Prudential Assurance v London Residuary Body [1992]

Facts

  • A leaseback agreement was made over a strip of land at the edge of a highway
  • The lease was said to last until the land was required for further development

Issue

  • Did this constitute certainty of duration for an effective lease?

Decision

  • No

Reasoning

  • The lease was void
  • Prospective certainty is required in the certain duration of a lease
  • In order to make an equivalent lease with certain duration, a nominal date should be set far in the future with the option to terminate early
  • This case reversed the deviation inĀ Ashburn Anstalt v Arnold [1989], restoring the rule in Lace v Chantler [1944]
  • For the other requirements of leases, go to land law notes on leases
RELATED CASE  Parker-Tweedale v Dunbar Bank Plc (No 1) [1991]

Posted in Land Law Revision Notes.

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