London and South West Railway Co v Gomm (1882) 20 Ch D 562

Basic Facts: C sold land to X with a covenant to reconvey the land if needed for railway works. G purchased the land with notice of this covenant and later refused to reconvey.

Issue for the Court: Can a positive covenant run with the land?

Held: The court held that rights to re-purchase land (akin to options) could not bind future purchasers as an equitable interest without registration.

  • Jessel MR stated that positive covenants (those requiring action or payment) do not run with the land. Unlike restrictive covenants, which can bind successors in title, positive covenants do not bind future owners of the land.

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London CC v Allen [1914] 3 KB 642

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Lloyds Bank v Rosset [1991] 1 AC 107