There had been an agreement to transfer land in consideration of the extinguishment of a debt. The court was asked whether this was a sale.
Held: It was not. The ordinary meaning of the word ‘sale’ is a transfer of property in return for a consideration in money or money’s worth.
Finnemore J said: ‘It is argued for the plaintiff that a sale means in the case of land, as in the case of goods, an exchange of land (or goods) for money. It is laid down clearly in the books which deal with sale of personal chattels that a sale or a contract of sale is an agreement to exchange goods for money, although it is possible that part of the consideration might be something other than money, as for example, when a person buys a new car for an agreed price, part of which he pays in money and part of which he satisfies by means of surrendering another car. But the general principle of English law in regard to sale is that a sale means the exchanging of property for money. That applies – to a sale of land and to a sale of chattels equally.
The real problem is whether it is still a sale if no money passes but one person says to another, to take this case, if you give me a piece of land, I will excuse you your debt which you owe me.’
Finnemore J
[1953] 1 WLR 911
England and Wales
Updated: 30 August 2021; Ref: scu.519969 br>