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or undertaking given, or a liability respecting documents incurred, after the commencement of this Act.

The covenant for production of documents intended to be superseded by this section imposed two obligations, (1) an obligation to produce, (2) an obligation to keep safe. The first could be enforced by specific performance, but the remedy on the second was damages only. The old practice was that a trustee selling did not give any covenant. Latterly it has been customary for him to give a covenant limited so as to bind himself personally while having possession of the documents, and so as to bind the same, so far as may be, in the hands of other persons, "but so as not to create any further liability," or "so as not to create any liability for damages." With this limitation inserted it is conceived that the part of the covenant as to safe keeping should have been omitted, the limitation of liability being repugnant and void (Williams v. Hathaway, 6 Ch. D. 544); but this does not seem always to have been attended to in the precedent books. However this may be, the general rule is that a trustee does not covenant except for his own acts, and ought not to be asked to guarantee the safety of documents which might be lost without his personal neglect, as for instance, by his solicitor on a journey, when properly removing them. In this view trustees ought only to give an acknowledgment under this section and not an undertaking. If they give an undertaking any damages incurred could not, it is apprehended, in the absence of special provision, be recouped to them out of the part of the trust estate retained. But on purchase of an estate with deeds bound by an undertaking, the liability would be one attached by law to the estate, and in a proper case the trustees would be entitled to be recouped any loss. The same principle applies to mortgagees.

The old practice was to take the covenant for production of documents by a separate deed, and not to include it in the conveyance. On subsequent dealings it was kept off the abstract, and no opportunity was given for making requisitions as to the documents mentioned in the covenant. Having regard to the Act, 22 & 23 Vict. c. 35, s. 24, it is conceived that a solicitor cannot now safely omit giving an abstract of a document of even date with the conveyance commencing a title. And inasmuch as under the C. A., s. 3 (3), when a conveyance becomes a root of title any requisition as to prior documents is precluded, there is no sufficient reason for having an undertaking by a separate document, unless the schedule of documents would make the conveyance inconveniently long, or except for the purpose of enabling it to be destroyed when production under it has ceased to be of importance.

S. 9 (14).

SALES AND

OTHER TRANS

ACTIONS.

Production and
Safe Custody of

Title Deeds.
Whether trus-

tees should give undertaking.

Acknowledgment or undertaking may be included in the conveyance.

Stamp on an acknowledgment or under

It is advisable that an acknowledgment or undertaking when given by a separate writing, under hand only, should bear a sixpenny agreement stamp; though not a document clearly included in the Stamp taking. Acts, it would probably be held to be in effect an agreement.

S. 9 (14); S. (10).

SALES AND OTHER TRANS

ACTIONS.

An acknowledgment and undertaking being substituted for a covenant the expense will be borne by the person who would pay for the covenant, but, besides the stamp, the expense will in any case be no more than the mere cost of making out a schedule of documents.

The liability of a person giving an acknowledgment or undertaking Production and ceases when the documents are delivered over, and attaches to the Safe Custody of person receiving them. Therefore no indemnity need be taken on deliTitle Deeds. very over, but it is conceived that they must be properly delivered Expense by over, that is to say, to a person having an interest in the property to which they relate.

whom to be borne.

No indemnity required on delivery over. Section only

applies to persons actually having possession.

LEASES.

Rent and benefit of lessees covenants to run with

reversion.

Beneficial

owner as well as legal reversioner entitled

to sue.

The acknowledgment or undertaking must be given by a person who retains the documents, i.e., who actually has possession of them. Therefore where, as sometimes happens on a sale of property in mortgage, the mortgagor and mortgagee are required to place themselves under an obligation for production, the obligation by the mortgagee being limited to the period during which he has possession, he alone can give an acknowledgment. The mortgagor does not retain the deeds, and his obligation is, not to produce, but to procure production, and must be provided for by covenant in the old form.

III.-LEASES.

10.-(1.) Rent reserved by a lease, and the benefit of every covenant or provision therein contained, having reference to the subject-matter thereof, and on the lessees part to be observed or performed, and every condition of re-entry and other condition therein contained, shall be annexed and incident to and shall go with the reversionary estate in the land, or in any part thereof, immediately expectant on the term granted by the lease, notwithstanding severance of that reversionary estate, and shall be capable of being recovered, received, enforced, and taken advantage of by the person from time to time entitled, subject to the term, to the income of the whole or any part, as the case may require, of the land leased.

(2.) This section applies only to leases made after the commencement of this Act.

This section gives to the "person entitled to the income," that is, the beneficial owner, as well as the legal reversioner, the right to sue. It also gives a mortgagee the right to sue on the lessee's covenants in a lease made under s. 18 of this Act by the mortgagor, see note to that s.

As to the cases in which the benefit of covenants by lessees ran with

the reversion prior to this Act, see Spencer's Case, and notes, 1 Smith, L. C. 80 et seq. 8th ed.

11.—(1.) The obligation of a covenant entered into by a lessor with reference to the subject-matter of a lease shall, if and as far as the lessor has power to bind the reversionary estate immediately expectant on the term granted by the lease, be annexed and incident to and shall go with that reversionary estate, or the several parts thereof, notwithstanding severance of that reversionary estate, and may be taken advantage of and enforced by the person in whom the term is from time to time vested by conveyance, devolution in law, or otherwise; and, if and as far as the lessor has power to bind the person from time to time entitled to that reversionary estate, the obligation aforesaid may be taken advantage of and enforced against any person so entitled.

(2.) This section applies only to leases made after the commencement of this Act.

This section makes legally binding on the successors in title of a person who grants a lease under a power, all covenants which, as against the remainderman, the grantor has power to enter into.

As to the cases in which the obligation of covenants by lessors ran with the reversion before this Act, see Spencer's Case, and notes, ubi sup. As to the obligation of covenants running with the land, generally, see note to s. 58, post.

This section necessarily does not apply to cases where the covenants are not severable in their nature, or are not attributable to particular parts of the demised property.

S. 11.

LEASES.

Obligation of lessors coveants to run

with reversion

Lessor's covenants in leases under powers.

32 Hen. 8,

c. 34, extended to leases bind

ing the legal reversioner.

The two preceding sections effect a considerable extension of the Principle of principle of the Act 32 Hen. 8, c. 34, whereby the benefit of a covenant was annexed to the reversion. In order to be within that Act, the covenant must have been entered into with the legal owner of the reversion, so that in a lease under a power reserved to the mortgagor by the mortgage deed a covenant by the lessee with the mortgagor did not run, but was a covenant in gross, the mortgagor not being the legal reversioner. Now under s. 10 of this Act wherever there is a legal reversion, that is, where a lease is made by means of an ordinary power or a statutory power (see s. 18, post), enabling a legal term to be carved out of the reversion, the lessee's covenants are annexed to and run with the reversion, and are no longer covenants in gross.

So under s. 11, the covenants of a lessor, who has power to bind the reversionary estate, will run with and bind the reversioner, though the

SS. 11, 12; S. 13 (1), (2).

LEASES.

Apportionment

of conditions on

severance, &c.

Application of this section.

On sub-demise, title to lease

hold reversion

not to be required.

lessor be tenant for life only, or, as mortgagor, be entitled only to an equitable interest.

Where a mortgagor, not having power to bind the mortgagee, grants a lease, no legal term is created, and there being consequently no reversion, ss. 11 and 12 do not apply. If, however, the mortgagee reconvey to the mortgagor, the lease becomes good by estoppel.

12.-(1.) Notwithstanding the severance by conveyance, surrender, or otherwise, of the reversionary estate in any land comprised in a lease, and notwithstanding the avoidance or cesser in any other manner of the term granted by a lease as to part only of the land comprised therein, every condition or right of re-entry, and every other condition, contained in the lease, shall be apportioned, and shall remain annexed to the severed parts of the reversionary estate as severed, and shall be in force with respect to the term whereon each severed part is reversionary, or the term in any land which has not been surrendered, or as to which the term has not been avoided or has not otherwise ceased, in like manner as if the land comprised in each severed part, or the land as to which the term remains subsisting, as the case may be, had alone originally been comprised in the lease.

(2.) This section applies only to leases made after the commencement of this Act.

The 22 & 23 Vict. c. 35, s. 3, provides for the apportionment of conditions of re-entry where the reversion upon a lease is severed, and the rent or other reservation is legally apportioned. This section of the present Act provides for the apportionment of every condition in a lease, which is in its nature apportionable, and includes the case of the avoidance or cesser in any manner of the term granted by the lease as to part only of the land comprised therein.

13.-(1.) On a contract to grant a lease for a term of years to be derived out of a leasehold interest, with a leasehold reversion, the intended lessee shall not have the right to call for the title to that reversion.

(2.) This section applies only if and as far as a contrary intention is not expressed in the contract, and shall have effect subject to the terms of the contract and to the provisions therein contained.

(3.) This section applies only to contracts made after the commencement of this Act.

This section is supplementary to s. 3 (1), and to the V. & P. A., s. 2 (1).

S. 13 (3); S. 14 (1), (2).

LEASES.

The effect of this section, together with s. 2 (1) of the V. & P. A., What title to on a contract to grant a lease, is as follows:

be shewn by leaseholder

By the V. & P. A., under a contract to grant a lease for a term of selling or years, the intending lessee

(1) Cannot, whether the intending lessor be freeholder or leaseholder, call for the title to the freehold,

(2) But can, if the intending lessor be a leaseholder, call for the lease and the subsequent title thereto.

By the above s. 13 the intending lessee

(3) Cannot, where the intending lessor holds by under-lease, call for the title of the superior leasehold reversion on such underlease. In contradistinction to a freeholder, the leaseholder is still left under liability to shew his own lease and the subsequent title thereto. This is in accordance with the usual practice. The freeholder almost invariably bars himself from shewing his own title on granting a lease, but a leaseholder does not generally do so. There are obvious reasons why a difference should be made.

leasing.

Forfeiture.

Forfeiture.

and relief

leases.

14 —(1.) A right of re-entry or forfeiture under any Restrictions on proviso or stipulation in a lease, for a breach of any against covenant or condition in the lease, shall not be enforce- forfeiture of able, by action or otherwise, unless and until the lessor serves on the lessee a notice (a) specifying the particular breach complained of and, if the breach is capable of remedy, requiring the lessee to remedy the breach, and, in any case, requiring the lessee to make compensation in money for the breach, and the lessee fails, within a reasonable time thereafter, to remedy the breach, if it is capable of remedy, and to make reasonable compensation in money, to the satisfaction of the lessor, for the breach.

(a) As to service of notice, see s. 67.

(2.) Where a lessor is proceeding, by action or otherwise, to enforce such a right of re-entry or forfeiture, the lessee may, in the lessor's action, if any, or in any action

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