Walsh v Lonsdale [1882] LR 21 Ch D 9

Court of Appeal

Basic Facts : Lonsdale (L) agreed to lease a mill to Walsh (W), but no formal lease was granted. W moved in and paid rent quarterly in arrears, contrary to the agreed terms.

Held :The court held that an agreement to grant a lease could create an equitable lease, enforceable as though it were a legal lease.

Jessel MR

• An agreement for a lease creates an equitable lease with all the terms that would have applied if it had been a formal legal lease.

• The tenant is entitled to the rights and obligations of a legal lease despite the lack of formal execution.