Khoury and another v Kensell

Restrictive covenant affecting land – Building scheme. There was insufficient evidence of an intention to impose mutual covenants on the purchasers of three plots of land in East Sussex. The Chancery Division so ruled in dismissing the claimants' appeal against a decision striking out their claim for a declaration that the defendant, who had purchased one of the three plots, was in breach of a restrictive covenant in the conveyance concerning that plot. The claimants had argued that they were entitled to enforce the restrictive covenant in that conveyance, because the sale of the three plots had been effected pursuant to a building scheme. The court held that that had not been established on the evidence and that the claimants had no real prospect of establishing at trial that the purchasers of the three plots had accepted that the benefit of covenants they had been entering into would inure to the owners of the other properties, and that they would correspondingly enjoy the benefit of covenants entered into by those other purchasers.

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