Re Pryce [1917] 1 Ch 234

Facts

• The case involved a covenant concerning property, where the covenantor made promises but failed to satisfy the necessary formalities or complete the covenant.
• The court was required to determine whether this incomplete covenant could be enforced in equity.
• The context included historical developments in both common law and equity relating to covenants and the specific equitable rules on enforceability.
• Previous authorities such as Cannon v Hartley and Re Kay’s Settlement were referenced in relation to the enforceability of covenants in equity.

Issues

1. Whether an incomplete covenant that lacks certain formalities can be enforced in equity.
2. Whether equity will intervene to enforce a covenant that does not clearly demonstrate a binding obligation.
3. Whether equitable remedies supplement common law when legal requirements for covenant enforceability have not been satisfied.

Decision

• The court held that equity would not enforce a covenant that was incomplete or lacked the necessary formalities.
• It was determined that only covenants which are clear, complete, and show a genuine intention to create a binding obligation are enforceable in equity.
• The judgment emphasized equity as a supplement to common law, only intervening where common law is inadequate or unjust, but not to cure incomplete formalities in covenants.

Legal Principles

• Equity will not enforce a covenant that is incomplete or lacking formal legal requirements.
• For equitable enforcement, there must be a clear and unambiguous intention to create a binding legal obligation.
• Equitable remedies act as a supplement—never a replacement—for the common law; strict formalities remain critical.
• Equity will not assist a volunteer; voluntary covenants, particularly those lacking consideration, are rarely enforceable unless clear and complete.
• The principles apply particularly in property law, trusts, and family settlements concerning the enforceability of promises or covenants.

Conclusion

Re Pryce [1917] 1 Ch 234 established that incomplete covenants cannot be enforced in equity, reinforcing the necessity for formal completeness and a clear binding intention before equitable remedies will be available. Legal practitioners should ensure compliance with all formal requirements when drafting covenants to avoid unenforceability in equity.