Reviewed case brief
Knightsbridge Estates Trust Ltd v Byrne
[1940] AC 613
The Court of Appeal held that a 40-year repayment term in a mortgage granted by a company was valid and not an unreasonable clog on the equity of redemption. The equitable principles protecting individual mortgagors from oppressive terms do not apply with the same force to commercial companies which
- Court
- Court of Appeal
- Year
- 1940
- Subjects
- Company Law
- Reviewed
- 2026-06-30
Rule established
The equitable doctrine of clog on the equity of redemption does not apply to company debentures; a 40-year repayment term in a company mortgage is valid
Facts
Issues
Held
Ratio decidendi
How to use it in an exam
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Appeal Cases
Educational summary only. Read the reported judgment or an authorised law report before relying on the case professionally.