Insane man's contract to buy or sell land.

Whether specific performance by the lunatic will be ordered.

(a) Bac. Abr. Idiots (D, F); Sergeson v. Sealey, 2 Atk. 412; Re Sefton, 1898, 2 Ch. 378; Bald-wyn v. Smith, 1900, 1 Ch. 588.

(b) Wilder v. Pigott, 22 Ch. D. 263, 268.

(e) Above, pp. 801, 802; see Sergeson v. Sealey, 2 Atk. 412; Baldwyn v. Smith, 1900, 1 Ch. 588, where it does not appear whether the other party was aware of the insanity or not. The learned judge's diction that the contract was voidable must be confined to the case of a contract made with knowledge of the insanity; see above, p. 802.

(d) Thompson v. Leech, 3 Salk. 300, 301; Bac. Abr. Idiots (F); Niell v. Morley, 9 Ves. 478, 481, 482.

(e) Hall v. Warren, 9 Ves. 605.

(f) Niell v. Morley, 9 Ves. 478, 481; Frost v. Beavan, 22 L. J. Ch. 638; as to which, see 1 Dart, V. & P. 7, n. (h)

(g) Niell v. Morley, 9 Ves. 478.

(h) Given v. Davies, 1 Ves. sen. 82; above, p. 492.

(i) Above, p. 802.

(k) See above, p. 804.

(I) See stats. 53 Vict. c. 5, s. 120, authorising orders for sale of lunatic's property to be made; 54 & 55 Vict. c. 65, s. 27 (1); Be Smith, L. R. 10 Ch. 79; Baldwyn v. Smith, 1900, 1 Ch. 588. It may be noted that if the Court in Lunacy confirm a lunatic's voidable contract for the sale or purchase of land, the lunatic's representatives will take the property, which is the fruit of the contract, in its converted state as personalty or realty; Sergeson v. Sealey, 2 Atk. 412; Baldwyn v. Smith, ubi sup.

(m) See stat. 53 Vict. c. 5, s. 124; above, pp. 492, 493.

(n) Stat. 53 Vict. c. 5, s. 116 (1); above, p. 492.

(o) See stats. 53 Vict. c. 5, ss. 116 (2), 120, 124; 54 & 55 Vict. c. 65, s. 27 (1); above, pp. 492, 493.

(p) Stat. 53 Vict. c. 5, s. 120 (i); above, p. 492.

Although a lunatic's conveyance made for valuable consideration to a person dealing with him in good faith and without notice of his insanity is valid (x), it does not appear that, where a lunatic's conveyance was originally voidable (y), it will be made valid by a subsequent conveyance from the alienee to a purchaser for value taken from him without notice of the lunacy. In this respect a lunatic's voidable conveyance seems to stand on the same footing as an infant's, the estate in the land conveyed revesting immediately on the avoidance of the lunatic's act without any necessity for a reconveyance (z). And it is thought that, as in the case of conveyance by an infant (a), if a lunatic's voidable conveyance be avoided, the property thereby assured can be recovered without refunding any purchase money or other consideration received for making the conveyance. It appears, however, that where a lunatic's voidable conveyance has been made to persons who, acting in good faith with the sole object of securing his benefit, have incurred expenses or liabilities for his use in consideration thereof, the Court will, under its equitable jurisdiction, impose proper terms to secure their indemnity before lending its aid to set aside the conveyance or recover the property assured (b).

Subsequent conveyance over for value without notice does not validate a lunatic's voidable conveyance.

(q) Above, n. (o); see Re Baggs, 1894, 2 Ch. 416, n.; Didisheim v. London and Westminster Bank, 1900, 2 Ch. 15, 45; Re Longdate, 1901, 1 Ch. 3.

(r) Bac. Abr. Idiots (C); 1 Black. Coram. 303 sq.

(s) Re Sefton, 1898, 2 Ch. 378.

(t) See above, p. 470, n.; 3 Seton on Decrees, 2287, 6th ed.

(u) See stat. 53 Vict. c. 5, s. 117; below, p. S07.

(x) Above, p. 802. The ground of this rule of modern law seems to be that, if an insane man so conduct himself as to appear sane to a person of ordinary intelligence, he shall be estopped from alleging his insanity. Cf. the case of mistake, above, p. 668.

(y) Above, p. 801.

With respect to the sale of insane persons' lands irrespective of their own contracts to sell them, the Court in Lunacy may by order authorise the sale of any property belonging to any lunatic, to whom the powers of administration given by the Lunacy Act, 1890 (c), apply. And the Court may also order that any property of any such lunatic be sold, charged, mortgaged, dealt with or disposed of as the Court thinks most expedient for the purpose of raising or securing, or repaying with or without interest, money which is to be or which has been applied to all or any of the purposes following: - (1) Payment of the lunatic's debts or engagements; (2) discharge of any incumbrance on bis property; (3) payment of any debt or expenditure incurred for the lunatic's maintenance or otherwise for bis benefit; (4) payment of or provision for the expenses of bis future maintenance (d). Under these powers, a lunatic's land may be sold in consideration of a rent-cbarge (e). But the simple power of sale given by sect. 120 of the Act does not authorise a sale in consideration of the receipt of shares in a company (f). Where a lunatic's lands are sold under the powers of this Act, the conveyance is executed on the lunatic's behalf by bis committee, if he be found a lunatic by inquisition, or by such person as the Court approves; and if so executed, will be effectual to convey the lunatic's estate therein (g). And the committee or such person may enter into the usual covenants for title on the lunatic's behalf, or, it seems, into any other covenants, which it would be usual and proper for the vendor to make(h). The Court in Lunacy is also empowered by order to authorise the committee of a lunatic so found, or such person as the Court appoints in the case of other lunatics mentioned in the Lunacy Act, 1890(i), to exercise any power or give any consent required for the exercise of any power, where the power is vested in the lunatic for bis own benefit or the power of consent is in the nature of a beneficial interest in the lunatic (k); and also to exercise any power vested in the lunatic in the character of trustee or guardian, or give any consent of the lunatic necessary in the like character to the exercise of a power or as a check upon the undue exercise of the power (I). These provisions enable a general power of appointment to be exercised on behalf of a lunatic; or an express power of sale of lands vested in an insane person as a trustee to be exercised on his behalf (m); or consent to be given on his behalf to the exercise of a power of sale exercisable by trustees with his consent; or a power to appoint new trustees to be exercised on an insane person's behalf (n). But they do not enable the power of sale given by the Settled Land Act, 1882 (o),to be exercised on behalf of a lunatic not so found by inquisition (p). By the Settled Land Act, 1882 (q), where a tenant for life, or a person having the powers of a tenant for life under that Act is a lunatic so found by inquisition, the committee of his estate may, under an order of the Court in Lunacy (r), exercise on his behalf the powers of a tenant for life under that Act. In all the above-mentioned matters, the jurisdiction of the Court in Lunacy is now exercisable by the Masters (s).