Walsh v Lonsdale

Facts

An agreement for a seven-year lease of a mill provided for rent in advance on demand. No deed was ever executed. The tenant went in and paid rent. The landlord then demanded a year's rent in advance and, when it was not paid, levied distress.

Issue

Could the landlord rely on a term that existed only in the agreement, not in a deed?

Held

Yes. The Court of Appeal held that equity would decree specific performance of the agreement, and that the tenant held on the terms of the agreement, including rent in advance.

Principle

A specifically enforceable contract for a lease is treated, as between the parties, as if the lease had been granted. Equity regards as done that which ought to be done.

Why it matters

It is the foundation of the equitable lease. It does not bind a purchaser of the legal estate who takes without notice.

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