Facts
- The fee simple estate in some business premises were purchased from a business by its directors, but no formal conveyance was executed
- The directors then granted a lease out of the purchased fee simple estate to AEI
- AEI breach their covenant to keep the premises in good repair
Issue
- Could the covenant be enforced?
Decision
- Yes
Reasoning
- As the sale of the fee simple estate was not formally completed, the doctrine of Walsh v Lonsdale (1882) could operate twice, first on the sale of the fee simple estate, and then on the lease (defective due to a lack of legal estate to grant from)
- The covenant was then enforceable
