Walsh v Lonsdale (1882) reinforced the equitable principle and ruled that an executory agreement for a lease is as binding as a formal lease. The court held that tenants under such agreements are subject to the same rights and obligations, including the right of distress for unpaid rent.
Equitable Lease Doctrine: The court ruled that an executory agreement for a lease is as binding as an actual lease, meaning tenants are treated as if they hold a formal lease, with all associated rights and obligations. It set a precedent that executory contracts, when accompanied by actions that demonstrate the parties' commitment to the terms (such as taking possession and fulfilling payment obligations), are as binding as formalised agreements.
