4013LAW Lecture Notes - Lecture 12: Consideration
24 Jul 2018
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Under old system land is transferred by deed, not registration. Two legal interests: a dispute between two legal interests is resolved according to who was first in time to have and interest. Legal interest v subsequent equitable interest: a legal interest will trump a subsequent equitable interest unless there are extenuating circumstances (such as gross negligence), northern countries fire insurance v whipp. Ncfi granted its manager a loan and placed the security of the manager"s title deeds in the safe. The manager then removed the deed and got another mortgage from w. w claimed that ncfi"s legal mortgage should be postponed for w"s equitable mortgage, as they were grossly negligent. The court ruled in favour of ncfi, finding that gross negligence had not occurred and that mere carelessness is not enough to postpone an interest": walker v linom. W conveyed their legal interest to the trustees and gave them the title deeds.
