Person exercising an authority in favour of an independent party through whom he has an interest in the sale.

(y) Whitcomb v. Minchin, 5 Madd. 91; Re Bloye's Trusts, 1 Mac. & G. 488, 496; S. C, nom. Lewis v. Hillman, 3 H. L. C. 607; Martinson v. Clowes, 21 Ch. D. 857; Farrar v. Farrars, Ld., 40 Ch. D. 395, 409; Hodson v. Deans, 1903, 2 Ch. 647.

(z) Above, p. 259.

(a) Hesse v. Briant, 6 De G.

M. & G. 623; Farrar v. Farrars, Ld., 40 Ch. D. 395; Hodson v. Beans, 1903, 2 Ch. 647, 653.

(b) Downes v. Grazebrook, 3 Mer. 200, 209; Re Bloye's Trusts, 1 Mac. & G. 488; S. C, nom. Lewis v. Hillman, 3 H. L. C. 607.

(c) Martinson v. Clowes, 21 Ch. D. 857; affirmed, 52 L. T. 706, W. N. (1885) 41; Hodson v. Beans, 1903, 2 Ch. 647.

Farrar v. Farrars, Ld.

As above stated (g), if the instrument creating an authority to sell or purchase expressly or impliedly permit the person, to whom the authority is given, to be himself the purchaser or vendor, the case is taken out of the general rule; and he may well sell to or buy from himself in exercise of the power (h). Thus trustees for sale appointed by will are sometimes authorised to become the purchasers of the trust property (i). And directors of a company are frequently authorised by the articles of association to contract with the company, provided that their interest in such contract be disclosed (k). But, of course, in every case in which a person invested with an authority to sell or purchase is specially empowered to be himself the purchaser or vendor, the terms of the special power must be strictly observed; if not, the general rule will prevail (l).

Where the terms of the authority allow of its being exercised in favour of the person to whom it is given.

(d) Nutt v. Easton, 1899, 1 Ch. 873, 878, affirmed on the ground of laches, 1900, 1 Ch. 29; Re Boles and British Land Co.'s Contract, 1902, 1 Ch. 244; see above, pp. 879, 880.

(e) Farrar v. Farrars, Ld., 40 Ch. D. 395.

(f) Hesse v. Briant, 6 De G. M. & G. 623; see above, p. 887.

{g) Above, p. 883.

We have seen (m) that any trustee, notwithstanding that he be a trustee for sale, may purchase the whole or any part of the beneficial interest in the trust property from his cestui-gue-trusts, subject to the rule governing this particular kind of contract and explained above (n). But of course an effective purchase of this kind can only be made of the interests of such of the cestui-que-trusts as are sui juris (o). A trustee for sale may also be allowed to purchase the trust property by leave of the High Court or another Court of competent jurisdiction (p). Where all the cestui-que-trusts are absolutely entitled and sui juris, and it is proposed that their trustee for sale shall purchase the trust property, it is for them to decide whether he shall be allowed to do so; and if application be made to the Court to execute the trust for sale, the Court will not in the first instance give leave for the trustee to bid at the sale, or to purchase, against the wishes of any of those beneficially entitled. If however it prove impossible to sell the estate to anyone else for so good a price as the trustee offers, the Court may then sanction the purchase (q). Where any of the cestui-que-frusts are infants or otherwise under disability (r), or are unborn or unascertained persons, the Court has jurisdiction to give leave on their behalf for the trustee for sale to be himself the purchaser: but such leave will not be given unless it be shown that the trust property cannot be so advantageously disposed of to any other person (s). It appears that, where leave is given by the Court for a trustee to bid at a sale by the Court or to purchase the trust property, he is placed in the same position as any other purchaser (t), and the sale is not voidable for mere nondisclosure by him of all facts within his knowledge affecting the value of the property. But if, on the application to obtain such leave, the trustee intentionally withhold information which he has acquired and which tends to enhance the value of the property, such conduct is fraudulent, and the sale would be voidable accordingly (u). Trustees for the purchase of land may in like manner and subject to similar conditions sell their own land to their cestui-que-trusts (and not to themselves) (x), or may buy the same for the trust with the leave of the Court (y).

Purchase of the trust property by a trustee for sale from his cestui-que-trusts; or by leave of the Court.

(h) Beaden v. King, 9 Hare, 499, 519, 520; Boyce v. Edbrooke, 1903, 1 Ch. 836, 846, 847.

(i) Davidson, Prec. Conv. Vol. IV. p. 84, n., 3rd ed.

(k) See Imperial Mercantile Credit Asson. v. Coleman, L. R. 6 Ch. 558; reversed, L. R. 6 H. L. 189, on the ground that disclosure was not duly made; Costa Rica Ry. Co. v. Forwood, 1901, 1 Ch. 746.

(l) Consider the cases cited in the previous note; and the case of promoters of a company, above, p. 890.

{m) Above, p. 878.

{n) Above, p. 879.

(o) See Franks v. Bollans, L. R. 3 Ch. 717.

(p) The County Courts have the equitable jurisdiction of the High Court in proceedings for the execution of trusts, where the trust estate does not exceed the value of 500l.; stat. 51 & 52 Vict. c. 43, s. 57; and the Courts of Chancery of the counties palatine of Lancaster and Durham exercise equitable jurisdiction; see Wms. Real Prop. 193, 270, n. (p), 19th ed.

Position of trustee for sale buying by leave of the Court.

Trustees for purchase.

(q) Expte. James, 8 Ves. 337, 352, 353; Tennant v. Trenchard, L. R. 4 Ch. 537, 545 - 547.

(r) See above, pp. 794, 803, 804, 848.

(s) Campbell v. Walker, 5 Ves. 678, 681; Farmer v. Bean, 32 Beav. 327; Tennant v. Trenchard, L. R. 4 Oh. 537, 547.

(t) Above, p. 684.

(u) See Boswell v. Coal's, 23 Ch. D. 302; reversed, 27 Ch. D. 424; and restored, 11 App. Cas. 232, 235 - 237, 210; above, pp. 686, 687.