent agent, whether by advertisement, by description on his place of business, by any document issued by him, or otherwise, unless he is registered as a patent agent in pursuance of the Act (*). (■) See as to practice where the thereto, respondent is outside the jurisdiction : C) Patent, &o.. Act, 1888, s. 7. Be Drummond's Patent, 43 Ch. D. 80. See as to actions in respect to patents, P) Patent Act, 1883, s. 26, sub-s. 5. VanGelder,&c.Y.SowerbyBridge,&c., (2) Patent Act, 1883, S.26, sub-s. 8. Society, 44 Ch. D. 374 (parties); This is a new provision, the law prior Longbuttom v. Sliaw, 43 Oh. D, 46 ; to 1883 gave povrer for the revocation Garrard v. Edge, 44 Ch. D. 224 (par- of a patent obtained in fraud of the ticulars of objections) ; American first and true inventor, but it did not Braided Wire Go. v. Thomson & Co., prescribe any means of vesting the 44 Ch. D. 274 (as to measure of patent rights in the person entitled " ^ ( 304 ) Statutes and rules. Definition. Definition of proprie- tor. CHAPTEE VIII. Designs. The law with regard to designs is now governed by the Patents, Designs, and Trade Marks Act, 1883 Q) (which repeals the earlier statutes (^) dealing with the subject), as amended by the Acts of 1886 and 1888 (^), and the rules thereunder, and these three Acts are to be collectively cited " as the Patents, Designs, and Trade Marks Acts, 1883 to 1888." By the sixtieth section of the Patents, Designs, and Trade Marks Acts, 1883, a design is defined to mean any design appli- cable to any article of manufactufe or to any substance artificial or natural, whether the design is applicable for the pattern or for the shape, or configuration, or for the ornament thereof, or for any two or more of such purposes, and by whatever means it is applicable, whether by printing, painting, embroidering, engraving, staining, or any other means whatever, manual, mechanical or chemical, separate or combined, not being a de- sign for a sculpture or other thing within the protection of the Sculpture Copyright Act of the year 1814 (54 Geo. 3, c. 66) (*). This statutory definition requires to be somewhat supple- mented by the decisions under the former law. From these we learn that a design is that which imports among other things variations in old forms in respect of size, configuration, colour and other qualities ; but where size may introduce novelty in some parts of a design it may not do so in others. Configuration may constitute a new design, for where there is alteration of proportions that may be a new design (^). The term " proprietor " of a design is defined by the Act to include four classes of persons (^). (1) The author of a new and original design, unless he exe- cutt d the work on behalf of another person for good or valuable C) 46 & 47 Vict. c. 57. (2) 5 & ft Viot. c. 100 ; 6 & 7 Vict. c. 65 ; 21 & 22 Vict. o. 70 ; 24 & 25 Vict. c. 73 ; and 38 & 39 Vict. c. 93. Q) 49 & 50 Vict. 0. 33; 51 & 52 Vict. 0. 50. (*") This definition is nearly the same as that of 5 & 6 Vict. c. 100. (=) Barrison v. Taylor, 5 Jur. (N. S.) 1219. C) Sect. 61. Chap. VIII.] DESIGNS. 305 consideration, in which case (2) such other person shall be con- Proprietor, sidered the proprietor ; (3) any person who acquires a new and original design for a good or valuable consideration, and the right to apply it either exclusively or otherwise, and (4) every person on whom the property in such design or such right to the application thereof shall devolve. Thus, in a case where a foreign company authorized their agent to register certain designs in his own name, but did not assign to him the designs or the right to apply the same to the goods, the Court held that the agent was not the proprietor, and that the registration being wrongful must be expunged (i). In order that a design should be entitled to be registered it Origin- must be original. In a case which was heard soon after the ^ ' ^" Act came into operation, and where the design was as to the shape of collars, the Court of Appeal said ; " In order to justify the registration of a design, especially with reference to such matters as collars, and other articles of dress which are in con- stant and daily use, there must, according to my view of the case, be some clearly marked and defined difference between that which is to be registered as a new design and that which has gone before " (^). It was also pointed out in the same case, that " it was not every mere difference of cut, every change of outline, every change of length or breadth or configuration, which constituted novelty of design.'' It has been decided that where a design has been registered in one or more of the classes of goods for a particular article of a certain material, a similar design cannot be registered by another person in another class for a similar article made of a different material, as not being "new and original " within the meaning of the Patents, Designs, and Trade Marks Act, 1883 (3). In a very recent case in the Scotch Courts the judge said that the standard to which an inventor must attain in order to have legal protection, is in no case a high one, and that there need be no artistic merit. In this case it was decided that a mould- ing for an oven door, the chief improvement of which was the cutting of the comers, so that it fitted, as to the moulding or the oven itself, was sufficiently novel and original to entitle the proprietor to protection (^). (') In re Guitaman's Registered Q) In re Read and Greswell's Design, 55 L. J. Ch. 309. Design, 42 Ch. D. 260. C) Le May v. Welch, 28 Ch. Div. C) Walker, Hunter & Co. v. Fal- 24, 33 ; Smith v. Hope, 6 K. P. C. kirk Iron Co., 4 E. F. Caa. 390 ; af- 200. firmed, 14 App. Cas. 550. VOL. I. X 306 FEB BON AL PROPERTY. [Book II. A design also must not have been previously published, and in a recent case where a man had shown a design to his agent, and that agent had shown it to two customers, it was held that there had been such a publication as to disentitle the plaintiffs to registration (^). The applicant must state, (a) the nature of the design ; (6) the class or classes of goods (2) in which he desires the design to be registered, and (c) he must also furnish a sketch or drawing, or three exactly similiar drawings, photographs or tracings of the design, or three specimens of the design to the comptroller, and if such drawings, &c., are not delivered on the application, they must be delivered before any sale of the article after registration (f). There are fourteen classes of goods in which designs may be registered, and in case of doubt the comptroller is the judge of the class to which they belong (*). The comptroller, if he accepts the design, grants a certificate, and when the design is registered, the proprietor of such design has a copyright therein for five years f^). The comptroller is on registration to enter on the register the name, address and description of the registered proprietor, and the date upon which the application was received, which day is to be deemed to be the date of registration (^). (') Slanlc V. Footman, Pretty & 12. Goods not included in other Co., 39 Ch. D. 678 ; following Ham- classes. jjAersowT./Sai/er, 4Eep. Pat. Gas. il3. 13. Printed or woven designs on (^) The classes into which goods textile piece goods, are divided for the purposes of regis- 14. Printed or woven designs on tering designs are as follows : — handkerchiefs and shawls. Design 1. Articles composed wholly of Kules, Dec. 1883, Sehed. 3. metal not included in Class 2. The comptroller may refuse to re- 2. Jewellery. gister any design presented to him, 3. Articles composed wholly or but must give the applicant ten partly of wood, bone, ivory, papier days' notice of the time when he can mache', or other solid substances, not be heard, and the applicant shall included in other classes. then give five days' notice that he i. Articles composed wholly or wishes to be heard, and the comp- partlyof glass, earthenware, or poroe- troller must therefore give notice to lain, bricks, tiles, or cement. the applicant of the day upon which 5. Articles composed wholly or he will hear him or his agent. The partly of paper (except hangings). decision of the comptroller is subject 6. Articles composed wholly or to an appeal to the Board of Trade, a partly of leather, including book- notice of which must be given within binding of all materials. one month of the decision, aocom- 7. Paper hangings. panied by a statement of the grounds 8. Carpets and rugs in all ma- of appeal; and of the applicant's case terials, floorcloths and oilcloths. in support thereof : 46 & 47 Vict. c. 9. Lace and hosiery. 57, s. 47 ; Design Eules, 13, et seq. 10. Millinery and wearing apparel, (0 Sect. 48 and Eule 9. Sect. 50. including boots and shoes. ('') Sect. 47. 11. Ornamental needlework on (') Sects. 49 and 50. muslin or other textile fabrics. (°) Eule 21. Chap. VIIL] DESIGNS. 307 No article to whioh a registered design has been applied is to be sold or delivered on sale until such article has been stamped under classes one to twelve inclusive, with the abbreviation E'', and in the two remaining classes with Eegd (^). If this is not done, the proprietor of the design loses all right thereto. Every piece sold must be marked in some way or other with the mark required, either by stamping the article itself, or as was pointed out in a recent case (2), " by tying on a label, or, by printing something on the packet in which the article is." The proprietor, however, is not bound to mark anything but that which he sells. A book called, " The Eegister of Designs " is to be kept at Register, the Patent Office, in which the comptroller must enter the names and addresses of propiietors of registered designs, notifications of assignments, and of transmission of registered designs and other matters, and such register is to be prima facie evidence of any matters directed or authorized by the Act to be entered therein (3). The Act provides that any person who, without the licence of the registered proprietor, shall apply or cause to be applied (*), such design, or obvious imitation thereof, to any article of manufacture shall be liable to a penalty for every offence of a sum not exceeding £60, but that the total sum to be recovered in respect of anyone design shall not exceed £100 (*). The same penalty is also imposed upon any one for publishing or selling the articles with the fraudulent design upon them, but the person who sells must know that such design has been fraudulently used, and therefore it is requisite to give him notice (^). Besides this remedy, the Act provides another by way of damages, if the person whose design has been imitated elects to bring an action for the recovery of any damages arising from (') 46 & 47 Vict. c. 57, s. 51 and such information as may enable Mm Kiile 32. to identify the design, and a pay- (^) Blanh v. Footman, Pretty & ment of the prescribed fee, is to be Co., 39 Ch. Div. 678. So long as informed whether the registration in the copyright in a design exists, no such design still exists, and in what one but the proprietor and any one class or classes of goods It is regis- duly authorized by him, or some one tered, and who is the registered pro- whose design has been refused re- prietor of such design : sect. 53 cf gistratiou by the comptroller, on the Act of 1883. ground of its similarity with a regis- (') Sect. 55 of Act of 1883. tered design, shall be entitled to in- (•■) See on infringement : M'Grea speot the design : sect. 52 of Act of v. Holdsworth, L. E. 6 Ch. App. 419. 1883, and sect. 6 of Amending Act, (*) Sect. 58 as amended by sect. 7 1888. of Act of 1888. But any person who applies to the (') Halsey v. Brotherhood, 15 comptroller and furnishes him with Ch. Div. 414. X 2 308 PERSONAL PBOFERTY. [Book H. the application of any such design, or of any fraudulent or obvious imitation thereof for the purpose of sale, to any article of manufacture or substance, or from the publication, sale, or exposure for sale by any person of any article or substance to which such design or any fraudulent or obvious imitation thereof shall have been so applied, such person knowing that the proprietor had not given his consent to such application (i). (') Sect. 59. See as to registra- The following is the list of fees tion after exhibition, sect. 58 of Act prescribed by 1st Schedule to the of 1883, extended to exhibitions Rules : — abroad by sect. 3 of Act of 1886. £ a. d. 1. On application to register one design to be applied to single articles in each class, except Classes 13 and 14 . . . 10 2. On application to register one design to be applied to single articles in Classes 13 and 14 . . . . .-.010 3. On application to register one design to be applied to a set of articles for each class of registration . . . . .10 4. On notice of appeal to Board of Trade against refusal of comp- troller to register . . . . . .■. .100 5. Copy of certificate of registration, each copy . . .010 6. On request for certificate of comptroller for legal proceedings or other special purposes . . . . . . .050 7. On request to enter name of subsequent proprietor . j ^TSion^fre'^' 8. On notice to comptroller of intended exhibition of an unregis- tered design 050 9. Inspection of design of which copyright has expired, for each quarter of an hour . . . . . . . .010 10. Copy of one such design [Z^e^^' 11. On request to correct clerical error . . . . .050 12.5 On request for search under sect. 53 . . . . .050 13. On request to enter new address . . . . .050 14. For office copy every 100 words, but never less than Is. .004 ( 309 ) CHAPTER IX. Trade-marks and Trade Names. The law with regard to trade-marks first received what may statutes he called statutory recognition in the Trade Marks Act of 1876. and ru'«s- This statute is now superseded by the Patents, Designs, and Trade Marks Act, 1883, amended by the Act of 1885 and by the Acts of 1886 and 1888 ; and it is by these Acts and the various rules from time to time made pursuant to their provisions, the last being the Trade Mark Eules, 1890, that the law of trade- marks is now governed. The Acts may be cited collectively as " the Patents, Designs, and Trade Marks Acts, 1883 to 1888." The original foundation of the whole law with regard to the trade-marks is as stated in the judgment of the House of Lords in a celebrated case (}), based on the principle that when one knowing that goods are not made by a particular trader sells them as and for the goods of that trader, he does that which injures that trader. At first it was put upon the ground that he did so when he sold inferior goods as and for the traders, but it is established alike at law and in equity that it is an actionable injury to pass off goods known not to be the plaintiff's as and for the plaintiff's even though not inferior. " The modes in which goods may be passed off as and for the plaintiff's vary. The most usual is where a particular mark on the goods or on the packages in which they are sold has been used to denote that they are made by a particular firm to such an extent that it is understood in the market to bear that meaning. The law as to those trade-marks is now regulated by statutes, but before there was any legislation on the subject it was well settled that when any one adopted a mark so closely resembling the trade-mark of the plaintiff that it would be likely to be mistaken for it, and put it on his goods and sold them knowing that though the persons to whom he sold them were well aware that they were not the plaintiff's make, yet that they were meant to be sold to others who would see only the trade- mark and were likely to be deceived by its resem- (') Singer Manufacturing Co. v. Loog, 8 App. Cas. 15, 29. 310 PEBSONAL PROPERTT. [Book II. blan.ce to tliat of the plaintiff, lie might be properly fotmd to have knowingly and fraudulently sold the goods as and for the plaintiff's goods. And so far there was no differerfce between law and equity. But at law it was necessary to prove that an injury had been actually done. In equity it was enough to show that the defendants threatened to do, and would, if not prevented, do that injury " (i). Principle The principle of the law is also admirably stated by Lord of the law. Langdale in the well-known case of Croft v. Bay (^). No man has a right to sell his own goods as the goods of another. Tou may express the same principle in different forms, and say that no man has a right to dress himself in colours or adopt and bear symbols to which he has no peculiar or exclusive right, and thereby personate another person for the purpose of inducing the public to suppose that he is that other person, or that he is connected with and selling the manufacture of such other person, while he is really selling his own. It is perfectly manifest that to do these things is to commit a fraud, and a very gross fraud. In a very recent case before the Privy Council the common law right of a man to have protection for his trade-mark was raised. In Malta there is no statute regulating trade-marks, and the mark sought to be protected was " Kaisar-i-Hind," applied to a certain kind of cigarettes, and Lord Watson, in delivering the judgment of the Privy Council, says : In Malta there is no law or statute establishing the registration of trade- marks, and no authority exists from whom an exclusive right to a particular trade-mark can be obtained. The rights of the parties to this cause are therefore dependent upon the general principles of the commercial law. These principles have been very fully illustrated and explained by several cases in the House of Lords ('), all of which were cases which arose before the passing of the first Trade Marks Eegistration Act in the year 1875. In the first of these cases the interest which a merchant or manufacturer has in the trade-mark which he uses (') Singer Manufacturing Co. v. & Martin had been adopted for the Loog, 8 App. Cas. 15, 29. purpose of representing and holding (^) 7 Beav. 84. In this case the firm out to the public that it was the old of Day & Martin, the blacking manu- firm of Day & Martin : Merchant faeturers in Holborn — though there Banldng Co. of London v. Merchants was no longer either a. Day or a Joint Stock Bank, 9 Ch. Div. 560 ; Martin, as in the original firm, both Turton v. Turton, 42 Ch. Div. 128. being long since dead — was held en- (^) Leather Cloth Co., Lim. v. titled to restrain a rea? Day and a reaZ American Leather Cloth Co., Lim., 11 Martin from trading under the name H. L. C. 538 ; Wotherspoon v. Currie, of Lay & Martin ; the reason for the 5 H. L. 508; Johnston & Co v. Orr iniimction being that the name of Day Eicing & Co ,1 App. Cas. 219. of trade- mark. Chap. IX.] TBADE-MABK8 AND TRADE NAMES. 311 was thus defined by Lord Cranworth: "The right which a manufacturer has in his trade-raark is the exclusive right to use it for the purpose of indicating where, or by whom, or at what manufactory the article to which it is affixed was manufactured." As soon, therefore, as a trade-mark has been so employed in the market as to indicate to purchasers that the goods to which it is attached are the manufacture of a particular firm, it becomes, to that extent, the exclusive property of the firm, and no one else has a right to copy it, or even to appropriate any part of it, if by such appropriation unwary purchasers may be induced to believe that they are getting goods which were made by the firm to whom the trade-mark belongs (i). What is the statutory definition of a trade-mark ? It is now Definition provided by sect. 10 of the Patents, Designs, and Trade Marks Act of 1888, amending sect. 64 of the Act of 1883, that "a trade-mark must, for the purposes of the Act, consist of or con- tain at least one of the following essential particulars : — " (a) A name of an individual or firm printed, impressed, or woven in some particular and distinctive manner ; or " (6) A written signature, or copy of a written signature, of the individual or firm applying for registration thereof as a trade-mark ; or "(c) A distinctive device, mark, brand, heading, label, or ticket; or " (d) An invented word or invented words ; or " (e) A word or words having no reference to the character or quality of the goods, and not being a geographical name. " (2.) There may be added to any one or more of the essential particulars mentioned in this section any letters, words, or figures, or combination of letters, words, or figures, or of any of them, but the applicant for registration of any such additional matter must state in his application the essential particulars of the trade-mark, and must disclaim in his application any right to the exclusive use of the added matter, and a copy of the statement and disclaimer shall be entered on the register. " (3.) Provided as follows : " (i.) A person need not under this section disclaim his own name, or the foreign equivalent thereof, or his place of business, but no entry of any such name shall affect the right of any owner of the same name to use that name or the foreign equivalent thereof ; (') Someruilh v. Schembri, 12 App. Cas. 453, at pp. 156, 457. 312 PERSONAL PROPEBTT. [Book II. "(ii.) Any special and distinctiye word or woTds, letter, figure, or combination of letters or figures, or of letters and figures, used as a trade-mark before the 13th day of August, 1875, may be registered as a trade-mark under this part of this Act." Jeneial " The general object of the Trade Marks Acts is not to give objects of new rights, but to place restrictions on the bringing of actions ^'^^' for infringement of trade-marks, by requiring that a trade-mark shall be registered before any action to prevent its infringement can be brought " (^). By the Act of 1883, " a fancy word or words " was entitled to be registered for the first time. The question then arose what word or words should be considered as " a fancy word or words '' (2). In a leading case on the subject one of the judges of the Court of Appeal said : " I think a word to be a fancy word must be obviously meaningless as applied to the article in ques- tion. I think it must be a word fanciful in its application to the article to which it is applied, in the sense of being so obviously and notoriously inappropriate as neither to be deceptive nor de- scriptive, nor calculated to suggest deception or description ('). The difficult expression, " fancy word or fancy words," has now, however, been omitted from the Act of 1888, and the words, " an invented word or invented words, a word or words having no reference to the character or quality of the goods, and not being a geographical name " have been inserted in their stead. • "Three Soon after the passing of the Act of 1875 it was found that ^, u ^ many marks were used by two or more individuals, and this gave rise to the promulgation of what is called the " Three Marks" rule, which has now been embodied in the Patents, Designs, and Trade Marks Act, 1883, sect. 74 (3) of which pro- vides " that any device, mark, brand, heading, label, ticket, letter, word, figure, or combination of letters, words, or figures which was or were before the 13th day of August, 1875, publicly (■) Edwards v. Dennis, 30 Ch. Div. and In re Leafs Trade-mark, 34 454, 470, decided on the Acta of 1875 Ch. Div. 623. and 1876. It has been decided on (') Under the Act of 1883, the B. 77 of the Act of 1883 (re-enacting word " gem " (7)i re Arbenz' Applica- B. I of Act of 1875, as amended by Act Hon, 35 Ch. Div. 248), and tlie word of 1876), that when a trade-iuark " reverai " (In re Waterman's Trade- haa been registered an aaaigoee of mark, 39 Oh. Div. 29), were held to the registered proprietor can bring be bad. The common name of an an action to prevent the use of the article in a foreign European coun- tvade-mark without having registered try is not a trade-mark in England : the assignment : Ihlee v. Henshaw, Davis & Co. v. Stribolt & Co., 6 R. P. C. 31 Ch. D. 323. 207. (^) III re Van Duzer's Trade-mark, Chap. IX.] TBADE-MABK8 AND TRADE NAMES. 313 used by raore than three persons on the same or a similar description of goods shall, for the purposes of this section, be deemed common to the trade in such goods." Important restrictions are placed by the Patents, Designs, Eegistra- and Trade Marks Acts on the registration of trade-marks. ^J"^". The comptroller shall not register with respect to the same marks, goods, or description of goods, a trade-mark having such resemblance to a trade-mark already on the register with respect to such goods, or description of goods, as to he calculated to deceive, and as pointed out by Jessel, M.E., these words are directed against that which is " deceptive in itself, something representing the goods to be that which they are not, for the purpose of deception " (i). It is also enacted that it shall not be lawful to register as part of, or in combination with, a trade-mark, any words the use of which would, by reason of their being calculated to deceive or otherwise, be deemed disentitled to protection in a Court of justice, or any scandalous design (2). In a case decided in 1890 (^), a question arose with regard to the registration of " Fruit Salt " as part of a trade-mark. It had been for many years used as a trade-mark for an effer- vescing drink, and the point to be decided was whether it could be registered as a trade-mark for a baking powder. The House of Lords decided that, although the present trade- mark was for a totally different article, it was yet calculated to deceive, and that registration must be refused. " In register- ing trade-marks," it was said, "the principle that the protection of the Court ought not to be extended ought to be applied without any qualification whatever. The comptroller, to whom in the first instance is committed the ' discretionary power ' of registering a trade-mark, ought to reject words which involve a misleading allusion or suggestion of that which is not strictly true, as well as words which contain a gross and palpable falsehood." Before the passing of the Trade Marks Act of 1875, letters were regarded as good trade-marks, and the fraudulent use of (') Patents, Designs, and Trade (') Eno v. Dunn, 15 App. Cas. Marks Act, 1883, s. 72, sub-s. 2, as 252; anH seethe Australimi Wine Im- amended by s. 14 of Act of 1888 ; Re porters, Limited, 41 Ch. D. 278, where Horsburgh's Trade Mark, 53 L. J. Cbi. registration of " Golden FJeece " was 237. refused. It was laid down in this C) Patents, Designs and Trade case that the Court has no jurisdic- Marts Act, 1883, s. 73, as amended tion to order an unsuccessful appli- by the Patents, Designs, and Trade cant to pay the costs incurred by the Marks Act, 1888, s. 15, by the omis- opponent before the Comptroller, sion of the word exclusive. tion, 314 PERSONAL PROPEBTY. [Book U. them was restrained (i), tut since then, and now, by the defini- tion given in the amending Act of 1888, letters do not and cannot form part of a trade-mark, but may be added to it, and registered with it (2). Registra- It has been enacted that the registration of a person as proprietor of a trade-mark is now prima facie evidence of his right to exclusive use of the trade-mark, and after the expiration of five years from the date of registration conclusive evidence of his right to the exclusive use of the trade-mark, subject however to the provisions of this Act Q). This section is no bar to having the mark removed from the register if it was a mark which ought never to have been put on, although the mark may have been there for more than five years. In Be Palmer's Trade MarJc (*), it was held that a mark which is not authorized to be registered as a trade-mark, does not acquire the character of a trade-mark by being on the register for five years, and may be removed from the register though that period has elapsed. Is there property in a trade-mark? Lord Hardwicke, in 1742 (^), seems plainly to have considered that there was not, but modern cases (*) have fully established that there is. In a case decided in 1863 ('), Lord Westbury says, a trade-mark consists in the exclusive right to the use of some name or symbol — and such exclusive right is property, and in a case decided in 1887 (^), it was held that libel in relation to a trade-mark was an injury to property, for which an action could be continued after the plaintiff's death. It has been decided by the House of Lords, that in an action for infringement of a trade-mark it is not necessary to prove fraud on the part of the defendant. " I wish," said Lord Cairns, "to state in the most distinct manner that in my opinion fraud is not necessary to be proved in order to obtain protection for a trade-mark. A man may take the trade-mark of another ignorantly, not knowing it was the trade-mark of the other; or he may take it in the belief, mistaken but sincerely entertained, that in the manner in which he is taking (') Millington v. Fox, 3 My. & Or. hert, 32 Ch. D. 247. 338 ; Kindhan v. Bolton, 15 Ir. Ch. C") Blanchard v. HUl, 2 Atk. 484 75 (L. L. Whiskey). («) Millington v. Fox, 3 My. & Cr. C) Patents, Designs, and Trade 338. Marks Act, 1888, =. 10. (') Ball v. Barrows, 4 De G. J. & (^) Patents, &c.. Act, 1S83, s. 76. S. 150. (*) Be Palmei^s Trade Marie, 21 («) Ilatelmrd v. Mege, 18 Q. B. D P ;^P"-^'' • ^^ ^™S3'» ''™<''' ^<^^^'^ at PP- 776, 777, citing Wotlwrgpoon v. 29Ch.D. 551; In re Edward' s Trade Currie, L. E. 5 H. L. 508- and see Marie, 30 Ch. D. 454 ; Wood v. Lam- Oakey v. Valfon, 35 Ch. D 700 Chap. IX.] TBABE-MABKS AND TRADE NAMES. 315 it, he is within the law, and doing nothing which the law forbids ; or he may take it knowing it is the trade-mark of his neighbour, and intending and desiring to injure his neighbour by so doing. The action of the Court must depend upon the right of the plaintiff and the injury done to that right" Q'). A trade-mark is assignable like any other property, but Assign- since by its very nature it relates to special goods, so it can be '"<=°' "^ assigned only in connection with the goodwill of the business mlik. concerned in such goods. The assignment may be registered and the assignee registered as the proprietor (^). Under the old law, before a trade-mark could be sued upon, it must have been used upon some goods which were vendible articles in the market (^), but now, by the Act of 1888 (^), application for registration of a trade-mark is to be deemed equivalent to public use of the trade-mark, and the date of the application shall, for the purposes of this Act, be deemed to be as and from the 1st of January, 1876, to have been the date of registration. Sect. 77 of the Patents, Designs, and Trade Marks Act, enacts, " a person shall not be entitled to institute any proceeding to prevent or to recover damages for the infringement of a trade-mark unless, in the case of a trade-mark capable of being legistered under this Act, it has been registered in pursuance of this Act, or of an enactment repealed by this Act, or, in the case of any other trade-mark in use before the thirteenth of August, one thousand eight hundred and seventy-five, registra- tion thereof under this part of this Act, or of any enactment repealed by this Act, has been refused." This section makes a considerable alteration in the law. Eegistration as a pre- liminary to suing is required in all cases of trade-marks capable of being registered under this Act, while a certificate of refusal of registration is sufficient only in cases of " any other trade-marh in use before the 13th August, 1875" (^). The Act provides with regard to " Sheffield marks," that the Cutlers' Company is to establish and keep at Sheffield a register of trade-marks, called the Sheffield Eegister, so as to enter all trade-marks on metal goods granted to persons carrying on (') Singer Manufacturing Co. v. (0 McAndrews v. Barret, 4 De G. Wilson, S App. Cas. 3, 6. J. & S. 384. (') Patents, Designs, and Trade ('') Sect. 17 of the Patents, Designs, Marirs Act, 1883, ss. 70, 87, as and Trade Marks Act, 1888, repeal- amended by sect. 21 of Act of 1888. ing sect. 75 of 1883 ; and see In re Trade-marks registered as a series Hudson's Trade Mark, 32 Ch. D. 311, can only be transmitted as a whole : decided on the previous law. sect. 66 of Act of 1883. C) 46 & 47 Vict. c. 57, s. 77. 316 PEBSONAL PBOPEBTY. [Book II. business in Hallamshire, or witHn six miles thereof, and shall also enter in the same Eegister all trade-marks which shall have been assigned by the Cutlers' Company and actually used before the 1st of January, 1884 (i). Trade-marks have the same term of life prescribed for them by the Legislature as patents, viz. fourteen years, but they differ from patents in this respect, that while the life of a patent, as we have previously seen, can only be prolonged on special grounds, the Act provides that a trade-mark may be renewed, as a matter of course, at the expiration of every fourteen years. Certain fees, however, have to be paid at the end of everj' fourteen years, and unless they are paid the comp- troller may strike the mark off the register after having given tlie notices required by the Act (2). The infringement of trade-marks is protected by the Criminal Law (f). Tbade Names. There is also another class of cases in which, although the words used may not be trade-marks, they yet in many respects nearly resemble them, and any one infringing a trade-name (which may be the name of the man himself, or some name by which the manufacturer has become known), as " Glenfield Starch," or "Castle Album," can be restrained by injunction from so doing. The law on this subject is well illustrated by the case of Woiherspoon v. Gurrie, decided by the House of Lords (^). In that case the plaintiffs' starch was well known as Glenfield Starch. The defendant put upon his labels, " Gurrie & Go., Starch and Corn Flour Manufacturers, Glerfield." The defendant was actually manufacturing starch at Glenfield, having gone thither for the purpose of enabling him to say that he was manufac- turing it at Glenfield. The House of Lords said, the mere fact (') Sect. 81 of the Act of 1883 as whether marks deceptive. Davis v. amended by sect. 20 of the Aet of Stribolt, 59 L. T. 854, and In re 1888; LambeH's Trade Mark, 61 Jackson, 60 L. T. 93, as to fancy ^•, J- l^^l ^. , , , ^, words. In re Galifornian Fig Syrup (2) feect. 79, sub-sect. 1. The sub- Co., 40 Cli. D. 620 (Foreign Trade seciuent portion of this section is Marks) ; In re Grossmith. 60 L. T amended by the Act of 1888, s. 19. 612 (Abandonment) ; Hart y. CoUev. See also on the subject of trade- 44 Ch. D. 193. mfirks the following recent cases : C) Merchandise Marks Act (1887), Jay V. Ladler, 40 Gh. D. 619 (In- 50 & 51 Vict. 0. 28 ; Starey v. Chil- fringement) ; Thompson v. Mont- worth Gmpowder Co., 24 Q B D gomery, 41 Ch. D. 35 (Infringement) ; 90 ; Wood v. Burgess 24 Q. B. D 162 MeMeyerstein's Trade Mark,i3Ch.'D. (') Wotherspoon v. Currie, L. E. 604, and In re Australian Wine Im- 5 H. L. 508,'considered in Schov'e y porters Co., 41 Ch. D. 278, as to Schmincke, 33 Ch. D. 546. Chap. IX.] TRABE-MABKS AND TRADE NAMES. 317 that lie was really carrying on his mannfactnre at Glenfield, and was not therefore telling a lie, did not exempt him from the consequence of the fact that his proceedings were intended and calculated to produce on the mind of the purchasers the helief that his article was the article of the plaintiffs. In order to constitute a ground for interference by the Court to protect a manufacturer against the use by another person of the particular name of his manufactured article, it is not necessary there should be mala mens, viz., fraudulent intention towards the first purchaser of the article thus imitatively designated (^). The fault of the imitator is that the first j)urchaser may be enabled by the unwarranted designation to retail a simulated article at a lower price than would be demanded for the original article, and so the original manu- facturer may be injured. There is, as was recently stated in the Court of Appeal, a kind of property in a name. In a cele- brated case, in which a father sought to restrain his son from carrying on and selling the same goods. Lord Justice Knight- Bruce, in his judgment, epigrammatically said : "All the Queen's subjects have a right, if they will, to manufacture and sell pickles and sauces, and not the less that their fathers have done so before them. All the Queen's subjects have a right to sell these articles in their own name, and not the less so that they bear the same name as their fathers." But in a case decided by the Court of Appeal in 1880, it was pointed out by Lord Justice James that the case of Burgess v. Burgess had been very much misunderstood, if it had been understood to decide that anybody can always use his own name as a description of an article, whatever may be the motive for doing it, or whatever may be the result of it, and that the law on the subject was, " No man can have any right to represent his goods as the goods of another person, but in applications of this kind it must be made out that the defendant is selling his own goods as the goods of another. Where a person is selling goods under a particular name, and another person not having that name is using it, it may be presumed that he so uses it to (') Burgess v. Burgess, 3 De G. is plenty of authority founded on the M. & G. t*96 ; Turton v. Turton, soundest sense to show that the 42 Ch. D. 128 ; and see Borthwiek v. Court would interfere as in a matter The Evening Post, 37 Ch. D. 449, of property. There may be property where Lord Chief Justice Coleridge in a name as well as in anything said : " Where the name or a colour- else, and anything like an iiiterfer- able imitation of the name has been ence with property in a name would taken by the person against whom be immediately restrained by the the application had been made, there Court." 318 PERSONAL PEOPERTT. [Book II. represent the goods sold by himself as the goods of the person whose name he uses, but where the defendant sells goods under his own name it does not follow that the defendant is selling his goods as the goods of the plaintiff. It is a question of evidence in each case whether there is false representation or not "(1). Q) Massamv.Thorley's Cattle Food turtng Co. v. Loog, ante, p. 301. Co., 14 Ch. D. 748, at pp. 752, 753. See, as to the analogous law with citing with approval the judgment of regard to companies : Sendrilcs v. Lord Justice Turner in Burgess v. Montagu, 17 Ch. D. 638; Merchant Burgess, 3 De 6. M. & G. 896, at Banking Co. of London v. Merchants' p. 900 ; also see Singer Manufac- Joint Steele Bank, 9 Ch. D. 560. ( 319 ) CHAPTER X. Copyright. The interesting subject of copyright may be considered under five heads : — 1. Copyright in literary works ; 2. Copyright in engravings, prints, and lithographs ; 3. Copyright in sculpture, models, casts, and busts ; 4. Copyright in musical and dramatic representations or performances ; 5. Copyright in pictures, drawings, and photographs. The statute on which the Copyright in literary works pub- Literary lished in the United Kingdom depends, is the Act of 1842 '^'"''^^■ (5 & 6 Vict. c. 45), and it defines " copyright " as the sole and exclusive right to print or otherwise midtiply copies of an original work or composition (^). In the celebrated case of Jefferys v. Boosey (^) the Lord Chancellor (Lord Cranworth) said copyright is not the right to publish, or abstain from publish- ing, a work not yet published at all, but the exclusive right of multiplying copies of a work already published. Copyright may exist in any book published within the United Kingdom so long as such book is of an innocent nature. If the work be of an immoral nature the Courts will not restrain a piracy. This, as pointed out by Mr. Shortt, is in accordance with the fundamental principle of our common law, that no- action can be maintained on any contract, express or implied, parol or under seal, which is in direct violation of law — whether statutory or unwritten — or which is of an immoral tendency or contrary to sound policy (3). The work must also be original. For a book to be original "there must be," as Mr. Curtis tells us (*), " some important additions, some intel- lectual skill shewn by the author, whether purely original (') 5 & 6 Vict. c. 45, s. 2, and see ciation, ib., 425. Warne & Co. v. Seebohm, 39 Ch. D. 73 ; Q) 4 H. L. G. 977. bate V. Devon and Exeter Constitu- (') Shortt's Copyright, p. 3. tional Newspaper Co., 40 Oh. D. 500, (■■) Curtis on Copyright, pp. 171, and Trade Auxiliary Co. v. Middles- 172. brough Tradesmen's Protection Asso- of book. 320 PERSONAL PROPERTY. [Book II. tliouglit or principle unpTiblislied before, or a new combina- tion of old thoughts and ideas and sentiments, or a new application, or use of known and common materials, or a collec- tion, the result of his industry and skill. In whatever way he claims the exclusive privilege accorded by these laws, he must show something which the laws can fix upon as the product of his own, and not another's labour.'' In Jefferys v. Boosey (^) the House of Lords decided that under the Act of Anne a foreigner could have no copyright, although his work was published in the United Kingdom. But the same tribunal has since decided, and it is now settled law, that a foreigner residing in the British possessions, although only for the purpose of publication of the book, is entitled under the Act of 1842 to copyright in his work (2), and Lord Cairns expressed the opinion that any foreigner, wherever resident, might have copy- right if only his book were published within the United Kingdom. Definition A book as defined by the Act includes " every volume, part or division of a volume, pamphlet, sheet of letterpress, sheet of music, map, chart, or plan separately published " (^). And it has been decided that a catalogue containing representations of furniture, with the price added, is a book within the statute (*). In this case Sir George Jessel said, that although the definition of the Act did not extend to prints or designs separately pub- lished, but only to the prints or designs forming part of a book, a book was not less a book because it contained prints or other illustrations of the letterpress, and then proceeded : "It appears to me that a book must include every print, design, or engraving which forms part of the book as well as the letterpress therein." In a very recent case, however, it was decided that an album for holding photographs, which contained pictures of castles, together with a list and a short description of them, was not a book within the statute (5). " The plaintiff's album," it was said, " is a book in form, but in form only. It is not a book within the scope of the preamble of the statute, which speaks of 'literary works,' nor a book within sect. 1, which contains an interpretation of the term as used in the statute. The only letterpress which it contains consists of the title ' Castle Album,' a list of the castles represented by coloured drawings, and a short description of the castles themselves, not covering more than a portion of a page." (') 4 H. L. C. 815. (*) Maple v. Junior Army and (^) Boiitledge v. Low, L. R. 3 H. L. Navy Stores, 21 Ch. Div. 369. 100. C) Sehove v. Schmincke, 38 Ch. D. (') 5 & 6 Vict. c. 45, s. 2. 546. Chap. X.] COPYRiaET. 321 The right to copyright in lectures orally delivered was first Lectures, considered in Ahernethy v. Hutchinson Q), and Lord Eldon, while declining to grant an injunction on the ground of the lecturer's right of property in them after they were delivered, granted it upon " an implied contract " hetween the lecturer and his hearers. But hy an Act of 5 & 6 Will. 4, c. 66, a distinct right of property is given to a lecturer in his lectures, who before delivering the same has given to two justices, within fi.ve miles of the place in which such lectures are to be delivered, two clear days' notice of his intention so to do (^). But nothing in the statute is to affect lectures delivered in any university or public school or college, or on any foundation. And in a recent case before the House of Lords it was decided that a professor who orally delivers in his class-room lectures which are his own literary composition does not communicate them to the whole world so as to entitle any one to republish them without the permission of the author (^). The duration of the copyright in any literary work is limited Duration by the Act of 1842 to the life of the author and seven years °f ^j^P^' beyond that period, but if such further period of seven years expires before the end of forty-two years, then such copyright is to last until the end of forty-two years, and if a work is published after the author's death such work is to have a copyright for forty-two years from the date of publication (^). It is not necessary to register in order to acquire copyright in a book — copyright exists as soon as it is published ; but before the proprietor of the copyright can sue, the book must be registered at the Hall of the Stationers' Company (^). Registration is effected by making entry in the registry Registra- book of t'oi- 1. The title of the book ; 2. The time of first publication thereof; 3. The name and place of abode of the publisher ; 4. The name and place of abode of the proprietor of the copyright, or of any portion of such copyright. As soon as a book is registered the registration relates back to the time when the book was first published, and damages may be recovered for any infringement although it took place before registration. But the requisites of registration must be minutely complied with. It is not sufficient to enter the month (') 3 L. J. (Ch.) 209 ; and see 326. Nicoh V. Pitman, 26 Oh. D. 374. (*) 5 & 6 Vict. c. 45, s. 3. (2) 5 & 6 Wm. 4, c. 65, s. 5. (=) 5 & 6 Vict. c. 45, ss. 11 and 24. (') Caird v. 8ime, 12 App. Cas. VOL. I. Y 322 PERSONAL PROPERTY. [Book II. News- papers, encyclo- paedias, &c. Tests of piracy. in which the work was first published, the day of the month must be stated (') ; nor will the date of the publication of a subsequent edition, which is a mere reprint of an old one, be sufficient (2). It is sufficient to enter the " publisher," by which is meant the first publisher, of the book under the trade name of the firm ; by the " proprietor of the copyright " is meant the proprietor of the copyright at the time of registration (^). Newspapers must also be registered under the Copyright Act, 1842, before the proprietor can sue in respect of a piracy. The copyright in encyclopaedias, reviews, magazines, and other periodicals is the same as in other literary works, except that by sect. 18 it is provided that the copyright in any article therein which has been paid for by the proprietor of the work on such terms, shall for the first twenty-eight years belong to him, but he shall not be at liberty, nor shall the author, to publish the same in separate form, and after the twenty-eight years have expired the copyright shall return to the author (f). The registration of such encyclopssdias, reviews, magazines, and periodical works is sufficient if the first part or number is registered (f). Infringement of copyright is the unauthorized multiplication of copies. It is a piracy of the works of another which will prevent him from reaping the due reward of his labours (^). The following tests of piracy have been laid down by judicial decisions : — Was the one publication a legitimate use of the other in the fair exercise of a mental operation deserving the character of an original work ? (') Had the vital part of the work been taken ? (^) And Lord Jefi'reys, in the case of Alexander v. Mackenzie ('), said, " Is there reasonable evidence that the two works are identical, and that the last author did not mount upon the back, (') Matheson v. Harrod, L. R. 7 Eq. 270. C) Thomas v. Turner, 33 Oh. Div. 292. C) Weldon v. Diclts, 10 Oh. D. 252 ; Coote v. Judd, 23 Ch. D. 727. {') Walter v. Bowe, 17 Oh. D. 708 ; Trade Auxiliary Co. v. Middles- borough, &c., Association, 40 Oh. D. 425 ; and see as to the registration of newspaper proprietors under the Newspaper Libel and Registration Act, 1881, post, p. 473. The British Museum, the Bod- leian Library at Oxford, the Public Library at Cambridge, the Library of the Faculty of Advocates at Edinburgh and the Library of Trinity Oollege, Dublin, are entitled to a copy of every book published, the British Museum without demand, the others on demand : 5 & 6 Vict, c. 45, ss. 6, 7, 8. C) 5 & 6 Vict, c. 45, 8. 19, and see Hogg V. Maxwdl, L. R. 2 Ch. 316. (f) Bowolh V. Wilkes, 1 Camp. 98. (') Lord Eldon in Wilkins v. Aikin, 17 Ves. 426. (') Vice-Chancellor Kindersley in Murray v. Bogue, 1 Drew. 369. C) 9 Scotch Sess. Gas. 2nd Series, 758. Chap. X.] COPTRIQHT. 323 and walk on the crutches of his predecessor, but actually used his own muscular exertions in traversing the field in which he made his observations ? Did he, on the whole, do so fairly and honestly for himself, although he may have occasionally followed in the vestigia left by his predecessor ? Or is there evidence that the second writer, not going over the ground for himself, is not the very cause why he has arrived at almost identical conclusions with his predecessor ? " When there are common sources of knowledge it is the Author's duty of the author to consult the authorities for himself, and '^^'y- not take them secondhand from some other author ; an author has no right to avail himself of the labours of a fellow- author (1). Thus, it was held in Kelly v. Morris (^), that the compiler of a directory or guide-book containing information derived from sources common to all, which must of necessity be identical in all oases if correctly given, is not entitled to spare himself the trouble and expense of original inquiry by adopting and republishing the information contained in previous works on the same subject. He must obtain and work out the infor- mation independently for himself, and the only legitimate use which he can make of previous works is for the purpose of verifying the correctness of his results. Lord Hatherley, then Sir W. Page Wood, in his judgment, said : " In the case of dic- tionary, map, guide-book, or directory, where there are certain common objects of information which must, if described correctly, be described in the same words, a subsequent compiler is bound to set about doing for himself that which the first compiler has done. In the case of a road-book he must count the milestones for himself. In the case of a map of a newly-discovered island, he must go through the w hole process of triangulation just as if he had never seen any former map, and, generally, he is not entitled to take one word of the information previously pub- lished, without independently working out^the matter for himself, so as to arrive at the same result from the same common sources of information, and the only use that he can legitimately make of a previous publication is to verify his own calculations and results when obtained." The common test of piracy in these cases is to see whether Mistakes the mistakes are the same in both publications. " Many cases," said Lord Eldon, " have established that you cannot have better (') Jarrold v. Houlston, 3 K. & J. v. Peninsular and Oriental Steam 708. Navigation Co., 26 Ch. D. 637. (2) L. E. 1 Eq, 697; see also Ager Y 2 324 PERSONAL PROPERTY. [Book II. Dramatisa- tion of novel. Quotation. evidence of such copying than the circumstance which occurs in several of the passages here complained of, namely, the fact of blunders in the original book being transferred into the book which is accused of piracy " Q). Any one may dramatize a novel after it has been published, so long as he does not print or otherwise multiply copies of it, and in a very recent case in which the authorities are dis- cussed (2) the defendant was restrained from multiplying copies of his play which contained many passages copied or colourably altered from a novel by Mrs. Prances Hodgson Burnett called ' Little Lord Pauntleroy,' which he had dramatized. In this case the judge said : " The defendant has in fact dramatized the novel, and caused his play to be performed on the stage ; of this the plaintiffs do not complain; the alleged infringe- ment consists in this, that for the purpose of producing the play the defendant has made four copies of the play, either in manuscript or by aid of a type-writer. It is in evidence, and I have satisfied myself by actual comparison, that very consider- able passages in the play have been extracted almost verbatim from the novel. Some of the passages so extracted are promi- nent and striking parts of the dialogue contained in the novel." Copyright may be infringed by excessive quotation. Whether the limits of fair quotation have been transgressed is a question to be decided by the particular facts of each case. Lord Eldon said in Mawman v. Tegg (3) : " Quotation is necessary for the purpose of reviewing ; and quotation for such a purpose is not to have the appellation of piracy affixed to it ; but quotation for piracy may be carried to the extent of manifesting piratical intention." And in a recent case before the House of Lords (f) Lord Hatherley said : " Books are published with an expecta- tion, if not a desire, that they will be criticised in reviews, and, if deemed valuable, that parts of them will be used as afford- ing illustrations by way of quotation, or the like ; and if the quantity taken be neither substantial nor material, if, as it has been expressed by some judges, a fair use only be made of the publication, no wrong is done and no action can be brought.'' It is an offence under the Act for any person other than the Q) Mawman v. Tegg, 2 Buss. 394. In Kelly v. Morris, L. E. 1 Bq. 697, Sir W. Page Wood said: " From the identity of the mistakes in the number of houses and the names of their occupants, and also in the breaks and intersections of the streets, 1 hold it to be clearly established that the defendant has taken his list of streets from the plaintiff's directory." C) Warne v. Seebohm, 39 Ch. D. 73. (=) 2 Eussell, 385. C) Chatterton v. Cave, 3 App. Cas. 492. Chap. X.] OOPYBiaET. 325 proprietor of the oopyright, or some person authorised by him to import into the United Kingdom for sale or hire printed copies of any hook piiblished in the United Kingdom wherein there is copyright (^). In any action for piracy or other offence under the Act, the defendant is bound to give notice of the objections to the plaintiff's title upon which he intends to rely (f). The statute enacts that all copyright shall be deemed personal Nature of property, and be transmissible by bequest, or in case of intes- '^opy'S"'- tacy shall be subject to the same law of distribution as other personal property (3). The copyright in dramatic representations was first given by Dramatic the Act of 3 & 4 Wm. 4, c. 15, and was extended by sect. 20 of y^''^""™*'" 5 & 6 Vict. c. 45 to musical compositions. The same Act also extended the term of copyright therein to the same length as that in literary works (see ante, p. 321). The penalty imposed by the first mentioned Act for each unauthorised representation of a dramatic piece is a fine of not less than forty shillings, or the full amount of the benefit arising from such representation, or the injury or loss sustained by the plaintiff therefrom. The penalty to be awarded for each unauthorised performance of a musical composition is now in the discretion of the judge (*). Under 5 & 6 Vict. c. 45, s. 20, it is sufficient in the case of both dramatic pieces and musical compositions in manuscript to register only — 1. The title of the composition ; 2. The name and place of abode of the author or composer ; 3. The name and place of abode of the proprietor ; 4. The time and place of first representation or performance. The assignment of the right of representation as distinguished from the copyright of any book consisting of or containing a dramatic piece or musical composition need not be registered. The assignment of the right of representation and the consent of the owner of the copyright to the representation must be in writing. In a very recent case before the Court of Appeal, the facts were as follows : The plaintiff was employed by the defendant, the proprietor of a music-hall, as the conductor of the orchestra at a weekly salary. He had been in the habit of composing music for ballets performed there, and he had (') 5 & 6 Vict. c. 45, s. 17. non-delivery of copies to British (2) 5 & 6 Vict. 0. 45, o. 16. No Musenm. action (s. 26) is to be brought after (^) 5 & 6 Vict. c. 45, s. 25. twelve months from the date of the (*) 51 & 52 Vict. o. 17. offence. '■ But this does not apply to 326 PEB80NAL PROPERTY. [Book II. received suras of varying amounts from the defendant in respect of such compositions. Having composed the music for the then Christmas ballet, he threw up his engagement during the time the piece was running and took away the score, but it was after- wards arranged that the plaintiff should give up the score on payment of £20. The defendant then continued the perform- ance with the music, and the plaintiff having brought an action to recover penalties for such subsequent performances, the Court decided that in the absence of any assignment or consent to the representation of the composition in writing given by the plaintiff, the performances were contrary to the right of the author, and the action was maintainable (^). Drawings, By the statute 25 & 26 Vict. c. 68, a copyright was given to the author, being a British subject or resident within the dominions of the Crown, of every original drawing, painting, and photograph which shall have been made either in the British dominions or elsewhere (^). The duration of the copyright is the same as in literary works (ante, p. 321). On a sale by the author of the picture, drawing, or negative of the photograph, he does not retain the copyright unless it is expressly reserved to him by an agreement in writing signed by the vendee. Nor does the vendee obtain the copyright, unless it be expressly assigned to him in writing signed by the person so selling or disposing of the picture or by his agent. All assignments of copyright under this statute are to be made by some note or memorandum signed by the proprietor or by his agent appointed for that purpose in writing (^). Penalties for offences under the Act are imposed by sect. 6, and the proprietor is also expressly permitted to recover damages by action (in addition to the penalties) under sect. 11. In an action to recover penalties and damages for infringement of the plaintiff's copyright which came recently beiore the Court of Appeal, it was decided that no penalties under the Act could be recovered for any infringement which had taken place before the date of registration, but that for all unauthorised copies sold after registration damages might be recovered, although such copies had been made before the date of registration (*). (') Eaton V. Lake, 20 Q. B. D. 378. of the copyright, and of every suhse- (^) Kenrieh & Co. v. Lawrence & quent asBignment, is entered, showiDg Co., 25 Q. B. D. 99. the name and place of abode of tho Q) A book called the Kegister of person in whom such copyright is Proprietors of Copyright in paint- vested and giving a short description iiigs, drawings and photographs, is of the work. kept at the hall of Ihe Stationers' (•) Tuck v. Priester, 19 Q. B. D. Company, in which a memorandum 18, 629. Chap. X.] OOPYHIGET. 327 Sect. 7 enacts that no person shall do any of the following acts under pain of forfeiting to the person aggrieved a sum not exceeding £10, or double the full price of the work, and all such works shall he forfeited : First, no person shall fraudulently sign, or otherwise affix or Paintings, fraudulently cause to be signed, or otherwise affixed, to or upon Drawings, any painting, drawing, or photograph, or the negative thereof, any name, initials, or monogram. Secondly, no person shall fraudulently sell, publish, exhibit, or dispose of, or offer for sale, exhibition, or distribution, any painting, drawing, or photograph, or negative of a photograph, having thereon the name, initials, or monogram of a person who did not execute or make such work. Thirdly, no person shall fraudulently utter or dispose, or put off, or cause to be uttered or disposed of, any copy or colourable imitation of any painting, drawing, or photograph, or negative of a photograph, whether there shall be subsisting copyright therein or not, as having been made or executed by the author or maker of the original work from which such copy or imita- tion shall have been taken. Fourthly, where the author or maker of any painting, drawing, or photograph, or negative of a photograph, shall have sold or otherwise parted with the possession of such work, if any alteration shall afterwards be made therein by any other person by addition or otherwise, no person shall be at liberty during the life of the author or maker of such work, without his consent to make or knowingly to sell, or publish, or offer for sale such work, or any copies of such work so altered as afore- said, or of any part thereof as or for the unaltered work of such author or maker. The copyright in engravings and prints is secured by Engravings three statutes— 8 Geo. 2, c. 13 ; 7 Geo. 3, c. 38 ; and 17 Geo. 3, ^""^ P""^*^' c. 67 — to the author or his assigns for a period of twenty-eight years. The benefit of these statutes was extended to lithographs by 15 & 16 Vict. c. 12, s. 14. There is also a copyright in sculptures, models, casts, and Sculptures, busts for a like period under 54 Geo. 3, c. 56, by which it was °' enacted that the assignment must be by deed, signed and attested by two credible witnesses. The law with regard to unpublished works may be considered as clearly settled. The ideas of an author, as was said in an old case on the subject, are like " birds in a cage, which none but the owner can have a right to let fly, for till he thinks proper to emancipate them they are under his own dominion." 328 PERSONAL PROPERTY. [Book II: Every man has a right, so long as his ideas are unpublished to publish them or not as he thinks fit, and to hinder their publication, either wholly or partially, by any one else. This principle received a striking illustration in a well-known leading case (1) on the subject, in which the late Prince Consort obtained an injunction to restrain the publication of copies of certain unpublished etchings, and also of a descriptive catalogue of them. The Lord Chancellor, in delivering judgment, said : " It being admitted that the defendant could not publish a copy — that is, an impression — of the etchings, how in principle does a catalogue, list, or description differ ? A copy or impression of the etching would only be a means of communicating know- ledge and information of the original, and does not a list and description do the same? The means are different, but the object and effect are similar ; for in both the object and effect is to make known to the public more or less of the unpublished work and composition of the author, which he is entitled to keep wholly for his private use and pleasure, and to withhold altogether, or so far as he may please, from the knowledge of others." Eights of The Crown has prerogative copyright in the following the Crown. ]books :— The English translation of the Bible, the Book of Common Prayer, the Statutes, Orders of the Privy Council, State Proclamations, and other State documents. It formerly claimed the sole right of printing Almanacs, Lilly's Latin Grammar, the Year Books and Eeports of Judicial Proceed- ings, but these claims have long since been exploded or abandoned. The Crown's exclusive right of printing and pub- lishing Acts of Parliament is rested by Blackstone on grounds of public policy. The right to print, publish, and sell the Bible, the New Testament, and the Book of Common Prayer was granted to the Universities of Oxford and Cambridge, con- currently with the Queen's printer, by letters patent of 13 Eliz. The English and Scotch Universities, the colleges of Eton, Westminster, and Winchester, and Trinity College, Dublin, also possess the exclusive right of printing and reprinting books bequeathed or otherwise given to them by their respective authors. (') Prince Albert v. Strange, 2 De G. & S. 652 ; 1 Mao. & G. 25. ( 329 ) CHAPTEE XI. Bills of Sale. In commencing tlie consideration of the diiScult and intri- Principle cate snbject of bills of sale, it may be desirable first to point out "^ to Mul the leading principle upon which the law with regard to this of sale. peculiar class of instruments is founded. The possession of goods and chattels raises a presumption which does not exist with regard to the possession of real estate. A person in possession of real estate is, as all the world knows, oftener a tenant than an owner of the property. The possessor of chattels, on the other hand, is generally assumed to be the proprietor. If the chattels are not his, he may obtain a fictitious credit on the strength of them, and creditors have therefore a right to be protected against the frauds which arise from their secret alienation. This principle had been to a considerable extent recognized law before it was embodied in any enactment, but it was not until 1864 that an Act was passed (subsequently amended by another passed in 1866) which, after reciting that "frauds were frequently committed upon creditors by secret bills of sale of personal chattels, whereby persons are enabled to keep up the appearance of being in good circumstances," provided that all bills of sale, as therein defined, should be void against execution creditors, and tbe trustees in bankruptcy of the grantor, unless registered. The Acts of 1864 (17 & 18 Vict. c. 36) and 1866 (29 & 30 Present Vict. c. 96) are repealed, with the usual saving clauses as to ' instruments executed under their provisions, and the present state of the law is that bills of sale executed between the 1st of January, 1879, and the 1st of November, 1882, are governed by the Act of 1878 (41 & 42 Vict. c. 31), and those executed on and after the 1st of November, 1882, by the joint operation of the Acts of 1878 and 1882 (i). What is a bill of sale ? In attempting to answer this question, Wliat is a we shall first consider the general definition of this species of '"!'■ "f (') 41 & 42 Vict. c. 31 ; 45 & 46 of the Act of 1882, by the Bills of Vict. c. 43. Certain instruments are Sale Act, 1890 (53 & 54 Vict. c. 53). excepted from the provisions of scot. 9 See post, p. 334. 330 PERSONAL PROPERTY. [Book II. Definition. Statutory definition of bills of instrument, and subsequently tlie statutory definition with such light as has been thrown upon the many obscurities and difficulties of the subject by judicial decisions. A deed or other instrument transferring the property in personal chattels Q), is usually called a bill of sale. Bills of sale are either absolute (f), entitling the grantee to immediate possession ; or conditional, entitling him to take possession on the performance or non- performance of some condition, e.g. a mortgage, where the mortgagor is entitled to retain possession until default. It is needless to point out that bills of sale of the latter class, i.e. conditional bills of sale given as security for money, are infi- nitely more important and numerous than those of the former class. Bills of sale given by way of security for the repayment of money are subject both to the Act of 1878 and the Act of 1882, the provisions of which we shall presently consider, and must be in accordance with the form prescribed by the Act of 1882. Bills of sale which are not given by way of security may be in any form, and are in nowise subject to the Act of 1882. Sect. 4 of the BUls of Sale Act of 1878 defines biUs of sale to include : (1) Bills of sale, assignments, transfers, declarations of trust without transfer, inventories of goods with receipt thereto attached, or receipts for purchase-moneys of goods, and other assurances of personal chattels. (2) Powers of attorney, authorities, or licences to take pos- session of personal chattels as security for any debt. (3) Any agreement, whether intended or not to be followed by the execution of any other instrument, by which a right in equity to any personal chattels, or to any charge or security thereon shall be conferred. And sect. 6 also makes subject to the Act, every attornment, instrument, or agreement, not being a mining lease, whereby a power of distress is given or agreed to be given by any person to any other person by way of security for any present, future, or contingent debt or advance, and whereby any rent is reserved or made payable as a mode of pro- viding for the payment of interest on such debt or advance, or otherwise for the purpose of such security only. But this is not to extend to a mortgage of real estate, which a mortgagee in (') See as to gift of chattels, Cochrane v. Moore, 25 Q. B. D. 57, where the authorities are elaborately reviewed. C) An absolute bill of sale com- prehends any written or printed dis- position tmier vivos of corporeal per- sonalty, other than a transfer by way of security : Cavanagh's Law of Money Securities, 2nd ed. p. 224. Chap. XL] BILL8 OF SALE. 331 possession has leased to the mortgagor at a fair and reasonable rent (i). Only bills of sale of " personal chattels " need be registered under the Acts. Personal chattels are defined to be goods, furniture, and other articles capable of complete transfer by delivery, and (when separately assigned or charged) fixtures and growing crops (^). Chattels personal also include for the purposes of the Act Trade trade machinery, and any mode of disposition of trade machinery ™*'^''i'>«'"y- by the owner thereof, which would be a bill of sale as to any other personal chattels, is to be deemed a bill of sale within the meaning of the Act. Tor the purposes of the Act " trade machinery " means the machinery used in or attached to any factory or workshop, exclusiye of the fixed motive powers, such as the water-wheels, and steam-engines, and the steam-boilers, donkey-engines, and other fixed appurtenances of the said motive powers, and exclusive of the fixed power machinery, such as shafts, wheels, drums, and their fixed appurtenances, which transmit the action of the motive powers, and exclusive of the pipes for steam, gas, and water in the factory or workshop. The machinery so excluded is not to be deemed personal chattels within the meaning of the Act (3). Every bill of sale, given as security for money, must have Bill of sale annexed to it, or written on it, a schedule containing an inven- °, ^^^, „ tory of the personal chattels comprised in the bill of sale ; and property, such bill of sale, save as thereinafter mentioned, shall have eifect only in respect of the personal chattels specifically described in the said schedule ; and shall be void, except as against the grantor, in respect of any personal chattels not so specifically described. The question in each case is whether, considering the nature of the goods and the circumstances of the (') 41 & 42 Vict. c. 31, s. 6. See any govercment, or in the capital or as to the attornment clause : Re property of incorporated or joint Willis, 21 Q. B. D. 384 ; Mumford v. stock companies, choses in action, any Collier, 25 Q. B. D. 279 (ante, p. stock or produce upon any farm or 102). lands, which by virtue of any cove- {') The following are not personal nant or agreement, or of the custom chattels within the Acts :— of the country, ought not to be Chattel interests in real estate, removed from any farm : Bills of Sale fixtures (except trade machinery) Act, 1878, s. 4. when assigned together with a free- {') Bills of Sale Act, 1878, s. 5, hold or leasehold interest in any J?e Yafes, 38 Ch. D. 112, where it was land or building to which they are held that a mortgage of freeholds, afBxed, growing crops when assigned with fixtures which were not speoifl- with any interest in the land on cally mentioned, did not operate as a which they grow, shares or interests bill of sale, and therefore did not in the stock, funds, or securities of require registration. 332 PERSONAL FROPERTT. [Book II. case, the specific goods are sufficiently described. There must be a business description (}). Attestation Every bill of sale must be duly attested and registered under tratioif' ^" ^^^ principal Act within seven clear days after its execution, or if it is executed in any place out of England then within seven clear days after the time at which it would in the ordinary course of post arrive in England, if posted immediately after the execution thereof. It has been decided that a bill of sale which does not contain both the address and the description of the witness attesting it, is not made in accordance with the form in the schedule (^). The bill of sale must also truly set forth the consideration for which it was given ; otherwise it shall be void in respect of the personal chattels comprised in it (^). Exceptions A great change was made by the Bills of Sale Act, 1882, with specified regard to after-acquired property by providing that with the exceptions specified in the Act, a bill of sale shall be void, except as against the grantor, in respect of any personal chattels specifically described in the schedule thereto of which the grantor was not the true owner at the time of the execution of the bill of sale. It has been decided in the House of Lords that the section must be read in connection with sect. 9 Qpost, p. 333), and that a bill of sale is bad in toto as being contrary to the statutory form, if the goods be not specifically described, notwithstanding this section, and therefore that a bill of sale was bad, which pro- fessed to assign future chattels not specifically described in the inventory. In this case, Lord Halsbury said : An essential condition of the deed appears to me to be a present assignment of goods capable of specific description and present assignment. It is obvious that a bill of sale which purports to assign after-acquired property, whether in the form of a covenant (its true legal effect) or as stated specifically in words, as part of the security, is not in accordance with the form, and therefore void (f). The exceptions from the Act, i.e. the " after-acquired pro- perty " which may be assigned by bills of sale are as follows : — (1) Any growing crops separately assigned or charged where (') 45 & 46 Vict. c. 43, s. 4 ; Witt Q) 41 & 42 Vict. o. 31, ss. 8, 10 ; V. Banner, 20 Q. B. D. 114; and see 45 & 46 Vict. c. 43, s. 8; and see Carpenter v. Deen, 23 Q. B. D. 566 ; Tuck v. Southern Counties Deposit Eickley v. Greenwood, 25 Q. B. D. Bank, 42 Ch. D. 471. 277. (n Thomas v. Kelly, 13 App. Cas. C) Parsons v. Brand. Coulson v. 506. Dickson, 25 Q. B. D. 110. Chap. XI.] BILLS OF SALE. 333 such crops were actually growing at the time when the bill of sale was executed. (2) Any fixtures separately assigned or charged, and any plant, or trade machinery where such fixtures, plant, or trade machinery are used in, attached to, or brought upon any land, farm, factory, workshop, shop, house, warehouse, or other place in substitution for any of the like fixtures, plant, or trade machinery specifically de- scribed in the schedule to such bill of sale. The following is the form of bill of sale given in the schedule to the Act : — This indenture, made the day of between A. B., of of the one part, and G. D., of of the other part, witnesseth that in consideration of the sum of £ now paid to A. B. by O. D., the receipt of which the said A. B. hereby acknowledges \or whatever else the consideration may he~\, he, the said A. B., doth hereby assign unto C. D., his executors, admi- nistrators, and assigns, all and singular the several chattels and things specifically described in the schedule hereto annexed, by way of security for the payment of the sum of £ and interest thereon at the rate of per cent, per annum [or whatever else may he the rate\ And the said A. B. doth further agree and declare that he will duly pay to the said 0. D. the principal sum aforesaid, together with the interest then due by equal payments of £ on the day of [or whatever else may he the stipulated time or times of payment]. And the said A. B. doth also agree with the said C. D. that he will [here insert terms as to insurance, payment of rent or otherwise, which the parties may agree to for the maintenance or defeasance of the security']. Provided always that the chattels hereby assigned shall not be liable to seizure or to be taken possession of by the said C. D. for any cause other than those specified in sect. 7 of the Bills of Sale Act (1878) Amendment Act, 1882. In witness, &c. Signed and sealed by the said A. B. in the presence of me, E. F. [add witness's name, address, and description]. Sect. 9 of the Bills of Sale Act, 1882, provides, with reference Form of to the form of a bill of sale, that a bill of sale made or given by '^"^ °^ *'''^- way of security for the payment of money by the grantor thereof is to be void unless made in accordance with the form in the schedule annexed to the Act. 334 PERSONAL PBOPERTT. [Book II. It is, however, provided by the Bills of Sale Act, 1890 Q), that an instrument given or executed at any time prior to such deposit, reshipment, or delivery as thereinafter mentioned, hypothecating or declaring trusts of imported goods during the interval between the discharge of the goods from the ship in which they are imported and their deposit in a warehouse, factory, or store, or their being reshipped for export or delivered to a purchaser not being the purchaser giving or executing such instrument, shall not be deemed a bill of sale within the meaning of sect. 9 of the Bills of Sale Act, 1882. In a leading case upon the form of a bill of sale the Court said : A bill of sale is surely in accordance with the prescribed form if it is substantially in accordance with it, if it does not depart from the prescribed form in any material respect. But a divergence only becomes substantial or material when it is calculated to give the bill of sale a legal consequence or effect, either greater or smaller than that which would attach to it if drawn in the form which has been sanctioned, or if it departs from the form in a manner calculated to mislead those whom it is the object of the statute to protect. In this case a test was established which, as stated by the Court of Appeal, " contains no element of uncertainty, is one which every lawyer throughout the kingdom is corapetent to apply, and is based upon a method of interpretation familiar to our Courts,'' Whatever form the bill of sale takes the form adopted by it in order to be valid must produce, not merely the like effect, but the same effect, that is to say, the legal effect, the whole legal effect, and nothing but the legal effect which it would produce if cast in the exact mould of the schedule. Form of " We must take the form, interpreted by the light of the Act, bill of sale, on the one hand, the instrument to be discussed on the other ; and we must then consider whether, but for the avoidance inflicted by sect. 9 of the statute, the instrument as drawn will, in virtue either of addition or omission, have any legal effect which either goes beyond or falls short of that which would result from the statutory form, or whether the instrument in respect of such would be calculated reasonably to deceive those for whose benefit the statutory form is provided. If so, the variance is material, and the bill of sale is not in substantial accordance with the statutory precedent " (^). " So, purely," said Lord Macnaghten, " is it a question of form (') 53 & 54 Vict. c. 53. 17 Q. B. D. 259, 270, 271. (') Ex parte Stanford. In re Barber, Chap. XI.] BILLS OF SALE. 335 that I should be inclined to doubt whether a bill of sale would not be void which omitted the proviso referring to sect. 7, though I cannot see that the omission would alter the legal effect of the document in the slightest degree, or mislead any- body. It has been held, and I think rightly, that sect. 9 does not require a bill of sale to be a verbal and literal transcript of the statutory form. The words of the Act are ' in accordance with the form,' not ' in the form.' But then comes the question, when is an instrument which purports to be a bill of sale not in accordance with the statutory form ? Possibly when it departs from the statutory form in anything which is not merely a matter of verbal difference. Certainly, I should say, when it departs from the statutory form in anything which is plainly a characteristic of that form. Now it seems to me that if there is any one thing which is plainly a characteristic of the statu- tory form it is this : that in the body of the instrument there is no substantive description of the things intended to be assigned. roUowing the directions contained in sect. 4 the statutory form relegates to a schedule the description of the personal chattels intended to be comprised in the bill of sale " (1). " It seems to me clear that the Act of 1882 does require that the schedule to a bill of sale shall contain, and that the body of the bill of sale shall not contain the description of the personal chattels intended to be comprised therein " (2). A bill of sale drawn mainly in the statutory form but which contained a clause including all the tenant-right, valuation, goodwill, tillages, and interest of the mortgagor in a certain farm was decided to be void (^). Bills of sale have been held to be void in a great number of Void bills cases, among which we mention the following, viz. : — °^ ^^'"^^ An agreement to perform the covenants and stipulations in a recited indenture (*), where the covenants and stipulations did not appear in the bill of sale. The use of the words " beneficial owners " as introducing the covenants implied by the Conveyancing Act (^). A lump sum as bonus and interest being stated instead of the rate of interest (^). (') Thomas v. Kelly, 13 App. Cas. (') Cochrane'V.Entwistle,25Q,.B.T). 619. 116. (^) Bills of Sale Amendment Act, C) Lee v. Barnes, 17 Q. B. D. 77. 1882,3.8; smd see MobertsY. Roberts, (*) Ex parte Stanford. In re 13 Q. B. D. 794 ; Hughes v. Little, Barber, 17 Q. B. D. 259. 18 Q. B. D. 32 ; Hichardson v, (°) Myers v. ElUot, 16 Q. B. D. Harris, 22 Q. B. D. 268. 526. 336 PERSONAL PROPERTY. [Book n. A declaration that the grantees, who were auctioneers, should have power on seizure and sale of the chattels to charge com- mission as if they were selling for the grantor Q^). A covenant for payment of rent, rates, taxes, and outgoings of the premises, with power to the grantee to pay them if not paid within seven days after due and to add any such payment to his security (f). A provision that upon default of payment of an instalment and sale, a purchaser shall not be bound to inquire whether any such default was made (f). A declaration that the mortgagee on a sale should first apply the proceeds to arise from such sale, to pay the expenses attending such sale or otherwise incurred in relation to the security (*). A bill of sale containing an assignment of after-acquired chattels (^). To attempt to comment on all the subtle points which have been decided with reference to bills of sale would be simply impossible within our present limits. Attention may, however, be directed to the following decisions. The following provisions, being " for the maintenance or defeasance of the security," may be inserted in a bill of sale : — Stipulations by grantor to insure, to pay and produce receipts for premiums, and that on default grantee may do so, and that sums so paid shall be repayable by the grantor on demand, and that until repayment such sums shall be a charge on pro- perty («). Covenant to pay principal in one entire sum at a specified time and interest after default ('). Express power to seize for any of the causes specified in sect. 7 of Bill of Sale Act, 1882, but for no other cause, and for that purpose to break open windows and doors, &c. (*). Considera- Other important changes made by the Bills of Sale Act of 1882 are that the personal chattels assigned under a bill of sale cannot be seized by the grantee for any cause except for the five tion. O Furher v. Cdbh, 18 Q. B. D. («) MxpaHe Stanford, VI Q,.'B.'D. 494. 259. (2) Bianchi v. Oford, 17 Q. B. D. (') Re Morritt, 18 Q. B. D. 222 ; 484. and see as to payment by instalments, (') Slaiberg v. Parsons, 17 Q. B. D. Easlewood v. Consolidated Credit Co., 336; Blaibergy.Beehett, 18 Q. B. D. 25 Q. B. D. 555. 96. C) Watkins v. Mvans, 18 Q. B. D. (*) Calvert v. Tlwmas, 19 Q. B. D. 386; and see remarks of Lord Esher 204. on this case, Calvert v. Tliomas, 19 Q) Tliomas v. Kelly, 13 App. Cas. Q. B. D. 204. 506. Chap. XI.] BILLS OF SALE. 337 causes specified in the Act ('), and that a bill of sale must be made or given for a consideration of not less than £30 (2). Upon registration the bill of sale must be accompanied by an Registra- affidavit stating the time of such bill of sale being made or given, and of its due execution and attestation and a descrip- tion of the residence and occupation of the persons making or giving the same, and of every attesting witness to such bill of sale (3). The registration of a bill of sale must be renewed every five years, and the omission to renew it renders the bill of sale wholly void (*). When a bill of sale is given subject to any defeasance or con- Defea- dition or declaration of trust not contained in the body thereof, ^'""'^> '^^ such defeasance, condition, or declaration is deemed to be part of the bill, and must be written on the same paper or parchment before registration (^). (') The causes specified in the Act for which personal chattels may be seized or taken possession of, are as follows : — Personal chattels assigned under a bill of sale shall not be liable to be seized or taken possession of by the grantee for any otiier than tlie follow- ing causes : — ■ (1.) If the grantor shall make de- fault in payment of the sum or sums of money thereby secured at the time therein provided for payment, or in the performance of any covenant or agreement contained in the bill of sale and necebsary for maintaining the security ; (2.) If the grantor shall become a bankrupt, or suffer the said goods or any of them to be distrained for rent, rates, or taxes ; (3.) If the grantor shall fraudu- lently either remove or suffer the said goods, or any of them, to be removed from the premises; (4.) If the grantor shall not, with- out reasonable excuse, upon de- mand in wi'iting by the grantee, produce to him his last receipts for rent, rates and taxes ; (5.) If execution shall have been levied against the goods of the grantor under any judgment at law: Provided that the grantor may within five days from the seizure or VOL. I. taking possession of any chattels on account of any of the above-mentioned causes apply to the High Court, or to a judge thereof in chambers, and such Court or judge, if satisfied that by payment of money or otherwise the said cause of seizure no longer exists, may restrain the grantee from removing or selling the said chattels, or mav malie such other order as may seem just. (Bdls of Sale Act, 1S82, s. 7.) (2) Davis V. UsTier, 12 Q. B. D. 492 C) Bills of Sale Act, 1878, s. 10. See as to what is sufficient descrip- tion. Reed on Bills of Sale, 7th ed. p. 150, et seq, ; see also Greenham v. Child, 24 Q. B. D. 29 ; Central Bank of London v. JBawlcins, 62 L. J. 901, where a bill given in an assumed name, by which the grantor was known and recognised, was held to be duly registered. C) Fenton v. Bhjthe, 25 Q. B. D. 417. The renewal of the registration is effected by filing with the regis- trar an affiilavit stating the date of the bill of sale, and of the last regis- tration thereof, and the nami s, resi- dences and occupations of the parties thereto as stated therein, and that the bill of sale is still a subsisting security: Bills of Sale Act, 1878, s. 11. C) Bills of Sale Act, 1878, s. 10. 338 PERSONAL PROPERTY. [Book H. The transfer or aBsignment of a registered bill of sale need not be registered (^). Assign- As book debts are not personal chattels within the principal fiiture' ^^^ future book debts may be assigned in a bill of sale, and book such assignment will he good against creditors. In the very debts. important case of Tailby v. Official Receiver Q), the House of Lords decided that an assignment of all future book debts in a bill of sale was good. Lord Macnaghten pointed out that it had long been settled that future property, possibilities and expectances are assignable in equity for value. " The mode or form of assignment is immaterial, provided the intention of the parties is clear. To effectuate the intention an assignment for value, in terms present and immediate, has always been regarded in equity as a contract binding on the conscience of the assignor, and so binding the subject-nlatter of the contract when it comes into existence, if it is of such a nature and so described as to be capable of being ascertained and identified. The origin of the doctrine that an assignment of future,book debts is not limited to any specified business, inodern though it be, is lost in obscurity. It was admitted by the learned counsel for the respondent that a trader may assign his future book debts in a specified business. Why should the line be drawn there ? Between men of full age and competent understanding ought there to be any limit to the contract of purchase but that imposed by positive law or dictated by considerations of morality or public policy? The limit proposed is purely arbitrary, and I think meaningless and unreasonable. The rule laid down by the Court of Appeal would not help to identify or ascertain the subject-matter of the contract in any CHse. It might have the opposite effect. It would be no benefit to the assignor's general creditors. It might prevent a man from raising money on the credit of his expecta- tions in his existing business on that which is admitted to be capable of assignment — in consequence of the obvious risk that some alteration in the character of the business might impair or defeat the security." The Act does not apply to " any debentures issued by any mortgage, loan, or other incorporated company, and secured upon the capital stock or goods, chattels, and effects of such company." (^) (') When two bills of sale are (*) See ijead v. Jbannon, 25 Q. B. D. given on the same chattels, either 300, ante, p. 284. In a recent case wholly or in part, the one first regis- before the House of Lords, Lord Mac- tered has priority : Bills of Sale Act, nagliten said : " To say that the Bills 1878, s. 10. of Sale Act (1878) Amendment Act (2) 13 App. Gas. 523, 543. (1882) is well drawn, or that its mean- Deben- tures. Chap. XI.] BILLS OF SALE. 339 Hiring agreements, i.e., if there be a bond fide sale and re- Hiring letting on hire, are not bills of sale within the Acts, and there- '^l^l foro do not require registration, neither need they be in accordance with the statutory form. The true nature, how- ever, and not the form of the transaction must be regarded, and if the real object be merely to create a security for money, the document is a bill of sale and must be registered {}). Neither does an absolute bill of sale together with a hiring agreement, if they form separate transactions, come within the Acts (^). It has also been decided that the assignment of a hiring agreement is not a bill of sale within the Acts (^). In a recent case before the House of Lords, it was decided that an agreement by which a colliery company had sold their waggons to the respondents and then taken them upon hire was not a bill of sale within the Acts (*). The test which was applied in this case was, was there a right to redeem ? and this question being answered in the negative, it was held that the Bills of Sale Act had no •application. Bills of sale are to be attested by one or more credible witness Attcsta- or witnesses not being a party or parties thereto (f). And a bill of sale not being by way of security must be attested by a solicitor of the Supreme Court, and the attestation must state that before the execution of the bill of sale the effect had been explained to the grantor by the attesting witness (^). The object of the earlier Bills of Sale Acts, said Lord Herschell, was entirely different from that of 1882. The former enactments were designed for the protection of creditors and to prevent their rights being affected by secret assurances of chattels, which were permitted to remain in the ostensible pos- session of a person who had parted with his property in them. The bills of sale were therefore void only as against creditors tion. Object of former Acts. ing la reasonably clear, would be to affirm a proposition to which I think few lawyers would subscribe, and which seems to be contradicted by the mass of litigation which the Act has produced, and is producing every day. For my own part, the more I have occasion to study the Act, the more convinced I am that it is beset with difficulties which can only bo removed by legislation " : Thomas v. Kelly, 13 App. Cas. 5()6. (') Ex parte Emerson. Be SawMns, 41 L. J. (Bankoy.) 20 ; In re Watson. Ex parte Official Receiver in Bank- ruptcy, 25 Q. B. D. 27. (^) Ex parte Shane. He McGinity, 29 Sol. Jo. 70. {') In re Davis & Co., Ex parte Bawlings, 22 Q. B. D. 193. (*) M., S. and L. Railway Co. v. North Central Wagon Co., 13 App. Cas. 554 ; and see French v. Bonibe- nard, 60 L. T. 49. (') Bills of Sale Amendment Act, 1882, s. 10 ; and see Blankenstein v. Bohertson, 24 Q. B. D. 543. C) Bills of Sale Act, 1878, s. 10. The Bills of Sale Amendment Act, 1882, s. 10, repeals this, but it would seem only ao far as regards bills of sale given by way of security. Z 2 340 PERSONAL PB0PEET7. [Book H. Object of or their representatives. As between the parties to them they 1882. were perfectly valid. The purpose of the Act of 1882 was essentially distinct. It was to prevent needy persons being entrapped into signing complicated documents which they might often be unable to comprehend, and 'so being subjected by their creditors to the enforcement of harsh and unreasonable provi- sions. A form was accordingly provided to which bills of sale were to conform, and the result of non-compliance with the statute was to render the bill of sale void even as between the parties to it. But, this being the object, the enactment is limited to bills of sale given " by way of security for the pay- ment of money by the grantor thereof" (}). (') M; S. and L. Railway Co. v. considered that there having been North Central Wagon Co., 13 App. an absolute or hand fide transfer of Oas. 554, 560. the property, a bill of sale which had The policy of the Bills of Sale been given was spent and satisfied, Act is also considered in Coolcson v. and that none of the Bills of Sale Swire, 9 App. Cas. 653, where it was Acts had any application. ( 341 ) CHAPTER XII. Intestacy. Before taking leave of the subject of personal property, it Effect of will be necessary for us to consider the rules which govern its f)i\"ibu-° descent in case of intestacy. The effect of the Statutes of tion. Distribution Q-), and of the Intestates' Estates Act, 1890 Q), by which this subject is regulated, may be briefly stated as follows : — The Intestates' Estates Act, 1890, introduced the following important changes : — Sect. 1 provides that the real and personal estate of every Estate not man who shall die intestate after the 1st day of September, 1890, ^^g™Q '^^ leaving a widow but no issue shall, in all cases where the net belonging value of such real and personal estates shall not exceed £500, ^° widow. belong to his widow absolutely and exclusively. Sect. 2 provides that " where the net value of the real and Estate ex- personal estates in the preceding section mentioned shall exceed £500 the sum of £500, the widow of such intestate shall be entitled widow to to £600 part thereof absolutely and exclusively, and shall have J^l^^ f^^ a charge upon the whole of such real and personal estates for £500. such £500, with interest thereon from the date of the death of the intestate at 4 per cent, per annum until payment." Sect. 3 provides that " as between the real and personal How representatives of such intestate, such charge shall be borne ^g^^orne" and paid in proportion to the values of the real and personal as between estates respectively." ......... 7^^X. Sect. 4 provides that " the provision tor the vndow intended . , to be made by this Act shall be in addition and without pre- vision to be judice to her interest and share in the residue of the real and '" addition personal estates of such intestate remaining after payment of residue. the sum of £500, in the same way as if such residue had been the whole of such intestate's real and personal estates, and this Act had not been passed " (^). (') 22 & 23 Oar. 2, u. 10 ; 1 Jao. 2, valuation of the real and personal c. X7. estate as follows : — ' O 53 & 54 Vict. c. 29. " 5. Tiie net value of such real {') Sects. 5 and 6 of the Intestates' estate as aforesaid shall for the pur- Estates Act, 1890, provide for the poses of the Act be estimated in the 342 PERSONAL PROPERTY. [Book II. Tke peTsonal estate of an intestate, domiciled in this country at tke time of his death, is distributable, if lie leaves a widow and family, as follows : one-third to his widow and the remaining two-thirds to his children and the representatives, i.e., descend- ants, of any of his children who are then dead. The children of deceased children take per stirpes, i.e. they take by represen- tation the share which their parent would have taken if he or she had survived. In a case which came before the Court in 1888, it was decided that the division of personal estate among descendants of an intestate is always to be per stirpes (^). If there were no children, nor any descendants of them, then, according to the law prior to the Intestates' Estates Act, 1890, one moiety of the estate went to the widow. The other moiety was distributable equally between the next of kin of the intes- tate who were in the same degree, or their descendants. If there were no next of kin it went to the Crown. The law as to the interest which the widow took in her deceased husband's real property has been previously considered. (See ante, p. 30.) If there is no widow, aU the estate is distributable amongst the children equally, and if there is no child, then amongst the next of kindred, in equal degree, of the intestate or their descendants. No representation is admitted among collaterals after brothers' and sisters' children. The general effect of the provisions of the statute when the intestate leaves no widow has been well summed up by a learned judge (the late Sir John Wickens), as follows : — " The general effect of the provisions is, that (supposing there to be no wife) the estate, in case there are descendants, shall go between the children and their repre- sentatives ; and in case there are no descendants, shall go case of a fee simple upon the basis of tained by deducting from the gross twenty years' purchase of the annual value thereof all debts, funeral and value by the year at the date of the testamentary expenses of the intes- death of the intestate as determined tate, and all other lawful liabilities by law for the purposes of property and charges to which the said per- tax, less the gross amount of any sonal estate shall be subject." mortgage or other principal sum (') Ee Natt. Walker \. Gammage, charged thereun, and less the value 37 Ch. D. 517, where it was also held of any annuity or other periodical that the term " next of kindred " in payment chargeable thereon, to be sect. 7 of 22 & 23 Car. 2, c. 10, does valued according to the tables and not include the issue of children of rules in the schedule annexed to the the Intestate ; but children and their statute 16 & 17 Vict. c. 51 (the Sue- descendants are all included under cession Duties Act, 1853), and in the the term " children," which means ease of an estate for a life or lives children living at the death of the according to the said tables and rules. intestate, either themselves or in " 6. The net value of such personal their descendants, estate as al'oresaid shall be ascer- Chap. XII.] INTESTACY. 343 amongst the next of kin or their representatives ; and that the division is j)er capita where all the takers claim in their own right ; and per stirpes where they, or some of them, claim as representatives of another person. It has been long settled that the word ' representatives ' in this Act includes only ' descendants.' It has been further settled that where all the persons entitled to claim are collaterals equally near of kin, for instance, second cousins twice removed, they take per capita, because they all take in their own right ; but that where there are no ancestors or descendants, and the nearest of kin are brothers and sisters, but there are also children of dead brothers and sisters, the latter, though not of the next of kin, may claim as representatives of the brother or sister from whom they spring, and may stand in the place of that brother or sister for the purpose of distribution ; so that the distribution is per stirpes. This privilege is expressly limited by the statute, and does not extend to any more remote descendants of brothers or sisters than their children, and does not apply at all to any case where the next of kin are all more remote than brothers and sisters. There are therefore two cases provided for by the statute, viz. (1), where there are children, or the representatives — i.e., the descendants — of children; (2), where there are no descend- ants " (1). All children who have been advanced by the parent in his Hotchpot, lifetime must bring the portion so advanced into " hotchpot," (2) as it is called, so as to make the final division equal. The heir-at-law is not, however, obliged to bring any estate in land, which he has acquired by descent or otherwise from the intestate, into hotchpot in this way (3). The principle of hotchpot is well illustrated by a case which was decided in 1878 (*). A husband had covenanted under a separation deed to pay an annuity of £200 to each of his daughters during their respective lives. The annuities were, however, to cease if the husband and wife lived together again, (') In re Boss's Trusts, 13 Eq. 292. case to put the lands given in frank- er) The origin of the term " ijotch- marriage with the other lands in pot," which corresponds to some ex- hotchpot, if the husband and wife tent, though with essential differ- wiU have any part in the other lands." ences, to the oollatio bonorum of the The principle on which hotchpot is Eoman law, is thus given by Little- based is that " equality is equity," ton : " And it seemeth that this and that for that purpose the property word 'hotchpot' is in English a must be thrown together and divided, pudding ; for in this pudding is not (^) 22 & 23 Car. 2, c. 10, s. 5. commonly put one thing alone, but (') Hatfield v. Minet, 8 Oh. D. one thing with other things together. 136, li3, 145. And therefore it behoveth iu this 344 PERSONAL PROPEBTT. [Book II. Hotchpot. Husband and wife. ■whioli event never happened. The hushand survived his wife and died intestate, and the Court of Appeal decided that so nmoh of the annuities as had been paid during the father's life was not to he treated as advancements, but that the value of each annuity at the time of his death was to be estimated and that amount brought into hotchpot. " Having regard," said the Court, " to the principle of the rule of hotchpot, and the words of the Act of Parliament, it is the duty of the Court to divide the money as nearly as it can do, having regard to all the circumstances of the case, and to have regard to all those circumstances for the purpose of ascertaining what really is an equal division of the estate of an intestate between his children at his death so as to do equal justice between them." The legal representatives of children to the remotest degree are admitted, but they must, as we have seen above, be descendants, strictly speaking. Thus it has been decided that if a son of the intestate has predeceased him, leaving a widow and child, the child will take the whole of his father's share (^). A husband surviving his wife is entitled to all her undisposed- of personal property in possession, including her leaseholds, and he is also entitled to all her undisposed-of chases in action, as her administrator. It has been decided (2) that the Married Women's Property Act, 1882, has not altered the devolution of (') Price V. Strange, 6 Madd. 161, 162. (^) Be Lambert's Estate. Stanton V. Lambert, 39 Ch. D. 626. Neither husband nor wife is entitled as next of kin of the other : Milne v. Gilbert, 2DeG.M.&G. 715; 5DeG.M.&G. 510. " In this case," said Lord Jus- tice Knight-Bruce, "the letter is against the husband, and the spirit is not with him." See further Williams on Executors, 8th ed. pp. 701, 702, 878, et seq., 1124, 1494. The alterations introduced into the law by the two cases : Be Boss's Trusts and Be Natt, to which we have referred (ante, pp. 342, 343), and by the Intestates' Estates Act, 1890, have been summed up in some verses which appeared in the ' Law Journal,' October 18th, 1890, and which we here reproduce, by permission, with a slight verbal alteration. The original verses, which are too lengthy to be here given, appeared in the 'Law Journal,' January 5th, 1872. After Stanza 2, which states that in default of issue the widow will take one-half of the personalty, the writer proposes to add — This used to be so, But now you must know. To five hundred she'll first have a claim; And if of the store There remains any more, She'll of that get her half all the same. But if the deceased ■Was of realty possessed,'' The law has considered it fair, Chap. XIL] INTESTACY. 345 the tiiidisposed-of separate personalty of a married woman. Accordingly, on the death of a married woman without dispos- ing of her separate personalty, the quality of separate property ceases, and the right of the husband to such undisposed-of personalty accrues as if the separate use had never existed. That the claim should not all On the moveables fall, But the laud must contribute its share. 53 & 54 Vict. c. 29. After the eighth stanza, to the effect that the issue if all in equal degi'ee will take per capita, the writer proposes to add — When grandchildren and great- Divide the estate. The division per stirpes is made The great- and the grand- Eespeotively stand In the place of their parents who're dead. Me Boss's Trusts, Law Bep. 13 Eq. 292 ; 41 L. J. (Oh.) 130. But to end all debate, In the year '88, The Court very gravely decided. Though the issue should be All in equal degree, The estate is per stirpes divided. Be Natt, 37 Oh. D. 517; 57 L. J. (Oh.) 797. ( 346 ) BUSINESS OF THE COURTS. Inteoductoey. And now, having considered to some extent the leading prin- ciples of the law with regard to property, we pass on to another main division of onr subject, that which is more intimately connected with the administration of justice by the Courts. Hitherto our task has been to consider that portion of the law which is chiefly concerned with what is technically termed non-contentious business. For the future our attention will be to a great extent occupied with that which is concerned with contentious biisiness. Before, however, proceeding to consider the present state of the law and practice administered by the Courts in this country it will be desirable to notice very briefly the condition of things which existed at a comparatively recent period. Prior to the 2nd November, 1876 (i) (the date when the Judi- cature Acts came into operation), a person who came before a judicial tribunal to seek relief against another was obliged to employ different forms of procedure in different Courts. Thus, in the Court of Chancery, proceedings were commenced by filing a Bill or Information ; In a Court of Common Law by serving a writ, to be followed by a declaration ; In the Court of Admiralty by a cause ; In the Court of Probate by citation. Now the Judicature Acts and Eules have, to a very large extent, introduced uniformity in this respect into the practice of the different divisions of the Court. They provide that all these processes shall be instituted in the High Court of Justice by an " action " (^), and that every action shall be commenced by a writ of summons, which shall be indorsed with a statement of the nature of the claim or the relief required in the action, so that the defendant may have notice of what the plaintiff (') 38 & 39 "Vict. c. 77, s. 2. Order ii. r. 1. See post, pp. 701, O E. S. C. 1883, Order i. r. 1; 703, et seq. INTSODUOTOBT. 347 demands, and consider the advisability of acceding to his claim ■without a contest. Again, the principles upon which the Common Law Courts Parties. formerly proceeded in determining who were necessary " parties " (i) to an action were widely different from those which governed the Equity Courts. The rules now provide that all persons may be joined as plaintiffs in whom the right to any relief claimed is alleged to exist whether jointly, sever- ally, or in the alternative, and similarly that all persons may be joined as defendants against whom the right to any relief is alleged to exist whether jointly, severally, or in the alter- native (2). The right to obtain discovery from an adversary Discovery, during the progress of an action is another instance where the practice was previously widely different, and where under the present system a large, though by no means complete measure of assimilation has taken place of the practice of the various Courts. This point shall be considered hereafter when we come to speak of the practice of the Courts ('). The difficulties and complications that were produced in the The Courts administration of justice by the absence of anything like ™^'™^'^^y uniformity in the proceedings of the different Courts were, by different however, comparatively unimportant, when contrasted with principles, the numberless evils that arose from the fact that these various Courts in many cases proceeded upon wholly different prin- ciples in determining the questions that came before them for decision. Eights and equities which were wholly un- recognised in one Court were all-powerful in another. The result was that a plaintiff who had a perfectly good case according to the doctrines administered by a Common Law Court might yet find himself stopped in his career by an injunction granted by the Court of Chancery. The late Lord Westbury on one occasion lamented how much of the litigation in this country and how much of the difficulty in the administration of justice was due to the fact that the jurisdiction was at that time divided between different Courts, and conducted upon different principles. " The justice of a Court of law," he said, with reference to the case before him, " is one thing, the justice of a Court of Equity is another, the justice of the Court of Bankruptcy is a third ; and from (') See further as to parties, post, which he compared to a game of whist, p. 706. in which the player has no right to (') E. S. C. 1883, Order xvn., r. 1. see his adversary's hand, with the rule (') See post, p. 741, et seq. Mr. Jus- in Equity with respect to " searching tice Cave on one occasion contrasted the conscience of the opposite party." the former practice at common law, 348 BUSINESS OF THE COURTS. Legal system .before the Judicature Act. Equity and Common Law. Common Law. that confusion tbis very simple case has become complicated." On another occasion the same judge pointed out how unreason- able it was that one Court should be bound to commit injustice, and that another Court should be instituted, the function of which should be to watch the proceedings of the first Court, to run after it and to stop its course. Under the old system, as Mr. Haynes tells us, a man, in assertion of his legal right, sued in the Common Law Court. His opponent came to the Court of Equity, and said " Although the strict legal right is on the other side, there are equitable circumstances in this case which ought to deprive my assailant of the right of suing me." And the Equity Court, if it agreed with this view, simply ordered the plaintiff at law not to sue, and put him in prison if he persisted. A man, to quote the words of another writer, might be sure of succeeding, nay, might actually have succeeded, in a court of common law, but might be forbidden by the Court of Chancery, on pain of imprison- ment, to go on with his action or to reap the fruits of it (i). The reason of this complication arose from the fact that in the vast system of English law there existed, in addition to statute law, two wholly distinct elements, the rules of the com- mon law on the one hand, and the rules of equity on the other. The custom of the realm or the common law, the lex non- scripta, or unwritten law as distinguished from the statute law on the one hand, and the rules of equity on the other, consists, Mr. Beeves tells us, of those rules and maxims concerning the persons and property of men that have by immemorial use and practice obtained the same force as Acts of the Legislature. These rules and maxims have, according to a fundamental theory of English law, always, from the earliest time, existed in the breasts of the judges, and have by them been applied to successive cases as they arose for their decision (^). In a remarkable case of peculiar interest to the legal profes- (1) Haynes' Equity, 5th ed. 25 ; Wilson's Modern English Law, p. 3. (_') Eeeves' History of English Law, p. 1, et seq. The common law, the same authority tells us, like our language, is of a various and motley origin, as various as the nations that have peopled this country in different parts and at different periods. See also Maitland's Justice and Police, p. 31, et seq., where it is pointed out that the original meaning of the phrase common law seems to be law common to the whole land, law for England, and not for this county or that borough, as opposed to statute law and the equity law administered by the Court of Chancery. The names common law and equity, the same author tells us (p. 41), are com- pendious phrases which are likely to live yet a while, but already modem statutes, eg., the Married Women's Property Act, 1882, "have been taking from them their point, and in course of time the contrast may be forgotten," INTRODUCTORT. 349 sion which came before the Court in 1883 ('), and to which we Origin of: shall have occasion hereafter to refer, it had been contended ^''™""'" that as a person defamed has ■prima facie a cause of action, the person defaming must produce either some statute or some previous decision directly in point which will justify his con- duct. Lord Esher, in expressing his emphatic dissent from this proposition, described the process by which the common law was gradually formulated in the following manner : — " The common law does not consist of particular cases decided upon particular facts ; it consists of a number of principles, which are recognised as having existed during the whole time and course of the common law. The judges cannot make new law by new decisions, they do not assume a power of that kind, they only endeavour to declare what the common law is and has been from the time when it first existed. But inasmuch as new circumstances, and new complications of fact, and even new facts, are constantly arising, the judges are obliged to apply to them what they consider to have been the common law during the whole course of its existence, and therefore they seem to be laying down a new law, whereas they are merely applying old principles to a new state of facts." Side by side with the common law system was the system Equity. of law administered by the Court of Chancery. " The cause," said Lord Ellesmere, in the old leading case of the Earl of Oxford (^), speaking of the system which prevailed in his day, " why there is a Chancery is, for that men's actions are so divers and infinite, that it is impossible to make any general law which may aptly meet with every particular act, and not fail in some circumstances. The office of the Chancellor is to correct men's consciences for frauds, breach of trusts, wrongs, and oppressions, of what nature soever they may be, and to soften and mollify the extremity of the law, which is called summum jus. And for the judgment, &c., law and equity are distinct, both in their courts, their judges, and the rules of justice, and yet they both aim at one and the same end, which is to do right." The reader who desires further information as to the origin and development of the jurisdiction may be referred to the authorities mentioned in the note (5), where he will read the interesting story of the establishment of what Lord Campbell Q) Manster v. Larrib, 11 Q. B. D. out that a new era commenced with 599, per Brett, M.R. See post, p. 832. Lord Nottiiigliam, the futher of mo- (2) 1 Ch. Eep. 1. dern Equity) ; Spence's Equitable (^) Story's Equity Jurisprudence Jurisdiction of the Court of Chan- (and see p. 19, where it is pointed eery. 350 BUSINESS OF THE COURTS. Consolida- tion of the Courts, Supreme Court. High Court. Court of Appeal. Judicature Act, 1873, =,. 24. has termed " the extraordinary interference of the Chancellor -without common law process, or regard to the common law rules of proceedings, upon the petition of a party grieved who was without adequate remedy in a Court of Common Law." For our present purpose it will suffice to say that the function of the Chancery Courts, as developed in modern times, was to supplement, and to some extent to correct, the common law, not at the arbitrary discretion of the judges, but according to fixed principles established by decided oases. The consolidation of the various Courts was effected as follows : — The superior Courts of Common Law at Westminster, the High Court of Chancery, the Admiralty, Probate, Divorce, and Matrimonial Courts, the Court of Common Pleas at Lan- caster, and at Durham, and all Assize Courts, and last though by no means least, the Bankruptcy Court, are all consolidated into one Supreme Court of Judicature (J-). The Supreme Court thus constituted " consists of two per- manent divisions, one of which, under the name of Her Majesty's High Court of Justice, has and exercises original jurisdiction, and the other of which, under the name of Her Majesty's Court of Appeal, has and exercises appellate jurisdic- tion with such original jurisdiction as may be incident to the determination of any appeal." The High Court now consists of three divisions, viz., the Chancery Division, the Queen's Bench Division (with which the former Exchequer Division and the Common Pleas Division are now consolidated), and the Probate, Divorce, and Admiralty Division. The judges are the Lord Chancellor, who is presi- dent, five judges of the Chancery Division, the Lord Chief Justice of England president of the Queen's Bench Division, and fourteen justices of the Queen's Bench Division. The judges of the Probate, Divorce, and Admiralty Division are the president and one justice. The Court of Appeal consists of nine judges. Four of these are ex officio judges, viz., the Lord Chancellor (President) ; the Lord Chief Justice of England; the Master of the Eolls; the President of the Probate, Divorce, and Admiralty Division. The five ordinary judges are styled Lords Justices of Appeal. Section 24 of the Judicature Act, 1873, which has been justly characterised as the main section of the Act, as to the combined jurisdiction of the various divisions of the High Court Q), pro- (') Judic. Act, 1873, ». 16 Bank- ruptcy A.'t, 1883, s. 93. C) Annual Practice, note to sec- tion. INTBOD UGTOB T. 351 vides that in any civil cause or matter commenced in the High Court of Justice law and equity shall he administered by the High Court of Justice and the Court of Appeal respectively, according to certain rules therein specified. The principal provisions of this section are as follows. Sub-sect. 1 provides that if any Equitable plaintiff or petitioner claims to be entitled to any equitable j.j^htr'&c estate or right, or to relief upon any equitable ground against any deed, instrument, or contract, or against any right, title, or claim whatsoever asserted by any defendant or respondent in such cause or matter, or to any relief founded upon a legal right, which heretofore could only have been given by a Court of Equity, the said Courts respectively, and every judge thereof, shall give to such plaintiff or petitioner such and the same relief as ought to have been given by the Court of Chancery. The succeeding sub-sections contain similar provisions for the benefit of defendants claiming equitable rights, and of another class of parties first brought into legal existence by the Judi- cature Act and Eules, and of whom we shall have occasion to speak particularly hereafter, viz., " third parties." It is also provided that all equitable estates, titles, rights, duties and liabilities appearing incidentally in any cause or matter are to be recognized. The concluding sub-section of this section (24) provides that the High Court of Justice and the Court of Appeal respectively, in the exercise of the jurisdiction vested in them by this Act in every cause or matter pending before them respectively, shall have power to grant, and shall grant, either absolutely or on such reasonable terms and conditions as to them shall seem just, all such remedies whatsoever as any of the parties thereto may appear to be entitled to in respect of any and every legal or equitable claim properly brought forward by them respectively in such cause or matter ; so that, as far as possible, all matters so in controversy between the said parties respectively may be completely and finally determined, and all multiplicity of legal proceedings concerning any of such matters avoided (^). The next section of the Judicature Act, after stating, or as it Judicature is technically termed reciting, that it is expedient to take ^ "ijg ' occasion of the union of the several courts whose jurisdiction is thereby transferred to the High Court of Justice to amend and declare the law to be thereafter administered in England on certain specified matters, proceeds to state the law on a variety of important points (^). (') See as to iDJunotion, post, (^) The 91st section of the Judica- pp. 354, 588, note. ture Act, 1873, enacts that these new 352 BUSINESS OF THE COURTS. Judicature The law SO stated has been already, or will be hereafter Act 1873 . . 5 25 ' noticed in the appropriate portions of this book, but its effect may be shortly summed up as follows : — (1) The rules of bankruptcy are, on certain points {post, p. 548), introduced into the administration of the estates of persons dying insolvent, and the winding-up of insolvent companies. (2) The next sub-section, which has already been noticed (ante, p. 207), provides that no claim of a cestui que trust against his trustee for any property held on an express trust, or in respect of any breach of such trust, shall be held to be barred by any Statute of Limitations (^). The 3rd section enacts that an estate for life without impeach- ment of waste shall not confer or be deemed to have conferred upon the tenant for life any legal right to commit waste of the description known as " equitable waste " (ante, p. 29), unless an intention to confer such right shall expressly appear by the instrument creating such estate. The 4th sub-section declares that there shall not, after the commencement of the Act, be any merger by operation of law only of any estate the beneficial interest in which would not be deemed to be mer^^ed or extinguished in equity (ante, p. 46). Sub-sect. 5 deals with the position of the mortgagor. It provides that a mortgagor entitled for the time being to tlie possession or receipt of the rents and profits of any land as to which no notice of his intention to take possession or to enter into the receipt of the rents and profits thereof shall have been given by the mortgagee, may sue for such possession, or for the recovery of such rents or profits, or to prevent or recover damages in respect of any trespass or other wrong relative thereto, in his own name only, unless the cause of action arises upon a lease or other contract made by him jointly with any other person (^). Sub-sect. 6, which has been already noticed (ante, p. ,266), deals with absolute assignments of any debt or other legal chose in action, and renders them under tlie specified circum- stances effectual to pass and transfer legal rights. Sub-sect. 7 (considered hereafter, p. £83) provides that stipu- rules are to apply to all Courts what- Minors, 7 Q. B. D. 329. soever in England, "so far as the (') See as to the present lawwit.h matters to which such rules relate reference to trustees, ante, p. 207, shall be respectively cognizable by et seq. such Courts ": see King v. Eawhes- (") Fatrclough v. Marshall, i Ex. D. worth, i Q. B. D. 371 (as to Liverpool 37 ; Yorkshire Banldng Go. v. Mullan, Court of Passage), but see Foyser v. 35 Ch. U. 12.5. lisTTB OD UGTOR Y. 353 lations in contracts, as to time or otherwise, which, would not Judicature before the passing of this Act have heen deemed to be or to ^'^25^^^''' have become of the essence of such contracts in a Court bf Equity, shall receive in all Courts the same construction and effect as they would have heretofore received in .Equity. Sub-sect. 8 provides that " a mandamus or an injunction may be granted, or a receiver appointed, by an interlocutory order of the Court in all cases in which it shall appear to the Court to be just or convenient that such order should be made ; and any such order may be made either unconditionally or up6n such terms and conditions as the Court shall think just." Sub-sect. 9 deals with damages by collision at sea (see pdst, p. 1059). Sub-seet. 10 provides that in questions relating to the custody and education of infants, the rules of equity shall prevail (jpost, p. 604, et seq.) Sub-sect. 11 contains a sweeping provision that generally in all matters not thereinbefore particularly mentioned, in which there is any conflict or variance between the rules of equity and the rules of the common law with leference to the same matter, the rules of equity shall prevail (see, however, as to practice, post, p. 702.) The aim of the Legislature in passing the Judicature Act, and the mode which it provided for caiTying its purpose into effect, have been well stated by a great judge as follows : — " The main object of the Judicature Act," said Sir George Jessel, " was to assimilate the transaction of Equity business and Common Law business by different Courts of judicature. It has been sometimes inaccurately called ' the fusion of Law and Equity ;' but it was not any fusion, or anything of the kind : it was the vesting in one tribunal the administration of Law and Equity in every cause, action, or dispute which should come before that tribunal. That was the meaning of the Act. Then, as to that very small number of cases in which there is an actual conflict, it was decided that in all cases where the rules of Equity and Law were in conflict, the rules of Equity should prevail. That was to be the mode of administering the com- bined jurisdiction, and that was the meaning of the Act. To carry that out, the legislature did not create a new jurisdiction, but simply transferred the old jurisdictions of the Courts of Law and Equity to the new tribunal, and then gave directions to the new tribunal as to the mode in which it should administer the combined jurisdictions " Q). ( ') Salt V. Cooper, 16 Ch. D. 544, 549. VOL. I. 2 a 354 BUSINESS OF TEE COURTS. " It appears to me," said Sir James Hannen, in a remartatle case to wMoh reference shall hereafter be made, " that a very great change has been worked now by the fusion of all the Courts into one. There is no difference between the law to be administered in this Division and elsewhere ; but each Court is to ascertain what the law is, whether legal or equitable, and I think, therefore, it is open to me to establish a different basis to that which existed in the Probate Court " (}'). " The object of the Judicature Acts," said one of the judges of the Court of Appeal, " was not to give new jurisdiction ; but the jurisdiction previously exercised by certain of the Courts was transferred to the High Court constituted by the Acts, and the object was to enable the High Court to deal not only with questions of one branch of law, but with all questions — so as to administer both Common Law and Equity — and not to render it necessary to send suitors from one tribujaal to another, or compel defendants to seek the aid of Chancery when a Common Law right was being insisted upon contrary to Equity " (^). The 24th section, sub-sect. 6, of the Judicature Act, 1873, provides that " no cause or proceeding at any time pending in the High Court of Justice, or before the Court of Appeal, shall be restrained by prohibition or injunction." The change, which was thus made by the Judicature Act, of vesting all the jurisdiction in one tribunal, has put a stop to the scandal of going from one Court to another, and repeating in one Court an appli(;ation which had been refused on the same materials, by other Courts of co-ordinate jurisdiction (^). Judicature The business assigned by the Judicature Act to the Chancery Ac^^i873, Division of the High Court, in addition to (1) All causes and matters pending in the Court of Chancery at the commencement of the Act; and, (2) All causes and matters to be commenced after the commencement of the Act under any Act of Parliament by which exclusive jurisdiction, in respect to such causes or matters, has been given to the Court of Chancery or to any judges or judge thereof respectively, except appeals from County Courts, comprises all causes and matters for any of the following purposes : — 1. The administration of the estates of deceased persons ; s. 34. (') He Gurm, 9 P. D. 242. (3) " You cannot restrain a pending (f) In re M-UFs Estate. Ex parte motion, but you can restrain a person Commissioners of Worlts and Piiblio from instituting proo edinga." Per Tlidliixgs, 34 Cli. D. 33, per Cotton, Jessel, M.R., Besant v. Wood, 12 L J. Ch. D. 6uo, 630. INTRODUGTORT. 355 2. The dissolution of partnerships or the taking of partner- ship or other accounts ; 3. The redemption or foreclosure of mortgages ; 4. The raising of portions, or other charges on land ; 5. The sale and distribution of the proceeds of property sub- ject to any lien or charge ; 6. The execution of trusts, charitable or private ; 7. The rectification, or setting aside, or cancellation of deeds or other written instruments ; 8. The specific performance of contracts between vendors and purchasers of real estates, including contracts for leases ; 9. The partition or sale of real estates ; 10. The wardship of infants and the care of infants' estates. The causes and matters comprised under this second heading, viz., those Acts of Parliament by which certain exclusive juris- diction has been given to the Court of Chancery are considered hereafter (p. 690, et seqi) and the various other causes and matters specially assigned to the Chancery Division are considered in the book which treats of Equity and other subjects which seem to fall most appropriately under that head. Although as we shall presently see the rectification and setting aside of deeds and other instruments are matters assigned to the Chancery Division, it has been decided that when the defendant in an action in one of the divisions of the High Court of Justice other than the Chancery Division relies on an Equity to have a deed set aside as part of his defence, the Division in which the action is may give eflfect to the Equity so far as is incidental to the purposes of the defence Q). The business of the Queen's Bench Division in addition to Business the actions arising from the two great main sources. Contracts orpin's and Torts, to the consideration of each of which a separate book Bench is devoted (jpost, p. 360, et seq., and p. 439, et seq.) comprises a division, variety of other special matters, of which the following may be mentioned : — (1) Eevenue and Crown Cases. (2) Appeals from County Courts (^). (3) Prerogative "Writ of Mandamus (^) and Quo Warranto (post, p. 807, et seq.). (4) Writs of Certiorari and Prohibition {post, p. 808). (') Mostyn v. West Mostyn Coal and tive writ of mandamus miisi be »ado Iron Co., Limited, 1 0. P. D. (C.A.) to the Queen'a Bench Divioion. See, 145. as to the prerogative writ of manda- C) See as to appeal from County jnus, and the action of mandamus : Courts, post, p. 824. The Queen v. Lambom~a VctUey Mail- (^) An application for the preroga- way Co., 22 Q. B. I>. 463^ et se(/. 2 A 2 356 SUSINESS OF THE COURTS. and Ad- miralty Division. (5) Appeals from Eevising Barristers. Business By the 34th section of the Act, were assigned to the Probate, assigned to Dj^orce, and Admiralty Division, all causes and matters which Probate, ' •' . . c a.t. r\ i. s; Divorce, would have heen withm the exclusive cognizance ot tne Oourt ot Prohate, or the Court for Divorce and Matrimonial Causes, or of the High Court of Admiralty, if that Act had not passed. , The granting or revoking of the probate of a will is within the exclusive jurisdiction of the Probate Division, and a claim for such a purpose cannot be made in the Chancery Division (}). In a case decided in the year 1890 (^) a lady who had no separate property, and no testamentary capacity by assent of her husband or otherwise, made a will of which she appointed executors and gave her property away from the husband. She was entitled to certain choses in action, and the will having been proved in the ordinary form by one of the executors the husband brought an action against him in the Chancery Division claiming the choses in action. The Court of Appeal decided that the grant of general probate of the will without any limitation in the foi-m now adopted in the Probate Division, simply enabled the executor to collect aU the assets of the married woman, whether she had power to dispose of them by will or not, but that this was only a change of machinery and did not affect the beneficial interest of the husband, in whose favour judgment was accordingly pronounced. Crown Office Kulea, 1886, rr. 60. " A ■writ of mandamus, as everybody knows, is a high prerogative writ, invented for the purpose of supply- ing defects of justice. By Magna Oharta the Crown is bound neither to deny justice to anybody, nor to delay anybody in obtaining justice. If, therefore, there is no other means of obtaining justice, the writ of man- damus is granted to enable justice to be done. The proceeding, however, by mandamus, is most cumbrous and moat expensive ; and from time im- memorial accordingly the Courts have never granted a writ of man- damus where there was another more convenient or feasible remedy within the reach of the subject." Per Bowen, L.J., In re Nathan, 12 Q. B. D. 461. See as to quo warranto, Shortt on In- formations, Mandamus and Prohibi- tion. It is provided by 47 & 48 Vict. c. 61, s. 15, that " proceedings in gw) warranto shall be deemed to be civil proceedings whether for purposes of appeal or otherwise." With regard to prohibition, Mr. Sliortt tells us : " The broad govern- ing principle is that a prohibition lies where a subordinate tribunal has no jurisdiction at all to deal with the cause or matter before it; or where in the progress of a cause within its jurisdiction, some point arises for decision which the inferior Court is incompetent to de- termine. But a prohibition will not lie where the inferior Court has juris- diction to deal with the cause and with all matters necessarily arising therein, however erroneous its deci- sion may be upon any point." The granting of a writ of prohibition to an inferior Court is discretionary. In the matter of a prohibition in the Mayor's Court of London, Broad v. Perkins and Another, 21 Q. B. D. 533. (') Priestman v. Thomas, 9 P. D. 70, 210, see, however, Pinney v. Hunt, 6 Ch. D. 98; Bradford v. Toung, 26 Ch. D. 26. (2) Smart v. Tranter, 43 Ch. D. 587, reversing 40 Ch. D. 165. INTRODUCTORY. 357 Changes effected by the Judicature Act, 1873. The great change which was effected by the provisionB of Changes the Judicature Act, which enabled every Division of the High J^^^^^ Court to give all such remedies as any parties may be entitled Judicature to in respect of every legal or equitable claim properly brought ■*-'^'- before the Court, is well illustrated by a case which came before the Court of Appeal in 1879. Certain goods had been taken in execution, and the trustee of a married lady's settlement claimed them as separate estate belonging to the lady. After certain proceedings in the Common Pleas Division the sheriff advertised the goods for sale, and an application was made to the Chancery Division asking, among other things, for an injunction to restrain the sheriff from selling the goods or remaining in possession of them. This order was granted by the judge of first instance, but when the case came before the Court of Appeal it was decided that an injunction restraining pending proceedings in a Common Law Court, was inconsistent with the provisions of the Judicature Act, 1873, s. 24, sub-s. 5, and could not stand. Lord Justice James, in delivering judgment, said : " I am of opinion that if we were to sustain the order of the Vice-Chancellor, we should in fact nullify one of the most salutary provisions of the Judicature Act, and interfere with the cardinal principle of that Act, which was that there should never be conflicting proceedings going on at the same time in two branches of the Court These words are absolute, and are not qualified by anything that follows To make it quite certain that no harm would be done by the abolition of such injunctions, sub-sect. 7 gives to every division of the High Court power tO give all such remedies as any parties may be entitled to in respect of every legal or equitable claim properly brought before the Court. Any cestui que trust who has an equitable claim to bring forward must bring it forward in the division which is seised of the subject-matter, and third parties are not to be embarrassed in their proceedings because parties choose to create trusts " Q). Again, in a case which came before the Court of Appeal in 1888, the question arose whether a judge of the Queen's Bench Division could make an order charging cash which stood to the credit of the debtor in the Chancery Division in the name of the Paymaster-General. Before the Judicature Act matters (') Per James, L.J., in Wright v. Redgrave, 11 Ch. D. (C.A.) 24. 358 BUSINESS OF THE COURTS. Changes effected by the Judicature Act. Substan- tive and adjective law. stood in a singular position. A Court of Equity could assist the process of a Common Law Court; but a Common Law Court could not make an order charging cash in the hands of the Court of Chancery. The Court of Appeal decided the broad principle that any judge of the High Court has power, at the instance of a judgment creditor, to make an effectual order charging the judgment debt upon a sum of money standing to the credit of the judgment debtor in the name of the Paymaster- General in an action in the Chancery Division. All the judges of the High Court are placed by the Judicature Act in the same position. A judge of the Chancery Division can now make an order charging a judgment debt upon stock or shares belonging to the judgment debtor, and a judge of the Queen's Bench Division can charge cash under the control of the Chancery Division Q). We pass on n*w to another portion of our subject. Law, according to the celebrated division of Bentham, falls under the two great heads of substantive and adjective law. Substantive law defines the rights, duties, and obligations of parties. Adjec- tive law deals with procedure, the mode of proof and the means of securing redress. Substantive law comprises the law which the Courts are established to administer. Adjective law embraces the rules according to which the substantive law is administered (^). TLe substantive law administered by the High Court having been considered, so far as the limits of our space will allow, in the books devoted to Contracts, Torts, and Equity, we shall proceed to consider adjective law in the books which deal with Practice and Evidence. The remainder of Volume II. is devoted to the consideration of Bankruptcy, of the business assigned to the Probate, Divorce, and Admiralty Division, of Ecclesiastical Law, and, last of all, of Criminal Law. As it will be necessary for us in the progress of this work before we come to that portion of it which is specially devoted to the prautice of the Courts, to refer to the terms which aie employed in the course of an action, it will be desirable here to state the ordinary steps which are employed during its course. The first step in the action, the delivery of the plaintiffs writ, is commonly followed by the delivery of a statement of claim (•) Breretony. Edwards,'2,\Ci.'B.Ti. 488. (^) See Austin's Jurisprudence, vo). li. i^p. 611 and 791, el seq., wjiere this division and that implied in the phrase actio non est jus sed medium jus persequendi are criticised. INTRODUCTORY. 359 in which he sets forth the material facts on which he relies, and specifies the particular relief which he claims. The next step in the action is the delivery of the defence of the defendant, which may in some cases be accompanied by a counter-claim. To this the plaintiff may deliver a reply, and occasionally, though rarely, other pleadings are delivered (see post, p. 733). It may be pointed out that the old practice in divorce is specially preserved by the Judicature Eules, and that proceed- ings are there commenced by petition, (jpost, p. 1040). Pro- ceedings in bankruptcy are also commenced by petition (^ost, p. 895). ( 360 ) BOOK III. CONTRACTS. Definition of con- tracts. Judgment. Recogni- zances. CHAPTEE I. Different Classes of Contracts. Contracts. — A contract is defined by Blackstone to' be an " agreement upon sufiicient consideration to do or not to do a particular thing." It has also been well defined by Sir W. Anson as "an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others." All contracts are divided by the law of England into : (1) Con- tracts of Eecord ; (2) Specialty Contracts, or Contracts under Seal ; and, (3) Simple Contracts Q). Contracts of Eecoed. Contracts of record which have been characterized by Black- stone as contracts of the highest nature, being established by the sentence of a Court of Judicature, are judgment and re- cognizance (^). " A judgment," says Sir W. Anson, " awarding a sum of money to one of two litigants, either by way of damages or for costs, lays an obligation upon the other to pay the sum awarded. This obligation may come into existence as the final result of litiga- tion when the Court pronounces judgment, or it may be created by agreement between the parties before litigation has com- menced, or during its continuance. In the latter case, certain formalities are required by the law, viz. either a warrant of attorney, by which one party gives authority to the other ta enter judgment upon terms settled, or a cognovit actionem, by which the one party acknowledges the right of the other in respect of the pending dispute, and then gives a similar authority." Eecognizances are contracts made with the Crown in its (') Rann v. Suglies, 7 T. E. 350. (_') The phrase " oontracta of re- cord," says Sir W. Anson, is un- fortunate, because it suggests that the obligation springs from agree- naent, whereas it is really imposed upon the parties ab extra. Statutes Merchant and Staple and recog- nizances, in the nature of statute staple, which are usually enumerated under the head of Contracts of Ee- cord, are now completely obsolete. Smith on Contracts, p. 3, last edition. Chap. I.] DIFFERENT CLASSES OF CONTRACTS. 361 judicial capacity, by which the party binds himself to the Queen in a certain sum conditioned for the performance of a duty imposed upon him. Eecognizances, where they become due are estreated. The peculiar characteristic of contracts of record are : (1) that Contracts they prove themselves, i.e. their bare production suffices as ° ^'^'^°^ ' evidence ; (2) they operate by way of merger, i.e. all previously existing rights with which the judgment deals are extinguished "7 it ; (3) they may be discharged by a release or instrument under seal; (4) they work by estoppel, i.e. they conclusively bind those persons against whom they are producible (see post, p. 862). The doctrine of " merger " may be illustrated by a recent case where it was held that an unsatisfied judgment against one joint contractor on a bill of exchange given by him alone for the joint debt, was a bar to an action against the other joint contractor on the original contract. " The principle of the maxim, ' Nemo debet his vexari,' " said Field, J., "applies not only to the case of one individual being sued twice for the same cause of action, but also the case of a person suing twice on the same contract. Here the plaintiffs have converted the liability on the joint contract into a liability on a judgment, so that they had a security of a higher nature than the mere right to recover on the contract, and, therefore, the maxim ' Transit in rem judieatam ' applies. The contract is merged in the judgment, and therefore the plaintiffs must fail " (1). In a subsequent case, however, it was held that this principle had no application to actions against husbands for their wives' ante-nuptial debts (^). Contracts undee Seal. A contract under seal is sometimes called a deed, and some- Contracts' times a specialty. With regard to specialty contracts we will "™<''' *''*'• consider : (1) how they are made ; (2) what are their charac- teristics ; (3) what contracts must be made by deed. I. How Specialty Conteacts aee made. A deed is an instrument written or printed on paper or parchment, sealed by the party bound thereby, and delivered by him to or for the benefit of the person to whom the liability is (■) Camhefort & Co. v. Chapman, oases on this subject. See also 19 Q. B. D. 229 ; King v. Eoare, 13 Arhuthnot v. BuUiloll, 62 L. T. 234. M. & W. 494 ; and Kendall v. Eamil- C) Beck v. Pierce, 23,Q. B. D. 316. ton, 4 App. Gas. 504, are leading 362 CONTBAOTS. [Book III. thereby incurred. If the writing were on linen, wood, or other substance, it would not be a deed ('). C ontracts There cannot be a deed without writing, sealing, and delivery. under seal. At Common Law, however, the signature of the party bound is not essential to the validity of a deed (^). The seal is an in- dispensable part of every deed, and so except in the deed of a corporation is the delivery. A deed is said to be executed or made conclusive as between the parties when it is " signed, sealed and delivered." In the execution of a deed, the seals are usually af&xed before- hand, and the party executing the deed signs his name, places his finger upon the seal intended for him, and utters the words, " I deliver this as my act and deed." There may be a sufficient delivery without words (f), or by words oiily without any act of delivery (*), the only question being whether the sealing of the deed was accompanied by any acts or words sufficient to show that the party then intended to execute the deed as his deed, presently binding upon him (*). A deed takes effect from the delivery and not from the date. II. Characteristics of Specialty Contracts, The characteristics of specialty contracts are — 1. Estoppel. — Generally speaking, a person executing a deed is not permitted to contravene or disprove what he has thereiu asserted (see, as to estoppel, post, p. 863). 2. Merger. — ^Where two parties have made a simple contract for any purpose, and afterwards have entered into the same engagement by deed, the simple contract is merged or extin- guished in that under seal. 3. Limitation of action. — A right of action arising out of a contract under seal is barred, if not exercised within twenty years from the time the cause of action, arises : 3 & 4 Wm. 4, c. 42, s. 3. 4. Consideration. — A gratuitous promise is binding if made under seal. 5. Discharge. — ^The obligation arising out of a contract made by deed cannot be got rid of at Common Law except by a deed. (') Shepp. Touch, ?>i. This rule (^) Cherry v. Hemming, 4 Ex. 631. contained in the old books is, Sir F. (") Co. Litt. 36a. Pollock tells us, "not due as a (*) Ibid., and Tupper v. Foidhes, modern reader migbt think to mere 9 C. B. (N.S.) 797. exuberance of fancy or abundance (') Xenot v. WicTiham, L. E. 2 of caution." Ho suggests that the H. L. 296. See as to deeds exe- explanation is to be found in the cuted on the same day, Gartside v. common use of wooden tallies in the Silkstone and Bodsworth Coal and Middle Ages as records of contracts. Iron Co., 21 Oh. D. 762. Chap. I.] DIFFERENT CLASSES OF CONTRACTS. 363 According to the well-known rule of law, Niliil tarn conveniens est naturali eequitati quam unumquodque ligamen dissolvi eodem modo quo et ligatum est (see this maxim commented on : Broom's Legal Maxims). The reason of this rule was stated by Lord Coke in the Countess of Butland's Case (^) in these words : " It would be inconvenient that matters in writing made by advice and on consideration and which finally import the certain truth of the agreement of the parties should be controlled by aver- ment of the parties, to be proved by the uncertain testimony of slippery memory. And it would be dangerous to purchasers and all others in such case, if such nude averments against matter in writing should be admitted." In the case of West v. Blakeway (2), it was held to be no defence to an action for breach of covenant, that the tenant had his landlord's permission to commit the particular breach in question, that permission not having been given under seal. III. What Contracts must be made by Deed. (1) No incorporeal right or hereditament can be expressly created or transferred otherwise than by deed. Thus a right of common, a. profit a prendre — a right of way, a right in nature of an easement, cannot be granted or conveyed without a deed. This may be illustrated by the celebrated case of Wood v. Leadhitter, where it was decided that a right to come and remain for a certain time on the land of another can be granted only by deed ; and that a parol licence to do so, though money be paid for it, is revocable at any time, and without paying back the money. In this case the plaintiff had paid a guinea for a ticket of admission to the grand stand at Doncaster races. The defendant, as the servant of one of the stewards, requested him to leave, and on his refusing to do so, after a reasonable time had elapsed, put him out, using no unnecessary violence, but without returning the guinea. It was held that the plaintiff was remediless (^). (2) An authority to an agent to execute a deed for his prin- cipal must itself be under seal. (3) A corporation cannot, unless in exceptional cases (post, p. 392), contract without a deed. (4) The Eeal Property Amendment Act (*) renders a deed (') 5 Co. Eep. 25. (') Wood v. Leadbitter, 13 M. & W. C) 2 M. & Gr. 729 ; see Woodfall's 838. Landlord and Tenant, 14tli edit., (*) 8 & 9 Vict. c. 106, s. 3. 177. • 364 CONTRACTS. [Book III-' necessary for a feoffment (unless made under a custom by an infant), a partition, exchange, lease (ia certain cases, see ante, p. 113), and also for an assignment and surrender of a chattel interest in tenements and hereditaments not being copyhold. (5) Under the Merchant Shipping Act, 1854, the transfer of any British ship, or of any share in a British ship, is to be effected by an instrument under seal (i). (6) Agreements for the sale of the copyright of sculpture must be by deed (^). (7) By the Companies Clauses Act, 8 & 9 Vict. c. 16, a deed is necessary for the transfer of shares in companies governed by that Act (^). (8) By the Public Health Act, 1875 : " Every contract made by an urban authority whereof the value or amount exceeds £60, shall be in -w;riting and sealed with the common seal of such authority " (f). (9) A gift of a chattel inter vivos, if not perfected by delivery, must be evidenced by deed (*). Definition. Simple contracts. Simple Contracts. The next subject for our consideration is simple contracts. A simple contract may be defined to be an engagement entered into between two or more persons, whereby, in consideration of something done or to be done by the party or parties on one side, the party or parties on the other side promises or promise to do or omit to do some act (^). It must be borne in mind that as was said in an oft-quoted case ('), all contracts (except the contracts of record which we have previously mentioned) are distinguished by the law into agreements by specialty and agreements by parol ; nor is there any such third class as contracts in writing ; if they are merely written and not specialties they are parol. Contracts in writing, in fact, are not recognised by the common law as a distinct form of contract. In certain cases, however, to which we shall presently refer, the law requires that simple contracts should be in writing. Parol, or simple contracts, then, are either (1) contracts put into (») 17 & 18 Vict. c. 104, s. 55. C") 54 Geo. III. c. 56. C) 8 & 9 Vict. 0. 16. (*) 38 & 39 Vict. c. 55, s. 174. Thia section is imperative and not directory only : Hunt v. Looal Board of Wim- Uedon, 4 0. P. T>. 48, C) Irons V. Smallpiece, 2 B. & Aid. 551, upheld in Cochrane v. Moore, 25 Q. B. D. 57. (") Chitty on ContniotB, 12tli ed. p. 9, citing Oomyn. Dig. (') Rann v. Hughes, 7 T. E. 350. of contract. Chap. I.] DIFFERENT CLASSES OF CONTRACTS. 865 ■writing, but not sealed and delivered ; or (2) contracts made by- word of moTith ; or (3) implied contracts, i.e., contracts implied from tlie silent language of men's conduct and actions, which are as forcible and binding as those that are made by express words, or through the medium of written memorials (^). The essential ingredients of simple contracts are (1) the Reciprocal or mutual assent of two or more persons; (2) a good and valid consideration ; and (3) something to be, done or omitted, which is the object of the contract (^). In order that a simple contract should be binding there must Essentials be a definite promise or offer by one party, definitely and ex- pressly accepted by the other. A mere proposal may be revoked at any time before acceptance, except where made by deed (f), or where there is consideration for keeping it open. Thus at an auction a bidding may be retracted until the hammer falls. The law on this subject is well illustrated by the case of Dickinson v. Dodds (*), which came before the Court of Appeal in 1876. In this case the defendant Dodds signed and delivered to the plaintiff Dickinson a memorandum, of which the material part was as follows : " I hereby agree to sell to Mr. George Dickinson the whole of the dwelling-houses, garden ground, stabling, and outbuildings thereto belonging, situate at Croft, belonging to me, for the sum of £800. As witness my hand this tenth day of June, 1874. (Signed) " John Dodds." " P.S. — This offer to be left over until Fiiday, 9 o'clock, a.m. " J. D. "(the twelfth) 12th June, 1874. (Signed) " John Dodds." The Court of Appeal decided that this document only amounted to an offer which might be withdrawn at any time before acceptance. Lord Justice James in delivering judgment in this case, summed up the law as follows : " It must, to con- stitute a contract, appear that the two minds were one at the same moment of time, that is, that there was an offer continuing up to the moment of acceptance. If there was not such a continuing offer, then the acceptance comes to nothing." And in the same case. Lord Justice Mellish in delivering judg- ment, said : " It is not necessary that both parties should be bound by the Statute of Frauds, for, if one party makes an offer (•) Addison on Contracts, 8th ed. (') Xenos v. Wieltliam, L. B. 2 pp. 22 and 1026. H L. 296. (2) Ohitty on Contracts, 12th ed. (^ 2 Ch. Div. 463. p. 9. 366 CONTRACTS. [Book I [I. " Mere mental assent.' in writing, and the other accepts it verbally, that will lie suffi- cient to bind the person who has signed the written document. But, if there he no agreement, either verbally or in writing, then, until acceptance, it is in point of law an offer onljj although worded as if it were an agreement." " It is clear settled law, that an offer while unaccepted, being given without consideration, is a mere nudum pactum, and does not bind the person making the offer. But the case is quite different if there be a consideration. If, for instance, A. makes such an offer to B., and in consideration of £10 paid by B. to A., agrees that the offer shall be open for a week, it would not b* competent to A. to withdraw the offer before the week had expired" (i). It has been laid down by the House of Lords that a "mere mental assent " to the terms of a proposal is not binding. In this case the law was stated by Lord Blackburn as follows : — " When an offer is made to another party, and in that offer there is a request express or implied that he must signify his acceptance by doing some particular thing, then as soon as he does that thing he is bound. If a man sent an offer abroad saying, ' I wish to know whether you will supply me with goods at such and such a price, and if you agree to that you must ship the first cargo as soon as you get this letter,' there can be no doubt that as soon as the cargo was shipped the contract would be complete, and if the cargo went to the bottom of the sea, it would go to the bottom of the sea at the risk of the orderer." Telegraph. With regard to CDmmunications by telegraph, the law pro- ceeds upon the principle that the Post OflSce authorities are agents for the sender of the message, and are only agents to transmit messages on the terms in which the senders deliver them. Accordingly, in a case when a telegraphic message was sent ordering three rifles, and the message delivered ordered the rifles which, read in the light of previous negotiations, was interpreted to be fifty rifles, it was decided that the sender of the message was not liable (^). The English law proceeds upon the piinoiple that a promise which is not under seal is not of any legal efficacy unless there be a consideration for it — a rule as we are told on high autho- rity wisely established by the law for the purpose of protecting Considera- tion. (') Per North, J., in Beichel v. Sislwp of Oxford, 35 Ch. D. 48. (^') Hmlcel V. Pape, L. R. 6 Ex. 7 ; Playford v. United Kingdom Tele- graph Co., L. R. 4 Q. B. 706 ; Dick- son V. Beuter's Telegraph Co., L. R. 2 C. P. D. 62. Chap. I.] DIFFERENT CLASSES OF CONTRACTS. 367 weak and thouglitless persons from tlie consequences of rash, improvident and inconsiderate engagements. A gratuitous promise, or a promise made witliout any con- sideration, resting in agreement only, is void of legal effect (^). A consideration may be either — (1) Executed. (2) Executory. (3) Concurrent, where there are mutual promises — a promise for a promise. (4) Continuing. An executed consideration is some act performed or some Executed value given at the time of making the promise, and in return considera- for the promise then made, as where goods are delivered or property transferred, or services rendered upon credit, or where money is paid in advance for a promise given (2). An executed consideration will sustain only such a promise as the law will imply. This may be illustrated by the case of Boscorla v. Thomas (^), where, in consideration that the plaintiff had bought a horse of the defendant, the defendant promised that it did not exceed four years of age, was sound and free from vice, and the Court held that there was no consideration for such a promise as the only promise which would be implied by the law from such a consideration would be a promise to deliver the horse upon request. The point was at one time much discussed whether a moral obligation is a sufficient consideration to support a cimtract, but this question may now be regarded as definitely answered in the negative. The law may now be taken to be that an express promise can only revive a precedent good consideration which might have been enforced at law through the medium of an implied promise, had it not been suspended by some positive rule of law, but can give no original cause of action, if the obligation on which it is founded never could have been enforced at law, though not barred by any legal maxim or statutory pro- vision. It is on this principle that a promise to pay a statute- baired debt is treated by the law as binding (*). Where the consideration is past it will not support a promise Past con- unless it be moved by a previous request. This principle was '*"i«'''»'"'"- established by the case of LampleigTi v. Bratliwait, decided in the year 1615. In that case the defendant had committed a murder. (') Leake on Contracts, 17, citing (*) Beaumont v. Reeve, 8 Q. B. Plow. 483; Eastwood V. Keni/on, 11 A. & E. C) Leake on Contracts, p. 18. 438 ; and see Oliitty on Contracts (=) 3 Q. B. 231. 12tli ed. p. 37. 368 CONTRACTS. [Book III. Request where implied. Executory considera- tion. and he requested the plaintiff to " labour and do his endeavour " to obtain his pardon from the King. Thereupon the plaintiff rode and journeyed to obtain the pardon, and afterwards the defendant promised to give him one hundred pounds, the defence was that the consideration was past, and that nothing was done. The Court decided that labour though unsuccessful is a good consideration, and that although a mere voluntary courtesy will not uphold a promise, yet a courtesy moved by a previous request will. The case of Lampleigh v. Brathwait was commented on in the leading case on the position of counsel, Kennedy v. Broun, to which we shall subsequently refer, where Erie, O.J., in his " memorable judgment " said, " Probably at the present day, such service on such a request would have raised a promise by im- plication to pay what it was worth ; and the subsequent promise of a sum certain would have been evidence for the juiy to fix the amount." The request will be implied in the following circumstances : — 1. Where the consideration consists in the plaintiff having been compelled to do that to which the defendant was legally compellable. 2. Where the defendant has adopted and enjoyed the benefit of the consideration, for here his subsequent assent amounts to a ratification ; and in that case the maxim omnis ratihabitio retro- trahitur et mandato priori cequiparatur, viz., every ratification hath a retrospective effect, and is considered equivalent to a prior command, is held applicable. 3. Where the plaintiff voluntarily does that to which the defendant was legally compellable, and the defendant afterwards, in consideration thereof, expressly promises. 4. In some cases where the plaintiff ^olunta^ily does that wliich the defendant is morally though not legally compellable to do, and the defendant in consideration thereof expressly promises Q-). An executory consideration is a promise to do or give something in return for the promise then made, e.g. where there is an interchange of promises, and each material promise forms the consideration for the other. Whenever the consideration of a promi&e is executory, there must necessarily have been a request on the part of the person promising. Thus, if A. promise to remunerate B. in considera- (') See Chitty en Contracts, 12th Brathwait, ed. p. 47, and notes to Lampleigh v. Cases. 1 Smilli's Leading Chap. L] DIFFERENT CLASSES OF OONTBAOTS. 369 tion that B. will perform something specified, that amounts to a request to B. to perform the act for which he is to be remu- nerated. This is well illustrated by the case of Shadwell v. Shadwell Q-), where an uncle wrote to his nephew who had promised to marry " E. N. " in the following terms : — " I am glad to hear of your intended marriage with ' E. N.,' and as I promised to help you at starting, I am happy to tell you that I will pay to you £150 yearly during my life, and until your annual income derived from your profession of a Chancery barrister shall amount to 600 guineas." The nephew married " E. N.," and the question whether this letter amounted to a request subsequently arose in an action brought by the nephew against his uncle's executors for arrears of the annuity. The majority of the Court decided in the plaintiff's favour (^). Where one of the parties to an executory agreement breaks Executory the agreement before the time of executing it, either by disabling "S""^^™^'''- himself from fulfilling it or by repudiating the contract, the other party to the contract is at once discharged and may sue immediately for breach of the contract. One of the leading cases on this subject is Hochster v. Delatour (s). In that case the defendant engaged the plaintiff to enter into his service as a courier commencing from a certain time. Some time before the day for the commencement of the employment, the defendant wrote to the plaintiff and refused to perform the contract. The Court laid down the principle that where there is a contract to do an act on a future day, there is a relation constituted between the parties in the meantime by the contract, and they impliedly promise that in the meantime neither will do anything to the prejudice of the other inconsistent with that relation. The principle in this ca,se was followed in a well-known case Promise where a gentleman promised to marry a lady as soon as his *° """""ry. father died, and subsequently renounced the contract while his father was still alive (*). In this case the law on the subject was summed up by the late Chief Justice Cockburn as follows : — " The law with reference to a contract to be performed at a future time, where the party bound to performance announces prior to the time his intention not to perform it, as established by the cases is as follows : The promisee, if he pleases, may treat the notice of intention as inoperative, and await the time (') Smith's Leading Cases, 9tli ed. (*) Frost v. Knight, L. E. 7 Ex. p. 157. 114, where the oases on the subject C) 9 C. B. (N.S.) 159. are reviewed. C) 2 E. & B. 678. VOL. I. 2 B 870 OONTSAOTS. [Book III. Concurrent considera- tion. Continuing considera- tion. Quantum of con- sideration. when the contract is to be executed, and then hold the other party responsible for all the consequences of non-performance : but in that case he keeps the contract alive for the benefit of the other party as well as his own ; he remains subject to all the obligations and liabilities under it, and enables the other party not only to complete the contract, if so advised, notwith- standing his previous repudiation of it, but also to take advantage of any supervening circumstances which would justify him in declining to complete it ; on the other hand the promisee may, if he thinks proper, treat the repudiation of the other party as a wrongful putting an end to the contract, and may at once bring his action as on a breach of it ; and in such action he will be entitled to such damages as would have arisen from non-per- formance of the contract at the appointed time, subject, howevei-, to abatement in respect of any circumstances which may have afforded him the means of mitigating his loss " (^). It must be borne in mind that if the renunciation be not accepted the contract remains in full force. A concurrent consideration arises in the case of muttial promises, a promise for a promise being, as we have seen, a good consideration. In the case of concurrent consideration, the plaintiff's promise is executed, but the thing to be per- formed by him is executory. Hence, although the acts to he done by the plaintiff are not conditions precedent, but concurrent with those to be done by the defendant, yet he cannot, maintain an action without showing performance of, or an offer to perform his part. It is sufficient, however, for the plaintiff in such a case to aver readiness and willingness to perform (^). A continuing consideration being in part executed, but which still continues, is also in many cases sufficient to support a promise, e.g. in consideration that the defendant had become and was the plaintiff's tenant, he undertook to manage the farm in a husbandliice manner, or in consideration that the lessee then in possession had occupied the land and paid his rent to saA'e him harmless against all persons during the period of his occupation "because his occupation and prompt payment of the rent is a continuing consideration " (2). With regard to the quantum of the consideration, it is a long- established principle that any benefit to the person making the promise, or any damage or any suspension, or forbearance of his (') See also Johnstone v. Mdling, 16 Q. B. D. 460. (2) Giles V. Giles, 9 Q. B. D. 164- ] 7'1 ; Waterhouee v. Skinner, 2 B. & P. 447. (') Marsh v. Rainsford, 2 Leon. Ill; Swenhamy.Warlituiton,2Lemi. 224. Chap. I.] DIFFERENT 0LA8SE8 OF G0NTBA0T8. 371 right, or any loss, or possibility of a loss to the person to whom it is made is a sufficient consideration for such promise. The mere entrusting a person with property, or a promise by him that he will faithfully discharge his duty with reference to it, is of itself a consideration. Thus, in the celebrated case of Goggs V. Bernard, where the defendant undertook to take up hogsheads of brandy then in a certain cellar in D. and to lay them down again in a certain other cellar in Water Lane, and did his work so negligently that one of the casks was stoved, and a large quantity of the brandy was spilt, it was held that he was responsible for the damage done, though he was not a common carrier, and his service was gratuitous ('). Again, a promise to forbear from suing absolutely or for a Forbear- certain time, or for a reasonable time (and this is implied by the ^^"^ ''^"^' law if no time be mentioned) or actual forbearance at the request,, express or implied, of the other party, is a good consideration (^). Other instances of consideration which have been sufficient to Considera- support a simple contract, are the assignment of a debt, the '™^' release of an equitable claim, the settlement of a doubtful claim, or reciprocal promises between the parties (^). In a case which came before the House of Lords in 1887, there was an agreement between a judgment debtor and a judgment creditor that, in consideration of the debtor paying down part of the judgment debt and costs and on condition of his paying to the creditor or his nominee the residue by instalments, the creditor would not take any proceedings on the judgment. It was held that here there was no consideration, that it was a mere nvdum pactum, and that the creditor after payment of the debt and costs was not prevented from pro- ceeding to enforce payment of the interest upon the judg- ment (*). Q) Smith's Leading Cases, vol. i. (■*) Foakes v. Seer, 9 App. Cas. 9th ed. 199. 605, following the old case of Cumber (') Orears v. Hunter, 19 Q. B. D. v. Wane, and see Bidder v. Bridges, (C. A.) 341. 37 Ch. D. 406, where this case was (2) Chitty on Contracts, 12th ed. distinguished, p. 32, et seq. 2 B 2 ( 372 ) CHAPTEE II. SmPLE CONTEACTS EEQ0IR1D TO BE IN WeITING. Let us now consider what simple contracts are required by the law to be in writing. The chief cases in which writing is required by the law are those which are prescribed by the 4th and 17th sections of the Statute of Frauds, which shall be pre- sently considered ; but in addition to these cases, writing is also required by the law in certain cases of which the following may be mentioned : — (1) Bills of exchange, cheques, and promissory notes, must under the Bills of Exchange Act, 1 882, be in writing Q). (2) Assignments of copyright must be in writing. (3) An acknowledgment of a statute barred debt must be in writing signed by the debtor (2) or by his duly authorised agent ('). Statute of The 4th section of the Statute of Frauds provides as follows : — Frauds, That no action shall be brought — ss. 4 17. ' ' First, " whereby to charge any executor or administrator upon any special promise to answer damages out of bis own estate;" or, Secondly, " whereby to charge the defendant upon any special promise to answer for the debt, default, or miscarriage of another person ;" or. Thirdly, " to charge any person upon any agreement made upon consideration of marriage ;" or, Fourthly, " upon any contract or sale of lands, tenements, or hereditaments, or any interest in or concerning them ;" or, Fifthly, " upon any agreement that is not to be performed within the space of one year from the making thereof, unless the agreement upon which such action shall be brought, or some memorandum or note thereof, shall be in writing and signed by the party to be charged therewith, or some other person thereunto by him lawfully authorised." The 17th section of the Statute of Frauds provides that " no contract for the sale of any goods, wares, or merchandises for the price of £10 sterling or upwards, shall be allowed to be r') 45 & 46 Vict. 0. 61, ss. 3, 7,3, 83. Tentei-den'a Act). C) 9 Geo. 4, c. 14, s. 1 (Lord (') 19 & 20 Vict. c. 97, s. 13. Chap. II.] SIMPLE CONTRACTS. 373 good, except the buyer shall first accept part of the goods so sold, and actually receive the same; or, secondly, shall give something in earnest to bind the bargain, or in part of pay- ment ; or, thirdly, unless some memorandum or note in writing of the said bargain be made, and signed by the parties to be charged with such contract, or their agents thereunto lawfully authorized " (^). Price is now extended to value by Lord Tenterden's Act {jpost, p. 378). It will be observed that the form required by these two sec- tions is the same. There must be a note or memorandum in writing signed by the party to be charged under the contract, or by his agent thereunto lawfully authorized. The cases which have been decided upon the interpretation Decisions of these sections are extremely numerous, and it is altogether °^l^^^^'^^ impossible for us to attempt to do more than to refer to some of tions of the the leading principles which they decide. The following Statute of points have been decided upon the construction of both sections. 1. The note or memorandum may consist of several docu- ments, but they must be sufficiently connected together, and contain all the terms of a contract. This may be illustrated by the celebrated case of Boydell v. Brummond (^). In that case a printed prospectus of a magnificent edition of Shakespeare to come out in numbers lay in the plaintiff's shop, " one number at least to be published annually," and the proprietors were " confident that they should be able to produce two numbers in the course of every year." The plaintiif also kept a book which had for its title ' Shakespeare Subscribers, their Signatures.' The Subscribers' Book, however, did not refer to the prospectus. The defendant signed the Subscribers' Book, and the question arose whether he was liable. The Court decided that as the agreement was not to be performed within the space of a year from the making thereof, it fell within the 4th section of the Statute of Frauds and required a signed memorandum, that the connection between the prospectus and memorandum must appear on the face of the documents themselves, but could not be proved by parol evidence. 2. The memorandum must shew who are the parties to the contract (^). (') It has been deemed advisable added, probably witb at least equal to give the ipsissima verba of these truth, that every line of it had cost a celebiutedsections, on account of their subsidy in respect of judicial inter- extreme importance. Every line of pretation. the 4th section of the Statute of f ) 11 East, 142. Frauds, it was said by an enthuaiast, (^) Williams v. Lalce, 2 E. & E. is worth a subsidy ; to which it was 349. 374 aONTBAOTS. [Book IH. Decisions on Statute of Frauds. Mercantile Law Amend- ment Act, 1856. Statute of Frauds, s. 4. But a description of one of the parties will let iu parol evi- dence to identify Mm (}). 3. The memorandum must be signed by the party to be charged, or his duly authorised agent. Both parties need not sign the document, but the party who has not signed may have the option of enforcing the contract against the other (^). The signature, so long as it was intended to be a signature governing the whole contract, need not be the party's autograph, but may be a mark (^), and may occur in any part of the document, whether at the beginning, in the middle, or at the end (*). It is sufScient if there be written evidence of the contract before the action is brought upon it, though none existed at the time of the contract itself. A memorandum after the action has been commenced is not sufficient (^). 4. It was laid down in the leading case of Wain v. Warlters (^) that, in contracts within the fourth section of the Statute of Frauds the consideration as well as the promise must appear in writing. It was held in that case that the word agreement in the statute, included the consideration for the promise as well as the promise itself. This rule was found inconvenient as regards guarantees, and accordingly it is provided by the Mercantile Law Amendment Act, 1856 (19 & 20 Vict. c. 97, s. 3), that a promise to answer for the debt, default, or miscarriage of another shall not he " deemed invalid to support an action, or other proceeding to charge the person by whom such promise shall have been made by reason only that the consideration for such promise does not appear in writing, or by necessary inference from a written document." It will be desirable to notice briefly some of the more important principles settled by the very numerous cases which have been decided on the fourth section of the Statute of Frauds. With regard to the first sub- section of the fourth section, (') Trueman v. Loder, ] 1 A. & B. 595. O See Laythoarp v. Bryant, 2 Bing. N. C. 744 ; Caton v Caton, L. E. 2 H. L. 127; Benjamin on Sale, 4tli ed. 230. (0 Baker v. Dening, 8 A. & E. 94. (*) Dmrell v. Evans, 1 H. & C. 174 ; Johnson v. DodQson, 2 M. & W. 653. (») Bill V. Bament, 9 M. & W. 36; Gibson v. Holland, L. E. 1 0. P. 9. By E. S. C, 1883, Order xix., rr. 15, 20, tlie Statute of Frauds must now be specially pleaded. C) 6 Bast, 10 ; see notes thereto, 1 Smith's Leading Cases. Chap. II.] SIMPLE C0NTBACT8. 375 witli reference to tlie authentication required by tlie statute of Promise by the promise by an executor or administrator, it must be borne ^^^'="*''.'' . ^ in mind that, even though the promise be in writing, the trator. executor will not be bound unless it be by deed or there be some valid consideration for the promise. A mere promise without consideration will leave the executor liable only as executor, and to the extent of the assets in his hands. If a creditor at the executor's request forbears to sue him, that is sufficient consideration, whether the executor has assets or not at tlie time of the promise ('). It has been decided that if an executor promises to pay at a future time a debt immediately due from his testator, this renders him personally liable. This principle was applied to a case in which two executors gave a promissory note in the following form : " As executors to the late A. B., we severally and jointly promise to pay to C. D. the sum of £300, with lawful interest for the same." The Court decided that, as interest was to be added, the promise necessarily imputed a future payment, and that therefore the executors were person- ally liable (2). The 2nd sub-section of the 4th section of the Statute of Guarantee. Frauds deals with the subject of guarantees. A guarantee may be defined as a collateral promise in writing, which one who is called the surety enters into, to answer for the debt, default, or miscarriage of another who remains primarily liable for such debt, default, or miscarriage, and is called the principal debtor. It was established by the leading case of Birlcmyr v. Darnell (^), that a promise to answer for the debt, default, or miscarriage, for which that other remains liable, requires to be in writing, in order to satisfy the statute, but that if the other does not remain liable, no writing is required. If two came to a shop, said the Court in that case, and one buys, and the other, to gain him credit, promises the seller, " If he does not pay you, I will," this is a collateral promise, and requires writing. But if he says, " Let him have the goods ; I will be your paymaster ; " or " I will see you paid ; " this is an undertaking for himself, and no writing is required. The question to which of the two credit is given is generally one for the jury, who take into account all the circumstances. A strong but not conclusive circumstance that a person is only (') Williams on Executors, 8th ed. 460 ; 5 Moore, 281. p. 1784. (') 1 Smith's Leading Cases and (2) Childs V. Morris, 2 B. & B. see notes thereto. 376 CONTRACTS. [Book HI. Promise in considera- tion of marriage. Contracts for Jands, tenements, &c. a surety is that he is not originally debited in the tradesman's books (1). The effect of this provision of the Statute of Frauds was evaded by bringing the action in another form. To remedy this it viras provided by Lord Tenterden's Act (9 Geo. 4, c. 14), s. 6, that no action shall be brought to charge any person by reason of any representation or assurance made or given concerning or relating to the conduct, credit, ability, trade or dealings of any other person, to the intent or purpose that such other person may obtain credit, money, or goods upon, unless such representa- tion or assurance be made in writing signed by the party to be charged therewith (f). The third sub-section enacts that any agreement made in consideration of marriage must be in writing. It has, however, been long decided that an agreement consisting of mutual promises to marry need not be in writing (^). But an agree- ment as to collateral matters, e.g. a promise in consideration of marriage to make a settlement or will, or pay money, must be in writing (f) ; and marriage is a good consideration in such a promise. The fourth sub-section renders writing necessary in contracts for lands, tenements, and hereditaments, and any interest in or concerning them. It has been decided that a contract to give or take a lease or tenancy of a house or land, or to assign or surrender a tenancy to the landlord in favour of another; a contract for the sale of a business, as a milk-walk, or a brick- yard, accompanied with possession of the premises where it is carried on ; a contract to procure a lease or interest in land for another, although the contractor himself have no interest, and act merely as broker or agent in the matter (5) ; a contract for a right to shoot over land, and take away the game (^), are within the statute. Contracts for shares in railway, canal, water, and gas companies, are not within the statute ('). What is an interest in land within the meaning of the fourth sub-section of the fourth section of the Statute of Frauds ? The law on this subject has been well summed up as follows : " Growing crops, ii fructus industriales, are chattels, and an agree- ment for the sale of them, whether mature or immature, whether (') See notes to Birlemyr v. Darnell, 1 Smith's Leading Cases. O See Smith's Leading Cases, 9th ed. p. 195 et seq. ; Lyde v. Bar- nard, 1 M. & W. 101 ; Swift V. Jews- bury, L. E. 9 Q. B. 301. (^) Cork V. Baker, 1 Str. 34; Harrison v. Cage, 1 Eaym. 386. (*) Caton V. Caton, L. E. 1 Ch. 137 ; 2 H, L. 127. (') Leake on Contracts, p. 249. C) Webber v. Lee, 9 Q. B. D. 315. (') Bradley V. Holdsworth, 3 M. & W. 422 ; Bligh v. Brent, 2 Y. & C. 208. Chap. II.] SIMPLE CONTRACTS. Sll the property in ttem is transferred before or after severance, is not an agreement for the sale of any interest in land, and is not governed by the fourth section of the Statute of Frauds. Grow- ing crops, ii fructus naturales, are part of the soil hefore severance, and an agreement therefore vesting an interest in them in the purchaser before severance, is governed by the fourth section ; but if the interest is not to be vested till they are converted into chattels by severance, then the agreement is an executory agreement for the sale of goods, wares, and merchandise, governed by the seventeenth, and not by the fourth section of the statute " (i). It has been decided that agreements for the sale of growing crops of potatoes, turnips, wheat, or barley are not within the statute, and it is immaterial whether the crops are to be gathered by the vendor or the purchaser. Standing timber, fruit on a tree, and grass, are within the statute. lu one of the la.st cases in this sub-section, decided in the year 1888, it was held that a contract for the sale of the building materials, with a condition that all the materials were to be taken down and cleared oflf the ground in two months, was within the statute, and required to be in writing (^). With regard to the fifth sub-section of the 4th section, it was Peter t. decided in the leading case oi Peter y. Gompton(f) that an agree- Cb^npiore. merit to fill within the words of the statute, " an agreement that is not to be performed within one year from the making thereof," must be one which appears from its terms to be in- capable of performance within the year. In this case the defendant promised for one guinea to give the plaintiff so many at the day of his marriage, and it was held that the agreement need not be in writing, for the contingency might arise within a year. It has been held that an agreement to hire a carriage for five years — though by the custom of the trade such an agree- ment might be determined by payment of hire for one year (*) — a contract for payment of an annuity which might be deter- mined within a year (^), and a contract that Mr. W. B. should be solicitor to a company and should not be removed from his oiEce except for misconduct (^), all require to be in writing. It (') Benjamin on Sale, Ith ed. 508. p. 121 ; see also BUickbura on Sales, (') Skinner, 353 ; see Smith's p. 11 et seq. ; Marshall v. Green, Leading Oases, vol. i. p. 359, and 1 C. P. D. 35, where the authorities notes thereto. are considered. See as to what is C) JBirch v. Earl of Liverpool, sufficient memorandum : Oliver v. 9 B. & 0. 392. Hunting, 44 Ch. D. 205; Stokell v. (=) Sweet v. Lee, 4 M. & Gr. 452. Niven 61 L. T. 18. (") Eley v. Positive Assurance Co., (^) Lavery v. Pursell, 89 Ch. D. 1 Ex. D. 20. 378 CONTRACTS. [Book HI. Agreement not to be performed within a year. Statute of Frauds, s. 17. is sufficient, however, if the agreement is to be performed by either party within the year, however many years may have to elapse before the agreement is performed by the other party Q). In a case decided in 1888 (^), where a husband and wife having instituted proceedings against each other for assault, had subsequently agreed to settle their differences in a more amicable manner, and entered into an oral agreement with each other to withdraw the summonses and to live apart on certain terms, the Court of Appeal decided that the agreement was Tiot, " nut to be performed within one year," within the Statute of Frauds, and that writing was unnecessary. " The Statute of Frauds," said one of the judges, " speaks of any agreement that is not to be performed within the space of one year from the making thereof, pointing to contracts the complete performance of which is of necessity extended beyond the space of a year. That appears clearly from the case of Boydell v. Brummond, the rule to be extracted from which is, that, where the agreement distinctly shows upon the face of it, that the parties contemplated its performance to extend over a greater space of time than one year, the case is within the statute; but that where the contract is such that the whole may be performed within a year, and there is no express stipulation to the contrary, the statute does not apply " (^). Let us now proceed to consider the 17th section of the Statute of Fiauds, but before doing so we may point out that the provisions of the 17th section of the Statute of Frauds, have been extended by Lord Tenterden's Act (^) to all executory contracts, i.e. all contracts for the sale of goods of the value of £10 and upwards, notwithstanding the goods may be intended to be delivered at some future time, or may not at the time of such contract be actually made, procured or provided, or iit or ready for delivery, or some act may be requisite for the making or completing thereof, or rendering the same fit for delivery. An important distinciion between the language employed by the legislature in the 4th and 17th sections of the Statute of Fiauds must also be noticed. The 4th says merely "no action shall be brought," while the 17th declares that no contract within it shall be " allowed to be good." It has been decided (') Bonellan v. Read, 3 B. & Ad. 899 ; Miles v. New Zealand Alford Estate Co., 32 Ch. D. 266. . in McGi-egar y. McGregor, 21 Q. B. D. 124. C) Per Lord E.sher, M.E., in McGregor v. McGregor, 21 Q. B. D. 429 C) 9 Geo. 4, c. 14, s. 7 Chap. II.] SIMPLE CONTRACTS. 379 that the 4th section only applies to the procedure, and does not affect the intrinsic validity of the contract Q-). Except under particular circumstances the parties to an Agreement agreement concerning the sale of specified chattels are taken to ^"^ ^'^^'^ °^ intend an immediate transfer of the right of property from the vendor to the purchaser, and the law fulfils their intention, and transfers the right of property accordingly. But there is nothing to prevent the parties from coming to an agreement that the property shall be transferred when and not till certain conditions have been performed ; when the agreement is of that nature the law fulfils the intention of the parties. The property is not transferred before the performance of the conditions ; if nothing has occurred in the meantime to prevent it, the property is transferred as soon as the conditions are performed. Where an agreement is for the sale of goods and the perform- ance of other things, it becomes important to ascertain whether the perlbrmance of any of those things is meant to precede the vesting of the property or not. This is a question of the construction of the agreement, and the Courts have adopted two rules for this purpose, viz. : — (1) That where, by the agreement, the vendor is to do any- thing to the goods for the purpose of putting them into that state in which the purchaser is bound to accept them, the performance of those things shall (in the absence of circum- stances indicating a contrary intention) be taken to be a condition precedent to the vesting of the property. (2) That where anything remains to be done to the goods for the purpose of ascertaining the price, as by weighing, measuring, or testing of the goods where the price is to depend on the quantity or quality of the goods, the performance of those things also shall be a condition precedent to the transfer of the property, although the individual goods be ascertained, and they are in a state in which they ought to be accepted. These rules cannot be better illustrated than by the case of Bugg V. Minett (2), in which they were both applied. The (') Leroux v. Brown, 12 C. B. 807. 17th sections, is not to render the In Williams v. Wlieeler, 3 C. B. (N.S.) contracts within them void, still less 316, Willes, J., while professing him- illegal, but is to render the kind of self not satisfied with this decision, evidence required indispensable when declared' that it must be acted on it is sought to enforce the contract." until overruled by a superior Court. See as to variation of written contract, In Maddison v. AldersoUf 8 App. Gas. Ooss v. Lord Nugent, 5 B. & Ad. 58 ; 488, Lord Blackburn, however, said : Ohitty on Contracts, 12th ed. p. 161, "I tliink it is now finally settled et seq. that the true construction of the (^) 11 East, 210. Statute of Frauds, both the 4th and 380 CONTRACTS. [Book III. Agreement for sale. Definition of war- ranty. material facts of that case were these : Eugg bought twenty- four lots of turpentine out of twenty-seven, which were sold by auction. By the terms of the sale, twenty-five out of the twenty-seven lots were to be filled up by the sellers from the other two, and so made to contain a specified quantity, and the two lots were then to be measured and paid for according to their contents. Kugg's purchase included these two lots of uncertain quantities. The three lots which were not purchased by Eugg were filled up and removed, so that Eugg was clearly entitled to have the whole of what remained, and no difficulty could arise from the subject matter of the sale being ascertained. Eugg paid about £2000 on account of the turpentine; the greater part of the lots were filled up, and the others were being filled up, when by an accidental fire the whole was consumed, no part having been delivered. Eugg brought an action in the King's Bench to recover the £2000 he had paid on account, and the Court held that all those lots which were filled up before their destruction were the property of the purchaser ; and that the sellers were entitled to retain their price, but that the others remained the property of the seller, who must there- fore refund the price received on account of them. The test, according to Lord EUenborough, was whether " everything had been done by the sellers which lay upon them to perform, in order to put the goods in a deliverable state " ;. and Bayley, J., said that " if the sellers meant to relieve themselves from all further responsibility, they should have done what remained for them to do, until that was done the property remained in them." A warranty has been judicially defined to be an express or implied statement of something which the party undertakes shall be part of a contract, and, though part of the contract, yet collateral to the express object of it (^). The distinction between a warranty, a representation, and a condition were discussed in a well-known case (^) as follows : " Properly speaking, a representation is a statement or assertion, made by one party to the other before or at the time of the contract, of (>) Per Lord Abinger, C.B., Chanter v. HapMns, 4 M. & W. 404, adopted by Martin, B., in Azemar v. Casella, L. R. 2 C. P. (J77, 679. (2) Behn v. Burness, 3 B. & S. 751. Sir W. Anson, while expressing an opinion that the judgment in this case is the fullest judicial analysis of the terms of a contract, draws atten- tion to the fact that it also affords a good ilhiatration of " the provoking confusion of the terminology of this part of the subject." See further on this subject, Anson on Contracts, p. 142, and note p. 309, where some of the many various senses in which the term " warranty " has been used are enumerated. Chap. II.] SIMPLE CONTRACTS. 381 some matter or circumstance relating to it. Though it is some- Warranty times contained in the written instrument, it is not an integral '"'"'^ lepre- . ° sentations. part of the contract ; and, consequently, the contract is not broken though the representation proves to be untrue (i) ; nor is such untruth any cause of action, nor has it any efficacy what- ever, unless the representation was made fraudulently either by reason of its being made with a knowledge of its untruth, or by reason of its being made dishonestly, with a reckless ignorance whether it was true or untrue . . . Though repre- sentations are not usually contained in the written instrument of contract, yet they sometimes are. But it is plain that their insertion therein cannot alter their nature. A question, how- ever, may arise whether a descriptive statement in the written instrument is a mere representation, or whether it is a substan- tive part of the contract. This is a question of construction which the Court and not the jury must determine. If the Court should come to the conclusion that such a statement by one party was intended to be a substantive part of his con- tract, and not a mere representation, the often-discussed ques- tion may, of course, be raised, whether this part of the contract is a condition precedent, or only an independent agreement, a breach of which will not justify a repudiation of the contract, but will only be a cause of action for a compensation in damages." " But with respect to statements in a contract descriptive of the subject-matter of it, or of some material incident thereof, the true doctrine, established by principle as well as authority, appears to be, generally speaking, that if such descriptive statement was intended to he a substantive part of the contract, it is to be regarded as a warranty, that is to say, a condition on the failure or non-performance of which the other party may, if he is so minded, repudiate the contract in toto, and so be relieved from performing his part of it, provided it has not been partially executed in his favour. If, indeed, he has received the whole or any substantial part of the consideration for the promise on his part, the warranty loses the character of a condition, or, to speak perhaps more properly, ceases to be available as a condition, and becomes a warranty in the narrower sense of the word, viz. a stipulation by way of agreement for the breach of which a compensation must be sought in damages." (i) Policies of insiirance are, as rally speaking, an exception (see pointed out in the judgment, gene- ante, p. 278). 382 CONTRACTS. [Book HI. Warranty. The law witli regard to warranty in respect of mamifactnres was considered by the House of Lords in a case which came before them in 1887 Q-). In that case certain cloth merchants ordered of cloth manufacturers at Bradford mixed worsted coatings which were to be in quality and weight equal to certain numbered samples which had been previously furnished by the manufacturers to the merchants. The goods were well known in the trade as " corkscrew twills." The object of the merchant was to sell the coatings to clothiers or tailors in the United States. The goods supplied corresponded in every particular with the samples, but owing to a certain defect which was latent, and not discoverable by due diligence upon such inspec- tion MS was ordinary on sales of cloth of that class, the goods turned out to be unmerchantable, and were returned upon the merchants' hands. The House of Lords held that upon such a contract there was an implied warranty of the fitness of the goods, and that the merchants were entitled to recover. The following propositions of law on the subject of warranty, which had been laid down in previous cases, received the approval of the House of Lords in the present case : — 1. Where goods are ordered of a manufacturer for a particu- lar purpose, he impliedly warrants that they are fit for that purpose. 2. Upon a sale of goods of a specified description, which the purchaser has no opportunity of examining before the sale, the goods must not only answer that specific description, but must be merchantable under that description. 3. The implied warranty that the goods supplied are mer- chantable is not absolutely excluded by the fact that the goods are sold by sample, and that the bulk precisely corresponded with it, but is only excluded as regards those matters which the purchaser ought, by due diligence in the use of all ordinary and usu&,l means, have ascertained from an examination of the sample. A warranty must be given at the time of the sale ; if given after the sale, or when the contract is performed, it is invalid for want of consideration (J). A warranty must be in writing if the contract in respect of which it is made is in writing, but no particular form of words is requisite to constitute it. The law on this subject has been summed up by Lord Black - (') Drummond v. Van Ingen, 12 Just, L. E. 3 Q. B. 197 (1868); App. Gas. 284, and see Randall v. Parkinson v. Lee, 2 East, 314. Newson, 2 Q. B. D. 102; Jones v. O iJoscoi-Za v. ITiomas, 3 Q. B. 234. Chap. II.] SIMPLE CONTRACTS. 383 bum as follows : " It is now well settled that in the sale of Warranty, goods, specific at the time of the sale, that is ear-marked or identified as the subject-matter of the sale, the vendee cannot put the breach of a warranty on the same footing as an unper- formed condition precedent. He cannot decline to accept ear- marked goods, on the ground that they are not as good as those contracted for. Where goods were ear-marked at the time of the contract, the stipulation as to quality is not a condition precedent uncomiDlied with, and as such entitling the vendee to reject the goods, but a warranty merely, for the breach of vk'hich the vendee may obtain damages " (^). What is acceptance within the meaning of the 17th section What is of the Statute of Frauds ? " ^"'=?P'- ance. This question may now be considered as definitely settled by the decision of the Court of Appeal in Page v. Morgan (2). It was there pointed out that there must be under the statute both an acceptance and actual receipt, but such acceptance need not be an absolute acceptance ; all that is necessary is an acceptance which could not have been made except upon admission that there was a contract, and that the goods were sent to fulfil that contract. Accordingly in this case, where there was a sale of wheat by sample, and the purchaser, having received a number of sacks of wheat delivered under the contract into his premises, opened the sacks and examined their contents to see if they were equal to sample, but immediately after so doing gave notice to the seller that he refused the wheat as not being equal to sample, the Court of Appeal decided that there was evidence of acceptance within the meaning of the Statute of Frauds. (') Blackburn on the Contract of Sale, p. 501. O 15 Q. B. D. 228. ( 384 ) Aliens. Foreign states. Ambassa- dors. CHAPTEE III. Capacity of Parties. The capacity of persons to form a valid contract may be affected by their political, professional, or social status, and by certain personal conditions, such as infancy, marriage, insanity. Again, artificial persons, as corporations, contract subject to certain restrictions and limitations, in some cases arising from their nature, and in other cases defined by the law of their creation Q). Under the head of Political Status we shall briefly notice the positions of aliens, foreign states, and ambassadors. In modern times no incapacity attaches to the status of an alien, except that he cannot acquire property in a British ship (2). An alien enemy cannot, without licence from the Crown, enforce an existing contract, or make a new contract during the continuance of the war. His remedies, however, are only suspended, and at the conclusion of peace he resumes all the rights which existed to him at the commencement of the war which have not been seized by the Crown. Thus an alien enemy was admitted to prove a debt under a bankruptcy, the payment of the dividend being reserved (^). During war an alien enemy cannot acquire any new rights by contract. He cannot draw bills upon this country, an acceptance of them during war would be void, and an indorse- ment, with notice, would give no claim upon the acceptor (*). Foreign states, and sovereigns, as such, are exempt from being sued in the Courts of this country unless they volun- tarily submit to the jurisdiction. The ambassadors and representatives of foreign states duly accredited are also privileged from being sued in civil actions, Q) Anson on Contracts, 5th ed. p. 104, et seq., where the incapacity of corporations is spoken of as arising from artificiality of construction ; " being given a, personalty by law, they take it vipon such terms as the law imposes." O The Naturalization Act, 1870 (33 Vict. c. 14), s. 2. C) Ex parte Soussmaher, 13 Ves. 71. (*) WilUson V. Patteson, 7 Taunt. 439. Chap. III.] CAPACITT OF PASTIES. 385 and accordingly contracts cannot be enforced against them in our Courts unless they voluntarily submit to or appeal to their jurisdiction Q-). The English law, like the Eoman law, regards the fees of Bnrristei- a barrister as an honorarium, and accordingly no action for them can be maintained. " The relation of counsel and client renders the parties mutually incapable of making any legal contract of hiring and service concerning advocacy in litigation" (2). The law on this subject was considered by the Privy Council in 1884 with reference to the law of Quebec, which permits a member of the Bar to sue for professional services and to contract for any rate of remuneration which is not contra bonos mores ov in violation of the rules of the Bar. In this case the law of the English Bar was stated as follows : — " A member of the Bar of England, in accordance with the law of that country and the rules of the profession to which he belongs, renders, and professes to render, services of a purely honorary character. If, in his professional capacity as an English barrister, he accepted a retainer, to appear and plead before commissioners or arbitrators in a foreign country, by whose law counsel practising in its regular courts were permitted to have suit for their fees, that would not give him a right of action for his honoraria. His client would have a conclusive defence to such an action, on the ground that he was employed as a member of the English Bar, and, bj' necessary implication, upon the same terms as to remuneration upon which members of that Bar are understood to practise " {^). Formerly, the fee of a physician was like that of a barrister, regarded as a mere honorarium; though it differed in this respect, that the physician was regarded as not under any legal incapacity in the matter, and might enter into an express contract rendering the patient liable. The Medical Act of 1886 (*) now provides that a registered medical practitioner shall be entitled to recover in due course of law, in respect of his practice, any expenses, charges in respect of medicaments or other appliances, or any fees to (') Leake on Contracts, pp. 540, 14 Cox C. C. 469. 541, referring to Magdalena Steam (') Per Lord Watson, in The Queen Navigation Co. v. Martin, 2 E. & E. v. Doutre, 9 App. Cas. 745. 94 ; 28 L. J. Q. B. 310, and autho- (*) See aa to the law independent rities tliere cited. of the statute, notes to Lampleigh v. (2) Kennedy v. Sroun, 13 C. B. Braithwaite, Smith's Leading Cases, (N.S.) 677 ; Mnstyn v. Mostyn, 5 9th ed. vol. i. p. 164. Ch! D. 457 : Robertson v. MacDonagh, VOL. I. 2 C 386 CONTRACTS. [Book ITI. Infants. Necessa- ries. ■which he may he entitled, unless he be a fellow of a college of physicians, the fellows of which are prohibited by bye-law from recovering at law their expenses, charges, or fees ; in which case such prohibitory bye-law, so long as it is in force, may be pleaded in bar of any legal proceeding instituted by such fellow for the recovery of expenses, charges, or fees. Q-') The law as to infants' contracts may be next considered. The general law on this subject was stated in the case of Barnes v. Tcye, to which we shall presently again refer, as follows: — " The law is that up to the age of twenty-one an infant is not permitted to bind himself by contract, except for necessaries. From the earliest times, as was stated in a recent and important case upon the subject, an infant could bind himself to pay for his meat, drink, lodging, and other matters necessary for his sustenance, and in more modern times the rule is expressed generally that an infant may contract for the supply of neces- saries suitable to his station in life " (f). In this case the Court decided (dissenting from a well-known decision in this branch of the law) that where an infant is sued for the price of goods supplied to him on credit, he may, for the purpose of showing that they were not necessaries, give evidence that, when the order was given, he was already sufficiently supplied with goods of a similar description, and that it is immaterial whether the plaintiff did or did not know of the existing supply (f). The term "necessaries," in its legal signification, as settled by decisions, is not confined to such articles as are necessary to the support of life, but extends to articles fit to maintain the . (!) 49 & 50 Vict. c. 48, ». 6. , Q) Barnes & Co. v. Toye, 13 Q. B. i)iv. 412. The law on this sub- ject is summarized in Addison on Contracts as follows: — Deeds, cove- nants, &c., and other writings not under seal, made by infants, are as a general rule (subject to some few exceptions) not binding. An infant cannot be sued on a bill of exchange accepted by him even for necessaries, nor on » contract of suretyship, nor on a breach of warranty for sale of a horse. The law, however, while it protects the imbecility and indiscre- tion of infants from injury, enables them to do certain binding acts for their own benefit, treating their privi- lege as a shield and not as a sword to be turned into an offensive weapon of fraud and injustice. Thus an infant may grant a lease if it is clearly for his advantage, may con- tract for necessary repairs to his dwelling-house, and may by the cus- tom of gavelkind sell at the age of fifteen. See, as to apprenticeship deed, De Francesco v. Barnum, 43 Ch. D. 165. (') Barnes & Co. v. Toye, 13 Q. B. Div. 410; Ryder y. WombweU, L. E. 3 Ex. 90, dissented from. It has been decided that a servant's livery, a volunteer uniform, a guard's uniform, and decent burial are neces- saries. On the other hand, a valu- able chronometer, cigars and tobacco are not necessaries. For an infant young lady of high rank, silk, furs, and vel vets are necessaries. A mar- riage settlement is also a necessary for an infant lady about to be married : Selps v. Clayton, 17 0. B. (N.S.) 553. Chap. III.] CAPACITY OF PARTIES. 387 particular person in the state, station, and degree of life in Neoessa- which he is. The word " necessaries," therefore, is not to be ''"'^■ taken in its unqualified sense, but with the qualification above pointed out. . . . . " The true rule," said Baron Parke Q'), " I take to be this, that all such articles as are purely ornamental are not ' necessaries,' and are to be rejected, because they cannot be requisite for any one ; and for such matters, therefore, an infant cannot be held responsible. But, if they are not strictly of this description, then the question arises, whether they were' bought for the necessaiy use of the party in order to support himself properly in the degree, state, and station of life in which he moved. If they were for such articles, the infant may be made responsible. In Barnes v. Toye, decided in 1884, the law upon the subject was summed up as follows : — " A contract by an infant for the supply of goods to him cannot be enforced unless the articles be necessaries, the policy of the law being directed to the protection of infants. In point of fact, a tradesman dealing on credit with an infant does so at his peril, and must lose his money (that is if the infant does not voluntarily pay him), unless he can prove that the goods supplied were necessaries for the infant according to his station in life. That being the law, we come to the question what are necessaries ? To deter- mine this, we must take into account what the infant had at the time of giving the order. For example, a watch may be primd facie in some cases a necessary, but if it turned out that the infant was already supplied with a watch or watches the one ordered would not be necessary. It is said, however, that even if regard must be had to the supply which the infant has at the time of the order, where it is in the tradesman's knowledge that the infant is amply supplied, yet this is not so if the trades- man is ignorant of the fact. If this contention were correct, the protection given to the infant would depend entirely on what might be the state of knowledge of the tradesman, and one effect would be to deprive the infant of the protection intended to be extended to him by the law. In my view it is immaterial whether the plaintiffs did or did not know of the existing supply, just as it is immaterial whether they did or did not know that the defendant was a minor " (2). " It lies upon the plaintiff," it was said in a subsequent case, decided in 1887, " to prove, not that the goods supplied belong to C) Peters v. Fleming, 6 M. & W. O Per Lopes, J., Bwrnes v. Toye, 42. 13 Q. B. D. 410, 413. 2 c 2 388 O0NTRAGT8. [Book III. Infants. the class of necessaries as distinguislied from luxuries, but that the goods supplied were necessaries to the infant. If an infant can be made liable for articles which may be necessaries without proof that they are necessaries, there is an end to the protection which the law gives him. If he has enough of such articles, more cannot possibly be necessary to him " Q-). Sect. 1 of the Infants' Belief Act, 1874, provides that, " all contracts, whether by specialty or by simple contract, hence- forth entered into by infants for the repayment of money lent or to be lent, or for goods supplied or to be supplied (other than contracts for necessaries), and all accounts stated with infants shall be absolutely void." This is followed by a proviso that, " this enactment shall not invalidate any contract into which an infant may by any existing or future statute or by the rules of common law or equity enter except such as now by law are voidable" (2). Sect. 2 provides that no action shall be brought whereby to charge any person upon any promise made after full age to pay any debt contracted during infancy, or upon any ratification made after full age of any promise or contract made during infancy, whether there shall or shall not be any new consideration for such promise or ratification after full age (^). An interesting case on the law with regard to infants was recently decided. An infant, who was a journeyman butcher, received money from customers of his master, but did not account for the sums so received. Not long before the infant attained his majority he was accused of this offence, which he admitted, and an account was then made out against him by his master's wife of the sums which he had received and for which he had not accounted. Shortly afterwards, the infant came of age and became entitled to a considerable sum of money. He then signed a memorandum in which he acknowledged that he owed his master the amount stated and a sum for costs, and promised to pay the sum within a week, and charged the sum due to him under the will, and authorized the trustees to pay the sum of money owing to his master. O JdhmUme v. Marlca, 19 Q. B. D. t. JDmghty, i C. P. D. 385 ; Ditcham 511. V. Worral. 5 C. P. D. 410, and dis- O 37&38 Vict. 0.62. See FdJen- tinguish from Ooxhead v. Mullie, 3 tini V. Canali, 24 Q. B. D. 166 ; C. P. D. 439. The question whether Duncan v. Dixon, 44 Oh. D. 211. there is a ratification or a new pro- (') A fresli promise made after an mise is one for the jury : Holmes v. infant has attained his majority is Brierley, W. N., 1888, 158. not within the statute : see Northcote Chap. III.] CAPACITY OF PARTIES. 889 The Court decided that, on the one hand, there was no ratifi- Infants' cation of a contract made during infancy, and that the Infants' ^^-^^ " ' Eelief Act, 1874, did not apply to the case, and that on the other hand the infant was liable to an action of tort ; and that, as he had given the charge to avoid being sued in tort, there was good consideration for his contract to pay (^). In another case, an infant bought land from the trustees of a building society of which he was a member. He continued to pay instalments of purchase-money after he had come of age. The Court decided that the infant had ratified the contract (^). The position of married women in respect of capacity to sue Married and liability to be sued has already been considered (ante, p. 214, ™'""'=°- et seq.). The most important portions of the law affecting the contracts of married women are contained in the provisions of the Married Women's Property Act, 1882 (^), providing that — • (1) A married woman shall be capable of entering into and rendering herself liable in respect of and to the extent of her separate property on any contract, and of suing and being sued, either in contract or in tort, or otherwise, in all respects as if she were a feme sole, and her husband need not be joined with her as plaintiff or defendant, or be made a party to any action or other legal proceeding brought by or taken against her ; and any damages or costs recovered by her in any such action or proceeding shall be her separate property ; and any damages or costs recovered against her in any such action or proceeding shall be payable out of her separate property, and not otherwise. (2) Every contract entered into by a married woman shall be deemed to be a contract entered into by her with respect to and to bind her separate property, unless the contrary be shown. (3) Every contract entered into by a married woman with respect to and to bind her separate property shall bind not only the separate property which she is possessed of or entitled to at the date of the contract, but also all separate property which she may thereafter acquire. Attention may also be directed in this place to the extremely important case of Dehenham v. Mellon (*), decided by the' House (') Re Seager. Seeley v. Briggs, (') 45 & 46 Vict. c. 75, s. 1, sub- 60 L. T. (N.S.), 665. ss. 2, 3, 4. (2) Whittingham v. Murdiy, 60 {') 6 App. Oas. 24. L. T. 956. 390 CONTRACTS. [Book III. Husband and wife. Lunatics, of Lords in 1880, where it was laid down in accordance with the celehrated decision in Jolly v. Mees in 1864, that the mere fact of cohabitation does not raise a presumption of agency, nor require a proof of notice not to trust the wife, and that when a husband neither does, nor assents to, any act to show that he has held out his wife as his agent, to pledge his credit for goods supplied on her order, the question whether she bears that character is one of fact, and must be decided upon the circum- stances of the particular case In question. What are the liabilities of a husband when living apart from his wife, if the wife pledges his credit ? The law on this subject may be summed up in the following propositions : — 1, Where husband and wife separate by mutual consent, the wife making her own terms as to her income, and that income proves insufficient for her support, the wife has no authority to pledge her husband's credit. 2, If the wife leaves her husband without cause and without consent, she carries no implied authority with her, to maintain herself at his expense. 3, If the husband wrongfully compels his wife to leave his home, he is bound to maintain her elsewhere, and if he makes no adequate provision for this purpose she becomes an agent of necessity to supply her wants upon his credit. In such a case, inasmuch as she is entitled to a provision suitable to her husband's means and position, the sufficiency of any allowance which he makes under these circumstances is necessarily a question for the jury. Where, however, the parties separate by mutual consent, they may make their own terms ; and so long as they continue the separation these terms are bindiug on both (1). With regard to contracts with lunatics, the law has been settled as follows : — Where a party was at the time when he entered into a contract, lunatic, or of unsound mind, and any imposition appears to have been practised upon him, the contract is void (2). On the other hand, when a person appa- rently of sound mind, and not known to be otherwise, enters into a contract which is fair and hona fide, and which is executed and completed in whole or in part, and the property, the subject-matter of the contract, cannot be restored so as to put the parties in statu quo, the contract cannot afterwards be set (') Eastland v. Burckell, 3 Q. B. D. p. 148 ; Molton v. Camroux, 2 Kx, 432. 489 ; 4 Ex. 17. (^) Addison on Contracts, 8th ed. Chap. III.] CAPACITY OF PARTIES. 391 aside or avoided either by the lunatic or by those who come Lunatics, after him. It has been decided that the mere existence of a delusion in the mind of a person making a disposition or contract is not sufficient to avoid it, even though the delusion is connected with the subject-matter of such disposition or contract, and that is a question for the jury whether the delusion affected the disposition or contract Q-^ It must, however, be borne in mind, as pointed out by Mr. Pope, as the result of the authorities, that every person dealing with a lunatic, knowing his incapacity, is presumed to perpe- trate a meditated fraud upon him and his rights, and fraud is a good ground for avoiding the contract ; and that every person dealing with a lunatic, even though no notice of the lunacy can be brought home to him, must, in order that the transaction may be supported, show that it was fair and bona fide (^). Drunken Persons. A contract made by a person who is drunk cannot be Drunken enforced against him, if it can be shown that at the time of P^i^^ou^. making the contract he was absolutely incapable of under- standing what he was doing, and that the other party to the contract knew that that was his condition (3). Such a contract, however, is voidable, and not void. This proposition is very well illustrated by the case of Mathews v. Baxter (*), where the defendant at an auction, while drunk, made a purchase. Afterwards, when sober, he ratified the contract, and then changed his mind, and, when sued for breach of contract in not completing his purchase, he pleaded that when he entered into the alleged contract he was so drunk as to be incapable of transacting business, as the plaintiff' well knew. The Court held unanimously that the defendant was bound by his ratification of the contract. " A drunken man," said Baron Martin, " when he recovers his senses, might insist upon the fulfilment of his bargain, and therefore he can ratify it so as to bind himself to a performance of it " It (■) Banks v. Goodfellow, L. E. 5 the equitable interests of lunatics, Q. B. 549 ; Jenkins v. Morris, 14 not so found by inquisition, when it oil. L). 674. appears for their benefit. See also r) See this subject analysed and Be Mhodes, 44 Cli. D. 95. commented on ; Pope on Lunacy, C) Molton v. Camroux, 2 Ex. 489 ; 2nd edit. p. 242, et seq. In White 4 Ex. 17. V. Pigott, 22 Ch. D. 264, it was held C) L. E. 8 Ex. 132. tliat the Court has jurisdiction to bind 392 CONTRACTS, [Book IH. Drunken persons. Corpora- tioDs. has been said that a drunken pprson would he liahle on a contract for actual necessRries or for goods supplied to him when drunk and kept when sober (^). We pass on now to the law with regard to contracts entered into by corporations. The general principle of such cases was well stated by Baron Parke as follows : " Corporations which are creatures of law, are, when their seal is properly affixed, bound just as individuals are by their own contracts, and as EQUch as all the members of a partnership would be by a con- tract in which all concurred." But where a corporation is created by an Act of Parliament for particular purposes, with special powers, then another question arises : their deed, though under their corporate seal, and that regularly affixed, does not bind them, if it appear by the express provisions of the statute creating the corporation, or by reasonable inference from its enactments, that the deed was ultra vires — that is, that the legislature meant that such a deed should not be made (2). The cases on this subject establish that a company when incorporated by Act of Parliament for a particular purpose has no existence except for that purpose, and cannot devote its funds to any purpose not authorized by the terms of its incor- poration. The course of existence of a company, as is well said by Mr. Brice (^), is marked out from its birth. It has been called into being for certain special purposes. It has therefore all the powers and capacities, and only those, which are expressly given it, or are absolutely requisite for the due carrying out of those purposes ; and all the obligations it affects to assume which do not arise from or out of the pursuit of such purposes are null and void. The next question to be considered is. How can a company contract? Here, again, the question is answered by judicial authority. The law with regard to the contracts of corporations was much considered by the House of Lords in 1883 (^), where the following statement of the law made in 1838, and approved in 1840, was cited : — " The general rule of law is that a corporation contracts under its common seal ; as a general rule, it is only in that (') Gore v. Gibeon, 13 M. & W. 623. (^) South Yorkshire RaUway Co. v. Great Northern Railway Co., 9 Ex. 55, 89; National Marine Co. v. Donald, 28 L. J. (Ex.) 185 ; Eastern Counties Railway Co. v. Bawlceg, 5 H. L. 0. 48. (^) Brice on Ultra Vires, p. 46. (*) Young & Co. v. Mayor and Corporation of Leamirigton, 8 App. Gas. 517. Chap. III.] CAPACITY OF PASTIES. 393 way that a corporation can express its will or do any act. That Corpora- general rule, however, has, from the earliest traceable periods, *"'°^' been subject to exceptions, the decisions as to which furnish the principle on which they have been established, and are instances illustrating its application, but are not to be taken as so prescribing in terms the exact limit that a merely circum- stantial difference is to exclude from the exception. This prin- ciple appears to be convenience amounting almost to necessity. Wherever to hold the rule applicable would occasion very great inconvenience, or tend to defeat the very object for which the corporation was created, the exception has prevailed." Hence the retainer by parol of an inferior servant, the doing of acts very frequently recurring or too insignificant to be worth the trouble of affixing the common seal are established exceptions ; on the same principle stands the form of accepting bills of exchange and issuing promissory notes by companies incor- porated for the purposes of trade, with the rights and liabilities consequent thereon " Q). In the case before the House of Lords the cases on this subject governed by the common law were characterized as " doubtful and conflicting," but modern decisions establish the proposition that, instead of convenience amounting almost to necessity, we must now read as the law of the present day, that a corporation may contract without seal, (1) with regard to all matters inci- dental to the purposes for which it exists, and (2) that in the case of a trading corporation this includes all contracts made in the ordinary course of its business, or for the purposes connected therewith (2). The law on this subject was considered in a case where a company incorporated under the Companies Act, 1862, for the working of collieries, contracted, but not under seal, with an engineer for the erection of a pumping-engine and machinery for use in the colliery, and paid him part of the price. In an action by the company against the engineer for breach of contract in refusing to deliver the engine and machinery, it was held, affirming the judgment of the Court of Common Pleas, that the action was maintainable, though the contract was not under seal. " We are asked," said the Court, " to overrule a long series of decisions in all the Courts, which, in accordance with (') Church V. Imperial Oas Co., are reviewed, and see also Leake on 6 A. & E. 846. Contracts, p. 588, et seq. ; and see C) Pollock on Contracts, 5th ed. Stevens v. Hounslow Burial Board, p. 145, et seq., where the authorities 61 L. T. 839. 394 CONTBAGTS. [Book IIL Corpora- sound sense, have held that the old rule as to corporations con- ""^' tracting only under seal does not apply to corporations or companies constituted for the purpose of trading, and we are invited to re-introduce a relic of barbarous antiquity. We are all of opinion that the judgment of the Court of Common Pleas ought to be affirmed." (i) It has been decided that if a contract is sent by a corporation to another person, who signs it, and the corporation afterwards makes an alteration in the terms of the contract, which altera- tion is consented to by the other party, after which the seal of the corporation is affixed, the contract is valid. C*) Master and The law which governs the relations between master and servant may now be briefly noticed. Contracts between them are, as stated in Chitty on Contracts, the subject of much statu- tory regulation (f). The Truck Acts prohibit the payment of wages in goods or otherwise than in the current coin of the realm. Payment of wages at public houses is prohibited. The law implies a promise by a servant to obey the orders of his master, if lawful and reasonable and within the scope of his employment, but when a servant contracts to serve his master the law does not imply a contract by the master to retain him in his service. In the absence of agreement to the contrary, the hiring of domestic or menial servants is for a year, to be determined by a month's notice, given by either side, or pay- ment by the employer of a month's wages. The question, who are menial servants, has given rise to a good deal of litigation. A head gardener and a huntsman are within the rule. A governess is not (*). A servant may be discharged without notice, for wilful disobedience, gross moral misconduct (e. g., if being a confidential servant of a merchant he speculates largely and perpetually in differences on the Stock Exchange (^)) habitual neglect of business, or incompetence. He has a right to wages accrued due, but not to wages accruing (^). Appren- A branch of law which is to some extent connected with the tices. ja^-^ relating to master and servant is that which concerns apprentices. The contract of apprenticeship has been defined as one " whereby in consideration of the premium, or for no (') South of Ireland Colliery Co. v. and Servant, p. 169, where the autho- Waddle, L. E. i C. P. 617. rities are collected ; Ohitty on Oon- (^) Dartford Guardians v. Trickett, tracts, 12th ed., p. 640. 59 L. T. 754. (») Pearce v. Foeter, 17 Q. B. D. C) Chitty on Contracts, 12th ed. 587. p. 638, where the statutes are col- (^) See Chitty on Contracts, 12th looted. ed. p. 642. (*) MacDonnell, Law of Master Chap, m.] CAPACITY OF PASTIES. 395 consideration at all, one person becomes bound to teach another a certain profession or trade, and the latter is bound to learn it and to serve the master as an apprentice." The contract of apprenticeship may be determined— (i.) by effluxion of time or by apprentice coming of age ; (ii.) by bankruptcy of the master, see post, p. 933 ; (iii.) by death of master or apprentice ; (iv.) by consent; (v.) by misconduct, where the contract specifically provides for such a mode of determination ; but it must be borne in mind that at common law the master has no right to dismiss for misconduct, (i). (') Austin on Apprentices, pp. 16, 38, et seq. 68. ( 396 ) CHAPTER IV. Illesal Contracts. Void con- Every contract, however made, which stipulates for the tracts. performance of an illegal act is void, the law recognising in this respect no distinction between contracts hy deed which require no consideration to support them, and parol contracts which do require a consideration for their support. " It would indeed be inconsistent with reason and principle," said Tindal, C.J., "to hold that by the mere ceremony of putting a seal to an instrument, that is by the voluntary act of the parties themselves, a contract which was void in itself on the ground of its being in violation of the law of the land, should be deemed valid, and an action be maintainable thereon in a Court of justice" (i). It must also be remembered that the general rule as to the inadmissibility of parol evidence to contradict the terms of a written contract, or to add to its provisions, cannot be taken advantage of to prevent the defence of illegality from being set up where the illegality does not appear on the face of the instrument (^). Collins V. A leading case on the subject of illegality in a contract is Collins V. Blantern, decided in the year 1767. In that case an action was brought on a bond for £700. The defence was, that the bond had been given as an indemnity for a promissory note which had been entered into by the obligee of the bond in order to stifle a prosecution for wilful and corrupt perjury. It was urged in support of the bond in question, that as the bond appeared on the face of it to be good and lawful, no argument should be admitted to shew that it had been given upon an illegal consideration. " It hath been insisted for the plaintiff," said the Lord Chief Justice Wilmot, "that he was not privy to the bargain and agreement, so as to him there appears to be nothing illegal (') The OasligM and Coke Co. v. v. Vint, 59 L. J. Ch. 738 ; and as to Turner, 5 Bing. (N.C.) 666. to non-recovery of money paid under (_') Collins V. Blantern, 2 Wile. 347. illegal contract where there has been Smith's Leading Cases, vol. 1. ; and substantial part performance, Searfoy see Windhill Local Board of Health v. Thompson, 24 Q. B. D. 472. Blantern. Chap. IV.] ILLEGAL CONTRACTS. 397 done \)j him. But we are all clearly of opinion that the Collins v. whole of the transaction is to be considered as one entire agreement : for the bond and note are dated upon the same day for payment of the same sum of money on the same day ; the manner of the transaction was to gild over and conceal the truth, and whenever courts of law see such attempts they will brush away the cobweb varnish and show the transactions in their true light." " This is a contract to tempt a man to transgress the law, to do that which is injurious to the community; it is void by the common law, and the reason why the common law says such contracts are void is for the public good. You shall not stipulate for iniquity. All writers upon our law agree in this, no polluted hand shall touch the pure fountains of justice. Whoever is a party to an unlawful contract, if he hath once paid the money stipulated to be paid in pursuance thereof, he shall not have the help of a Court to fetch it back again ; you shall not have a right of action when you come into a Court of justice in this unclean manner to recover it back. — Procul, o procul, este profani." And in a subsequent passage : " This is an agreement to stifle a prosecution for wilful and corrupt perjury, a crime most detrimental to the commonwealth, for it is the duty of every man to prosecute, appear against, and bring offenders of this sort to justice. Many felonies are not so enormous offences as perjury, and therefore to stifle a prosecution for perjury seems to be a greater offence than compounding some felonies. The promissory note was certainly void ; what right then hath the plaintiff to recover upon this bond which was given to indemnify him from a note that was void? They are both bad, the consideration for giving them being wicked and unlawful." Illegal contracts are usually divided into two classes, viz. (1) those illegal by the common law, (2) those illegal by statute (1). A contract is illegal at common law on one of three grounds. (') It is pointed out in Benjamin construing the statute to ascertain on Sale, 4ih ed. p. 523, that where a whether the legislature had in view contract is prohibited by statute it is solely the security and collection of immaterial to inquire whether the the revenue, or had in view in whole statute was passed for revenue pur- or in part, the protection of the public poses only, or for any other object. from fraud in contracts, or the pro- It is enough that Parliament has motionof some object of public policy, prohibited it, and it is therefore In the former case the inference "is void. When, however, the question that the statute was not intended to is whether a contract has been pro- prohibit contracts ; in the latter that hibited by statute, it is material, in it was. 398 CONTRACTS. [Book HI. either because it is (1) immoral, (2) contrary to public policy, or (3) fraudulent (}). Public " Public policy," said Sir George Jessel, " requires that a con- pohcy. tract to commit a crime or to give a reward to another to commit a crime is necessarily void. The decisions have gone further, and contracts to commit an immoral offence or to give money or reward to another to commit an immoral offence or to induce another to do something against the rules of morality, though far more indefinite than the previous class, have always been held to be void." The following may serve as illustrations of the descriptions of contracts which have been held void as violating the prin- ciples of morality : — In one case (^), a printseller failed to recover the price of libellous publications which he had sold and delivered. In Poplett v. Stochdale (^), the plaintiff, the printer of an immoral and libellous work, failed in an action against his employer, the publisher. " I have no hesitation," said Chief Justice Best, in that case, "in declaring that no person who has contributed his assistance to the publication of such a work can recover in a Court of justice any compensation for the labour bestowed. The person who lends himself to the violation of public morals and the laws of the country, shall not have the assistance of those laws to carry into execution such a purpose.'' In another case the plaintiff, a printer, having contracted to print for the defendant a work which was to include a dedica- tion to be subsequently sent to him, printed the work and also the dedication, but when the latter was returned to him after revision, he discovered, for the first time, that it contained libellous matter, whereupon he refused to continue the printing of it. The defendant refused to accept or pay for the work without the dedication. It was decided that the dedication being libellous, the plaintiff was justified in refusing to publish it, and was entitled to recover the expense of printing the body of the work (*). Void con- A deed made in consideration of a future separation between tracts. husband and wiie is void (^). So is an agreement not to enforce a bond in consideration of the obligor forbearing to make public the fact of the obligee's adultery with his wife (^). Covenants in a separation deed that the husband shall part with the control Q) Printing Registering Co. v. (') Clay v. Yates, 1 H. & N. 73. Sampson, L. K. 19 Eq. 465. (") Bindl&y v. Marquis of West- (^) Fores v. Johnes, 4 Esp. 97. meath, 6 B. & 0. 200. C) R. & M. 337. («) Brown v. Brine, 1 Ex. D. 5. Chap. IV.] ILLEGAL CONTRACTS. 399 over his children (i) ; a covenant to many no one tut the V'oid con- covenantee (^) ; and bonds given for an immoral consideration, '^''"^'^■ e.g. to induce the obligee to live with the obligor in a state of fornication (^), are all bad. This doctrine of the law may also be illustrated by the well- known case of Pearce v. Brooks, decided in 1866. In that case a coach-builder had supplied a new miniature brougham to a prostitute on hire, with option of purchase by instalments. There was no evidence that the coach-builder looked expressly to the proceeds of the plaintiif's prostitution for payment, but the finding of the jury was that the carriage was used by the defendant as part of her display to attract men, and that the plaintiff knew that it was supplied for that purpose. The Court decided that the plaintiff could not recover (f). Chief Baron Pollock, in delivering judgment, said : — " I have always considered it as settled law, that any person who con- tiibutes to the performance of an illegal act by supplying a thing with the knowledge that it is going to be used for that purpose, cannot recover the price of the thing so supplied. If, to create that incapacity, it was ever considered necessary that the price should be bargained, or expected to be paid out of the fruits of the illegal act (which I do not stop to examine), that proposition has been overruled by the cases I have referred to, and has now ceased to be law. Nor can any distinction be made between an illegal and an immoral purpose; the rule which is applicable to the matter is. Ex turpi causa non oritur actio, and whether it is an immoral or an illegal purpose in which the plaintiff has participated, it comes equally within the terms of that maxim, and the effect is the same ; no cause of action can arise out of either the one or the other." Among contracts which have been held void as against the policy of the law may be mentioned : — (1) Those which tend to injure the public service, e.g. the (') Vansittari v. Vansittart, i Kay illustration : — " If a man were to ask & J. 62; Walrond v. Walrond, 1 for duelling pistols, and say, 'I think Johns. 18. I shall fight a duel tomorrow,' might (^) Lowe V. Peers, 4 Burr. 2225. not the seller answer, ' I do not want (') Walker v. Perkins, 3 Burr. to know your purpose; I have no- 1568. thing to do with it; that is your (") Pearce v. Brooks, Law Rep. 1 business ; mine is to sell the pistols, Ex. 213, following ; Cannan ■v. Price, and Hook only to the profits of trade.' 3 B. & A. 179 ; and see Benjamin on No doubt this act would be criminal, Sale, 4:th ed. p. 495, et seq. In the but I have felt a doubt whether it case of Pearce v. Brooks, Baron would be illegal." Thecaseof iZo?/(Z Bramwell said that he would have v. Johnson, 1 B. & P. 340, seems felt doubt had it not been for these scarcely reconcilable on strictly authorities, and put the following logical principles with this decision. 400 CONTBAGTS. [Book III. Void con- tracts. Mainten- ance and cham- perty. assignment of a pension not granted ■wholly as a compensation for past services (^). (2) Those which encourage litigation, e.g. contracts of cham- perty, and maintenance of which we shall speak presently. (3) Contracts in general restraint of trade (^). (4) And contracts restraining the freedom of marriage, marriage brocage contracts, as they are called. The only classes of these illegal contracts of which we need here speak at any length are — " Maintenance " and " champerty,'' which are always treated together by the writers on the subject, both ancient and modern. Maintenance is called the genus of an offence of which champerty is a species. Champerty has been defined as a species of maintenance, being a bargain with a plaintiff or defendant campum partiri, to divide the land or other matter sued for between them, if they prevail at law ; whereupon the champertor is to carry on the party's suit at his own expense. " It is the unlawful maintenance of a suit in consideration of some bargain to have part of the thing in dispute, or some profit out of it " (3). Both maintenance and champerty are founded on the same principle or policy of law, to wit, a tendency of the transac- tions to prevent the course of justice. It has been decided, however (*), that it is a good defence to an action for main- tenance to show that the defendant assisted the third person from charitable motives believing that he was a poor man oppressed by a lich man. In this case. Fry, L. J., in delivering judgment, said :— " To say that charity is not charity unless it be discreet appears to us without foundation in law. Of this limitation on the word ' charity ' no trace can be found in any of the authorities which have been cited, and, furthermore, on the other exceptions to the law of maintenance, such as those arising from the relations between lord and tenant, master and servant, neighbour and neighbour, there appears, as far as we can learn, to be no case or dictum in the books in which the duty of making inquiry or of acting only on reasonable and probable grounds has been recognised as a limitation of the right of giving assistance." (') Wells V. Forster, 8 M. <& W. 149; Willcoch v. Terrell, 3 Ex. D. 323. (2) See the cases on this subject, post, p. 595. (3) Per Chitty, J., Guy v. ChvrchiU, 40 Ch. D. 451, and see cases there referred to, and as to maintenance, Bradlaugh v. Newdegate,U Q. B. D. 1. C) Harris v. Brisco, 17 Q. B. D. 504. Chap. IV.] ILLEGAL CONTRACTS. 401 Witt regard to contracts made abroad whicli it is sought to Contracts enforce here, the Courts of this country proceed on the principle "^''^ " that where they are called on to enforce a contract entered into in another country the question is not only whether or not the contract is valid according to the law of the country in which it is entered into, but whether or not it is consistent with the law and policy of the country in which it is to be enforced, and if it is opposed to those laws and that policy the Court can- not be called on to enforce it" Q-). The law presumes in favour of the legality of a contract. Presump- " When a contract is capable of two constructions, the one .''°° "/^ making it valid and the other void, it is clear law the iirst ought to be adopted " (^). The law proceeds on the principle that in pari delicto melior est conditio possidentis, and it will therefore, if both the parties be in the eye of the law in pari delicto, decline to interfere with them. The true test for determining whether or not the plaintiff and the defendant are in pari delicto is by considering whether the plaintiff could make out his case otherwise than thiough the medium, and by the aid of the illegal transaction to which he was himself a party. " The objection that a contract is immoral or illegal," said Lord Mansfield, "as between plaintiff and defendant, sounds at all times very ill in the mouth of the defendant. It is not for his sake, however, that the objection is ever allowed, but it is founded in general principles of policy, which the defendant has the advantage of contrary to the real justice as between him and the plaintiff, by accident, if I may say so. The principle of public policy is this : ex dolo malo non oritur actio. No Court will lend its aid to a man who founds his cause of action upon an immoral or an illegal act. If from the plaintiff's own stating or otherwise the cause of action appears to arise ex turpi causa, or the transgression of a positive law of this country, there the Court says he has no right to be assisted. It is upon that ground the Court goes ; not for the sake of the defendant, but because they will not lend their aid to such a plaintiff. So if the plaintiff and defendant were to change sides, and the defen- dant was to bring his action against the plaintiff, the latter would then have the advantage of it: for where both are equally in fault, potior est conditio defendentis " Q'). (') Per Turner, L. J., Hope v. Hope, 397. 8 De Q. M. & Gt. 731. (') Bolman v. Johnson, Oowper, (*) Per Erie, J., Mayor of Norwich 341. V. Norfolk Railway do., 4 E. & B. VOL. I. 2d 402 CONTRACTS. [Book III. Illegal Jx must be borne in mind that if a contract be made on several tion " considerations, one of which is illegal either at common or statute law, the whole contract is void. Where, however, the consideia- tion is not tainted by illegality and some of the promises only are illegal, and those are separable from the rest, the legal promises may be enforced, as illegality " does not communicate itself to, or taint the others, except when, owing to some peculiarity in the contract, its parts are inseparable " Q^). Illegality is created by statute either by express prohibition or by penalty. As examples of statutes which render contracts void when contravening their provisions, may be mentioned those of 6 & 6 Edw. 6, c. 16, ss. 2, 3, 4, and 49 Geo. 3, c. 126, s. 4, against the sale of certain offices (^). The statutes of 31 Eliz. c. 6, and 12 Anne, stat. 2, c. 12, against simony (f), a mortgage of pew-rents (*). Another class of contracts prohibited by statute, which require a somewhat more detailed examination, consists of wagering contracts. Wage us. At common law wagers, unless they were of a mischievous or immoral tendency or contrary to the policy of the law, were not void. The judges, however, treated them somewhat contemp- tuously as being too frivolous and beneath the dignity of judicial attention, and they accordingly were in the habit of postponing their consideration unless they had nothing better to do. Certain wagers, however, were regarded as illegal at common law, e.g. wagers on the sex of a third party, and as to whether a man charged with forgery would be convicted or acquitted (^). Wagers. The statute passed in the reign of William IV. (') enacts that securities for money won at gaming or betting or for money lent or advanced for gaming or betting are to be treated as (') Chitty on Contracts, 12tli ed. 168) where the wager was as to the p. 673, citing Price v. Gre.en, IS age of one of the parties to the bet, M. & W. 695; 16 M. & W. 346; and therefore not open to the objw- McAllen v. ClmrcMll, 11 Moore, 488 ; tion which would have existed had it and see Lound v. Orimwade, 39 Ch. D. been as to age of a thii-d party, viz. 605. that of exposing the person in ques- (^) Layng v. Paine, Willes, 571 ; tion to annoyance, tbe Court admitted Godolphin v. Tudor, Salk. 468 parol evidence to explain the mean- (3) Qreen v. Wroughton, 11 Exch. ing of "a rump" and "a dozen," and 146 ; Eyre v. Forbes, 12 C. B. (N.S.) decided that there being nothing 191. immoral in sitting down to a good (*) Ex parte Arrowsmith, 8 Oh. D. dinner, the plaintiff was entitled to 96. recover. (') In a case tried before Lord (°) 5 & 6 Wm. 4, u. 41. Mansfield {Hussey v. Crichett, 3 Camp. Chap. IV.] ILLEGAL CONTRACTS. 403 given for an illegal consideration ; but it has been decided that Wagers this statute does not apply to a case where money was lent to enable the borrower to pay a bet already lost. Jessel, M.E., in delivering judgment, said : " If a number of men are round a gaming table, and one of them asks another to lend him money to game with, and he lends the money, that is money ' lent for gaming ' within the meaning of the Act. And so also, if money is lent to a man to enable him to make a bet, that is money ' lent for betting.' The object of the Act was to prevent gaming or betting from taking place, to deter people from com- mitting the illegal act. But in the present case the mischief had been completed, the illegal act had been carried out, before the money was lent " (i). A statute passed in the year 1845 (to amend the law concern- 8 & 9 Vict, ing games and wagei's) enacts "that all contracts or agreements ''• ^'^^• whether by parol or in writing, by way of gaming or wagering, shall be null or void ; and that no suit shall be brought or main- tained in any Court of law or equity for recovering any sum of money or valuable thing alleged to be won upon any wager, or which shall have been deposited in the hands of any person to abide the event on which any wager shall have been made : provided always that this enactment shall not be deemed to apply to any subscription or contribution, or agreement to sub- scribe or contribute, for or toward any plate, prize, or sum of money to be awarded to the winner or winners of any lawful game, sport, pastime, or exercise" (2). Either party may repudiate the wager and countermand the stakeholder's authority either before or after the event on which the wager was made has come off and recover his deposit. The well-known case of Sampden v. Walsh (f) is a leading authority on this subject. In that case the plaintiff had issued a challenge to deposit £50 to £500 " on reciprocal terms," and defies all tlie philosophers, divines, and scientific professors in the United Kingdom to prove the rotundity and revolution of the world, from Sciipture, from reason, or from fact, and he professed his willingness to acknowledge that he had forfeited his deposit if his opponent could oxhibit to the satisfaction of any intelligent referee a convex railway, canal or lake. The challenge was accepted by a Mr. Wallace, and £500 was deposited \>j both parties with Mr. Walsh who ultimately decided in Mr. Wallace's favour. I'he plaintiff objected to the decision, and before the' (>) Per Jessel, M.K., in Ex parte (') 8 & 9 Viot. c. 109. Fyke. In re Lister, 8 Ch. D. 75i. (,') 1 Q. B. D. 189. 2 D 2 ■404 CONTRACTS. [Book III. Wagers.- money was paid over to Mr. Wallace, demanded back the £500 lie had deposited. Mr. Walsh paid both sums of £600 to Mr. Wallace, and the plaintiff then brought an action for the return of his deposit, and it was decided that he was entitled to recover. " As the law now stands," said Chief Justice Cockburn, " since the passing of 8 & 9 Vict. c. 109, there is no longer, as regards actions, any distinction between one class of wagers and another, all wagers being made null and void at law by that statute." " But though," continued the Chief Justice, " where a wager was illegal no action could be brought either against the loser or stakeholder by the winner, a party who had deposited his money with the stakeholder was not in the same predicament. If, indeed, the event on which the wager depended had come off, and the money had been paid over, the authority to pay it not having been revoked, the depositor could no longer claim to have it back. If, however, before the money was paid over the party depositing repudiated the wager, and demanded his tfloney back, he was entitled to recover, to have it restored, even when notice was given after the event came off." " The agreement made in the present case has all the essential characteristics of a wager. Each party stakes his money on an event to be ascertained, and he in whose favour the event turns out is to take the whole. The object of the plaintiff in offering the challenge he gave was not to ascertain a scientific fact, but to establish his own view in a marked and triumphant manner, to Use a common phrase, his object was to back his own opinion. iJo part of the money staked was to go to the party by whom the experiment was to be made " (}). In a very recent case the plaintiff employed the defendant for a commission to make bets for him on horses. The defendant accordingly made such bets, and he received the winnings from the persons with whom he had so betted. The plaintiff brought an action for the amount so received, and the Court of Appeal decided that 8 & 9 Vict. c. 109, s. 18, which makes null and void all contracts by way of wagering, did not apply to the contract between the parties and defendant, and that, therefore, the plaintiff was entitled to recover (2). In another case (^) the plaintiff had employed the defendant to bet on commission, and the defendant having failed to make certain bets pursuant to the plaintiff's instructions, the plaintiff (I) Per Cookbum, C.J., in JUamp- (O.A.) 363. ckn V. WaUh, 1 Q. B. D. 189. (») Colien v. Kittdl, 22 Q. B. D. (») Bridger v. Savage, 15 Q. B. D. 680. Chap. IV.] ILLLEGAL CONTRACTS. 405 sued Mm for iDreacli of contract as his agent, claiming as Wagers. damages the excess of gains over losses which should have been received by the defendant, had the bets in question been made, after deducting the amount of his commission. The Court decided that, as by the statute 8 & 9 Vict. c. 109, the bets would not have been recoverable at law, the plaintiff could not maintain the action. It is to be observed that the original contract of betting is not an illegal one, but only one which is void. If the person who has betted pays his bet, he does nothing wrong ; he only waives a benefit which the statute has given to him, and confers a good title to the money on the peison to whom he pays it. Therefore when the bet is paid the transaction is completed, and when it is paid to an agent it cannot be contended that it is not a good payment for his principal (i). In connection with the subject of illegality as vitiating a Fraud, contract, the effect of fraud upon contracts must be noticed and distinguished. A contract obtained by fraud is good if the party upon whom the fraud is practised thinks iit to ratify it. The contract in fact, as Lord Campbell said, is not void, but only voidable at the election (2) of the party defrauded. The party defrauded has an option to disafiirm the contract, but until he disaffirms it it remains good. (') Per Bowen, L.J., in Bridger v. 2Dd ed. p. 28, et seq., where the cases Savage, 15 Q. B. D. (C.A.) 363 ; and are reviewed. gee Diggle v. Higgs, 2 Ex. D. 422 ; (^) The Deposit and General Life Read t. Anderson, 10 Q. B. D. 100 ; Insurance Co. v. Ayscough, 8 E. & B. 13 Q. B. D. 779 ; and cases collected 761. in Stutfield on the Law of Betting, ( 406 ) bailments. CHAPTEK V. Bailments. A bailment is a delivery of a thing in trust for some special purpose ; the person who delivers it being called the bailor, and the person to whom it is delivered, the bailee. Division of Bailments were divided by Lord Holt, in Coggs v. Bernard Q), which has been characterized by a high authority as one of the most celebrated cases ever decided in Westminster Hall, into — (1) Depositum, or a " naked " bailment of goods, without reward, to be kept for the use of the bailor. (2) Commodatum. Where goods or chattels that are useful, are lent to the bailee gratis, to be used by him. (3) Locatio rei. Where goods are lent to the bailee, to be used by him for hire. (4) Vadium. Pawn. (5) Locatio operis faciendi. Where goods are delivered to be carried, or something is to be done about them for a reward to be paid to the bailee. (6) Mandatum. A delivery of goods to somebody, who is to carry them, or do something about them gratis. W ith regard to these different classes of bailments it will be sufficient to observe — (1) The bailee in the case of a deposit has no right to use the thing entrusted fo him, and he is liable if he is guilty of gross negligence, but not for any ordinary negligence. Thus, in a case where a customer deposited his strong box containing securities with his bankers (who received nothing for their services), he himself retaining the key, and certain debentures were abstracted by the cashier, it was held by the Privy Council that as there was no proof of gross negligence the bank was not liable (^). (') Eaym. 3, 240 ; Smith's Lead- is the correct one. See, as to bailee ing Oases, vol. i. See also Chitty on being estopped from denying the Contracts, 12th ed. p. 512, vrheie a bailor's title, iJogers <{; Co. v. iamiert different classification of Bailments & Co., 24 Q. B. I). 573. by Sir William Jnnes is given, but it (^) Giblin v.M'Mullen, L. K. 2 P. C. is submitted in the last edition of 317 ; 38 L. J. P. C. 25 ; Deerman v. Smith s Leading Cases, 9th ed. vol. i. Jenkins, 2 A. & E. 256. p. 22G, that Lord Holt's classification Chap. V.] BAILMENTS. 407 (2) The bailee in the case of a gratuitous loan, as the Different transaction is one for his advantage solely, is bound to use '''^sses of greater diligence in taking caie of it than in the case of " ™™ *' deposit (1). The borrower, said Baron Parke, may justly be regarded as representing himself to the bailor to be a person of competent skill to take care of the tldng lent. He will therefore be responsible even for slight negligence, and will be held strictly to the conditions of the loan. Thus, where a horse was lent to the defendant to ride, he was held not entitled to allow his servant to ride him. At Roman law, he who borrowed a horse for ordinary purposes, and then rode him into battle, was regarded as guilty of theft (^). (3) In the case of hiring, the bailee is bound to use such diligence as a prudent man would exercise towards his own property, and, accordingly, when a man hired a horse, and when the animal was in bad health prescribed for it himself instead of calling in the assistance of a veterinary surgeon, he was held liable for the loss (3). (4) In the case of pawn, the pledgee is only bound to use ordinary diligence in guarding the thing pledged. The law as to pawnbrokers is now governed by a special Act of Parliament (f). (6) Where goods are delivered to be kept, carried, or to have work done upon them for payment, as when a watch is delivered to a watchmaker, the bailee is bound only to oidinary diligence, except in the cases of an innkeeper or a common cari-ier (^post, p. 408). (6) Where the delivery of goods i>s to a person to carry them, or do something to them without reward, the mandatory is like the depository, onlj' bound to use ordinaiy diligence, but even in this case he is bound to use such skill as might be expected from a person of his class under such circumstances. This may be illustrated by the celebrated case of Wilson v. Brett (^), where it was held that a person pi-oveil to be " conversant with horses,'' who rode a horse gratuitously at the owner's request for the purpose of showing him, was in Baron Parke's words, " bound to use such skill as a person conversant with horses might reasonably be expected to use, and if he did not, he was guilty of negligence." Q) Bringloe v. Morrioe, 1 Mod. Manufacturing Co. v. Clarlc, 5 Ex. D. 210. 37, where the law on the subject of (2) Justinian, lib. iv. ; Tit. 1, 6. pawn is considered. (3) Dean v. Keate, 3 Camp. 4. (') 11 M. & W. 113. (*) b5 & 30 Vict. c. 93. See Singer 408 CONTRACTS. [Book III. There are two classes of bailees, who from their peculiar position are regarded by the law in an exceptional light, and their liabilities are accordingly extended, beyond the limits above pointed out. These bailees are innkeepers and common carriers. Inn- The law as to the liability of innkeepers demands special keepers. consideration in connection with the subject of bailments. An inn was defined in the old leading case upon the subject more than 300 years ago as " a place instituted for passengers and wayfaring men " Q-). It was subsequently defined many yeais afterwards as a house where the travellei' is furnished with everything which he has occasion for on his way — a house the owner of which holds out that he will receive all travellers and sojourners who are willing to pay a price adequate to the sort of accommodation provided, and who come in a situation in which tliey are fit to be received (^). An innkeeper is bound to supply shelter and accommodation to all who apply and tender, or are able and ready to pay the customary charges, if they be not drunk, or disorderly, or labouring under contagious and infectious diseases (f). A mere coffee-house (*), a boarding-house (^), and a refresh- ment bar (") attached to an hotel, but entered from the street by a separate door, have been held not to be within the legal meaning of the term inn. The liabilities of innkeepers have been diminished by a statute passed in 1863, to amend the law "respecting the liabi- lities of innkeepers, and to prevent certain frauds upon them." This Act exempts innkeepers from liability to make good to any guests of theirs, " any loss of or injury to goods or property brought to their inns, not being a horse or otiier live animal, or any gear appertaining thereto, or any carriage, to a greater amount than £30, except : (1) where such goods or property shall have been stolen, lost, or injured through the wilful act, default, or neglect of such innkeeper, or any servant in his employ; (2) where such goods or property shall have been deposited expressly for safe custody with such innkeeper ; pro- viding that in such a case of such deposit they may require as a condition of their liability that the property shall be deposited (') CaZi/e's Case, 8 Co. 32; 1 Smitli's 0) Boe v. Laming, 4 Camp. 77, Leading Cases, 9th ed. p. 132. where the question arose as to a fire Q) Thompson v. Lacy, 3 B. & Aid. policy. 283, 286, 287. (') Damey v. Richardson, 3 E. & B. (') Addison on Contracts, 8th ed. 144. p. 298; Fell v. Knight, 8 M. & W. (») Reg. v. Rymer, 2 Q. B. D. 136. 269. Chap. V.] BAILMENTS. 409 in a box or other receptacle, fastened and sealed by the person depositing it (i). Sect. 2 provides that innkeepers are not to have the benefit lan- of the Act in respect to property vrhich they refuse to receive ^'^^''^-.^oL for safe custody, or which by their default the guest is unable to deposit with them. The next requires innkeepers to cause at least one copy of sect. 1, printed in plain type, to be exhibited in a conspicuous part of the hall or entrance to the inn, and gives them the benefit of the Act only in respect of goods brought to the inn while the copy is so exhibited. The lequiiements of the Act must be strictly observed, and accordingly in a well-known case where the copy of the first section which the innkeeper posted up utiintentiunally omitted the word " act " after " wilful," and goods of a guest of over £100 value were stolen, the Court held that he was not entitled to the protection of the statute, the omission being in the opinion of Cookburn, C.J., " far beyond a mere clerical error," viz. an omission of a material and really sub.--tantial part of the notice required by statute which rendered the copy insufficient to satisfy the requirements of the Act (f). Tlie " vulgar error that an innkeeper might detain the person Inn- of his guest until payment of the bill " was exploded many years j^^.^^P^'" ^ ago (3), but an innkeeper has a lien fur his charges on gooils brought to " the inn by his gue&t, and that though they belong to another.'' The " passive " lien on goods previously possessed was extended to an " active right " to sell them by an Act passed in 1878 " for the further relief of innkeepers," which confers upon landlords, &o., in addition to their oidinary lien, power to dispose by public auction of any goods, chattels, horses, &c., left with them after six weeks. This power, however, is guarded by a number of stringent provisoes, the most important of which is that at least one month before the sale advertisements must be inserted in one London paper and one country paper circulating in the district where such goods, chattels, &c., or some of them, have been de- posited or left, notifying the intended sale and giving shortly a description of the goods and chattels intended to be sold, with the name of the owner or person who left them where known. This Act was considered in 1883 when it was decided that an (') 26 & 27 Vict. c. 41. gooda, the separate property of a (^) Spice V. Bacon, 2 Ex. D. 463. wife staying with her husliand at an {") Smith's Leading Cases, 9th ed. hotel, Gordon v. Silher, 25 Q. B. D. p. 143, oiling Sanbolf v. Alford, 3 491. M. & W. 248 ,■ and see, as to lien on 410 CONTRACTS. [Book III. Ian- innkeeper who accepts security from his guest for the payment keeper s ^^ hotel charges, does not thereby waive his common law lien upon the guest's goods unless there is something in the nature of the security or in the facts of the case inconsistent with the existence or continuance of the lien and destructive of it Q-'). " As I understand the law," said Kay, J., " it is not the mere taking of a security which destroys the lien, but there must be something in the facts of the nase, or in the nature of the secu- rity taken, which is inconsistent with the existence of the lien, and which is destructive of it. In this case the lien is within the provisions of 41 & 42 Vict. c. 38, by virtue of which the innkeeper not only has a passive lien, but also the active right to sell the goods, upon giving the notice required by the Act. Is it probable that he would have given up this active lien ? There was nothing in the case inconsistent with the continuance of the lien which the plaintiff undoubtedly had before the security was given." The decision of the Court was accordingly in favour of the innkeeper. Common The liability as bailees of common carriers niay be next con- carriers, sidered. A common carrier is a person who undertakes for hire to transport from place to place, either by land or water, the goods of such persons as think fit to employ him. Thus owners of waggons, barges, lighters, merchant ships, are common carriers. A carman who conveys passengers only is not a commdu carrier, nor is a carman who undertakes casual jobs and does not ply from one fixed terminus to another. The public nature of the employment of the common carrier which, as pointed out by Mr. Smith in his leading case, renders his good conduct of the utmost importance to the whole community, was the cause of the imposition upon him at common law of a great variety of onerous liabilities which have been to some extent rescinded by statute. He is bound to convey the goods of any person offering to pay his hire unless his carriage be already full or the lisk sought to be imposed upon him extraordinary, or unless the goods be of a sort he cannot convey, or is not in the habit of conveying, and does not profess to convey. The hire charged must be no more than a reasonable remuneration to the carrier. (') Angus v. McLachlan, 23 Ch. D. the report, which on this point is 830,336. In this case, Kay, J., is re- obviously not complete, is inaccurate ported to have held that an innkeeper in attributing to the learned judge a was not bound to be more careful in view which is clearly inconsistent keeping the goods of his guest than witli tiie authorities which are cited he was as to his own. The learned in their note 8 to Calye's Case, p. editors of Smith's Leading Oases, 8th 141. cd., however, express an opinion that Chap. V.] BAILMENTS. 411 While the goods are in the carrier's custody he is bound to take Common the utmost care of them, and unlike other bailees of the same '''''""'"■^• class he is at common law responsible for every injury sustained by them occasioned by any means whatever, except only by the act of God or the king's enemies (i), subject however to the further qualification that he is not responsible for damages arising from the natural deterioration or inherent vice of the thing carried. In such cases his position and immunities are those of an insurer who is not liable, as was pointed out by Willes, J., in Slower V. Great Western Railway Co. (^) for accidents happening through the inherent vice of the thing insured. The defendants in that, case were held not to be responsible for the loss of a horse which happened without any negligence on their part through the inherent vice of the animal itself. The law with regard to the liability of common carriers was much considered in the case oi Nugent v. Smith decided in the year 1876 (^). In this case the defendant, a common carrier by sea from London to Aberdeen, received from the plaintiff a valuable mare to be carried to Aberdeen for hire. In the course of the voyage the ship encountered rough weather, and the mare re- ceived such injuries that she died. The jury found that the injuries were caused partly by more than ordinarily bad weather and partly by the conduct of the mare herself by reason of fright and consequent struggling, without any negligence of the defendant's servants. The Court of Appeal decided that the defendant was not liable, and laid down the following principles — The carrier does not insure against the iiresistible act of Nature, nor against defects in the thing carried itself; and if he can shew that either the act of Nature or the defect of the thing itself, or both taken together, formed the sole direct and irresistible cause of the loss, he is discharged. In order to shew that the cause of the loss was irresistible it is not necessary to prove that it was absolutely impossible for the carrier to prevent it, but it is sufBoient to prove that by no reasonable precaution under the circumstances could it have been prevented. (') Oakly V. Portsmouth, &o., Co., and on appeal, re¥ersing the decision 11 Exch. 618 ; Buddon v. Great of the Court below, 1 0. P. D. 423. Northern By. Co., 28 L. J. Exch. 51. The findings of tlie jury are stated Q) Bloioer v. Great Western By. at p. 21, and the law on the subject, Co., L. E. 7 C. P. 662 ; see also ancient and modern, Is carefully con- KenduU v. London and South Western sidered in the judgments at p. 23, et By. Co., L. E. 7 Exoli. 373. seq., and p. 425, et seq. C) Nugent v. Smith, 1 0. P. D. 19, 412 CONTRACTS. [Book III. The Carriers Act. Railway and Canal Traffic Act. Prior to tlie statute next referred to, passed in the year 1830, carriers with a view to limit their liability adopted the practice of posting and distributing written and printed notices to the effect that they would not be responsible for property of more than a specified value unless the owner had insured and paid an additional premium for it. This practice led to much litiga- tion, and accordingly the legislature interfered and passed the Carriers Act (11 Geo. 4, and 1 Wm. 4, c. 68) Q-). This Act protects the carrier by land (and it has been decided that it applies when the carriage is partly by land and partly by sea (^)) from liability for loss or injury in respect of the articles enumerated in its first section, generally described in the preamble as of great value in small compass (^). The principal of these are gold or silver coin, or gold or silver manufactured or unmanufactured, precious stones, jewellery, watches, elects, bills, notes, or securities for money, stamps, maps, writings, title-deeds, engravings, pictures, plate, glass, china, silk, furs, or lace (other than machine-made lace, 28 & 29 Vict. c. 94) con- tained in any parcel where the value exceeds £10, unless at the time of the delivery to the carrier their value and nature be declared, and the agreement made to pay the extra charge for them to be stated by notice conspicuously exhibited. The statute however does not protect the carrier from any loss arising from the felonious act of any servant in his employ, and it is provided that no public notice or declaration shall for the future restrict the common law liability of carriers in case not within the Act (*). With regard to the carriage of horses, cattle, and other animals by railway and canal companies, the Railway and Canal Traffic Act (17 & 18 Vict. c. 31), s. 7, enacts that no greater damages shall be recovered for the loss of, or for any injury done to any of such animals, beyond the sums following (that is to say), for any horse, £50 ; for any neat cattle, per head, £15 ; fur any sheep or pigs, per head, £2, unless the person sending or delivering the same to the company shall, at the time of (') Smith's Leading Cases, 9th ed. vol. i. p. 244, where the old law is considered, and the cases in the pre- sent Act collected ; Ohitty on Con- tracts, 12th ed. p. 541. Q) Le Conteur v. London and South Western Railway Co., L. R. 1 Q. B. 54. (') It has been decided that the Act applies to the articles enumer- ated, even though they do not fall within this description, if their aggre- gate value, when delivered, exceeds £10 : Owen v. Burnett, 2 Or. & N. 353. (') See the cases on this Act col- lected in Chitty on Contracts, 12th ed. p. 543, et seq. ; Smith's Leading Cases, 9th ed. p. 243, and the im- portant case of Stephens v. London and South Western By. Co., 18 Q. B. Div. 121. Chap. V.] BAILMENTS. 413 deliver)', have declared them to be respectively of higher value, in which case the company may demand and receive by way of compensation for the increased risk and care a reasonable per- centage upon the excess of the value so declared (i). (') 17 & 18 Vict. u. 31, B. 7, and partly by eea, protecting tliem- extended to railway companies, and selves by public notice, the Railways steamboats by 26 & 27 Vict. c. 92; Regulation Act, 31 & 32 Vict. c. 119. and see as to carriers partly by land ( 414 ) Definition. Different kinds of agencies. OHAPTEE VI. Peincipal and Agest, An agent may be defined as a person duly autliorized to act on behalf of another, or one "whose unauthorized act has been duly ratified. The common element, says Mr. Evans, in every definition of an agent, is the recognition of the derivative authority of the agent. The maxim of law on this subject is qui facit per alium facit per se. Agency may be either universal, general, or special. A special agency arises v^here there is an express limited autho- rity given to the agent to do some particular act, or to make some particular contract. A general agency exists when the authority is to make all contracts, or to do all acts connected with a particular trade, business, or employment (^). If a particular agent exceeds his authority, his principal is not bound by what is done. If, on the other hand, a general agent exceeds his authority, his principal is bound, if what he does is within the usual scope of the business which he is deputed to transact. On this principle it has been laid down that if the servant or agent of a private individual entrusted on one occasion to sell a horse, without authority from his master, takes upon himself to warrant the soundness of the animal, the master is not bound. But if the servant of a horse-dealer, or even one who only occasionally assists him in his business, being employed to sell gives a warranty, the principal is bound, even though the agent or servant was expressly forbidden to warrant (2). In another case it was decided that when the station-master of a railway company had, without any express authority, entered into a contract for surgical attendance on an injured passenger, the company was not liable. " Could it," asked the Court, " be maintained that a coach- man from whose carriage a passenger had fallen and broken his arm, or by which another person had been run over — could (') Broom's Common Law, Sth ed. p. 572. (2) Brady v. Todd, 9 C. B. (N.S.) 592; Howard v. Sheward, L. E. 2 0. P. 148 ; Baldry v. Bates, 52 L. T. 620. Chap. VI.] PRINCIPAL AND AGENT. -115 Isind his master by a contract with a surgeon to cure the injured person, and oblige his master to pay the bill? "We are of opinion that he could not " (^). Agents may also be divided into the following classes : — Classes of 1. In respect of the nature of the agency, into mercantile ^S'^°<^'<'^- and non-mercantile agents. 2. In respect of their liability in selling, into del credere agents, and such as are not del credere. A del credere agent is one who, for a higher reward than is usually given, becomes responsible to his principal for the solvency of the vendee; or, in other words, he guarantees, in eveiy case of sale, the due payment of the price of the goods sold. 3. In respect of the extent of their duties, and of the amount of skill required of them, into gratuitous and paid agents, proies- sional and unprofessional agents. The duties of an agent are (^) : — Duties of (1) To perform the duties undertaken ; "" "g^-if- (2) To act in the name of his principal ; (3) To act in person ; (4) To obey instructions and observe the terms of the autho- rity ; (5) In the absence of instructions to conform to usage or recognized mode of dealing ; (6) To act in good faith ; (7) To use reasonable skill and ordinary diligence ; (8) To make a full disclosure where he has an adverse interest ; (9) To render full accounts of receipts and disbursements ; (10) To keep the goods and money of the principal separate from his own. • In performing his duties the agent is in the absence of some express limitations of his powers entitled to employ not only the powers expressly contained in his authoi ity, but also all the necessary and usual means of executing his authority, and all the means justified by the usual course of trade or business (^). The general principle of the English law, however, as of the civil law, is that an agent cannot appoint a deputy : Belegata (>) Cox V. Midland Railway Co., furtlier authorities on the subject are 3 Ex. 268. The general manager of cited. a railway has such an implied autho- C) Evans on Agency, 2nd ed. liiv: Walh&r v. Great Western Rail- p. 25% etseq. „j , way Co L K. 2 Ex. 228 : Broom's (0 Evans on Agency, 2ud ed. Commoii La*, p. 569, et seq., where p. 124. 416 O0NTBAOT8. [Book III. potestas non potest delegari. To this, howerer, there are certain exceptions, which have been summed up as follows : An agent Delegation, may, prima facie, appoint a deputy, and delegate authority to him : — (1) Whenever he is allowed to do so by a lawful custom or usage ; (2) Where the act is purely ministerial ; (3) Where the object of the agency cannot lawfully be attained otherwise ; (4) Where the principal is aware that his agent will appoint a deputy ('). Katifica- With regard to ratification by one person of that which *'""• another has done, the rule of law is : Omnia ratihdbitio retrotrahitur et mandato priori sequiparatur. In other words, a ratification hath a retrospective effect, and is equivalent to a preceding command. The essentials of ratification, or, in other words, the circum- stances which must exist in order that a ratification should be binding, may be summed up as follows : — (1) The act to be ratified must be voidable and not void ; (2) It must be performed by one professing to act for another ; (3) The pergon in whose behalf the act is done must be in existence at the time of its performance, but as it shall be pre- sently seen that peculiar legal person — a joint stock company — ■ may be liable for a contract entered into before the date of its incorporation ; not, however, because the contract is ratified, but because an equitable liability is created ; (4) The person who undertakes to ratify must do so with a knowledge of all material circumstances, or with an intent to take all liability without such knowledge ; (6) He must also be capable ,of ratifying the act ; (6) When formalities are necessary they must be observed (^). The question whether a company is bound by a contract made by its " promoters " (post, p. 636) before its formation, e.g. by an agreement by the promoters to pay solicitors a sum of money for their costs and charges in registering the company, has given rise to some difSculty, but it must now be considered as settled law that a company cannot ratify a contract made on its behalf before it came into existence — cannot ratify a nullity. The only thing that results from what is called ratification or adoption of such a contract is not the ratification or adoption of (') Evans on Principal and Agent, 2nd ed. p. 74 ; and see Bolton v. 2nd ed. p. 53. Lanibert, 41 Ch. U. 295 ; Lyell v. (') Evans on Principal and Agent, Kennedy, 14 App. Gas. 437. Chap. VI.] PBINCIPAL AND AGENT. 417 a contract qua contract, but the creation of an equitable liability- depending upon equitable grounds Q). A leading case upon the relation between principal and agent is that of Cornfoot v. Fowlce (^), decided nearly half a century Comfoot v. ago. The facts in that case were as follows : The plaintiff, who -™""^- was the owner of a ready-furnished house, had employed an agent to let it for him. The adjoining house was used as a brothel, and this detrimental circumstance was known to the plaintiff, but not to his agent. The agent let the house to the defendant. Before the defendant signed the agreement he had asked the agent whether there was any objection to the house, and he had answered that there was not. An action was then brought against the defendant for the njon-performance of his agreement to take the house, and he pleaded that he had been induced to enter into the contract by means of the fraud, " covin, and misrepresentation " of the plaintiff and others. The majority of the Court (Lord Abinger dis&enting) were in the plaintiff's favour. " I think it impossible," said Baron Alderson, " to sustain a charge of fraud when neither principal nor agent has committed any : the principal, because though he knew the fact, he was not cognizant of the misrepresentation being made, nor even directed the agent to make it; and the agent, because though he made a misrepresentation, yet he did not know it to be one at the time he made it, but gave his answer bond fide." The principle laid down in this case has since been made the subject of much discussion. In a case which came before the Court of Appeal in 1881 the following observations of Lord St. Leonards on the decision in Cornfoot v. FowJce were cited with approval by Lord Selborne (^) : " If in that case fraud had not been alleged, but it had been put upon misrepresentation, and the facts were that a man, knowing that there is so serious a nuisance affecting a house as to diminish its value in such a way that no man of respectability could live in it, takes care himself not to make the contract, but leaves it to an agent whom he has no reason to suppose to be aware of the fact ; and if, in the course of the treaty for the contract, the agent being asked if such a fact existed, states positively ' no,' and the contract is executed in silence upon the point, because the purchaser's or the tenant's vigilance has been lulled to sleep upon it, and he believes the representations made to him by the agent. ... I (') Me Tlie Empress Engineering pp. 95. 99. Co., 16 Oil. D. 125, where the previous (^) Ludgater v. Love, 44 L. T. authorities are collected. 694; see, as to liability for agent's (2) In 1810, 6 M. & VV. 358 ; 2 mistake, Tomlin v. Luce, 43 Ch. D. Smith's Leading Cases, 9th ed. 191. VOL. I. ^ ^ case. 418 CON TB ACTS. [Book III. should feel no hesitation, if I had myself to decide that case, in saying that though the representation was not fraudulent, — the agent not knowing that it was false — yet that as it in fact was false, and false to the knowledge of the principal, although the agent did not know it, it ought to vitiate the contract.'' Insurance An important question with respect to the relation of prin- cipal and agent came before the House of Lords in 1887. In this case a certain ship had left New York on the 1 1th of April bound for Glasgow, where she was due about the 24th or 25th of April. The plaintiffs, who were underwriters and insurance brokers, were liable on a policy to the extent of £1500, and were naturally anxious to insure the vessel. They accordingly in- structed their broker to effect a reinsurance. The broker whilst acting for them became aware of certain facts which were material to the risk, but never communicated to the plain- tiffs. The plaintiffs effected a reinsurance through the broker's London agents for £800, and afterwards effected another insur- ance for £700, lost or not lost, through another broker. As a matter of fact the ship had been lost several days before the plaintiffs tried to reinsure, but it was admitted that the plain- tifls and the broker who had effected the £700 insurance had acted in good faith throughout. The House of Lords decided that the knowledge of the first broker was not the knowledge of the plaintiffs, and that they were entitled to recover on the £700 policy. " Where the employment of the agent is such that in respect of the particular matter in question he really does represent the principal, the formula that the knowledge of the agent is his knowledge is I think correct, but it is obvious that that formula can only be applied when the words ' agent ' and ' principal ' are limited in their application. To lay down as an abstract pro- position of law that every agent, no matter how limited the scope of his agency, would bind every principal even by his acts, is obviously and upon the face of it absurd ; and yet it is by the fallacious use of the word ' agent ' that plausibility is given to reasoning which requires the assumption of some such proposition. " What then is the position of the broker in this case, whose knowledge, though not communicated, is held to be that of the principal ? He certainly is not employed to acquire such knowr ledge, nor can any insurer suppose that he has knowledge in the ordinary course of employment like the captain of a ship, or the owner himself, as to the condition or history of the ship. In this particular case the knowledge was acquired, not because Chap. VI.] PRINCIPAL AND AGENT. 419 he was tlie agent of the assured, hut from the accident that he was general agent for another person. The reason why, if he had effected the insurance, his knowledge, unless he communicated it, would have been fatal to the policy, is because his agency was to effect an insurance, and the authority to make the con- tract drew with it all the necessary powers and responsibilities which are involved in such an employment ; but he had no general agency — he had no other authority than the authority to make the particular contract, and his authority ended before the contract sued on was made. When it was made no relation between him and the shipowner existed which made or continued him an agent for whose knowledge his former principal was responsible. There was no material fact known to any agent which was not disclosed at the point of time at which the con- tract was made ; there was no one possessed of knowledge whose duty it was to communicate such knowledge " (i). It should be borne in mind that as the principal has employed and accredited the agent he cannot be heard to impugn his own act, or rely on the personal incapacity of the agent as a defence should an action be brought against him by one who has entered into a contract with the agent. On this ground the contract of an infant agent is binding on the principal. A curious point in reference to an agent's position, in respect of business of a somewhat unpleasant character, arose in a case which came before the Court. A contract made between a company carrying on business in England and a foreign in- corporated company which had no place of business in England contained a clause which provided among other things that the foreign corporation were to submit themselves to the juris- diction of the English Courts, and by the same clause the foreign corporation appointed E. in the city of London as their agent, on whom any writ or other legal process arising out of the contract might be served, and such appointment was not to be revocable, unless and until some other agent was appointed, and service of any writ or other process upon such agent was to be deemed good service on the foreign corporation {^). No other agent was ever appointed, and the question subse- quently arose whether service of a writ on or at his office in the City was good service. Field, J., in delivering judgment said : (') Per Halsbury, L.C., in Black- tiifs could not recover. lurn. Low & Go. v. Vigors, 12 App. (^) The Tlmrsis Sulphm and Copper Cas. 531 but see Blackburn, Low & Co. v. The Societe' Industrielle et Corn- Co ' V. Haslam 21 Q. B. D. 144, merciale Les Metaux, 60 L. T. 924 ; where' there being only one set of and see authorities tliere cited, negotiations, it was held the plain- 2 E 2 420 CONTRACTS. fBooK III. Personal liability of agent. Liability of undisclosed principal. Determina- tion of agent's authority. Lunacy of principal. " It is quite clear, on principle that a person may for considera- tion appoint another as agent to accept service, and may con- tract with some one else that that person shall be the person, Tintil revocation to accept service. And not only on principle is that so, but there is also an authority to that effect." An agent is personally liable on contracts entered into for his principal: (1) Where he pledges his own petsonal credit; or (2) Conceals his principal ; or (3) Where he contracts as agent, yet in such terms as to bind himself; or (4) Where he know- ingly exceeds his authority ; or (5) Where he fraudulently misrepresents the extent of his authority. The law as to the liability of an undisclosed principal is dis- cussed in the leading cases of Addison v. Gandasequi ; Paterson V. Oandasequi, and Thompson v. Davenport, in the second volume of Smith's Leading Cases. In the last-mentioned case the law on the subject was summed up by Lord Tenterden as follows : — " I take it to be a general rule, that if a person sells goods (supposing at the time of the contract he is dealing with a principal), Isut afterwards discovers that the person with whom he was dealing is not the principal in the transaction, but agent for a third person, though he may in the meantime have debited the agent with it, he may afterwards recover the amount from the real principal ; subject, however, to this qualification, that the state of the account between the principal and the agent is not altered to the prejudice of the principal. On the other hand, if at the time of the sale the seller knows, not only that the person who is nominally dealing with him is not principal but agent, and also knows who the principal really is, and not- withstanding all that knowledge, chooses to make the agent his debtor, dealing with him and him alone ; then the seller cannot afterwards, on the failure of the agent, turn round and charge the principal, having once made his election at the time when he had the power of choosing between the one and the other " (^). An agent's authority is determined either — 1st. By express revocation by the principal, or by renuncia- tion by the agent ; 2nd. By the death or bankruptcy of the principal or agent ; 3rd. By expiration of the time specified for the continued agency ; 4th. By the execution by the agent of his commission, when he becomes, as it is said, functus officio. The question what is the effect of the lunacy of the principal upon contracts made by an agent whom the principal had ap- (') Evans on Agency, 2nd ed. p. 2. Chap. VI.] PRINCIPAL AND AGENT. 421 pointed while sane was much discussed in an interesting case before the Court of Appeal Q) which definitely establishes two propositions : — 1. That the lunacy of the principal in certain cases puts an end to the agent's authority, though the Court of Appeal did not by any means agree in answering the question what these oases w^ere. 2. That where a principal holds out an agent as having authority to contract for him, and afterwards becomes lunatic or insane, he is liable on contracts made by the agent, after the lunacy or insanity, with a person to whom the authority has been so held out, and who had no notice of the lunacy or insanity. The attention of the reader has already been directed {ante, p. 243, et seq.) to some of the provisions of the Factors Act, 1889. The 12th section of that Act provides as follows : — (1) Nothing in this Act shall authorize an agent to exceed or depart from his authority as between himself and his principal, or exempt him from any liability, civil or criminal, for so doing. (2) Nothing in this Act shall prevent the owner of goods from recovering the goods from an agent or his trustte in bankruptcy at any time before the sale or pledge thereof, or shall prevent the owner of goods pledged by an agent from having the right to redeem the goods at any time before the sale thereof, on satisfying the claim for which the goods were pledged, and paying to the agent, if by him required, any money in respect of which the agent would by law be entitled to retain the goods or the documents of title thereto, or any of them by way of lien as against the owner, or from recovering from any person with whom the goods have been pledged any balance of money remaining in his hands as the produce of the sale of the goods after deducting the amount of his lien. (3) Nothing in this Act shall prevent the owner of goods sold by an agent from recovering from the buyer the price agreed to be paid for the same, or any part of that price, subject to any right of set-oflF on the part of the buyer against the agent (^). (') Brew V. Nunn, 4 Q. B. D. 661. apples from a tree, and an agreement C) See, on this Act, Smith's Mer- to give a commission of 10 per cent. cantile Law, 10th ed. p. 45, et seq. on all apples sold. See, as to remedy A variety of difficult questions of principal where excess price is arise when an agent is paid by com- obtained through bribery of agent, mission, as to which, see Evans on Salford (Mayor of) v. Lever, 25 Principal and Agent, p. 395, et seq., Q. B. D. 363 ; and as to case where and Ex parte Maclure, L. E. 5 Ch. theie had been investment by agent 737, where it is pointed out that of money obtained by secret commis- there is an essential diifeicncc sion. Lister & Co. v. Stiibbs, 45 between a contract to sell all the Ch. D. 1. C 422 ) CHAPTEE VII. Measure of Damages. We shall now briefly consider the subject of tlie " measure of damages " as it is technically called in actions of contract, ia other words (to borrow Mr. Broom's phrase) " the scale or rule by reference to which damages in any given case to be General principle. Hadley v. BaxendaU. The rule of the Common Law, said Baron Parke, is that where a party sustains a loss by reason of a breach of contract, he is, so far as money can do it, to be placed in the same situation with respect to damages as if the contract had been performed (^). The generality of this rule has, however, been considerably limited by the principle laid down in the leading case of Hadley v. Baxendale ('), and applied in many subsequent cases. These cases establish the following principle as regulating the measure of damages in actions of contract. Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be such as may fairly and reasonably be considered as either arising naturally, i.e. according to the usual course of things from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties at the time they made the contract as the probable result of the breach of it. This principle is well illustrated by a case which was recently decided by the Court of Appeal (*). In this case the plaintiffs bought from the defendant " steam coal," which was to be coal suitable for use on steamers. At (') Drew V. Nunn, 4 Q. B. D. 661. C) Eohmson v. Sarman, 1 Ex. 855. (") Sadley v. Baxendale, 9 Ex. 3il. O Hammond & Co. v. Bussey, 20 Q. B. Div. 86. Among other oases which may be usefully consulted on the subject of measure of damages are Some v. Midland Railway Co., L. E. 7 C. P. 683 ; Simpson v. London and North Western Hailway Co., 1 Q. B. p. 274; Sldnnw v. City of London Marine Insurance Corpora- tion, 14 Q. B. D. 882 ; Whitham v. Kershaw, 16 Q. B. D. 613; Kiddle V. Lovell, 16 Q. B. D. 605; Lombard V. Kennedy, 23 L. K. Ir. 1 (as to breach of contract to keep premises in repair) Grand Trunh Railway Go of Canada v. Jenninqe, 18 App. Cas. 800. Chap. VIL] MEA8UBE OF DAMAGES. 423 the time when the defendant sold the coal he knew that the plain tiifs were buying the coal in order to sell it again to the owners of steamers calling at Dover to be used as steam coal on such steamers ; and he therefore knew that the plaintiffs would enter into contracts with others similar to the contract he himself had made with the plaintiffs, that is to say, into contracts for the sale of " steam coal," which would amount to a warranty that the coal was reasonably fit to be used for purposes of steam coal on board steamers. The coal delivered by the defendant to the plaintiffs under the contract and by them delivered in terms to " their sub- vendees " did not answer such description, but this could not be ascertained by inspection of the coal, and only became apparent upon its use by the sub-vendees. The sub-vendees thereupon brought an action for breach of contract against the plaintiffs. The plaintiffs gave notice of the action to the defendant, who, however repudiated all liability, insisting that the coal was according to contract. The plaintiffs defended the action against them, but at the trial the verdict was that the coal was not according to contract and the sub-vendees accordingly recovered damages from the plaintiffs. The plaintiffs thereupon sued the defendant for breach of contract, claiming as damages the amount of damages recovered from them in the action by their sub-vendees, and the costs which had been incurred in such action. It was held, that the defence of the previous action being, under the circumstances reasonable, the costs incurred by the plaintiffs as defendants in such action were recoverable under the rule in Hadley v. Baxendale. The Judges of the Court of Appeal pointed out that the first part of the rule which has been stated deals with cases where there are no special circumstances and the latter with cases where there are special circumstances, and that this latter part was illustrated or exemplified in Hadley v. Baxendale in the following proposition : " If the special circumstances under which the contract was actually made were communicated by the plaintiffs to the defen- dants, and thus known to both parties, the damages resulting from the breach of such a contract, which they would reasonably contemplate, would be the amount of injury which would ordi- narily follow from a breach of contract under these special circumstances so known and communicated " (J). (') Per Lord Esher, M.R., iu Hammond & Go. v. Bwssey, 20 Q. B. D. 79, 424 CONTRACTS. [Book III, Applying tliis principle then to the case before them, the Court " considered that the defendants must have contemplated, if there was a breach of- the contract, that the plaintiffs' sub- vendees would make a claim and bring an action against the plaintiffs to enforce such claim ; and further, that the plaintiffs would on such an action being brought behave as reasonable men, and would pay without contest if it was unreasonable to defend the action, but would defend the action if it was reason- able to do so. All these matters may be reasonably supposed to have been within the contemplation of the parties. That being so, it follows that the costs of a reasonable defence would be in the contemplation of the parties, and it also followed that the costs of a reasonable defence would be in the contemplation of the parties, if they had worked out the question what the damages were which would reasonably be payable upon a breach of contract " (}). Interest. The general rule of the law is that interest on a debt is not recoverable unless there is a contract express or implied to pay it. Where no loss accrues from a breach of contract a plaintiff is nevertheless entitled to a verdict, but for nominal damages only, nominal damages meaning " a sum of money that may be spoken of, but that has no existence in point of quantity " (^); accordingly in an action for the non-payment of a debt, where the debtor gave no promise to pay interest, nothing beyond the principal , sum due can be recovered for any loss sustained by the creditor from being kept out of his money, which is not allowed to be taken into account by a jury in assessing damages, unless compensa- tion for such loss was expressly stated to be within the con- templation of the parties at the time the debt was incurred. To this rule, bills of exchange, promissory notes and overdue bonds are generally said to be exceptions ; but, in a case decided by the Court of Appeal in 1887, the law was stated to be that interest could not be claimed on a bill of exchange or a promis- sory note as part of the contract, unless there was an express agreement to pay interest, and that interest could only be given by way of damages ; that in an action on the bill, the jury could give interest as damages, but they were at liberty to refuse to do so, as the interest was no part of the debt, and that now that actions could be tried without a jury, the judge could give or refuse to give interest (^). (1) Per Fry, L.J., in Eammmd & Greatliead, 2 C. B. 494. Co. V. Busse,/i20 Q. B. D. 79, 100. (») Per Lord Esher, M.E., in M (^) Per MkuIp, J., in Beaumont v. parte Charman, In re Clagett, W. N. Chap. VI I.] MEASURE OF DAMAGES. 425 Interest is recoverable where there is an express agreement Interest. to pay it (^), and where, from the course of dealing between the parties a contract to pay interest may be implied (^). It is also provided by statute Q} that upon all debts or sums certain, payable at a certain time or otherwise, the jury may, if they shall think fit, allow interest to the creditor at a rate not exceeding the current rate of interest, if such debts or sums be payable by virtue of some written instrument at a certain time ; or, if payable otherwise, then from the time when demand of payment was made in writing with notice to the debtor that interest would be claimed from the date of the demand (*). (1887) p. 184. See In re Roberts. Goodehap v. Roberts, 14 Ch. D. 49 ; Ward V. Eyre, 15 Oh. U. 130; Ex parte Furber. Re King, 17 Ch. D. 191. In the former of these cases, Jessel, M.R., said, " In an action at law for the non-payment of money on a day certain, wliere it is an interest- bearing debt, the rule has always been to recommend the jury to give 5 per cent., because that is the usual commercial value of money. If there ever should come a time when it fell very much, juries might give less, or if it rose very much, they might give more ; but that is the reason of the rule. The fact of the parties having bargained for a higher or lower rate of interest for a time certain is always to be taken into consideration as shewing the value of money, but it does not decide tbe question." It always, we are told in Daniell'a Chancery Practice, was the practice in equity to allow interest to be com- puted upon bills of exchange and promissory notes, and upon all other sums payable on demand, or on a day certain, upon which interest might, according to the practice of the Court of law, be calculated either from the time of the demand made, or from the fixed period of payment. The practice seems now to be, to allow interest at 5 per cent, on bills of exchange and promissory notes, and at 4 per cent, in other cases, in the absence of any contrary arrange- ment between the parties. O FosUr v. Weston, 6 Bing. 714. (^) Nichol V. Thompson, 1 Camp. 52 ; Fetre v. Duncombe, 20 L. J. Q. B. 242. (=) 3 & 4 Will. 4, 0. 42, s. 28. (■*) Mowatt V. Lord Londesborough, 3 B. & B. 307, 336, and 4 Id. I.; Harper v. Williams, 4 Q. B. 219 ; Atwood v. Taylor, 1 M. & Gr. 279, 332 ; Edwards v. Great Western Rail- way Co., 11 C. B. 588, 650. See also Cook V. Fowler, 7 H. L. 27. If a party not entitled to interest makes a claim for it to gain an improper advantage, the Court may set aside the judgment and compel the solicitor making such indorsement to pay the costs : Rodway v. Lucas, 24 L. J. Ex. Hil. Term, 1858, p. 155, where, how- ever, the Court refused to set aside the judgment, as the defendant was considered to have admitted the con- tract by failing to appear. See cases collected, Seton on Decrees, vol. ii., p. 798; Chitty on Contracts, 12th ed. p. 658, et seq ; see also Phillips v. Hom/ray, 44 Ch. D. 694; Rhymney Railway Co v. Rhymney Iron Co., 25 Q. B. I). 146 ; and articles in Law Journal for Oct. 18 and 25, 1890. ( 426 ) CHAPTEE VIII. DiSCHAEGE OF CoNTEACTS. Having now considered the nature, mode of formation, and results of the contractual obligation, we proceed to explain the principal modes by which this obligation may be got rid of, or as it is technically expressed, " discharged." These are : — (1) By mutual consent, i.e. the parties may, subject to the rules hereinafter mentioned, agree that the contract between them shall be waived. (2) By performance. (3) By breach. (4) By impossibility of performance. (5) By operation of law. (6) By novation. Discharge 1. Contracts of records and specialties, as before stated, must y consen . -j^^ released by an instrument under seal, but a parol or simple contract may be discharged by writing or word of mouth, whether or no the original contract be in writing, as the writing is not the contract, but the evidence of it. The rule is different where a contract is required by statute to be in writing. If the dis- charge is only such as would be implied from the making of a new contract inconsistent with the old one, then there must be writing such as would satisfy the statutory requirement in respect to the original contract Q). An agreement entered into to discharge a pre-existing con- tract is subject to the rule governing all simple contracts with respect to consideration. The rule that a simple contract may before breach be w^aived or discharged without a deed and without consideration refers only to an executory contract where no further consideration is needed for an agreement to rescind than the discharge of each party by the other from his liabilities. The rule is otherwise in respect to an executed contract. Baron Parke in Foster v. Bawber (2) states the law in reference to the discharge of executory and executed contracts in the (') Noble V. Ward, L. E. 2 Ex. 135 ; p. 162 ; but see also Fry on Specific Guss V. Lord Nugent, 5 B. & Ad. 65. Performance, 2n(l od. p. 445. See Chitty on Contracts, 12th ed. C) 6 Ex. 83y. •Chap. VIIL] BISCEARGE OF CONTRACTS. 427 following words : " It is competent for both parties to an execu- tory contract by mutual agreement without any satisfaction to discharge the obligation of that contract. But an executed contract cannot be discharged except by a release under seal or by performance of the obligation, as by payment, where the obligation is to be performed by payment. But a promissory note or a bill of exchange appears to stand on a different footing to simple contracts, and the words before breach when taken with reference to that instrument are either idle or absurd." The law with regard to discharge by " accord and satisfaction " has been summed up in a standard work as follows :■ — " If before action the defendant delivers to the plaintiff, and the plaintiff accepts from the defendant, either money or chattels, or securi- ties for money, in satisfaction and discharge of the debt or cause of action, that is a good answer to an action for a debt or for damages for a breach of contract, whether the contract be under seal, or whether it be a simple contract, and whether the action be founded on a deed, or on a parol agreement (^). The law with regard to " accord and satisfaction " was much considered in two cases which came before the Court in 1889. In the first of these cases (^) an action was brought by two obligees of a money bond, and the defence which the defendant put in was that he had handed over and transferred to one of the plaintiffs certain stock and goods which he had accepted in full satisfaction and discharge of the bond. The Court decided that if payment to one of the plaintiffs would have been an answer to the action, the delivery to him and acceptance by him of the debt would be equally an answer. Wills, J., in delivering judgment on this point, said that the rule that at law accord and satisfaction of a debt due upon a bond was no bar to the action, was the result of a technicality absolutely devoid of any particle of merit or justice, viz. that a contract under seal could not be got rid of except by performance or by a contract also under seal. This defect, however, had been remedied by the decision of a court of equity, that when the plaintiff had accepted money's worth in place of money in discharge of the bond, the debt in equity was gone, and there was an end of it. The decision of the Court on the second point was, however, against the defendant. Here it was pointed out that the pre- (■) Addison on Contracts, 7tli ed. v. Turley, 6 H. & N. 239: 30 L. J. p. 278, citing TetUy v. Wanless, 36 Ex. 49. L. J. Ex. 153; L. E. 2 Ex. 275; (^ Steeds v. Steeds, 22 Q. B. D. Blake's Case, 6 Co. 43 b, 44 a ; An- 537. drew V. Boughey, Dyer, 75 b ; Lavery 428 OONTBACTS. [Book HI. Accord and sumption of equity was that the money was advanced to the tfon '"'' ohligees as tenants in common (ante, p. 69), and the judge, proceeding on the principle laid down in a leading case, that where two persons lend money to a third (^), though they take a security, each means to lend his own money and to take hack his own, decided that there was no defence to the action either at law or in equity. In the second case on the subject which came hefore the Court of Appeal (2), the facts were as follows : The plaintiffs had made a claim against the defendants for a sum of money as damages for breach of contract ; the defendants sent a cheque for a less amount, stating that it was in full of all demands. The plaintiffs kept the cheque, stating that they did so on account, and brought an action for the balance of their claim. The Court decided that the mere fact of keeping the cheque was not conclusive that there was an accord and satisfaction, but that the question had to be considered on what terms it ■was kept. Lord Justice Bowen in delivering judgment ex- pressed himself as follows : " It seems to me, as a matter of principle as well as of authority, that the question whether there is an accord and satisfaction must be one of fact. If a person sends a sum of money on the terms that it is to be taken, if at all, in satisfaction of a larger claim, and if the money is kept, it is a question of fact as to the terms upon which it is so kept. Accord and satisfaction imply an agreement to take the money in satisfaction of the claim in respect of which it is sent. If accord is a question of agreement, there must be either two minds agreeing, or one of the two persons acting in such a way as to induce the other to think that the money is taken in satisfaction of the claim, and to cause him to act upon that view. In either case it is a question of fact." 2. A contract may also be discharged when due by an exact performance of the terms ; or by a tender of such performance in case the other party refuse to accept it. "With regard to performance, the law on the subject has been ■well summed up in Mr. Leake's learned work on Contracts, as follows : — " Performance to operate as a discharge of a contract must be in strict accordance with the terms of the contract. Thus, upon a contract for the sale and delivery of goods, the seller must deliver the goods in the quantity and of the quality contracted for. Performance must be completed at or within the time Perform- ance. (') MorUy v. Bird, 3 Ves. 631. C) Day V. McLea, 22 Q. B. D. 610. Chap. VIH.] DISCHARGE OF O ON TRACTS. 429 stipulated by the contract, e.g., the payment of a bond, bill, or Peiform- note, must be made, or at least tendered, on the day fixed, and if the debtor is in default the payment made and accepted after the appointed day operates not as a performance of the contract, but in satisfaction of the breach." An important rule must, however, be borne in mind in con- nection with the question as to whether a contract is discharged by delivery of certain goods. If a purchaser rely on the tradesman's skill and judgment when he gives his order, he has only himself to blame if they do not suit his purpose, and the tradesman is exonerated. If, on the other hand, the trades- man be told at the time that the goods are wanted for a particular purpose, and the supply is left to the judgment of the tradesman, there is a warranty implied by the law that the goods shall be reasonably fit to supply the purchaser's wants. When a well- known and specific chattel is ordered, all that the tradesman has to do is to send that article, and he has nothing to do with the question whether it suits the purchaser or not. This principle is extremely well illustrated by an important case which came before the Court of Appeal in 1877. The plaintifif ordered and bought of the defendant, a coach- builder, a pole for a phaeton for two horses. The pole broke in use, and the horses became frightened and were injured. An action for damages was then brought, and the jury found that the pole was not reasonably fit for the carriage, but that the defendant had not been guilty of any negligence (i). The Court decided that the plaintiff was entitled to recover the value of the pole, and also the damage to the horses, if the jury on a second trial (which the Court thought right to grant) should be of opinion that the injury to the horses was the natural consequence of the defect in the pole. The law on the subject was summed up in the judgment as follows : — " In some contracts the undertaking of the seller is said to be only that the article shall be merchantable ; in others, that it shall be reasonably fit for the purpose to which it is to be applied. In all, it seems to us, it is either assumed or expressly stated, that the fundamental undertaking is, that the article offered or delivered shall answer the description of it contained in the contract. That rule comprises all the others; they are adapta- tions of it to particular kinds of contracts of purchase and sale. You must, therefore, first determine from the words used, or the circumstances, what, in or according to the contract, is the C) Randall v. Newson, 2 Q. B.D. 102, 109. 430 CONTRACTS. [Book III ■ real mercantile or business description of the thing which is the subject-matter of the bargain of purchase or sale, or, in other words, the contract. If that subject-matter be merely the commercial article or commodity, the undertaking is, that the thing offered or delivered shall answer that description, that is to say, shall be that article or commodity ; saleable or merchantable. If the subject-matter be an article or commodity to be used for a particular purpose, the thing offered or delivered must answer that description, that is to say, it must be that article or commodity, and reasonably fit for the particular purpose. The governing principle, therefore, is that the thing offered and delivered under a contract of purchase and sale must answer the description of it which is contained in words in the contract, or which would be so contained if the contract were accurately drawn out." "If the article or commodity offered or delivered does not in fact answer the description of it in the contract, it does not do so more or less because the defect in it is patent, or latent, or discoverable." Time for Where a certain day is fixed for performance, the law appoints perform- ^j^g j^^g^ convenient time of the day for both to attend. The ance. . . ^ -.-^^ person liable may protect himself from default by being then present at the place, and ready and willing to pay his debt or perform his contract, but it is also sufficient for him to tender payment or performance at the place if the promissee should happen to be there at any time upon the day appointed (^). Where no time for the performance of the contract is fixed by the parties, it is implied by the law that it shall be performed within a reasonable time, having regard to the nature and circum- stances of the performance. Thus, in a contract for the sale of goods where no time for delivery is fixed, the law implies that the delivery shall be within a reasonable time, having regard to the place where and conditions in which the goods are. Contract to A contract to marry, no time being fixed for the performance marry. ^f ^Jjq contract, is in contemplation of law a contract to marry within a reasonable time (^). Perform- It may also be pointed out with reference to the subject of performance that, provided there be a real and hand fide perform- ance of the contract, the party is at liberty to perform it in the manner most convenient and least burdensome to himself. In some cases the performance by one party of a certain thing may be a condition precedent to his right to demand performance by (') Leake on Contracts, citing Co. (^) Cherry v. Thommon, L. K. Litt. 202 a ; Wade's Case, 5 Co. Litt. 7 Q. B. 57i. 114 a. ance. Chap. VIII.] DISCHABGE OF CONTRACTS. 481 the other Q). In a case which came before the Court in 1889 (2), the law with regard to the time and place of payment of money when the contract is to be performed in that way was much considered, and it was laid down that, where there is a condition for payment of a sum at a time and place certain, the condition is not broken by non-payment at the time, unless the demand for payment is made at the specified place. The following passage in Sheppard's Touchstone was cited as summing up the law :■ — " In cases where a place is set down for the doing of the thing contained in the condition, there it must always be done at that place, unless, by some agreement made between the parties afterwards, another place be appointed; otherwise the condition is not performed, and the parties are not bound to attend in any other place. But in cases where there is no place set down for the doing of the thing contained in the condition, if the thing to be done be a corporal service, as to pay money, or any such like thing, the party that is to do it must, at his peril, seek out the person to whom it is to be done, if he be infra regnum Anglise ; but, if he be not within the kingdom, he is not bound to seek him, and yet the condition is not broken. And if the thing to be done be either local, i.e. such a thing as must be done in or at a place certain, as the making of a feoff- ment of land, payment of rent, or the like, in this case the thing must be done at that very place, and a tender of doing it in that place is a sufficient performance of the condition." It was also pointed out in the present case that, where there are two places named, it is for the person to whom payment is to be made to fix the place at which he will be paid, and until he has selected th.e place at which he will be paid there can be no default. " Without acceptance," said Baron Eolfe, " on the part of him Tender. who is to receive, the act of him who is to deliver or pay can amount only to a tender. But the law considers a party who has entered into a contract to deliver goods or pay money to another as having substantially performed it, if he has tendered the goods or money to the party to whom the delivery or pay- ment was to be made " (^). A tender must be made strictly according to the contract as regards the act to be performed as well as the place and time of its performance (*). C) Addison on Contracts, 8th ed. (') Sartup v. Macdonald, 6 M. & G. p. 1189, et sea. 610. m Thorn V. City Bice Mills, 40 (*) See as to defence of tender: Ch D 357 R- S. C, 1883, Order xxii., .. 3. 432 CONTRACTS. [Book III. Tender. Appropria- tion of payments. The tender of a money debt must be in the current coin of the realm, or that wbich the law regards as equivalent to it. Gold is good to any amount ; but wlver is not beyond 40«., nor copper beyond a shilling. A Bank of England note, payable to bearer, is a legal tender for all sums above £6 (^). In order that the tender should be good, there must be actual production of the money, or the creditor must dispense with it. This may be done either expressly or it may be implied from conduct. Thus in a case where a man called on his creditor, and said he had eight guineas in his pocket, which he had brought for the purpose of satisfying his demand, and the creditor told him that he need not trouble himself to offer it, as he would not take it, the matter being in the hands of his at- torney, the Court considered that there was a sufficient tender (f), A tender to be valid must be unconditional, and accordingly, where an offer was made to pay a sum of money if the other party would give a stamped receipt, it was held to be bad (f). A tender made under protest is likewise bad. A tender must be of the whole amount due ; but, if the alleged debt consists of a variety of items, there may be a good tender as to one or some of them, if the item for which the tender is made be clearly indicated. The exact sum must be tendered. The person to whom the money is payable must not be required to give any change (*). The important rule of law with regard to appropriation of payments vaarsf here be noticed. The principle is that, when money is paid, it is to be applied according to the expressed will of the payer, not of the receiver (solutio accipitur in modo solveniis). A debtor who owes several debts, and makes a pay- ment, has accordingly a right to appropriate that payment to finy debt he pleases. If, however, at the time of payment the debtor does not expressly or impliedly appropriate the payment to any debt, the creditor may appropriate it to any debt he pleases, even though it be a statute-barred debt, though here it has not the effect of reviving the debt. Where neither debtor nor creditor apprupriates the payment, the law appropriates in order of time (^). (') 3 & 4 Will. 4, 0. 98, s. 6; 33 Viot. c. 10. (2) Douglas \. Patrick, 3 T. R. 688. (=) Cole V. Blake, Peake, 238; Laing v. Meader, 1 C. & P. 257, but see Richardson v. Jaolcson, 8 M. & W. 928. (') See tlie very nunaeroue cases on tender collected : Chitty on Con- tracts, 12th ed. p. 787, et seq. O See as to appropriation of pay- ments: Clayton's Case, 1 Mer. 605 j Mills V. Fowkes, 5 Bing. (N.C.) 455 ; Nash V. Hodgson, Kay, 650 ; Thomp- son V. Hudson, L. E. 6 Ch. 328 ; Be Hallett's Estate, 13 Ch. D. 512 ; The London and County Banking Co., Limited v. Ratclijfe, 6 App. Cas. 722 ; Chap. VIII.] BISOEABQE OF CONTRACTS. 433 3. A contract is also said to be discharged by breact or default Breach. of performance, that is, the contract itself is converted into a claim for damages or a claim to have the contract performed " vfith such equitable qualification as may be necessitated by the default " (}). The claim or right of action so arising can then no longer be satisfied or discharged by performance or tender unless the aggrieved party consents to accept satisfaction in this way. 4. Impossibility of performance is in general no answer to an Impossi- action for damages for non-performance. If the thing to be '>'"*^y- done is notoriously physically impossible, and was known to be so by both parties, at the time of making the contract, the con- tract is void, unless the promissor has taken it upon himself to warrant that it is possible. If the thing to be done was possible at the time of making the contract, but has become impossible since, the promissor is liable to an action for damages for non- performance if he has expressly or impliedly undertaken and without any qualification to do it (^). 5. The acceptance of a security that in the eye of the law is By opera- higher, instead of a lower, merges or extinguishes the lower, tiono^'aw- Thus, as we have already seen, a judgment recovered in an action extinguishes the right on which the action was grounded. Again, if two parties to a simple contract enter into a contract under seal in reference to the same subject-matter, the simple contract is discharged. " The general principle is clear,'' said Baron Eolfe in Middleditch v. Ellis (^) " that where a debt is secured by a bond, covenant, or other specialty, there the obli- gation by simple contract is gone. The lesser security is merged in the greater." The policy of the law, said Mr. Justice Maule, is, that there shall not be two subsisting remedies, one upon the covenant and another upon the simple contract by the same person against the same person for the same demand. The conditions necessary to merge a lower in a higher secu- rity are that the two securities should be coextensive, i.e. that they should be for the same identical debt, and between the same parties, e.g. a joint bond given by a principal and surety will not merge the original debt of the principal (*). In re Sherry, 25 Ch. D. 692 ; Kirk- et seq. Patrick V. South Australian Insurance (') 2 Exch. 626. Co 11 App. Gas. 177; Hancock v. C) Leake on Contracts ; and see, as Smith, 41 C]]. D. 456. to giving bill of exchange for debt (>) Leake on Contracts, p. 787. suspending or destroying right of (') See the law as to impossibility action, Ohitty on Contracts, 12th ed. summed up in a series of propositions : p. 762, et seq. Chltty on Contracts, 12th ed. p. 726, VOL. I 2 F 434 CONTRACTS. [Book HI. 6. A contract is also discharged by the operation of the Statutes of Limitation. Actions in respect of specialties must be brought within twenty years from the accruing of the cause of action (i). Actions in respect of simple contract debts within six years (2). The rights of persons under disability, infants, lunatics, are saved until the disability is removed, and when the debtor is beyond seas the creditor has six years after his return. A debt may be taken out of the statute by acknow- ledgment, which must be in writing and signed by the party himself or by his agent lawfully authorized (^). NoTation. 7. Again, a contract is discharged by "novation." The term " novation " is derived from the civil law, and its meaning was defined in the House of Lords as follows : " There being a con- tract in existence, some new contract is substituted for it, either between the same parties, or between different parties ; the con- sideration mutually being the discharge of the old contract " (*). The common instance of novation is in the case of dissolutioa of a partnership {post, p. 623), where a creditor agrees to accept the liability of the new firm in lieu of that of the old. Contracts, with the exception of those in which personal skill or taste is req[uired, are not discharged by death Q'). The discharge of the contract of suretyship will be considered hereafter {post, p. 682). In a case which came before the Court in 1890 it was decided that (^) a party to a contract made and to be performed in England is not discharged from his liability in respect of such a contract by a discharge in bankruptcy or liquidation under the law of a foreign country in which he his domiciled. Q) See as to money charged on Jardine, 7 App. Oas. 345. See as to land, &c., and mortgage debts, ante, novation in respect of the contract of pp. 205, 206. inauraaoe(a») Branddo v. Bamett, .3 0. B. (*) Judson v. Etheridge. 1 0. & M. 519 ■ 12 C & F 787 ; London Char- 743 ; Orehard v. Sackstraw, 9 0. ti. tered Bank of Australia v. White, i 698. See further on the subject of App Cas 413 liei : Chitty on Contracts, 12fh ed. C) Forth Y.' Simpson, 13 Q. B. 680. p. 627, ei serj C) Scarfe v. Morgan, 4 M. & W. C) In re Wdt, 2 Ch. D. 489. 270, 283. 4i38 CONTRACTS. [Book III. against the person wM asks him to deliver him up. I think he has a perfect right to keep them." It deserves to be borne in mind that, though the remedy by action in respect of a debt is barred by the Statute of Limita- tions, the right of lien is not destroyed, the principle being -that the Statute does not extinguish the debt but only bars the remedy in respect of it (^), (>) Ohitty on Contracts, 12th ed. 3 Esp. 81,82; see, as to payment into p. 796, citing Biggins v. Scott, 2 Court when lien is c\a,\meA,Gebmder B. & Ad. 413, il4 ; Speara v. EaHUy, Naf v. PloUm, 25 Q. B. D. 13. ( 439 ) BOOK IV. TORTS. CHAPTEE I. Inteoductory. A tort has been defined to be " a breach of duty fixed by law, and redressible through an action for damages " (i). This definition of a tort distinguishes it from a breach of con- tract, in which the duty to be performed is fixed expressly or impliedly by the parties themselves. The breach, again, is redressible through an action for damages, and so is distin- guished from a crime, which is redressible through a prosecution on behalf of the public for the punishment of the offender by imprisonment, fine or forfeiture (^). To constitute a tort two things must concur — actual or legal damage and a wrongful act committed by the defendant. Actual perceptible damage is not indispensable as the found- ation of an action ; it is sufficient to show the violation of a right, in which case the law will presume damage (^). In legal phraseology, injuria sine damno is actionable. This proposition (') Bigelow on Torts, 3rd ed. p. 1. The usual deflaition of a tort taken from the Common Law Procedure Act, 1852, is " a wrong independent of contract;" see, for other definitions, Blackatone, 111. c. 1, p. 2 ; Broom's Commentaries, 6th ed. p. 653 ; Pig- gott on Torts, p. 7 ; Pollock on Torts, p. 19. The distinction between contracts and torts has, now that forms of actions have been abolished, lost a considerable portion of its former im- portance. It is still however material, with reference to costs, in determining whether an action sbould be brought in the County Court or in the Hi^h Court. Sect. 62 of the County Courts Act, 1888, provides that in actions of contract where the plaintifl' claims a sum exceeding £20, and of tort where the plaijitiff cUdms a sum /exceeding £10, the defendant may give notice that he objects to the action being tried in the County Court, and give security for the amount claimed and costs, and thereupon, upon the certi- ficate of the judge that in his opinion some important question of law is likely to arise in the action, such action shall be stayed. This section, however, dons not apply to actions under the Employers' Liability Act The Queen v. The Judges of the Citt, of London Court and Another, 14 Q. B. D. 595. The distinction may also be of importance on the question of service out of the j urisdiction ; as to wliich, see Annual i'rautioe, 1891, p. 250, and see R. S. C, 1883, Order Lxv., r. 12. O Bex V. Commissioners of Fag- ham, 8 B. & C. 355. (=) Finbrey. v. Owen, 6 Kx. 3.53. Definition Distin- guished from contract. How con- stituted. Injuria sine damno. 440 TOBTS. [Book IV. is admirably illustrated \>j the celebrated case of Ashhy v. White (1). Injuria sine In that Case an action was brought against a returning officer damno. fgj. maliciously refusing to admit the plaintiffs vote at a Par- liamentary election, and Chief Justice Holt decided, and his judgment was ultimately upheld by the House of Lords, that there was a right of action, although no mischief was done by the refusal of the vote as the candidates on behalf of whom it was tendered had been elected without it. Lord Holt, in the course of his judgment in that case, said : " Surely every injury imports a damage, though it does not cost the party one farthing, and it is impossible to prove the con- trary, for a damage is not merely pecuniary, but an injury imports a damage when a man is thereby hindered of his right ... If a man gives another a cuff on the ear, though it cost him nothing, no, not so much as a little diachylon, yet he shall have his action, for it is a personal injury. So a man shall have an action against another for riding over his ground, though it do him no damage ; for it is an invasion of his pro- perty, and the other has no right to come there." On the other hand, in a case where a plaintiff brought an action against the returning officer of a borough for refusing to count his vote, and it turned out that according to the then existing state of the law he had lost his right to vote by non- residence, the Court decided that the action was not maintain- able, as no legal right had been violated (^). Again, it has been held that, if a banker dishonours his customer's cheque when he has sufficient funds in his hands to meet it, he is liable to an action, though no loss is inflicted upon the customer (^), Damnum On the other hand, where there is simply a damnum sine sine injuria, injuria — damage unaccompanied by legal wrong — no action can be brought. Thus no actions will lie for any injury inflicted by fair competition in trade or business. Thus the loss inflicted on a schoolmaster by the establishment of a rival school adjacent to his own does not confer any right of action. Again, if a millowner be seriously damaged or even ruined by the erection of a mill contiguous to his own, and the conseqaent loss of custom, or by an interruption of the current of air to his mill, the law does not recognise his right to any damages from the rival millowners (*). (■) 2 Lord Bavmond, OSS, 415. C) Pryce v. Belcher, i C. B. 866. (■•) Webb v. Bird, 13 C. B. (N.S.) I'j Marzetti v. Williams, 1 B. & Ad. 841 ; but see, as to right of passage Chap. I.] INTRODUCTOBT. 441 The principle of the law on this subject, as well expressed in Principle an old case, is as follows : " When a violent or malicious act is "^ ^^'^" done to a man's occupation, profession, or way of getting a livelihood, there an action lies in all cases. But if a man does another damage by using the same employment, and thus spoiling the custom, no action will lie. . . , One schoolmaster sets up a new school to the damage of an ancient school, and thereby the scholars are allured from the old school to come to his new. The action there does not lie. But suppose the rival schoolmaster should lie in the way with his guns and frighten the boys from going to school, and their parents would not let them go thither, surely that schoolmaster might have an action for the loss of his scholars " (i). In order that an action should be maintainable in this country in respect of a tort committed abroad, it is necessary that the act complained of should be one which would have been actionable in the country where it is committed, and also that it should be a tort according to English law (^). of air through defined channel, Bass where the subject is discussed, and V. Gregory, 25 Q. B. D. 481. the following among other authorities (') Keeble y. Hickeringill, 11 East, cited: Tlie Halley, L. E. 2 P. 0. 193 ; p. 576, n. Tlie M. Moxliam, 1 P. D. 43, 107. O Eingwood on Torts, pp. 23, 24, ( 442 ) CHAPTEE II. Tort rEAsoRs. Tort The general principles of the law with, regard to persons who teasors. commit torts, " tort feasors," as they are usually styled, may be considered under three heads, viz. : — (1) The liability attaching to certain persons for their own acts. (2) The liability attaching to certain persons for the acts of others. (3) The liability attaching to the ownership of mischief- causing property (^). In general there is no limit to personal capacity, either in becoming liable for civil injuries or in obtaining redress for Buch. The law does not shield infants, lunatics, and drunkards in respect of their torts as it does in respect of their contracts. A few words must, however, be said with regard to certain classes of persons who are in an exceptional position in this respect. In the case of convicts and alien enemies, there are partial exceptions to the general rule as to capacity to obtain redress for a tort. A convicted felon whose sentence is in force and unexpired, and who is " not lawfully at large, under any licence," cannot sue " for the recovery of any property, debt, or damage whatsoever." An alien enemy, i.e. a subject of a foreign state with whom this country is at war at the time, cannot sue in his own right in any English Court. Married The position of married women in respect of torts at the present day requires to be considered with special reference to the provisions of the Married Women's Property Act, 1882 (^). By the common law a husband was liable for his wife's torts, whether ante-nuptial or committed during coverture, but it was necessary that the action should be brought against them both, in order that the husband might have an opportunity of defending himself (^). That Act provides that a married woman shall be capable of women. C) Piggott on Torts, p. 41. (') Bacon's Abridgement, Tit. L. O 45 & 46 Vict. c. 75. Baron and Feme. Chap. II.] TORT FEASORS. 443 entering into and rendering herself liable in respect of and to Married tlie extent of her separate property on any contract, and of women. suing and being sued, either in contract or in tort, or otherwise, in all respects as if she were a feme sole, and her husband need not be joined with her as plaintiff or defendant, or be made a party to any action or other legal proceeding brought by or taken against her ; and any damages or costs recovered by her in any such action or proceeding shall be her separate property ; and any damages or costs recovered against her in any such action or proceeding shall be payable out of her separate property, and not otherwise (i). The provisions of this section were considered in a case which came before the Court in 1886, where an action for a tort was brought against a married woman. In that case the judges said: "The words of the section are 'need not be joined,' but they do not discharge the husband from his old liability ; they are intended to give to a plaintiff the option of suing husband and wife together or suing the wife alone. The Act contains two very remarkable sections, the 14th and 15th, in relief of the husband, but it has no section relieving him from liability for wrongs done by his wife after her marriage. This clearly shows that it is an Act in favour of the wife, and does not affect the liability of the husband, except in those instances where there is a specific limitation in his favour. Judgment may be entered against the wife, and execution issued against her separate property, if she has any ; but, where she has none, the plaintiff is entitled to add the husband as a co-defendant " (2). A married woman may also, for the protection and security of her separate property, bring an action against her husband (^). Infants. Infancy, as was stated above, constitutes no defence to an Infants. action of tort. " If an infant commit an assault or utter slander, God forbid," said Lord Kenyon, C.J. (*), " that he should not be answerable for it in a Court of justice." Difficulty, however, not unfrequently arises in determining whether the cause of action is really in tort (ex delicto), or only in contract {ex contractu), for the Courts will not allow a plain- tiff by suing in tort to evade the plea of infancy which would be a good defence had he sued in contract. (>) 45 & 46 Vict. c. 75, s. 1, subs. 2, Q. B. D. p. 177. and see as to ante-nuptial torts, as. 13, (=) 45 & 46 Vict. c. 75, s. 12. M, and 15, also ante, p. 216, et seq. (*) Jeiminfis v. Rundall, 8 T. E. O Seroha v. Kattenburg, 17 335. 444 TORTS. [Book IV. i Infaata. Where, accordingly, an infant has induced a person to enter into a contract with him by representing himself as of full age, an action for deceit or fraudulent representation will not lie {}). It is otherwise where an infant commits a wrong of which a contract, or the obtaining of something under a contract, is merely the occasion where the tort in fact is " outside the object and purpose of the contract," and is treated by the law as inde- pendent of it. In the celebrated case of Burnard v. Haggis (2), the defendant, an infant undergraduate, hired a horse for riding, on the express condition that it was not to be used for jumping. , He went out with a friend to whom he lent this horse, and making across country they jumped various hedges and ditches, and the horse staked itself on a fence and was fatally injured.' Having thus caused the horse to be used in a way wholly unauthorised by its owner, the defendant was held to have committed a mere trespass or "independent tort," for which he was liable to the owner, apart from any question from contract, just as if he had mounted and ridden the horse without hiring or lease. Mastee and Servant. — Peincipal and Agent. Master and The maxim, " qui facit per alium facit per se," expresses the serTant. principle which regulates the liability of any one other than the party actually guilty of any wrongful act. In explanation of this maxim it has been judicially observed that " the party employing has the selection of the party employed, and it is reasonable that he who has made choice of an unskilful or care- less person to execute his orders should be responsible for any injury resulting from the want of skill or want of care of the person employed." Although the master is responsible for the acts of his servant when they are within the scope of the servant's employment, and done in the execution of the service for which he was engaged, he is not liable if the act is done to effect a purpose of the servant's own, and not to further his master's interest (^). In Edwards v. London and North-Western Bailway Go. (*) a foreman porter in charge of a station gave a person into custody on suspicion of stealing the company's goods. It was held that (') 5artte«v. TFeZJs, IB. &S.836; 8 Q. B. 36; Walker v. SmOi- 1 Sid. 258 ; and 8 Ex. 146. Eastern Bailway Co., L. E. 5 C. P. C) 14 0. B. (N.S.) 45 ; see as to 640 ; Poulton v. Londm, and South- misrepresentation by infant : Lem- Western Bailway Co., L E 2 O B. priere v. Lange, 12 Ch. D. 675. 534. (') See Limpus v. London General (') 5 0. P. 445 ; and see Barry v. Omnibus Co., 32 L. J. Ex. 34 ; Mom-e Dublin United Tramways Co., 26 V. Metropolitan Bailway Co., L. E. L. K. Ir, 150. Chap. II.] TOBT FEASORS. 445 in so doing he acted outside his ordinary business, on his own sense of what was his duty, and not for the benefit of the com- pany, and that, therefore, the company could not be made liable for his wrongful act. The important principle must be borne in mind that though Principal a principal is responsible for the tortious act of his agent when '"^'^ agent. acting within the scope of his employment, yet where the person who does the injury is exercising an independent employment the employer is not answerable. The illustrations usually cited of this rule of law are the well-known cases of Milligan v. Wedge (}^, Bapson v. Cuhitt (2). In the former of Indepen- these cases, a butcher had employed a licensed drover, who, in ?" ""'. turn, employed a boy to drive a bullock ; the Court decided that the butcher was not liable for damage done by the bullock owing to the negligence of the boy. In the second case, a builder, who had entered into a contract Indepen-i to make alterations in a club-house, employed a gasfitter to do ^"'^^ , a portion of the work. It was held that the builder was not liable for the consequences of an explosion caused by the negligence of the gasfitter or his servants. To this principle, however, several exceptions have been established by the cases, the principal of which are as follows : — (1) Where the act for which the contractor was employed is illegal. (2) Where the work was done in an imperfect or improper manner. (3) Where a duty is cast upon the employed from the nature of the thing done, because it would be reasonable under the circumstances to expect some injury to follow. (4) When the original employer has interfered with or con- trolled the particular work which caused the damage (s). As regards the effect of ratification with respect to the relative rights' of the agent on the one hand, and the principal on the other, a most important distinction must be drawn between the law as to contracts and that as to torts. The law is summed up by Mr. Evans as follows (*) :— When the contract of an agent is duly ratified, credit having Eatifica- been given to the principal, his rights and liabilities arising *'™- from that contract are wholly transferred to the party ratifying, (') 12 A. & E. 735. 1 Q- B. D. 321, 326, and comments (') 9 M ■& W 710. thereon; Suglies v. Percival, 8 App. (=) Picicard v. Smith, 10 0. B. Caa. 443, 446. CN S ) 470 • Eingwood on Torts, (') Evans on Principal and Agent, p. 52, et se'q., where the authorities 2nd ed., p. 86, citing Buron v. lien- are collected ; and see Bower v. Peate, man, 2 Ex. 167. 446 TORTS. [Book. IT. Ratifica- and the agent occupies a position identical with that of one ■ invested with full authority to do the act ratified. He can neither sue in his own right nor be rendered personally liahle. When on the other hand an individual duly ratifies a tort com- mitted by another on his behalf, the ratification has not the same wide effect. . . . For whilst on the one hand it avails to shield the agent from any liability to the principal from the conduct so ratified, it does not take away his liability to third parties who have suffered a tort at his hands. This distinction applies universally, except in cases of ratification by the Crown " (i). COEPORATIONS. Corpora- Lord EUenborough, C.J., in Tarhorough and Others v. The tions. Governor and Company of the Bank of England (^), stated the rule of law in reference to the torts of corporations to be that " Wherever they can competently do or order any act to be done on their behalf, which, as by their common seal they may do, they are liable for the consequences of such acts if it be of a tortious nature and to the prejudice of others." Can a corporation be liable in an action for malicious pro- secution ? Years ago Baron Alderson (3) intimated his opinion that such an action would not lie, because, " in order to support the action, it must be shewn that the defendant was actuated by a motive in his mind, and a corporation has no mind." This opinion, however, was dissented from in subsequent cases. In a case, however, which came before the House of Lords in 1886, Lord Bramwell expressed in the strongest terms his opinion that such an action would not lie. "I think," he said, "the reasoning is demonstrative. To maintain an action for mali- cious prosecution, it must be shewn that there was an absence of reasonable and probable cause, and that there was malice or some indirect and illegitimate motive in the prosecutor. A corporation is incapable of malice or of motive" (*). And Lord Bramwell went on to say that even if the whole body of share- holders were to meet and direct, or the directors were, by order under the common seal of the company, to order an avowedly malicious prosecution, no action would lie against the corpora- (') Buron v. Denman, 2 Ex. 167. 0. B. (N.S.) 290, and Edwards v. (2) 16 East, 6. Midland Railway Co., 6 Q. B. D. 287. I') Stevens v. Midland Bailway Co., C) Abrath v. North-Eastern Bail- 10 Ex. 352, disapproved of iu Green way Co., 11 App. Cas. 247. V. London General Omnibus Co., 7 Fletcher. Chap. II.] TORT FEA80BS. 447 tion. The general current of authority is, notwithstanding, in favour of the proposition that such an action would lie (i). See as to the action for malicious prosecution, post, p. 459. Property Causing Mischief. Every one is bound to so use his own property as not to injure his neighbour's according to the maxim, " Sic utere tuo ut alienum non laedas." The celebrated case of Bylands v. EylandsY. Fletcher Q), decided by the House of Lords in the year 1868, affords an excellent illustration of the principle above enunciated. The material facts of this case were these : — The defendant Eylands was a millowner, whose mill stood on land adjoining that under which mines had been worked by the plaintiff Fletcher, the lessee of the mines. A reservoir was constructed for the defendant by competent persons upon land underneath which there were disused vertical mining shafts. These latter had been apparently filled up with mud and earth of the surrounding land, and the reservoir was completed without observing them. Fletcher in the course of working his mine came upon the old disused shafts underneath Eylands' land. When water was let into the reservoir it forced its way down the vertical shaft, and through the disused workings into Fletcher's mine which it flooded, thereby causing damage. The House of Lords held that Fletcher was entitled to recover damages for the injury done, and their decision establishes the two following important principles : — (i.) That the owner or occupier of land may lawfully use it " for any purpose for which in the ordinary course of the enjoy- ment of land it might be used," and that a neighbouring occupier or owner has no cause of action for any ill conse- quences that may arise from the natural user of the land. (ii.) If an owner or occupier not stopping at the natural use of his land uses it in a non-natural way, then if in consequence of his doing so damage occurs he will be answerable for it. This second principle was admirably stated in the judgment of Blackburn, J., in the Court below, and quoted with approval by the Lord Chancellor (Cairns). " We think that the true law is, that the person who for his own purposes brings on his lands, and collects and keeps there, anything likely to do mischief if it escapes, must keep it at his peril, and, if he does not do so is prima facie answerable for all the damage which is the natural consequence of its escape. (>) Ringwood on Torta. p. 89. Q) L. K. 3 H. L. 330. 448 TOBTS. [Book IV, Eylands v. He can excuse himself by showing that the escape was owing Fktcher. ^^ ^-^^ plaintiff's default ; or perhaps that the escape was the consequence of vis major, or the act of God ; but as nothing of this sort exists here, it is unnecessary to inquire what excuse would be sufficient. The general rule, as above stated, seems on principle just. The person whose grass or corn is eaten down by the escaping cattle of his neighbour, or whose mine is flooded by the water from his neighbour's reservoir, or whose cellar is invaded by the filth of his neighbour's privy, or whose habitation is made unhealthy by the fumes and noisome vapours of his neighbour's alkali works, is damnified without any fault of his own ; and it seems but reasonable and just that the neighbour who has brought something on his own property which was not naturally there, harmless to others so long as it is confined to his own property, but which he knows to be mischievous if it gets on his neighbour's, should be obliged to make good the damage which ensues if he does not succeed in confining it to his own property. But for his act in bringing it there no mischief could have accrued, and it seems but just that he should at his peril keep it there so that no mischief may accrue, or answer for the natural and anticipated conse- quences. And upon authority, this we think is established to be the law, whether the things so brought be beast, or water, or filth, or stenches." (^) The principles here laid down were much considered in a case which came before the Court in 1887, where Mylands v. Fletcher was justly characterized as of extreme interest to lawyers and also to the public, and all the more so because it went to the House of Lords, where its doctrine was established by that paramount authority (2). The law was there summarized as follows : — " Generally speaking, every man may use his own property as pleaseth him best — but this use must be such as not to cause injury to his neighbour — that is, harm or loss of that kind which is regarded by English law as the subject of civil action. If, therefore, he chooses to bring on to his own land, water, stench, or filth, he must keep it there at his own peril. If it escapes, he is liable for the injury caused, and it is no answer to say, ' I could not help it, I took the best advice, I employed the best workmen, and I have done everything that (') See also Niclwls v. Marsland, cases in -which Uylands v. Fletcher 2 Ex. D. 1. had been commented upon and dis- (^) Evans v. Manchester, Sheffield, tinguishedhadin the slightest degree and Lincolnshire Railway Co., 36 impugned the principle there laid Ch. D. 626, 631 ; where it was also down, said tliat not one of the numberless Chap. II.] TORT FEASORS. 449 modern science could suggest ; but the circumstances Lave been too much for me, and the injury has been caused against my will and against my best endeavours.' " With regard to damage caused by animals the law dis- Animals tmguishes between animals ferse naturm, i.e., those which are f'^^^ ordinarily vicious, e.g., bears and lions, and those that are mansuetae naturae, i.e., naturally tame animals, when it is sought to make their owner liable for damages done by them, but this distinction vanishes when the owner of an animal belonging to the class mansuetse naturee is aware of its vicious nature. Every person has an undoubted right to keep an animal which in ferae naturae, and nobody has a right to interfere with him in doing so until some mischief happens, but as soon as an animal has done an injury to any person then the act of keep- ing it becomes as regards that person an act for which the owner is responsible Q-~). May v. Burdett Q) is a leading case on this subject. In this case action was brought against the owner of a monkey which was known to bite people, and did bite the female plaintiff. The Court in delivering judgment stated the rule of law as derived from the early authority to be that, whosoever keeps an animal accustomed to attack and bite mankind, with knowledge that it is so accustomed, is prima/aae liable in an action on the case at the suit of any person attacked and injured by the animal, without any averment of negligence or default in the securing or taking care of it. The gist of the action is the keeping the animal after knowledge of its mischievous propensities. The cause of action is the propensity of the animal, the knowledge of the defendant, and the injury to the plaintiff. The conclusion is, therefore, that a person keeping a mischievous animal, with knowledge of its pro- pensities, is bound to secure it at his peril, and that if it does mischief, negligence is presumed without express averment. The rule of law in respect to animals mansuetae naturae is, that Animals the owner can only be made liable when he has had notice of munsuetss the mischievous nature of the beast {^). This principle is usually '^ "''^' expressed in the technical language that the scienter, i.e., the fact that the owner knowingly kept a mischievous animal is the gist of the action. A good illustration of this rule is afforded by the case of Earthy v. Balliwell (*). The action was brought C) Jackson v. Smithson, 15 M. & W. C) Worth v. Gilling, L. K. 2 C. P. 1. 5gJ5_ Owners of doge are liable for injuries C) 9 Q. B. 101 ; and see Filburny. to cattle or sheep -without proof of People's Palace and Aquarium Co., 25 previous mischievous propensities, Q. B. D. 258, where it was held that 28 & 29 Vict. c. 60. the owner of an elephant was liable. C) 1 Stark. 212. VOL. I. 2 a 450 TORTS. [Book IV. Multiplica- tion of coneys. against the owner of a dog for killing sheep, the allegation being that the defendant knew that the dog was accustomed to kill sheep, but the proof in support of this allegation was that the dog had previously attacked a man. This was held to be insufficient, unless it was also proved that every dog which jumped at a man would also bite sheep. In another case (i) where the plaintiff who wore a red handkerchief was gored by a bull in a public street, the Court held the defendant liable, it being satisfied that he knew that his bull would run at anything red. " As the circumstance of per- sons carrying red handkerchiefs," observed Pollock, C.B., "is not uncommon, and it is reasonable to expect that in every public street persons so dressed may be met with, we think it was the duty of the defendant not to suffer such an animal to be driven in the public streets, possessing as he did, the knowledge that, if it met a person with a red garment, it was likely to run at and injure him." On the other hand, in a case (2) where a horse was straying on the high road and kicked a child, and there was no proof that the horse was of a vicious nature, the Court decided that the action did not lie. In Bouktori's Case in Lord Coke's Eeports, it was laid down as a proposition of law that if a man encourages the multiplica- tion of coneys by making coney-boroughs on his own land, so that they increase to such a number as to destroy his neigh- bour's land next adjoining, his neighbour cannot have an action on the case against him who made the coney-boroughs, but as soon as the coneys come on his neighbour's land he may kill them (^). Being animals ferse natures a man has no more property in them than in the fowls of the air which may breed in one man's land and destroy the crops of another. The same is the law in respect of pigeons, " if they come upon my land I may kill them," but I have no remedy against any one for breeding them (*). Where, however, land is let to a tenant reserving the right of shooting over the land, the tenant may maintain an action against the persons entitled to the right of shooting for overstocking the land with game, so as to cause damage to the tenant's crops (^). In the case (decided in ,1885) in which this principle was applied, the judges said that the rule Sic utere tuo ut alienum non laedas, did not solve the question before the Court. It is not (') Hudson V. Boherts, 6 Excli. 699. C) Cox V. BiirUdge, 13 0. B. (N.S.) 430, C) 5 Co. 104a. (■") Dewell V. Sandars, Oro. Jac. 490 ; Hannam v. Mockett, 2 B. & 0. 939. O Farrer v. Nelson and Another, 15 Q. B. D. 258. Chap. IL] TORTFEASORS. 451 merely the case of a man collecting noxious animals upon his land Injury so as to injure his neighbour, but the case of a man entitled to ''*"^'"* ^^ keep game upon the land, and the tenant complaining of injury ^''™''' to his crops from this game being unduly multiplied. The la-w- on this subject -was here stated to be that so long as the lessee of the right of shooting -was exercising the ordinary rights -which the landlord who had reserved the rights might have exercised, he was acting -w-ithin his rights, but the moment he brings on game to an unrt-asonable amount, or causes it to increase to an unreasonable extent, he -was doing that -which -was unla-wful, and an action might be maintained by his neighbour for the dumage -which he had sustained (}). Joint Tort Feasors. It is evident that a -wrong may be committed by several Joint tort persons acting in concert. In such circumstances those -who *^^^^°''^- participated in committing the -wrong are called "joint tort feasors." Their liabilitj' is joint and several, i.e., each is liable for the aggregate damage done by all, and the plaintiff is entitled to recover the full amount of damages by -way of com- pensation fur the injury he has sustained from any one or from all without any regard to the degree in which the various parties have participated in the wrong committed (^). The case of Hume v. Oldacre (^) affords a good instance of this prin- ciple of the law. In that case an action for trespass was brought against the huntsman of the Berkeley Hunt for following the hounds over the plaintiff's land, which he had done accom- panied by a large concourse of persons on foot and on horse- back. The trespass committed was adjudged to be joint, and the huntsman was held liable for the whole " aggregate amount of mischief done by him and his co-trespassers and the horses." An important con.-equence of this rule of law is that one joint tort feasor cannot recover contribution against another (*). If one alone is sued be has no action for indemnity over against his co-tort feasors, and if all are sued and the damages levied against one, this one has no right of action for contribution from the others (^). The principle on which the law proceeds, as pointed out in (') Per Polloclt, B., in Farrer f. Q) 1 Stark. 351. Nehon, 15 Q. B. D. 258. (') Memjweather v. Nixan, 8 T. E. (2) Mitchell V. Tarlmtt, 5 T. E. 186 ; 2 Smith's Leading Cases. 619 ; Brown v. Allen it OUiver, C) Fanbivther v. Ansley, 1 Camp, 4 Esp. IDS; Clarl: v Newsam, 1 Ex. 311. 131. 2 G 2 452 TOUTS. [Book IV. Merryweather v. Nixan, the leading case on tlie subject is the same as that which prevents a man from recovering money paid in pursuance of an illegal contract. If contributions could be claimed by one tort feasor from another, the community of wrong between the plaintiff and defendant would be the very founda- tion of the action ; and it is as contrary to policy to allow a man to recover that which he has paid in consequence of his illegal act, as to allow him to recover that which he has paid in consequence of his illegal contract. It must, however, be borne in mind that this rule is subject to an important qualification. Every man who employs another to do an act which the employer appears to have a right to authorise him to do, under- takes to indemnify him for all such acts as would be lawful if the employer had the authority he pretends to have. In short, the proposition that there is no contribution between wrong- doers must be understood to affect only those who are wrong- doers in the common sense of the word as well as in law. " The law," as was stated in a case on the subject, " will not imply an indemnity between wrong-doers. But the case is altered where the matter is indifferent in itself, and when it turns upon circumstances whether the act be wrong or not " (^). On the other hand, if action is brought against one of several joint tort feasors and judgment recovered, this will be a bar to an action against the others, even though the judgment remains unsatisfied Q). Again, the release of one joint feasor releases all (3). Excep- An extremely important principle has now to be considered, tional cases rp^g^g ^^^ certain classes of cases which would fall within the wnere acts justified or category of torts and would render the doer liable to an action excused. fpr damages were it not that they are treated by the law as exceptional cases in which the act done is regarded as justified or excused. 7 The following are some of the chief classes of cases to which this principle applies. Acts of 1. An action is not maintainable in respect of what have State. hBen called " acts of State." An act of State may be defined in this connection as "an act injurious to the person or to the property of some person who is not at the time of that act (') BetU V. Gibbons, 2 A. & E. 57 ; 73 ; King v. Hoare, 13 M. & W. 504 ; Dugdale v. Lovering, L. E. 10 C P. Brinsmead v. Harrison, L. B. 7 C. P. 196; Vixon v. Fawens, 30 L. J. 547. (Q.B.) 137. C) Cooke v. Jener, 15 C. B. 115. (^) Brown v, Wooton, Cro. Jac. Chap. II.] TORT FEASORS. 453 a subject of Her Majesty : which act is done by any represen- tative of Her Majesty's authority, civil or military, and is either previously sanctioned or subsequently ratified by Her Majesty" (1). The exception with regard to acts of State is well illustrated Acts of by the celebrated case of Buron v. Benman (2), where an action ^'^*'^- was brought against the defendant, a captain in the navy, for burning certain barracoons belonging to the plaintiff, a Spanish subject, and releasing the slaves contained in them. The defendant's action was approved by the British Government. It was held that the action was not maintainable. In this case Baron Parke pointed out the essential distinction between ratification by a private individual and ratification by the Crown, where, he said, an individual ratifies an act done on his behalf, the nature of the act remains unchanged, and the party injured may sue either party. Where, on the other hand, the Crown ratifies an act the character of the act becomes altered, and the effect of the ratification is to leave a remedy, such as it is, against the Crown only, and actually to exempt from all liability the person who commits the trespass. Whether the remedy against the Crown is to be pursued by petition of right, or whether the injury is an act of State without remedy, except by appeal to the justice of the State which inflicts it, or by application of the individual suffering to the government of his country, to insist upon compensation from the government of this — in either view, the wrong is no longer actionable (f). 2. Judicial acts form another exception, the rule being that Judicial " no action will lie against a judge for any acts done, or words ^'^*^' spoken, in his judicial capacity in a court of justice" (^). In a well-known case in which the action was against a county court judge in respect of words spoken by him in his capacity as judge whilst sitting in the court, in which he had said of the person who was then before him as defendant, but who subsequently became plaintiff in the action against the judge, " You are a harpy preying upon the vitals of the poor." The law on this subject and the reasons for it were admirably summed up as follows : " A series of decisions uniformly to the same effect, extending from the time of Lord Coke to the present time, establish the general proposition that no action will lie (') Stephens Hist. Grim. Law, vol. 167. jj_ p. 61. (■*) Doswell V. Impey, 1 B. & C. C) 2 Ex. Eep. 167. 163, and see Clerk and Lindsell on (') Buron v. Denman, 2 Exc. Eep. Torts, p. 576 et sec. 454 TORTS. [Book IV. Judges. against a judge for any acts done or words spoken in his judicial capacity in a court of justice. This doctrine has been applied not only to the superior courts, but to the court of a coroner and to a court-martial, which is not a court of record. It is essential in all courts that the judges who are appointed to administer the law should be permitted to administer it under the protection of the law independently and freely, without favour and without fear. This provision of the law is not fur the protection or benefit of a malicious or corrupt judge, but for the benefit of the public, whose interest it is that the judges should be at liberty to exercise their functions with independence and without fear of consequences. How could a judge so exer- cise his office if he were in daily and hourly fear of an action being brought against him, and of having the question submitted to a jury whether a matter on which he had commented judi- cially was or was not relevant to the case before him? Again, if a question arose as to the hona fides of the judge it would have, if the analogy of similar cases is to be followed, to be submitted to the jury. Thus, if we were to hold that an action is main- tainable against a judge for words spoken by him in his judicial capacity, under such circumstances as those appearing on these pleadings, we should expose him to constant danger of having questions such as that of good faith or relevancy raised against him before a jury, and of having the mode in which he might administer justice in his court submitted to their determination. It is impossible to overestimate the inconvenience of such a result. For these reasons I am most strongly of opinion that no such action as this can, under any circumstances, be main- tainable " (1). The law, however, appears to draw a distinction between judges of the superior and of the inferior Courts in this respect. In the case of a judge of a superior Court it is presumed that he has jurisdiction until the contrary is proved. The judge of an inferior Court must, on the other hand, prove that the alleged wrongful act complained of was within his jurisdiction (^')i 3. Executive Acts. — Acts done by naval or military officers in the execution of their duty form also an exception. An action wiU. not lie against the serjeant-at-arms of the House of Commons for excluding a member from the House in obedience to a resolution of the House itself (^). (') Per Kelly, C.B., in Scott v. 841. Stamfield, L. E. 3 Ex 220. (') BradlangJi v. Gossett, 1 2 Q. 13. D. Q) Houklen v. Smith, U Q. B. 271. Chap. II.] TOBT FEASOES. 455 4. Acts autliorized hy Statute. — " I take it," said Lord Black- burn in the case of Geddis v. Proprietors of Bann Beservoir Q), " without citing cases, that it is now thoroughly well established that no action will lie for doing that which the legislature ha authorized, if it be done without negligence, although it does occasion damage to any one, but an action does lie for doing that which the legislature has authorized if it be done negligently." On a somewhat similar principle the law confers the privilege of immunity from actions upon private persons for quasi-judicial acts. For instance, universities, club committees (2), parents, and persons in loco parentis, are allowed by the law to exercise disciplinary powers, subject, however, to the restriction that they must be exercised honafide and in a reasonable manner. (') 3 App. Cas. 435; 29 Ch. Div. 615 ; see further on tbis subject, p. 108. Pollock on Torts, p. 92, et seq.; Frazer (^) DawMns \. Antrdbus, 17 Ch. D. on Torts, p. 8. ( 456 ) CHAPTEE III. Division of Toets. Torts may conveniently be considered under the following heads : — Torts to the person and reputation ; Torts to property, whether real or personal ; Torts not directly affecting persons or property. Personal Weongs. Under this head are comprised assanlt, battery, and false imprisonment. Assault and Battery. The wrong called assault is committed when any one puts another in instant fear of unlawful force, though no force be actually applied. The following are examples of acts which would each be held to amount to an assault. Striking at a person with, or without a weapon, or present- ing a gun at him at a distance to which the gun will carry, or pointing a pitchfork at him standing within the reach of it, or holding up one's fist at him, or drawing a sword and waving it in a menacing manner. There must be an act fitted to put a reasonable person in present fear of violence in order to constitute an assault. Where a man put his hand upon his sword and said, " If it were not assize time I would not take such language from you," such action was held not to be an assault as the words used showed that there was no present intention of striking Q). In the case of Stephens v. Myers (^), Tindal, O.J., in his charge to the jury laid down very carefully the law on this subject. In that case the plaintiff was the chairman of a parish meeting, and the defendant a person whose conduct at the meeting was such that a motion was made and carried by a large majority that he (') Tuberville v. Savage, 1 Mod. 3. (2) 4 0. & P. 349. Chap. III.] DIVISION OF TORTS. 457 should be turned out. Thereupon the defendant said he would Assault. rather pull the chairman out of the chair than be turned out, and advanced with his fist clenched towards him. He was stopped, however, by the churchwardens who sat near the chairman, before he could have reached the latter. These being the material facts, Tindal, C.J., in his summing-up to the jury, said : " It is not every threat, when there is no actual personal violence, that constitutes an assault ; there must in all cases be the means of carrying the threat into effect. The question I shall leave to you will be, whether the defendant was advancing at the time in a threatening attitude to strike the chairman, so that his blow would almost immediately have reached the chairman if he had not been stopped. Thou, though he was not near enough at the time to have struck him, yet if he was advancing with that intent, I think it amounts to an assault in law. If he was so advancing that, within a second or two of time, he would have reached the plaintiff, it seems to me it is an assault in law. If you think he was not advancing to strike the plaintiff, then only can you find your verdict for the defen- dant ; otherwise you must find it for the plaintiff, and give him such damages as you think the nature of the case requires." Any application of unlawful force to another constitutes the Battery, wrong called battery. In an old case, Holt, L.C.J., laid it down that " the least touching of another in anger is a battery, for the law cannot draw the line between different degrees of violence, and therefore totally prohibits the first and lowest stage of it, every man's person being sacred, and no other having a right to meddle with it in any the slightest manner." False Impeisonment. A false imprisonment is an unlawful interference with a Definition, man's liberty of action or freedom to move at will from place to place. It is not necessary that the person should be locked up within four walls. If he be constrained in his freedom of action by another, that constitutes an act of imprisonment. Again, actual contact is not necessary if a person manifests his intention to arrest another (^). On the other hand, there must be a complete and not a mere partial restraint on the party's liberty of motion (2). (!) Pigott on Torts, p. 297, et seq. ; C) See Berry v. Adamson, 6 B. & C. Bingwood on Torts, p. 74, et seq. 528 ; Bird v. Jones, 7 Q. B. 742. 458 T0ET8. [Book IV. False " A prison," as was said in an oft-quoted case, " may have its men™™' l^ouiidary large or narrow, visible and tangible, or, though real, still in the conception only ; it may itself be movable or fixed ; but a boundary it must have ; and that boundary the party imprisoned must be prevented from passing ; he must be pre- vented from leaving that place within the ambit of which the party imprisoning w^ould confine him, except b}' prison-breach." The governor of a prison is protected in obeying a warrant which is on the face of it valid. The law on this subject was considered by the Court of Appeal in a case decided in 1888. The action was brought by the j)laiiitiff against the Governor of Strangeways Gaol, Man- chester, for having illegally kept him in imprisonment on August 31, 1887. The plaintiff had been fined by a magistrate on the 24th of August, or in default of payment of this fine he was sentenced to seven days' imprisonment in Strangeways Gaol, but he was not lodged in that house of detention until the next day — the 25th. Under these circumstances the plain- tiff contended that the imprisonment began on the 24th, the date of the arrest, and that the defendant was liable to an action. The defendant pleaded not guilty by statute (Prisons Act, 1865 and 1877), and set out the warrant for the prisoner's commitment. The judges of the Court of Appeal in delivering judgment in the defendant's favour said : — It is not denied that this warrant is justified by the Act of Parliament, and is not a void warrant. It is not on its face . issued by persons who have no jurisdiction, and its terms are perfectly clear. It orders the governor of Strangeways Gaol to receive the present plaintiff into his custody when he is brought there, and to keep him in that gaol for seven days. That being the warrant, it protects the governor, and no more need be said. In the case of Olliet v. Bessey, decided about t wo hundred years ago, it was so held, and from that day to this no action can be found in the books to have been maintained against a gaoler where he acted within the terms of the warrant. That is suffi- cient to determine this case ("). " What," added another of the judges, " is a governor of a gaol who receives such a warrant to do except to obey it? It is perfectly valid and correct, and is authorized by the Act of Parliament, and issued by persons who have jurisdiction to issue it. It appears to me that the governor by obeying that warrant has s-imply done his duty, and the warrant protects him and is an answer to the action." (') Per Lord Esher, M.R., in ffeji- .S62; and see Creagh v. Gamble, 24 derson v. Preston, L. R. 21 Q. B. D. L. E. Ir. 458, Chap. III.] DIVISION OF TORTS. 459 Next after the wrong of false imprisonment, the wrong of malicious prosecution may be conveniently considered. The English law proceeds upon the principle, as stated hy a Malicious leading authority, that it is wrongful to put the criminal law in prosecu- force without any reasonable or probable cause, and if by doing so another is prejudiced in person or property, there is that conjunction of injury and loss which is the foundation of an action (}). The law upon this subject was well summed up in a recent case as follows : — • " In an action for malicious prosecution, the plaintiff has to prove, first, that he was innocent, and that his innocence was pronounced by the tribunal before which the accusation was made ; secondly, that there was a want of reasonable and pro- bable cause for the prosecution, or, as it may be otherwise stated, that the circumstances of the case were such as to be in the eyes of the judge inconsistent with the existence of reasonable and probable cause ; and, lastly, that the proceedings of which he complains were initiated in a malicious spirit, that is, from an indirect and improper motive, and not in furtherance of justice. All these three propositions the plaintiff has to make out, and if any step is necessary to make out any one of those three propositions, the burden of making good that step rests upon the plaintiif " (^). Eeasonable and probable cause was deiined in a recent case Reason- to be an honest belief in the guilt of the accused, based upon ''''''l''^'[' a full conviction, founded upon reasonable grounds, of the cause, existence of a state of circumstances, which, assuming them to be true, would reasonably lead any ordinarily prudent and cautious man, placed in tlie position of the accuser, to the conclusion that the person charged was probably guilty of the crime imputed: "There must be," said the judge, "first, an honest belief of the accuser in the guilt of the accused; secondly, such belief must be based on an honest conviction of the existence of the circumstances which led the accuser to that conclusion ; thirdly, such secondly-mentioned belief must be based upon reasonable grounds, e.g. such grounds as would (') .\rl(liion on Torts, 6th ed. p. 219. his favour, if from their nature they Q) Abrcdh v. North- Eastern Rail- were capable of such termination; way Co., 11 Q. B. Div. HU, 455; (2) the absence of reasonable and afftrmed'u App. Cas. 247. probable cause (bee Hope v. Evered, To enable a plaintiff to succeed 17 Q. B. D. 338 ; Lea v. Charrington, in an action for malicious prosecution, 23 Q. B. D. 272) : and, (3) malice on lie must be prepared to prove three the part of the defendant : Bingwood things: (1) that the proceedings of on Torts, 81. which he complains terminated in 460 TORTS. [Book IV. Summary of the law as to mali- cious pro- secution. lead any fairly cautious man in the defendant's situation, so to believe; fourthly, the circumstances' so believed and relied on by the accuser must be such as amount to reasonable ground for belief in the guilt of the accused " (i). The principle, however, is by no means limited to malicious prosecution in the strictly technical sense of the term which refers to criminal proceedings only, but extends to the abuse of the process of the Court in other departments of the law (^). The law upon this subject was much considered in a case decided in 1883, when it was held that an action will lie for falsely and maliciously and without reasonable or probable cause presenting a petition under the Companies Acts to wind up a trading company, even although no pecuniary loss or special damage to the company can be proved, for the presenta- tion of the petition is from its very nature calculated to injure the credit of the company. In that case one of the judges of the Court of Appeal summed up the law as follows : — " When we look back to the decisions of the judges of earlier times (which decisions are to my mind the best guides for judges of the present day) we find it laid down by Holt, C. J., in Savil v. Boherts (1 Ld. Eaym. 374), that there are three heads of damage which will support an action for malicious prosecu- tion. There is damage to a man's person, as when he is taken into custody, whether that be, as in former times, upon mesne process or upon final process, or whether it be upon a criminal charge. To take away a man's liberty is damage, of which the law will take notice. Secondly, to cause a man to be put to expense is damage, of which the law will take notice. But Holt, C.J., adds a third head of damage, and that is where a man's fair fame and credit are injured. This is also a head of damage of which the law will take notice " (^). There must be a combination of malice with want of probable cause in order that a man should be held responsible in an action for malicious prosecution. A prosecution, though in the outset not malicious, may nevertheless become malicious in any of the stages through which it has to pass, if the prosecutor, having acquired positive knowledge of the innocence of the accused, perseveres malo animo in the prosecution, with the intention of procuring per nefas a conviction (*). 0) Hides V. Faullcner, L. E. 8 Q. B. D. 171. O AddisoQonTorts,6tlied.p.232, et seq. Q) Per Brett, M.E., in Quartz Hill Gold Mining Co. v. Eyre, 11 Q. B. D. 674. (') Per Cockburn, C.J.. FitzJohn V. Mackinder, 9 0. B. (N.S.) 505. Chap. HI.] DIVISION OF TORTS. 461 A man cannot shelter his malice in bringing an unfounded Malicious prosecution by showing that he obtained counsel's opinion before prosecu- BO doing (1). *'"''• Any motive other than that of simply instituting a prosecu- tion for the purpose of bringing a person to justice is a malicious motive on the part of the person who acts under the influence of it. On a similar principle it has been decided that an action will lie against any person who without reasonable or probable cause petitions for an adjudication in bankruptcy (^). The distinction between false imprisonment and malicious ^nXse. prosecution, said ihe late Mr. Justice Willes, is well illustrated imprison- by the case where parties being before a magistrate, one makes ™'^" ' a charge against another, whereupon the magistrate orders the person charged to be taken into custody and detained until the matter can be investigated. The party making the charge is not liable to an action for false imprisonment, because he does not set a ministerial officer in motion, but a judicial officer. The opinion and judgment of a judicial officer are interposed between the charge and the imprisonment. In such a case the defendant might be liable in an action for malicious prosecution (^). An action in respect of a tort which stands in an anomalous Action for position is the action of seduction. In theory the action would s<>J"'='-'"°- seem to be for injury to property (*), but practically it has been long regarded as an action by which a parent can obtain ]-edress for the injury done to him by the seduction of his child. In the action for seduction the law proceeds upon the prin- ciple that no damages ought to be awarded to a parent for the mere seduction of his daughter, however wrongfully it may have been accomplished. Nor is it sufficient to prove that the daughter was poor, and rendered by the seduction unable to support herself, and that the father had to maintain her and pay her nurses and doctors {^). Very slight evidence of service is sufficient. Thus it has been decided that milking cows, or even making tea is a sufficient act of service (^). Some loss of service, or possibility of service, must, however, (') Hewlett V. CrucUy, 5 Taunt. Grinnell v. Wells, 7 M. & Gr. 1041 ; 277_ Vodd V. Norris, 3 Camp. 519 ; Elliott C) See Johnson v. Emmerson, L. B. v. Nicklin, 5 Price, 641 ; and see as 6 Ex. 329, wliere under the circum- to pleading the recent case of Jip^W^ stances the Court was ectually divided. v. Franklin, 17 Q. B. D. 93. P) AustinY. Bowling, 'L.'B,. 5 C.V. (") Can v. Clarke, 2 Chit. 261; g^Q Mann v. Barrett, 6 Esp. 32, and see C) Piggott on Torts, p. 360. cases collected in Eoscoe on Evi- Q) Addison on Torts, 6th ed . p. 585 ; dence, 15th ed. p. 834, et seq. 462 TORTS. [Book IV. Action for be shown as consequent on the seduction, since that is in theory seduction, ^.j^g ground of the action. It has accordingly been held that where the person seduced is of such tender years as to be in- capable of any service, no damage can be recovered Q). "When, bowever, loss of service, however trifling, is once proved, and the foundation of the action thus laid, the damages that may be awarded are by no means limited to an amount commensurate with the actual loss of service proved or inferred, but may be given to compensate the parent for distress of mind and dishonour to the family. The jury are to take into considera- tion the situation in life of the parties, and the plaintiff may give evidence that the defendant was paying his addresses to the daughter as an honourable suitor (2). As was said in a modern case by Blackburn, J. (^) : " In form the action is by the master having a right to the services by reason of the wrongful act of the defendant, but though in form this is the reason of the action, the damage by loss of service is in reality merely nominal; and so long ago as Lord Ellen- borough's time, as be says in Irwin v. Bearman (^), the practice had become inveterate of giving to the parent or person stand- ing in loci parentis damages beyond the mere loss of service in respect of the loss aggravated by the injury to the person seduced. In effect the damages are given to the plaintiff as standing in the relation of parent, and the action has at present no reference to the relation of master and servant beyond the mere mechanical point on which the action is founded : for in ninety-nine cases out of a hundred the natural guardian is the master to whom the service is due at the time.'' (') Hall V. Hollander, 4 B. & C. (=) Terry v. Hutchinson, L. E. 66J. 3 Q. B. 599. (^) See authorities collected, Addi- (') 11 East, 24. son on Torts, (jth ed. p. 589, et seq. ( 4fi3 ) CHAPTER IV. Defamation. It is a fundamental principle of the law that a man is entitled Principle to its protection in respect of his good name and reputation as °^ ""* '''"'■ much as he is entitled to be protected in respect of his person and property (i). " Words,'" says Mr. Odgers, "which produce any perceptible injury to the reputation of another are called ' defamatory,' and, if false, are actionable " (^). The wrong of defamation is either slander or libel. Libel is Slander addressed to the eye, slander to the ear. False or defamatory words when spoken are slander. The same words when written and published constitute a libel. The writing may be on any substance, and made with any instrumeut, and the libel may be not only by writing, but also by print or signs. Thus it has been held to include a caricature, a chalk mark on a wall, a statue, &c., &c. The law has always recognised a great difference between the two classes of offences. Libel is a criminal offence as well as a wrong. Slander on a private individual is a civil wrong only ('). Libel, said the late Lord Justice Lush, on an individual is. Libel, and has always been, regarded as both a civil injury and a criminal offence. The person libelled may pursue his remedy for damages, or prefer an indictment, or by leave of the .Court a criminal information, or he may both sue for damages and indict. It is ranked amongst criminal offences because of its supposed tendency to arouse angry passion, provoke revenge. (') The principle of the law as to But he, that filches from me my defamation (though not aa to pro- good name, perty) is beautifully expressed by Kobs me of ttiat, which not enriches Shakespeare : — him, " Good name, in man, and woman. And makes me poor indeed." dear my lord, Othello, iii. 3. Is the immediate jewel of their gouls : O Odgers on Libel, 2nd ed. p. 1, Who steals my purse, steals trash ; et seq. 'tis something, nothing; C) Odgers on Libel, 2ad ed. p. 7; 'Twas mine, 'tis his, and has been Fraser on Newspaper Libel. See slave to thousands ; Arch. Crka. Prac, 20th ed. p. 954. 464 TORTS. [Book IV. Slander and libel. Words actionable per se. and thus endanger the public peace, but the libeller is not the less bound to make compensation for the pecuniary or other loss or injury which the libel might have occasioned to the person libelled (1). Another distinction between the case of slander and libel is this, that in the case of libel the plaintiff may succeed in his action without proving any damage, while in the case of slander, with the exceptions pointed out hereafter (infra), special damage must be shewn in order to entitle him to succeed. The following, among other, reasons have from time to time been judicially given for this distinction between libel and slander : — (1.) That a libel is permanent, and may circulate amongst innumerable hands ; (2.) That it shews greater malignity on the part of its author than a slander ; (3.) That it is more likely to lead to a breach of the peace (^). Spoken words are actionable per se, i.e., without proof of any special damage resulting from them as a proximate consequence in the following cases : — (1.) Where the words impute a criminal offence (^), (2.) Where they impute a contagious disease which would cause the person having it to be excluded from society. (3.) Where they convey a charge of unfitness, dishonesty, or incompetence in an office, profession, or trade, tending to prejudice a man in his calling. (4.) It was held in an old case (*) that words tending to the disherison of a person, e.g., the words " thou art a bastard " were actionable, " for by reason of these words, the plaintiff may be in disgrace with his father and uncle, and they, con- ceiving a jealousy of him touching the same, may disinherit him; and though they do not, yet the action lies for the damages which may ensue." It has been held actionable to say of a barrister "he is a dunce, and will get little by the law." " Thou art no lawyer, thou canst not make a lease; thou hast that degree without desert ; they are fools that come to thee for law." " He hath as much law as a jackanapes." " He has deceived his clients and revealed the secrets of his cause." It has been held actionable to say of an attorney that he is (') B. V. Holbrook, i Q. B. D. 46. C) Ringwood on Torts, 167. 0) Webb V. Beavan, 11 Q. B. V. 609 ; Eingwood on Torts, p. 164. (*) Humphreys v. Stansfield, Cro. Oar. 469. Chap. IV.] DEFAMATION. 465 a rogue, and doth maintain himself and his wife and children Slander. by cheating, to say that he has been guilty of bribery or of professional misconduct, and that he ought to be struck oif the rolls. But it was held not actionable to say of an attorney, " he has defrauded his creditors and has been horsewhipped oif the course at Doncaster," as these words were not concerned with matters within the scope of his professional duties (^). Mere general abuse such as "cheat," "rogue," or "knave," is not actionable, but to say " you cheat your clients,'' would be actionable (^). The law with regard to libel received an extremely careful tibel. consideration in a well-known case which was decided by the House of Lords, in 1882. In that case the facts were as follows : A firm of brewers were in the habit of receiving in payment from their customers cheques on various branches of a bank, which the bank cashed for the brewers' convenience at a particular branch. The brewers, having had a squabble with the manager of that branch, sent a printed circular to a large number of their customers, who knew nothiug of the squabble, in the following terms : " H. & Sons hereby give notice that they will not receive in payment cheques drawn on any of the branches of the bank." The circular became known to other persons ; there was a run on the bank and loss inflicted. The bank then brought an action against the brewers for libel, on the ground that the circular imputed insolvency to them. The House of Lords decided, affirming the decision of the Court of Appeal, that the action was not maintainable (^). An admirable statement of the law on the subject was given in the judgment of Lord Blackburn, from which the following points are extracted. A libel for which an action will lie, is defined to be a written statement published without lawful justification, or excuse, cal- culated to convey to those to whom it is published an imputation on the plaintiffs, injurious to their trade, or holding them up to hatred, contempt, or ridicule. It must be shewn by evidence that there was a writing, and that it was published. (') Doyley v. Boberts, 3 Bing. Limited v. George Benty & Sons, (•NC.)835; 5 Scott, 40; 3 Hodgee, 7 App. Cas. 741. The judgment of jg^ Lord Blackburn in this case is pro- r) Alleston v. Mo(yr; Hetl. 167 ; and nounced by Mr. Justice Stephen see Bishop v. Latimer, 4 L. T. 775 ; ( Digest of Criminal Law, p. 208) to he Odgers on Libel, 2nd ed. pp. 76, 77 ; tlie best modern statement ot the law Eingwood on Torts, p. 165. of libel. (2) 'Hie Capital and Counties Bank VOL. I. ^ ^ 466 TORTS. [Book IV. Libel. In construing tlie words to see whether they are libel, the Court is, where nothing is alleged to give them an extended sense, to put that meaning on them which the words would be understood by ordinary persons to bear, and say whether the words so understood are calculated to convey an injurious impu- tation. It is not whether the defendant intended to convey that imputation ; for if he, without excuse or justification, did what he knew or ought to have known was calculated to injure the plaintiif, he must (at least civilly) be responsible for the con- sequences, though his object might have been to injure another person than the plaintiif, or though he may have written in levity only. As was said in the opinion of the judges delivered to the House of Lords during the discussion of Fox's Libel Bill (1792), no one can cast about firebrands and death, and then escape from being responsible by saying he was in sport (i). Independently of all questions as to privilege, the manner of the publication, and the things relative to which the words are published, and which the person publishing knew, or ought to have known, would influence those to whom it was published in putting a meaning on the words, are all material in determining whether the writing is calculated to convey a libellous impu- tation. There are no words so plain that they may not be published with reference to such circumstances, and to such persons know- ing these circumstances, as to convey a meaning very different from that which would be understood from the same words used under different circumstances. " A publication calculated to convey an actionable imputation is prima facie a libel ; the law, as it is technically said, implving malice, or as I should prefer to say the law being that the person who so publishes is responsible for the natural con- sequences of his act. But if the occasion is such that there was either a duty, though perhaps only of imperfect obligation or a right to make the publication, it is said that the occasion rebuts the presumption of malice, but that malice may be proved, or I should prefer to say the defendant is not answer- able for it so long as he is acting in compliance with that duty or exercising that right, and the burden of proof is on those who allege he is not so acting" (^). (') The original of this phrase, casteth firebrands, arrows, and death, which is derived from a much earlier so is the man that deceivetli his neigh- source than last century, is to be hour, and saith. Am not I in sport " ? found in the PrDYerbs xxvi. 18, 19, (2) Capital and Counties Bank v. where it is applied to another descrip- Henty, 7 App. Cas. 7H7. tion of tort : " As a mud man who Chap. IV.] DEFAMATION. 467 The first question to te left to a jury in an action for libel, as Libel, was laid down in tte case to wHch we shall next refer, is, what is the meaning of the alleged libel ? What, in the opinion of the jury, would any reasonable man understand by it ? The law on this subject is well illustrated by a newspaper criticism which was carefully considered in the recent case of Merivale v. Carson (i) with regard to an article which appeared m a theatrical paper with reference to a play. It was not suggested that the defendant had been actuated by the slightest possible malice against the plaintiff, and the judge told the jury that if the article complained of was "no more than fair, honest, independent, even exaggerated criticism," their verdict would be for the defendant, that : " It is for the plaintiffs to make out their case, and they have to satisfy us that the article is more than that, otherwise they cannot complain. If you are satisfied upon the evidence that it is more than that, then you will give your verdict for the plaintiffs." " Nothing," said Lord Esher, citing from a judgment in a celebrated case, " is more important than that fair and full latitude of discussion should be allowed to writers upon any public matter, whether it be the conduct of public men, or proceedings in Courts of Justice, or in Parliament, or the publication of a scheme, or a literary work. But it is always to be left to a jury to say whether the publication has gone beyond the limits of a fair comment on the subject-matter discussed." Mere exaggeration, or even gross exaggeration, would not make the comment unfair. What is the standard for the jury of " fair criticism " ? The criticism is to be " fair," that is, the expression of it is to be fair. The only limitation is upon the mode of expression. In this country a man has a right to hold any opinion he pleases, and to express his opinion, provided that he does not go beyond the limits which the law calls " fair." Publication. It is not the mere writing of libellous matter that constitutes a libel, there must be also a publication of it. To constitute a publication the writer must communicate the matter complained of to at least one third person. When the defamatory words are only communicated to the person defamed there is no publication. And no action will lie for such words as they cannot injure his reputation. (') 20 Q. B. Piv. 275. 2 H '^ 468 TORTS. [Book IV; Publica- In the well-known case of Wenman v. Ask, it was held that *''"'• addressing a letter to a wife containing reflections on her husband is a publication (i). Mr. Justice Maule, in the course of his judgment, said : " In the eye of the law, no doubt, man and wife are for many pur- poses one ; but that is a strong figurative expression, and cannot be so dealt with as that all the consequences must follow which would result from its being literally true. For many purposes they are essentially distinct and different persons, and amongst others for the purpose of having the honour and the feelings of the husband assailed and injured by acts done or communications made to the wife." It will be observed that in Wenman v. Ash the statement complained of was not made by the defendant to his own wife, but was made by the defendant to the wife of the plaintiff. In a case, however, decided in 1888, the principle was laid down that in an action for libel, the fact that the defendant has disclosed the libel to his own wife is not evidence of publica- tion. " The maxim and principle acted on for centuries," said Manisty, J., " is still in existence, viz., that as regards this case, husband and wife are in point of law one person. What is the real foundation of the law ? It is after all a question of public policy, or, as it has been well called, social policy. No doubt that principle has been interfered with by judge-made law. Public opinion has altered in some circumstances, and no better illustration of that can be given than the change of view as to deeds of separation between husband and wife. But, if public policy is considered, what is there to shew any change in judicial opinion or public policy with respect to communications between husband and wife hitherto held sacred " (f). The onus lies on the plaintiff to prove publication by the defendant, in fact such publication must have taken place at a date prior to the issue of the writ. A libel is deemed to be published as soon as it has passed out of the defendant's possession, unless it comes directly and unread into the posses- sion and control of the plaintiff (^). Thus, if a communication of a defamatory character be sent by telegram or post-card, or even if it is sent by letter addressed to the plaintiff when the de- fendant knows that his clerk, in the ordinary course of business, will be sure to open it, there is sufficient publication (*). (■) Wenman v. Ash, 13 C. B. 836- Burdett, 4 B. & Aid. 143. 844. (■•) See cases collected : Odgers on (^) Wennhak v. Morgan, 20 Q. B. T>. Libel, 2iid ed. p. 152 ; see, as to dis- 635. covery when publication admitted, (=) Per Holrojd, J., iu R. v. Gibson v. Evans, 23 Q. B. D. 384. Chap. IV.] DEFAMATION. 469 Every repetition of defamatory words is a new publication, Repetition and constitutes a distinct cause of action. "^ s\a.nier. A person who is an unconscious instrument in circulating libellous matter, not knowing or having reason to believe that the document he circulates contains anj' such matter, is free from liability if he proves his ignorance. Such is the case of a newsvendor, as distinguished from the publishers, printers, and owners of newspapers Q-). "A newspaper," said one of the judges, " is not like a fire, a man may carry it about without being bound to suppose that it is likely to do an injury." An averment by the plaintiff that words not libellous in their Innuendo, ordinary meaning, or without a special application, were used with a specified libellous meaning or application, is called an innuendo from the old form of pleading. A plaintiff who sues on words not in themselves libellous, and does not allege in his claim that they conveyed a libellous meaning, and shew what that meaning was, has failed to shew any cause of action (2). The actionable or innocent character of words depends not on the intention with which they were published, but on their actual meaning and tendency when published. When publication is proved it is open to the defendant to shew either that the words complained of are true or that they are not malicious. The two defences here indicated are known as justification and privilege. The defence of justification, i.e., Justifica- proving the truth of the statement in question is based upon the principle that the plaintifi' is not entitled to recover damages in respect of an injury to a character which he either does not or ought not to possess (f). It must be borne in mind however that in order that the defence of justification should succeed, every material part of the libel must be proved to be true. The justification " must be as broad as the charge " (*). It is also a good defence to an action of libel or slander to prove that the circumstances under which the libel was written or the slander spoken were such as to justify the defendant in plainly and fully stating what he, hona fide, believed to be the plaintiff's character. When defamatory words are written or Privilege, uttered in such cases the occasion is said to be " privileged." In order to establish, in cases of libel, that the communication (') Emmena v. Pottle, 16 Q. B. Div. (') MePherson v. Daniels, 10 B. & C. 354, 358. 272. («) 7 App. Gas, 748, 768, 782, 790, C) Odgers on Libel, 2nd ed. p. 170 ; 787. Clerk and Lindsell on Torts, p. 444. 470 TORTS. [Book IV, Privilege. Absolute privilege. Qualified privilege. is privileged, two elements must exist ; not only must tte occasion create the privilege, but the occasion must be made use of hrnia fide and without malice. If either of these elements is absent, privilege does not attach. When a privilege is relied upon in an action the defendant is bound to prove that the occasion is privileged, and that he used the occasion in a privileged way, i.e., bond fide and without malice Q). Privilege is either (i.) absolute, or (ii.) qualified. Instances of absolute privilege are restricted to those cases where the public service or the due administration of justice demand absolute immunity. Such are words spoken in Parlia- ment ; reports of military or naval officers to their superiors in the discharge of their several duties ; words spoken by a judge, an advocate, or a witness, in the course of a judicial proceed- ing (2). The privilege attaching to the occasion in all these cases is an absolute bar to an action. A member of Parliament however may be liable to an action for subsequently publishing defamatory words spoken in his place in the House even when tlie purpose of such publication was only to correct a newspaper report of his words (^). If a member of Parliament bond fide publishes a speech de- livered in the House for the information of his constituents it would be privileged (*). Qualified privilege has been defined in a well-known case as follows : — "In general an action lies for the malicious publican tion of statements which are false, in fact, and injurious to the character of another (within the well-known limits as to verbal slander), and the law considers such publication as malicious, unless it is fairly made by a person in the discharge of some public or private duty, whether a legal or moral, or in the conduct of his own affairs in matters where his interest is concerned. In such cases the occasion prevents the inference of malice which the law draws from unauthorized communications and affords a qualified defence depending upon the absence of actual malice. If fairly warranted by any reasonable occasion or exigency and honestly made, such communications are pro- tected for the common convenience and welfare of society ; and the law has not restricted the right to make them within any narrow limits " (^). (') Stevens v. Sampson, 5 Ex. B. 63, 54. (') Mumter v. Lamb, 11 Q. B. D. 588 ; Seaman v. Netherclift, 1 0. P. D. 540. (.') Bex V. Creevey, 1 M. & S. 273. C) WasonY.Walter,'L.'R.4:Q.'B.75. (') Toogood V. Spyring, 1 0. M. & E. 193 ; and see Allbutt v. General Coimcil of Medical Education, 23 Q. B. D. 400, where report held to be privileged. CuAp. IV.] DEFAMATION. 471 An interesting case on this subject came before the Court in Privilege, 1883 (1). The defendant wrote certain defamatory statements of the plaintiff to the chairman of the company under circum- stances which made the publication privileged, but by mistake he placed the letter in an envelope directed to another person who received and read it. The Court decided that there being no evidence of malice the publication was privileged. In this case one of the judges said: "The law stands thus — If a man writes and publishes of another that which is defamatory and untrue the law will imply malice on his part, and the plaintiff need furnish no evidence whatever of malice ; he need only prove the defamatory and untrue character of the statements of which he complains. But there are occasions on which the law regards the defendant as so placed and having such an interest with respect to the subject-matter of the libel that, upon principle founded on common sense, the legal implication of malice is removed. That is the doctrine of privilege." In an action to recover damages for libel which came before the Privy Council in 1886, the appellants had in their newspaper fahely charged the resjpondent, a public officer, with specific acts of misconduct in the execution of the duties of his office, had vouched the truth of those charges, and, on the assumption of their truth, commented on his proceedings in highly offensive and injurious language. The Court decided that the appellants were liable. " There' is no doubt,'' said Lord Herschell, "that the public acts of a public man may lawfully be made the subject of fair comment or criticism, not only by the press, but by all members of the public. But the distinction cannot be too clearly borne in mind between comment or criticism and allegations of fact, such as that disgraceful acts have been committed, or discreditable language used. It is one thing to comment upon or criticise, even with severity, the acknowledged or proved acts of a public man, and quite another to assert that he has been guilty of particular acts of misconduct " (^). The Judicature Rules provide that in actions for libel or Judicatnre slander, in which the defendant does not by his defence assert R«l«s. the truth of the statement complained of, the defendant shall ,not be entitled on the trial to give evidence in chief, with a view to mitigation of damages, as to the circumstances under which the libel or slander was published, or as to the character of the plaintiff, without the leave of the judge, unless seven (') Tompson v. Dashwood, 11 C) Davis v. Shepstone, 11 L. B. Q. B. D. 43. Ap. Cas. 187. 472 TORTS. DBookIV. days at least before tlie trial he furnishes particulars to the plaintiff of the matters as to which he intends to give evidence. General It has been decided that in an action for libel, general bad repvi- evidence of the plaintiff's bad reputation can only be given in tation. Teduction of damages, and not as an answer to the action Q^. An instructive case on the law with regard to libel was decided in 1889. The plaintiff was a hatter against whom a judgment had been recovered in a county court. The judgment remained unsatisfied pending an appeal, the plaintiff subse- quently abandoned his appeal, and satisfied the judgment, but omitted to obtain an entry of satisfaction upon the register. The defendants who were publishers of a bi-monthly trade newspaper, entitled theB"a''ip''^y- of unliquidated damages arising otherwise than by reason of a contract, promise, or breach of trust, shall not be provable in bankruptcy. The effect of this is that the tort feasor will be liable to an action after his discharge in bankruptcy. When, however, judgment in the action for the tort is signed before the adjudication in bankruptcy, proof in the bankruptcy (with consequent release of liability for the tort by discharge) will be allowed (*). If the person injured by the tort becomes a bankrupt his trustee may bring an action if the tort has caused damage to the bankrupt's estate, but not for damage of a personal nature such as that occasioned by slandfr or libel (^). A tort may be " discharged " by the recovery of damages in an action founded upon it, and here we may briefly notice the subject of the " measure of damages " which we have already Measure considered (p. 422, et seq.~) in relation to damages in contract. of damages. An important distinction between contract and tort in reference to damages, is that in the case of tort, damages are awarded as a punishment to the party inflicting the injury. As Sir F. Pollock puts it, where there is great injury, and it is (') Baclchouse v. Bonomi, 9 H. L. C. 3 Ch. D. 94. Profits made by in- 503 ; Darley Main Colliery Co. v. Mit- fnngement of patents may be proved cliell, 11 App. Gas. 127. for in bankruptcy : Watson v. Eolli- (2) Stewart v. Great West. Mailway day, 20 Ch. D. 7«0. Co. 2 De G. J. & S. 319 ; and see (*) Beckham v. Dralte, 8 M. & W. Addison on Torts, tith ed. p. 52, et seq. 816 ; 11 M. & W. 315 ; 2 H. L. 0. (2) 46 & 47 Vict. c. 52, s. 37. 579; Ex parts Vine. In re Wilson, (*) In re Newman, Ex parte Broojce, 8 Ch. D. 364. 502 TORTS. . [Book IV. not possible to measure compensation by any numerical rule, juries have not only " been allowed, but encouraged, to give damages that express indignation at the defendant's wrong, rather than as a value set upon the plaintiff's loss " (^). General The general principle upon which the Court proceeds was rule as to stated by the late Chief Justice Bovill in an oft-quoted case as ■ follows : " The general rule is that a person who commits a wrongful act is responsible for the ordinary consequences which are likely to arise therefrom ; but, generally speaking, he is not liable for damage which is not the natural or ordinary conse- quence of such an act, unless it be shewn that he knows, or has reasonable means of knowing, that consequences not usually resulting from the act are, by reason of some existing cause, likely to intervene so as to occasion damage to a third person. Where there is no reason to expect it, and no knowledge in the person doing the wrongful act that such a state of things exists as to render the damage probable, if injury does result to a third person, it is generally considered that the wrongful act is not the proximate cause of the injury, so as to render the wrong- doer liable to an action '' (^). In the case in which this principle was laid down the facts were as follows : The defendants' servant (in breach of a Police Act) washed a van in a public street and allowed the waste water to run down the gutter towards a grating leading to the sewer, about twenty-five yards off. In consequence of the extreme severity of the weather, the grating was obstructed by ice, and the water flowed over a portion of the causeway, which was ill-paved and uneven, and there froze. There was no evi- dence that the defendant knew of the grating being obstructed. The plaintiff's horse, while being led past the spot, slipped upon the ice and broke its leg. The Court decided that the damage w?is, as it was technically called, " too remote," and that the plaintiff could not therefore recover. A leading authority with regard to damages in actions of tort is the old case of Scott v. Shepherd, decided more than a hundred years ago. In that case the facts were as follows : On the evening of the fair-day at Milborne Port, 28th October, 1770, Shepherd threw a lighted squib made of gunpowder, &c., from the street into the market-house, which was a covered (') Pollock on Tcii-ts, 162, where Bated at £300 damnges, and Merest v. Muckle V. Money, 2 WUs. 205, a case Harvey, 5 Taunt. 442, iire cited, ■where detention though accompanied (^) Sharp v. Powell, L. K. 7 C. P. by an entertainment of beefsteaks and 258. beer was considered fairly compen- Chap, VIII.] DTSOffABGE OF TOUTS. 503 building supported by arches and enclosed at one end, but open Scott v. at the other and both the sides, where a large concourse of '^'^^J'''^'"''- people were assembled, which lighted squib so thrown by the defendant fell upon the standing of one Yates, who sold ginger- bread, &c. : one Willis instantly, and to prevent injury to himself and the said wares of the said Yates, took up the said lighted squib from off the said standing, and then threw it across the said market-place, when it fell upon another stand- ing there of one Ej'al, who sold the same sort of wares, who instantly, and to save his own goods from being injured, took up the squib and threw it to another part of tho market-house, and in so throwing it struck the plaintiff, Scott, then in the said market-house, in the face therewith, and the combustible matter then bursting, put out one of the plaintiff's eyes. The Court considered that Scott was entitled to recover damages for the injury done. Said one of the judges. Qui facit per aliud facit per se, the defendant is the person who in the present case gave the mischievous faculty to the squib. That mischievous faculty remained in it till the explosion. No new power of doing mischief was communicated to it by Willis or Eyal. It is like the ease of a mad ox turned loose in a crowd. " It has been urged," added another of the judges, " that the intervention of a free agent will make a difference, but I do not consider Willis and Eyal as free agents in the present case, but acting under a compulsive necessity for their own safety and self-preservation " (^). The mode in which the general principles have been applied by the Courts to cases which came before them may be illus- trated by the following instances : — ■ In a remarkable American case, where the defendant had quarrelled in the street with a negro boy and pursued him with a pickaxe, the boy ran into the plaintiff's store, where he was employed, behind the counter, to save himself from the defen- dant's attack, and in so doing knocked the faucet from a cask of wine, and a quantity of the wine was lost, it was held that the defendant was liable (^). A herd of plaintiff's beasts was being driven at 11 p.m. along an occupation road to some fields. The road crossed a siding of the defendant's railway on a level, and while the cattle were crossing the siding the defendant's servants negligently sent some trucks down au incline into the siding, which separated C) SooU V. Shepherd, 2 W. Bl. 892 ; C) Vandenburgh v. Trimx, 4 Denio, 1 Smith's Leading Cases, 480. 464. 504 TORTS. [Book IV. Damages, the cattle from the drovers and frightened them, and they rushed away (^). Lord Cairns, in delivering judgment, said : " It appears from the facts as stated in the case, that the defendants' servants ■were guilty of negligence in allovsring the trucks to move down at a time when, if they had nr)t been guilty of negligence, they would have seen the cattle were crossing. The result of this negligence was twofold. First, they were frightened, and became infuriated, and were driven to act as they would not have acted in their natural state. Everything that occurred or was done after that must be taken to have occurred or been done continuously : the cattle rushed on in a state of fury, passed along the occupation road, charged the fence of the garden, and so got on to the railway, and were ultimately killed." In a case where the plaintiff had a prescriptive right to have certain fences maintained by the defendant, and the fences were broken down and the plaintiff's cows got through a gap and fed on the leaves of a yew tree and died in consequence, the Court decided that the damage was not too remote (2). Again, in a case where the plaintiff's cow died through swallowing one of the pieces of the defendants' iron fence, which had been allowed to remain until it decayed and fell to the ground and lay hidden in the grass, the Court considered that the falling of the wire was a natural result of its decay, and the pieces being hidden in the grass were naturally liable to be swallowed by the cattle grazing there, and the defendants were therefore liable for the injury to the plaintiff's cow, which was caused by the natural result of their acts (f). In another case the Court decided that where the defendant had unlawfully placed barriers armed with spikes, or, as they are commonly called, chevaux de /rise, across a carriageway, he was liable for an injury which was occasioned to the plaintiff by their being removed by another person without his know- ledge and placed on the footway (■*). Suppose I wrongfully induce a man to break the law to the injury of a third party, can that third party bring an action against me in respect of the injury inflicted upon him? This question was considered by the Court of Appeal in an important case as follows : — " Wherever a man does an act which in law and in fact is a (') Sneesby v. Lancashire and York- (') Firth v. Bmding Iron Co., 3 thire Railway Co., 1 Q. B. D. 42. 0. P. D. 254-259. Q) Lawrence v. Jenkins, L. B. 8 («) Clark v. Chambers, 3 Q. B. D. Q. B. 274. 327. Chap. VIII.] DISCHARGE OF TOBTS. 505 wrongful act, and such an act as may, as a natural and probable Damages, consequence of it produce injury to anotlier, and which, in the particular case does produce such an injury, an action on the case will lie. This is the proposition to be deduced from Asliby V. White. If these conditions are satisfied the action does not the less lie because the natural and probable consequence of the act complained of is an act done by a third person, or because such act so done by a third person is a breach of duty or con- tract by him, or an act illegal on his part, or an act otherwise imposing an actionable liability on him. It has been said that the law implies that the act of the third party, being one which he has free will and power to do or not to do, is his own wilful act, and therefore is not the natural or probable result of the defendant's act. In many cases that may be so, but if the law is so to imply in every case, it will be an implication contrary to manifest truth and fact. It has been said that if the act of the third person is a breach of duty or contract by him, or is an act which it is illegal for him to do, the law will not recognise that it is a natural or probable consequence of the defendant's act. Again, if that were so held in all cases, the law would in some refuse to recognise what is manifestly true in fact " (^). In a recent case where the question was whether the plaintiff could recover damages in respect of an alleged slander, the Court of Appeal, in deciding that the damage was not the natural and probable consequence of the words spoken, summed up the law as follows : — " To make the words actionable, by reason of special damage, the consequence must be such as, taking human nature as it is, with its infirmities, and having regard to the relationship of the parties concerned, might fairly and reasonably have been anticipated and feared would follow from the speaking the words, not what would reasonably follow, or we might think ought to follow " (2). The damages awarded to the party injured by a tort are gene- rally considered under the following heads, viz. : (i.) nominal ; (ii.) ordinary ; (iii.) vindictive or exemplary ; and (iv.) special. " The term ' nominal damages,' means," as Mr. Justice Maule said, " a sum of money that may be spoken of, but that has no existence in point of quantity " (f). Such damages are given in two classes of cases : (1) When the action has been brought (1) Bowen. v. Batt, 6 Q. B. D. 337, 407, 414. affirming Lumley v. Gye, 2 E. & B. 216. (') Per Maule, J., id Beaumont y . Q) Chamberlain v. Boyd, 11 Q. B. D Greathead, 2 C. B. 494. VOL. I. 2 ^ 506 TORTS. [Book IV. Damages, simply to establish a right, e.g., a right of way, no substantial loss having been incurred.: (2) where, although some legal wrong has been done to the plaintiff, the Court or jury think slightly of the merits of his case. Thus, if a man brings an action for defamation of character, and the jury consider that his character stands so low in public estimation that even very serious charges against him cannot have inflicted any injury on that which was previously so worthless, a farthing damages is usually given (^). Ordinary damages are those which are awarded as compen- sation for the injury inflicted upon the plaintiff; and here it must be borne in mind that a jury ought in a proper case to take into consideration not only the actual existing damages but also the prospective damiiges which may be the result of the injury (f). There mu>t however be what is called " temporal damage ": thus in a case where a plaintiff lost the advantage of again becoming a candidate for a club with a chance of being elected, the Court of Appeal pronounced the alleged damage to be un- substantial and shadowy and incapable of being estimated in money (f). It has been held however that the loss of the hospi- tality of divers friends amounts to temporal damages (*). Vindictive or exemplary damages may be awarded on the principle that where there are aggravating circumstances, such as insult, interference with personal freedom, outrageous and violent conduct ; e g., for trespass and entry into the house or lands of the plaintiff, a jury may consider not only the mere pecuniary damage sustained by the plaintiff, but also the inten- tion with which the fact has been done, whether for insult or injury Q>). The term special damage is employed in different senses ; technically it means damages that can be particularised, and here it must be borne in mind that special damages of this (') See Piggott on Torts, p. 152, 407. and Eingwood on Torts, p. 181. In C) Davies v. Solomon, L. B. 7 Odfrers on Libel. 2nd ed. p. 294, a Q. B. 112. farthing or shilling is spoken of as C) Sears v. Lyons, 2 Stark. 317 ; contemptuous damages, i.e., where and see Beeves v. Penrose, 26 L. B. the jury think the action ought not Ir. 141. Beaders of Demosthenes to be brought. The term nominal may remember his description of damages is applied to cases where SPpis in the oration against Midias, the plaintiff clears his character and and more especially the noble pass- accepts forty shillings and costs. age beginning, 06 yhp r) irXriyit irape- (') Darley Main Colliery Co. v. f the Institute of Patent Agents; and Edward Carpmael, B.A., Patent Agent, late Scholar of St John s College, Cambridge ; Associate of the Institute of Civil Engineers ; Member of the Society of Arts ; Fellow of the Institute of Patent Agents, " The book may, without reserve, be recommended as the only complete and satisfactory collection of laws which has yet appeared." — Law Journal. ^ •■' Demy 8vo, cloth, loJ. PATENT LAWS OP THE WORLD. Being a Supplement to Carpmael's "Patent Laws of the World." Edited by a Committee of Fellows of the Institute of Patent Agents. V TAis volume and "CarpmatTs Patent Laws of the World," form a comilefe collection of tkt laws an the iubject. ■' . 27, FLEET STREET, LONDON, E.G.