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interest would not be bound even while Peter still owns his land. (241)

Vert Privity as a NOT requirement for Benefit to Run

Ex:Peter conveyed land to Prudence.  The deed included a covenant that Prudence would not erect any structure over 30 feet high.  Peter then rented his neighboring property to Tom.  Tom may enforce the covenant even though he has not succeeded to Peter’s entire estate. (242)

Ex:Prudence covenanted in a lease with her tenant, Peter, that she would supply heat to his apartment.  Peter then sublet to Sue.  Even though Sue is only a subtenant and did not succeed to Peter’s entire leasehold estate, she may be able to enforce the covenant against Prudence. (243)

V. Covenants Running in Equity

Horizontal Privity

Ex:Prudence covenanted with her neighbor, Peter, that

she would not use her property for business purposes.  Prudence then sold to Ann who knew of the covenant.  Although Peter could not enforce the covenant against Ann at law, it is enforceable against her in equity. (245)

Vertical Privity

Ex:Prudence covenanted with her neighbor, Peter, that she would not use her land for business purposes.  Prudence then leased the property to Tom who was aware of the covenant.  Peter may enforce the promise in equity against Tom even though he did not acquire Prudence’s fee interest. (245)

Ex:Prudence covenanted with her landlord, Peter, not to use the premises for a business purpose.  Prudence then sublet her property to Sue, who was aware of the covenant.  Peter may enforce the covenant in equity against Sue, even though Sue subleased and, therefore, is not in privity of estate with Peter. (245)

Touch and Concern

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