Re Union of London & Smith’s Conveyance [1933] Ch 611

Court of Appeal

Basic Facts: Smiths (S) sold land to X, who later died, leading to a sale of the land to C. E bought remaining land from S. C claimed benefits from restricted covenants on S’s land, which S disputed.

Issue for the Court: How can covenants be transferred?

Held : The court found that the trustee’s actions regarding land must be consistent with the terms of the trust and protect beneficiary interests.

(Romer LJ):

• Covenants can be assigned in equity if the assignee has land capable of enjoying the benefit. The assignment must occur when the covenantee’s land is transferred or part of it is disposed of; otherwise, the benefit cannot be assigned.