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Property Law Semester 2 Equity Quiz Problems Review Barry v Heider
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Equity Quiz See handout You should review any areas about which you are unsure.
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Barry v Heider Facts Barry RP of Land- memo of transfer to Schmidt but did not receive money. Transfer not registered; Voidable for fraud. Schmidt executed Mortgage to Heider; unregistered. B sought injunction to stop S registering and declaration that Land free of H’s M. Held Barry held land subject to H’s Mortgage.
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Cont. Issues argument Transfer inoperative for any purpose until registration; thus no claim can be founded upon it except perhaps S’s personal right. Barry argues that relevant Torrens s 41 no instrument effective to pass interest until registration. Griffiths CJ – equitable claims and interest are recognised by the Real Property Act. Gives examples such as deposit of trusts instruments; lodging of caveat to protect trust.
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Griffiths CJ Transfer if valid would have conferred an equitable claim/ right. This was assignable. Transfer = representation of assignable interest. Transfer and later letter authorising delivery of CT =representation. Barry allowed this to happen thus “ not entitled to relief against her except upon the terms of making good the representation.” at 238.
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Isaacs J B – cheated{fraud}. B could have transfer set aside ag S. Issues re instrument void Note carefully at common law void instrument not pass interest. “Transfer not the instrument creating the obligation” ??? “Torrens Acts give greater certainty but do not destroy fundamental equity doctrines by which courts have enforced against RP conscientious obligations entered into by them.” 240.
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Cont. S41 Land Transfer Act in denying effect to an instrument until registered does not touch whatever rights are behind it. If equitable rights/ obligations then decide on equitable principles of estoppel. Barry’s conduct in ‘arming Schmidt’ means his interest subject to obligation he allowed to be created.
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Problems Break into groups of 3-4. Flag issues in first problem. Dot point issues as a group. Return to central group. Choose one issue per problem and write a joint suggested response.
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Problems cont. When the issue is completed swap the response with another group. Provide feedback to the group on whether you agree with the analysis.
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