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(1).

CONSTRUCTION
AND EFFECT
OF DEEDS AND

SS. 56, 57, 58 so executed to receive without further authority. This was the law as supposed to be before Viney v. Chaplin, and is now the law in reality. In practice it is perfectly well-known to all parties who is the solicitor acting for each person and entitled to receive; the payment will be made to him, and a purchaser knowingly making payment to the wrong person would not be absolved by this section. If any one of several persons entitled to receive chooses not to let the deed out of his possession, when executed by him, his only course is to attend on completion.

OTHER INSTRUMENTS.

Payment by cheque.

Payment to several on shares.

Sufficiency of

Schedule.

Sections 54 and 55 render unnecessary the indorsed receipt and the separate authority to pay, and prevent the difficulty and delay sometimes caused by the omission to sign an indorsed receipt. The one receipt now required may be either in the body of the deed or indorsed. This s. does not and could not properly authorize payment by cheque instead of in cash. If, however, payment is made by cheque and accepted by the solicitor and the cheque is afterwards honoured, the purchaser will be safe. It is immaterial whether the money is paid by the purchaser's solicitor in bank notes handed to him for the purpose, or by the purchaser's banker in exchange for the purchaser's cheque. In each case the money is paid to the solicitor producing the deed, and the section applies. If the cheque is not honoured there is no payment, and the section does not apply. The only person then affected is the solicitor accepting the cheque. If he has done so without authority, he may be liable to his own client for the consequences.

Where the purchase-money is payable among several persons, the solicitor of each must arrange to attend, and, if necessary, notice may be given to the solicitor of the person making the payment not to pay unless specified persons attend to receive. In most cases this is a matter which will cause no difficulty, the old practice before Viney v. Chaplin being simply restored.

57. Deeds in the form of and using the expressions in forms in Fourth the Forms given in the Fourth Schedule to this Act, or in the like form or using expressions to the like effect, shall, as regards form and expression in relation to the provisions of this Act, be sufficient.

Covenants to bind heirs, &c.

The forms referred to are not in any way directory. They are merely illustrative of the modes in which the Act may be applied in practice.

58.—(1.) A covenant relating to land of inheritance, or devolving on the heir as special occupant, shall be deemed to be made with the covenantee, his heirs and assigns, and shall have effect as if heirs and assigns were expressed.

AND EFFECT

(2.) A covenant relating to land not of inheritance, or s. 58 (2), (3); S. 59 (1). not devolving on the heir as special occupant, shall be deemed to be made with the covenantee, his executors, CONSTRUCTION administrators and assigns, and shall have effect as if executors, administrators, and assigns were expressed. (3.) This section applies only to covenants made after the commencement of this Act.

This section renders unnecessary the mention of " heirs and assigns," or "executors, administrators, and assigns," of the covenantee for the purpose of making a covenant run with the land, but it does not make a covenant so run where it would not so run if the “heirs and assigns," or "executors, administrators, and assigns" were expressed.

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OF DEEDS AND OTHER INSTRUMENTS.

"

Cases where assigns' must be

mentioned.

In the case of a lease s. 10 annexes to the reversion the benefit of all the lessee's covenants, and so gives this benefit to "assigns" though not mentioned, and also though the covenant be not entered into with the reversioner, as where the lessor has a mere power; and s. 11 annexes the obligation of a lessor's covenant to the reversionary estate, and so binds assigns though not mentioned where the lessor has power to bind that estate. In all other cases the obligation of a covenant relating to land is carried no further than before the Act, and to bind the assigns" they must still be mentioned where mention was necessary before the Act, for instance, in a lease where the covenant concerns a thing not in esse at the time of the demise, as to build a wall (Spencer's Case, 1 Smith L. C. 8th ed. 68; Woodfall, L. & T. 147, 11th ed.). In cases other than those between landlord and tenant it is Covenants not doubtful whether the obligation of any covenant runs with the land at law, independently of the Judicature Act, 1873 (36 & 37 Vict. c. 66, ss. 24, 25 (11)), but it does run in equity with notice, where the intention is clear that the assigns should be bound (Tulk v. Moxhay, 2 Ph. 774, where the assigns were mentioned; Wilson v. Hart, L. R. 1 Ch. Ap. 463, where the assigns were not mentioned), except where the covenant imposes an unreasonable burden on land, as in Keppell v. Bailey, 2 My. & K. 517, 535. The result seems to be that it will be prudent still to make all covenants relating to land "for assigns" where the benefit, and also " with assigns" where the burden, is intended to run with the land.

between landlord and

tenant where assigns have

notice.

&c.

59.—(1.) A covenant, and a contract under seal, and Covenants to a bond or obligation under seal, though not expressed to extend to heirs, bind the heirs, shall operate in law to bind the heirs and real estate, as well as the executors and administrators and personal estate, of the person making the same, as if heirs were expressed.

H

S. 59 (2), (3),
(4); S. 60.

CONSTRUCTION
AND EFFECT

OF DEEDS

(2.) This section extends to a covenant implied by virtue of this Act.

(3) This section applies only if and as far as a contrary intention is not expressed in the covenant, contract, AND OTHER bond, or obligation, and shall have effect subject to the terms of the covenant, contract, bond, or obligation, and to the provisions therein contained.

INSTRUMENTS.

Priority of judgment creditor.

Effect of cove

nant with two

(4.) This section applies only to a covenant, contract, bond, or obligation made or implied after the commencement of this Act.

Though by the Act 32 & 33 Vict. c. 46, specialty debts binding the heirs rank no higher in the administration of assets than other debts against the land, there is still, under 11 Geo. 4 & 1 Will. 4, c. 47, ss. 6 and 8, the power to sue the heir or devisee personally for such debts, and obtain judgment against him to the extent of the assets which have devolved on him. Accordingly a creditor having so obtained judgment takes priority of other creditors against the land, and recovers without any necessity for probate or letters of administration, which are only required to support proceedings in an administration action. All covenants will now bind the heir or devisee so as to enable an action to be brought against him personally, though the heir is not expressly mentioned. It has always been unnecessary expressly to mention executors or administrators.

60.-(1.) A covenant, and a contract under seal, and or more jointly. a bond or obligation under seal, made with two or more jointly, to pay money or to make a conveyance, or to do any other act, to them or for their benefit, shall be deemed to include, and shall, by virtue of this Act, imply, an obligation to do the act to, or for the benefit of, the survivor or survivors of them, and to, or for the benefit of, any other person to whom the right to sue on the covenant, contract, bond, or obligation devolves.

(2.) This section extends to a covenant implied by virtue of this Act.

(3.) This section applies only if and as far as a contrary intention is not expressed in the covenant, contract, bond, or obligation, and shall have effect subject to the covenant, contract, bond, or obligation, and to the provisions therein contained.

(4.) This section applies only to a covenant, contract,

bond, or obligation made or implied after the commence- SS. 60, 61 (1). ment of this Act.

This section must be read in connection with ss. 58 and 59. The effect of the three last preceding sections taken together is that every covenant may now be made in the simple form: "A. hereby covenants with B. that," &c. ; or "A. hereby covenants with B. and C. that," &c., except covenants relating to land in which, for the reasons given in the note to s. 58, A. should covenant for himself and his assigns. The covenant will thus bind the heirs, and where relating to land of any tenure the benefit of it will run with the land as if the old full form applicable to the case had been used; but where the burden is intended to run with the land the assigns of the covenantor should be mentioned. Further it will be sufficient as regards the acts to be done under the covenant, to say "that A. will pay to B.," or "that A. will at the request of B. do all such acts," &c.; "that A. will pay to B. and C.," or "that A. will at the request of B. and C. do all such acts," &c. Under covenants in this form the heirs or assigns of B. (in case for instance of a covenant to pay rent of freehold land to B. the lessor), or the executors or administrators of B. (as in case of a mortgage debt payable to B.) will stand precisely in the place of B. Also the survivor of B. and C., or the heirs or assigns, or the executors, administrators, or assigns of such survivor, as the case may be, will stand precisely in the place of B. and C. as if the old full form of covenant had been used. Thus not only are all covenants greatly shortened, but the form of a covenant with several persons is reduced to that of a covenant with one person. The same principle applies to any contract under seal, as, for instance, the proviso for redemption or the proviso for reduction of the rate of interest on a mortgage, and to contracts in a marriage settlement.

61.-(1.) Where in a mortgage, or an obligation for payment of money, or a transfer of a mortgage or of such an obligation, the sum, or any part of the sum, advanced or owing is expressed to be advanced by or owing to more persons than one out of money, or as money, belonging to them on a joint account, or a mortgage, or such an obligation, or such a transfer is made to more persons than one, jointly, and not in shares, the mortgage money, or other money, or money's worth for the time being due to those persons on the mortgage or obligation, shall be deemed to be and remain money or money's worth belonging to those persons on a joint account, as between them and the

CONSTRUCTION
AND EFFECT

OF DEEDS
AND OTHER
INSTRUMENTS.

Effect of advance on joint account, &c.

S. 62.

AND EFFECT

S. 61 (2), (3); mortgagor or obligor; and the receipt in writing of the survivors or last survivor of them, or of the personal CONSTRUCTION representatives of the last survivor, shall be a complete discharge for all money or money's worth for the time being due, notwithstanding any notice to the payer of a severance of the joint account.

OF DEEDS AND OTHER INSTRUMENTS.

Grants of ease

way of use.

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

(3.) This section applies only to a mortgage, or obligation, or transfer made after the commencement of this Act.

The ordinary joint account clause had two objects: (1) To rebut the presumption in equity that the money was advanced in equal shares, and to convert it into a joint advance; (2) The advance being originally joint, to enable the money, after the death of one of the persons making the advance, to be paid to the survivors or the survivor, or his representatives, without inquiry whether the joint account had been severed, the clause operating in fact as a contract that a severance (if any) should not affect the right of the survivor.to give a receipt. Both these objects are effected by the present section. The section applies either where the advance is expressly stated to be on a joint account, or where the security is not expressly made to persons in shares, so that an expression of the joint account is not necessary, though it is convenient as a direct statement of the rights of the mortgagees.

62.-(1.) A conveyance of freehold land to the use ments, &c., by that any person may have, for an estate or interest not exceeding in duration the estate conveyed in the land, any easement, right, liberty, or privilege in, or over, or with respect to that land, or any part thereof, shall operate to vest in possession in that person that easement, right, liberty, or privilege, for the estate or interest expressed to be limited to him; and he, and the persons deriving title under him, shall have, use, and enjoy the same accordingly.

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

The Statute of Uses, 27 Hen. VIII. c. 10, s. 1 (by force, as it seems,

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