Re Dolphin’s Conveyance [1970] Ch 654

Chancery Division

Basic Facts: Two sisters owned a piece of land, which they divided into plots and developed with houses. They offered these plots for sale to individual buyers, who agreed to restrictions on the use of their land for the benefit of the overall development. Before all the plots were sold, the sisters transferred the remaining land to their nephew, who then continued to sell the plots to new buyers. The question eventually emerged as to whether the later buyers, as well as the earlier buyers, could be held bound by each other's covenants.

Issue for the Court: When is a scheme of development established?

Held: The court held that restrictive covenants must benefit the dominant land and that such covenants can bind successors.

(Stamp J):

• A scheme of development is valid if the conveyances and restrictions indicate a common intention among the parties to benefit all purchasers of the estate, not just the vendor. Evidence of a mutual intention to benefit all purchasers can be sufficient, even without a formal deed of mutual covenant.