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Exclusion Clauses and Contracts for the Sale of Land

This article is a study of judicial attitudes to exclusion clauses in contracts for the sale of land. It examines the various devices which the courts have developed in order to limit the effect of such clauses and suggests that one of these devices has emerged as paramount: the principle that a vendor may, in appropriate circumstances, be estopped from relying on a condition by reason of his knowledge or conduct. One form of this estoppel will be shown to be of particular importance. This is the “well-established rule of equity” that a vendor of land cannot rely on a condition of sale, framed in general terms, to cover a specific encumbrance or other defect in title of which the vendor knew or ought to have known, and which he failed to disclose to the purchaser prior to contracting. The culmination of the article is a study of the rationale and precise manner of operation of this rule-which for convenience will be called the “no-disclosure, no-reliance” rule.