{"id":13842,"date":"2023-07-05T18:40:08","date_gmt":"2023-07-05T18:40:08","guid":{"rendered":"https:\/\/careerinlaw.net\/uk\/?p=13842"},"modified":"2023-11-23T09:43:48","modified_gmt":"2023-11-23T14:43:48","slug":"case-summary-englewood-properties-ltd-v-patel-2005-1-wlr-1961","status":"publish","type":"post","link":"https:\/\/careerinlaw.net\/uk\/case-summary-englewood-properties-ltd-v-patel-2005-1-wlr-1961","title":{"rendered":"Case Summary: Englewood Properties Ltd v Patel [2005] 1 WLR 1961"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-legal-principles-and-key-points\"><strong>Legal Principles and Key Points<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the case of Englewood Properties Ltd v Patel [2005] 1 WLR 1961, it was held that a property would not survive its sale where the benefit of an agreement entrusted to the seller was not part of the property; this would occur where a lessor\u2019s covenant exists and the seller\u2019s actions could not forfeit the subject matter interest of the sale<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Facts of the Case<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>C owned a parade of shops, one of which was leased to W Plc<\/li>\n\n\n\n<li>There was a covenant within the lease that upon the sale of any of the other shops, the conveyance would prevent the purchaser from using it or letting it for use as a fixed price store<\/li>\n\n\n\n<li>Ds were the successful bidders when the shop was auctioned to them<\/li>\n\n\n\n<li>D also sold the other shops, but did not insert this covenant in the separate sale agreements<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Issues in Englewood Properties Ltd v Patel [2005] 1 WLR 1961<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ds were worried that a risk existed of damages being brough against them if a fixed price store trade from any of the other premises in the parade<\/li>\n\n\n\n<li>Ds refused to complete the sale, arguing that C\u2019s failure to insert the covenant in the multiple sale agreements was a breach of his trustee duties<\/li>\n\n\n\n<li>Cs brough action for specific performance<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Held by the High Court (Chancery Division)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Appeal dismissed \u2013 in a state of a pending completion, the trustee seller had to preserve the property as under the contract, though this did not extend to a lessor\u2019s duty to imply covenant on purchases of adjoining property, unless imposed by a contract; C entitled to proceed with the sale<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Lawrence Collins J<\/strong><\/h2>\n\n\n\n<p>Read the judgement for the dismissal of the appeal, drawing on a wide range of case law to differentiate between vendor and lessor duties<\/p><div id=\"caree-3452405696\" class=\"caree-within-the-content caree-entity-placement\" style=\"margin-left: auto;margin-right: auto;text-align: center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1.png\" alt=\"\"  srcset=\"https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1.png 448w, https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1-300x250.png 300w\" sizes=\"(max-width: 448px) 100vw, 448px\" width=\"448\" height=\"373\"  style=\"display: inline-block;\" \/><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u2018I am satisfied that the ratio of this decision is that in the case of a sale of leasehold interests the vendor is under a duty to give good title, and therefore (subject to the express terms of the contract) to take care not to take steps which may result in forfeiture, and that the statement by the Law Commission is a compressed version of this principle.\u2019 [paragraph 51]<\/li>\n\n\n\n<li>\u2018My conclusion is that it is not arguable that, in the absence of an agreement to the contrary,&nbsp;<a><\/a><a><\/a>Englewood&nbsp;had a duty to require the purchasers of the lots sold subsequently to the&nbsp;<a><\/a><a><\/a>property&nbsp;to comply with the covenant in clause 5(c) of the October 1939 lease. The rationale of the case law is that equity imposes duties on the vendor to protect, pending completion, the interest which the purchaser has acquired under the contract. This is a case of a lessor&#8217;s covenant, and is not a case where the actions of the vendor could have led to a forfeiture of the interest which was the subject matter of the sale. For present purposes, if the most relevant obligations which equity imposes on the vendor are to take reasonable care to preserve the&nbsp;<a><\/a><a><\/a>property&nbsp;in question, not to damage the&nbsp;<a><\/a><a><\/a>property&nbsp;nor to prejudice the purchaser&#8217;s interest in the&nbsp;<a><\/a><a><\/a>property&nbsp;pending completion, the obligations do not extend to a lessor&#8217;s duty to impose covenants on purchasers of adjoining&nbsp;<a><\/a><a><\/a>properties&nbsp;unless that duty is imposed by the contract of sale of the&nbsp;<a><\/a><a><\/a>property&nbsp;in question.\u2019 [paragraph 58]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Legal Principles and Key Points Facts of the Case Issues in Englewood Properties Ltd v Patel [2005] 1 WLR 1961 Held by the High Court (Chancery Division) Lawrence Collins J Read the judgement for the dismissal of the appeal, drawing on a wide range of case law to differentiate between vendor and lessor duties<\/p>\n","protected":false},"author":7,"featured_media":13103,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-13842","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-case-summaries","8":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.4 (Yoast SEO v27.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Case Summary: Englewood Properties Ltd v Patel [2005] 1 WLR 1961 | Careerinlaw.net | UK<\/title>\n<meta name=\"description\" content=\"In the case of Englewood Properties Ltd v Patel [2005] 1 WLR 1961, it was held that a property would not survive its sale where the benefit of an agreement entrusted to the seller was not part of the property; 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