Disclaimer: This work was produced by one of our professional writers as a learning aid to help you with your studies.
If you would like to view other samples of the academic work produced by our writers, please click here.
Toomes v Conset (1745) 3 Atk 261
Equity requires consideration of substance rather than form of transaction
The property in question was the subject of a lease for sixty years. This lease had been granted as a collateral security against the sum of £3500. Upon expiry of the lease, the plaintiff (T) pled to be let into possession of the premises and for the security to be vacated or satisfaction thereof to be entered on the record.
T sought a reconveyance of the said premises as the collateral security was expired in order to allow for his continued possession of the premises.
The Court of Chancery refused to allow a deed of mortgage which contained an agreement which allowed the lender to absolutely purchase (i.e. a proviso for redemption). According to the Lord Chancellor, allowing this would put the borrower at a disadvantage vis-à-vis the lender. The borrower is distressed at the time of the deed of mortgage and would be inclined to submit to any terms proposed by the lender. As the lease of sixty years had expired, T was only entitled to a conveyance of the premises in question, and to possession thereof, upon payment of what was due to the defendant. This case demonstrates the longstanding principle of equity that the substance of the transaction shall be considered rather than the form. The Court will treat a mortgage as a mortgage and nothing but a mortgage. This is now been an established principle for centuries (Grangeside Properties v Collingwoods Securities  1 WLR 139).
Related ServicesView all
DMCA / Removal Request
If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please.