Can a lease which is void at law be enforced in Equity?

Ontario, Canada


The following excerpt is from Midas Realty Corporation of Canada Inc. v. Galvic Investments Limited, 2008 CanLII 25063 (ON SC):

In a line of cases commencing with Parker v. Taswell (1858), 2 DeG. & J. 559 (L.C.) it has been consistently held that a lease which is void at law can be treated in a court of equity as an agreement to grant a lease and specifically enforced on that basis. In Parker, the provisions of the Real Property Act 1845 (U.K.) had provided that a lease exceeding three years made otherwise than by a deed was void “at law”. The Lord Chancellor stated: The legislature appears to have been very cautious and guarded in language, for it uses the expression "shall be void at law". If the legislature had intended to deprive such a document of all efficacy, it would have said that the instrument should "be void to all intents and purposes". There are no such words in the Act. I think it would be too strong to say that because it is void at law as a lease, it cannot be used as an agreement enforceable in Equity, the intention of the parties having been that there should be a lease, and the aid of Equity being only invoked to carry that intention in to effect.

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