Equity acts in personam

Equity acts ‘IN personam

‘Equity acts in personam’ (against the person) represents one of the leading maxims. By describing property rights as rights in personam the law means that the right can be exercised against the entire world. Those entitled of the right cannot be deprived by anyone. In the presence of a trust, the interest of the beneficiary (such as the person for whom the property is hold) cannot be compromised by anyone. No one but the beneficiary can claim the right over the property. According to Equity rules, there is only one person that may steal the right of the beneficiary over a property. This person is the so-called ‘bona fide purchaser for value without notice’ or ‘Equity’s darling’. Equitable interest may be lost in the presence of a persona falling into this definition. The position was recently summed up well by Lord Millett, in [2012] CLJ 583 at 587-8:

“Equity creates proprietary interests in the beneficiaries by its ability to enforce the trustee’s obligation to manage the trust property for their benefit, and to enforce the duty not only against the trustee himself but against his successors in title other than a bona fide purchaser for value without notice”.

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