This article discusses an old but vexed question in the law of obligations: to what extent can a purchaser of personal property find himself bound to observe covenants relating to that property to which he was not party? Put shortly, how far can covenants bind personal property?
This question can, of course, arise in many guises. The issue may be whether a purchaser of shares in a private company is bound by a right of pre-emption in respect of those shares held by other shareholders in the same company; whether the seller of goods can impose restrictions on the price at which remote purchasers may resell those goods; whether the mortgagee of a ship can be prevented from using the vessel inconsistently with the rights of one who has booked space in her: issues whose sheer diversity makes it most difficult to achieve the aim in this article of developing general principles in this area of the law.