COMMON LAW 221
they had injured. The third party so injured filed a suit praying that the fund held in the name of Thorndyke should be transferred to them. Contention : Legal title not in Mrs. Thorndyke and therefore, her right could not prevail. Contention disallowed. Held, not necessary to acquire legal title personally. Also no notice.
- Altogether we shall have three questions to consider which may be formulated thus :
(i) Whether a person who acquires a legal right will be subject to a prior equitable right ?
(ii) Whether a person who has acquired a legal right will be postponed to an equitable right arising subsequently.
(iii) Where neither party has a legal right and both have only equitable rights, which of them will have priority ?
(i) Whether a person who has acquired a legal right will be subject to a prior equitable right ?
- The answer to this question is this :
A purchaser obtaining a legal estate for valuable consideration and without notice of a prior equitable right will not be bound by the equitable right.
- There are three important elements in this proposition :
(1) Purchaser must have acquired a legal Estate. —There is not much to be said about this. But the following points may be noted :
(a) It is not necessary that he should acquire the legal estate personally. It is enough if somebody does it on his behalf.
Thorndike vs. Hunt, (1859) 3 De. G.I.563=44E.R. 1386
(b) The purchaser’s title need not be a perfect title.
Illus. : If a trustee’s title to property is defective, he may never the less convey to a bona fide purchaser an interest which will be effective against the beneficiary who is the owner of a prior equitable right.
Jones vs. Powles (1834) 3My & K. 581.
Facts
- John Jones Owner—Mortgaged his house to Holbrook, redeemed it, obtained acknowledgement of payment—but did not