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6. As to illegal agreements |
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This section is from the book "A Compendium Of The Law And Practice Of Vendors And Purchasers Of Real Estate", by J. Henry Dart. Also available from Amazon: A compendium of the law and practice of vendors and purchasers of real estate.
And as a general rule, no agreement can be enforced, at Law or in Equity, which is entered into for an illegal purpose (u); and there are certain agreements which the Legislature has pronounced to be, in their own nature, illegal; the Statute of 32 Henry VIII. (v), renders it unlawful to buy or sell any pretended right or title to any lands or hereditaments, unless the vendors, or their ancestors, or the persons through whom the claim is derived, have been in possession of the property, or of the reversion or remainder thereof, or taken the rents or profits thereof, within a year before the sale; but the purchase of a pretended title, by a person in lawful possession of the rents and profits, is allowable (w); in a recent case, where A., possessed of a term of years, died in 1828, and strangers entered and occupied until 1841, when A.'s next of kin took out Letters of Administration and sold and assigned the term, the assignment was held to be clearly void (x); so, the Act extends to a lease under a pretended title (y); and to the assignment of the mere right to file a bill to set aside a previous voidable conveyance (z); but not to an assignment of a purchaser's interest under the agreement for sale (a); nor to an assignment of the subject-matter of a suit (b), unless the purchaser agree to indemnify the vendor against the costs incurred or to be incurred in the suit (c); nor, even then, if the purchaser have a previous common interest in the event of the suit; as in the case of a purchase, by a second mortgagee, of the interest of the first mortgagee, during a suit in which the mortgaged property is claimed under a paramount title (d): nor to an agreement to enable the purchaser of an estate to recover for rent due, or injury done to the property, prior to the purchase (e): nor to a conveyance to a reversioner or remainderman, with a view to strengthen his estate (f);nor to cases where the right purchased is originally clear, but the litigation results from circumstances subsequently arising or subsequently known (g).
Instrument recording transfer of property is liable to duty as a conveyance.
Agreement, in evasion of the stamp laws, void.
Agreement, for any illegal purpose, void.
Champerty
(o) See Bousfield v. Godfrey, 5 Bing. 418; Blair v. Ormond, 1 De G. & S. 428.
(p) Smith v. Henley, 1 Ph. 391.
(q) See cases referred to in last two notes, and Hart v. Hart, 1 Ha. 1; Crowther v. Solomons, 6 C. B. 758.
(r) Doe v. Coombs, 6 Jur. 930, Q. B.
(s) Horsfall v. Hey, 2 Exch. 778.
(t) Abbott v. Stratten, 3 Jo. & Lat. 616.
(u) Vide infra, Ch. XVII. and XVIII.
(v) See sect. 2. and maintenance.
(w) See sect. 4.
(x) Doe d. Williams v. Evans, 1 C. B. 717.
(y) Hitching v. Lander, G. Coop. 34.
(z) Prosser v. Edmonds, 1 Y. & C. Exch. 481.
(a) Sug. 422; and see 8 & 9 Vict. c. 106, s. 6.
(b) Harrington v. Long, 2 Myl. & K. 590; see Martyn v. Macnamara, 2 Con. & L. 541.
(c) Harrington v. Long, ubi supra.
(d) Hunter v. Daniel, 4 Ha. 420.
(e) Sug. 423; Williams v. Pro-theroe, 5 Bing. 309.
(f) Co. Litt. 369 b; see Anson v. Lee, 4 Sim. 364.
By the Act of the 7 & 8 Will. III. c. 25, s. 7, it is declared, that all conveyances made of any hereditaments, in order to multiply voices, or to split and divide the interest in any houses or lands among several persons, to enable them to vote at elections of Members to serve in Parliament, are void and of none effect: it appears, however, to be settled by recent decisions, that a conveyance made to carry into effect a real bond fide contract for sale, where the purchase-money is paid and possession taken without any secret reservation or trust for the benefit of the seller, is not within the Statute; although it be made with a view to the multiplying voices, or the splitting of the freehold; the intention of the Statute being, to avoid such conveyances only, made with that view, as are in themselves fraudulent and collusive (h): and the same test of validity must of course be applied to agreements upon which such conveyances are founded.
Splitting votes for electioneering purposes.
(g) Wilson v. Short, 6 Ha. 366. (h) Riley, App.; Crossley, Resp. 2 C. B. 146: Alexander, App.;
Newman, Resp. ibid. 122: Thornily, App.; Aspland, Resp. ibid. 160.
 
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abstract, agreement, purchase, conveyance, vendors, rights, sales, performance, deeds, incumbrances, purchasers, breach of contract, contracts, real estate
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