Equity cures the problem of unfairness in general. In this case, there was a contract between
Leigh and Anisa. The contract created duties to both parties of which, every party was bound
by the terms of the contract. Failure to register the lease do not render it invalid. The rationale
in this principle is that the intention of the two parties was to be governed by the terms and
conditions of the agreement, while carrying out their business. Equity requires that the person
seeking its indulgence must come with clean hands .In this case, as Leigh is the one seeking
the intervention of equity, he must ensure that he acted in good faith and performed his
obligations without faulting. The contract took the form of a lease agreement.
Duty.
In order to ascertain whether equity will come in to solve the contention between the two
parties, it’s required that the existence of a fiduciary duty between the two parties. In this
case, Leigh has a duty to offer his land to be used by Anisa .Anisa has a duty to pay rent and
maintain the orchids through the heavy machinery orchids. In this case, Anisa failed to
observe the duties that bound him and this led to the death of the orchids as watering did not
take place. This led to the immense loss suffered by Leigh.
The nature of the interest in the property. In this case, Leigh has the proprietary rights over
the property while Anisa has only the property rights in the land. By virtue of the lease, Anisa
has some rights but they are subject to the lease agreement drafted by the two parties. They
both agreed that Leigh would only use the land from the collection of orchids. Thus Leigh
acted within his mandate and as per the terms of the lease agreement. DKLR Holding Co (No
2) Pty Ltd,1it was held that a person at a beneficiary capacity of the property can compel the
title owner of the property to limit their use over the property only to what the law provides
by virtue of the agreement. There are the equitable obligations that arise from the creation of
1 DKLR Holding Co (No 2) Pty Ltd v Commissioner of Stamp Duties [1980] 1 NSWLR 510 at 518.
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, the lease agreement .Thus Leigh did not contravene any of the obligations that are granted to
him by equity.
Legal formality
Failure to register the lease agreement. The failure to register the lease agreement do not
comply with the legal formalities that are required .However, the main aim of equity is to
ensure that the parties are equal and no injustice has taken place. In this case, Leigh will be at
a disadvantage if the technicalities of the legal formalities are followed, rather than the
concentration on the substance of the agreement. Priority will be granted to what will bring
the two parties at an equal level. It is sometimes difficult to ensure that a guarantee of a lease
that is intended to be registered covers liabilities under the lease if it is not registered.
The leading case with regard to formalities of the documents is the case of Chan.2In this case,
the contentious issues to be determined regarded the issue of registration of a lease. In
this,case the guarantor failed to register a lease, which the guarantee used as a defence against
liability. The court held that the lease did not amount to unequitable lease. This is because
equity do not look at the form but concentrates on the substance. It was held that the
guarantor was not liable under equity as the by using the form to determine the case, the court
will be rendering an injustice to one party.
Asserting of rights
There is an occurrence of competing equities as a result of Anisa’s actions with regard to
engaging in business with other parties. Under the low of contract, the principle of Privity of
a contract binds parties against introducing third parties to the contract .This was not
observed as there are two tenders that Anisa engaged in without the knowledge of Leigh. This
does not conform to the maxim of equity where the parties are required to act in good faith.
2 Chan v Cresdon Pty Ltd (1989) 168 CLR 242
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Leigh and Anisa. The contract created duties to both parties of which, every party was bound
by the terms of the contract. Failure to register the lease do not render it invalid. The rationale
in this principle is that the intention of the two parties was to be governed by the terms and
conditions of the agreement, while carrying out their business. Equity requires that the person
seeking its indulgence must come with clean hands .In this case, as Leigh is the one seeking
the intervention of equity, he must ensure that he acted in good faith and performed his
obligations without faulting. The contract took the form of a lease agreement.
Duty.
In order to ascertain whether equity will come in to solve the contention between the two
parties, it’s required that the existence of a fiduciary duty between the two parties. In this
case, Leigh has a duty to offer his land to be used by Anisa .Anisa has a duty to pay rent and
maintain the orchids through the heavy machinery orchids. In this case, Anisa failed to
observe the duties that bound him and this led to the death of the orchids as watering did not
take place. This led to the immense loss suffered by Leigh.
The nature of the interest in the property. In this case, Leigh has the proprietary rights over
the property while Anisa has only the property rights in the land. By virtue of the lease, Anisa
has some rights but they are subject to the lease agreement drafted by the two parties. They
both agreed that Leigh would only use the land from the collection of orchids. Thus Leigh
acted within his mandate and as per the terms of the lease agreement. DKLR Holding Co (No
2) Pty Ltd,1it was held that a person at a beneficiary capacity of the property can compel the
title owner of the property to limit their use over the property only to what the law provides
by virtue of the agreement. There are the equitable obligations that arise from the creation of
1 DKLR Holding Co (No 2) Pty Ltd v Commissioner of Stamp Duties [1980] 1 NSWLR 510 at 518.
This study source was downloaded by 100000858663287 from CourseHero.com on 01-03-2023 02:52:28 GMT -06:00
https://www.coursehero.com/file/14245269/Equity-cures-the-problem-of-unfairness-in-general/
, the lease agreement .Thus Leigh did not contravene any of the obligations that are granted to
him by equity.
Legal formality
Failure to register the lease agreement. The failure to register the lease agreement do not
comply with the legal formalities that are required .However, the main aim of equity is to
ensure that the parties are equal and no injustice has taken place. In this case, Leigh will be at
a disadvantage if the technicalities of the legal formalities are followed, rather than the
concentration on the substance of the agreement. Priority will be granted to what will bring
the two parties at an equal level. It is sometimes difficult to ensure that a guarantee of a lease
that is intended to be registered covers liabilities under the lease if it is not registered.
The leading case with regard to formalities of the documents is the case of Chan.2In this case,
the contentious issues to be determined regarded the issue of registration of a lease. In
this,case the guarantor failed to register a lease, which the guarantee used as a defence against
liability. The court held that the lease did not amount to unequitable lease. This is because
equity do not look at the form but concentrates on the substance. It was held that the
guarantor was not liable under equity as the by using the form to determine the case, the court
will be rendering an injustice to one party.
Asserting of rights
There is an occurrence of competing equities as a result of Anisa’s actions with regard to
engaging in business with other parties. Under the low of contract, the principle of Privity of
a contract binds parties against introducing third parties to the contract .This was not
observed as there are two tenders that Anisa engaged in without the knowledge of Leigh. This
does not conform to the maxim of equity where the parties are required to act in good faith.
2 Chan v Cresdon Pty Ltd (1989) 168 CLR 242
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