Jackson v Horne

The High Court of Australia considered a dispute between Jackson and Horne concerning the interpretation and effect of a deed of covenant. The central issue revolved around whether the covenant imposed a personal obligation on the covenantor, Horne, or whether it ran with the land and bound subsequent purchasers.

The court was required to determine the nature of the obligation created by the deed. Specifically, it had to ascertain whether the covenant was intended to create a personal liability for Horne, irrespective of his continued ownership of the land, or if it was intended to be an encumbrance on the land that would bind future owners. This involved an analysis of the wording of the deed and the surrounding circumstances to discern the parties' intentions.

The High Court held that the covenant created a personal obligation on Horne. The court reasoned that the language of the deed did not indicate an intention to create a proprietary interest that would bind the land in the hands of successors in title. Instead, the covenant was construed as a contractual undertaking by Horne personally to perform certain actions. Therefore, the obligation did not pass to subsequent purchasers of the land.