Walsh v Lonsdale

Facts

A landlord agreed to grant a seven-year lease of a mill, with rent payable in advance if demanded. No deed was executed. The tenant went into possession and paid rent quarterly. The landlord demanded a year's rent in advance and distrained when it was not paid.

Issue

Was the tenant a yearly tenant at law, or did he hold on the terms of the agreement?

Held

The agreement was one equity would specifically enforce, so the tenant held on the same terms as if the lease had been granted. Since the Judicature Act, the equitable rule prevailed. The distress was lawful.

Principle

An agreement for a lease that equity would specifically enforce creates an equitable lease on the agreed terms.

Why it matters

It applies the maxim that equity regards as done what ought to be done, and shows the effect of fusion.

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