Jones v Lipman
1962 · [1962] 1 WLR 832
Posted By lanbuk.com
- Facts
- Lipman agreed to sell land to Jones. To avoid completing, he transferred the land to a company he had acquired and controlled.
- Issue
- Could be ordered against the company?
- Held
- Yes. The company was a mask which Lipman held before his face to avoid recognition by equity. Specific performance was ordered against Lipman and the company.
- Principle
- A company formed or used to evade a contractual obligation can be ordered to perform it.
- Why it matters
- It is an example of evasion, and of equity looking at substance.
Words and Latin in this note
- Specific performance
- An order requiring a party to actually carry out what they promised in a contract, instead of only paying damages. Open the note.
Also on Lanbuk
- Jones v Lipman in Lanbuk on the Law of Equity and Trusts
For study only. By lanbuk.com. Always check current sources and consult a qualified professional.