Dormy Hotels Ltd. v Stewart [1969] JJ 1247 (01 December 1969)

Dormy Hotels Ltd. v Stewart [1969] JJ 1247 (01 December 1969)

The benefit of an indemnity granted by a vendor to an original purchaser may be transferred to a substituted purchaser by novation, even if the indemnity is in a separate document not expressly referred to, and no separate assignment is necessary if the indemnity is effectively part of the same contract.

Citation
[1969] JJ 1247
Parties
Applicant: Dormy Hotels Ltd.; Respondent: Stewart
Jurisdiction
Jersey
Judgment Date
01 December 1969
Procedural Posture
Civil / Judgment
Outcome
benefit of indemnity transferable by novation
Legal Topics
Guarantee, Indemnity, Novation, Assignment of Contract
Contract Law Guarantee Indemnity Novation Assignment of Contract

Case Brief

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Parties

Dormy Hotels Ltd.

Applicant

Stewart

Respondent

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the benefit of an indemnity granted by a vendor of land to the original purchaser can be transferred to a substituted purchaser by novation.
  2. 2 Whether a novation may incorporate an indemnity even if it is in a separate document not referred to in the novation.
  3. 3 Whether a separate assignment is necessary for the transfer of the benefit of an indemnity.

Ratio Decidendi

The benefit of an indemnity granted by a vendor to an original purchaser may be transferred to a substituted purchaser by novation, even if the indemnity is in a separate document not expressly referred to, and no separate assignment is necessary if the indemnity is effectively part of the same contract.

Court Disposition

benefit of indemnity transferable by novation