Peffer v Rigg [1977] 1 WLR 285

Chancery Division

Basic Facts: D transferred property to D2 for nominal consideration, and C claimed breach of trust.

Issue for the Court: When can unregistered interests be gazumped?

Held: The court held that a purchaser with actual notice of an unregistered equitable interest may be bound by it under equitable principles.

Graham J held:

• D2 took the property subject to C’s unregistered interest due to the nominal consideration.

• C’s interest remained valid despite the transfer.