InkElites LMS

THE DOCTRINE OF NOTICE

EQUITY & TRUST | Page 5 of 16
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Act 1882, the defendant had constructive notice of the plaintiff’s prior equitable interest. It was clear that the defendant would have had notice of the plaintiff's equita- ble interest had he made such inquiries and investigations which ought reasonably to have been made by a prudent man of business. Thus, the purchaser's claim of bona fide was destroyed by his failure to investigate. Therefore, he was held to be constructive trustee of the legal estate for the benefit of the plaintiff. Second, where there is sufficient evidence disclosing that the purchaser of the legal estate had knowledge of facts which would enable him to acquire notice of prior equitable interest and which he could have acquired had he made further investigation, the purchaser will be deemed to have had notice. It will not be sufficient for the purchaser to show that he had no actual notice. See Ware v. Lord Egmount, op. cit. In Ogunbambi v. Abowab (1951) 13 W.A.C.A. 222, the defendant claimed that he was a pur- chaser of the legal estate for value and without notice of the plaintiff's prior equity affecting the property. It was, however, established in evidence that he had, earlier on, sought to purchase the property from the plaintiff and that, upon his offer being refused, he sought and obtained a conveyance from another party, whom he knew to be out of possession. He did not make any enquiry or investigation which would have disclosed to him the nature of the interest which he had himself believed to be vested in the plaintiff from whom he had sought to purchase. It was held that the defendant could have acquired knowledge of the prior equitable interest of the plaintiff but for his gross or culpable negligence, he was, therefore, presumed to have had notice of the plaintiff's equitable