The Remedies For Molineux Ltd Essay - 2500 Words

The remedies available for Molineux Ltd are Right to sue on the personal covenant (Limitation Act 1980 s20) Power of sale [LPA 1925 ss101-105] Right to possession (AJA 1970 s36) Power to appoint a receiver [LPA 1925 ss101;103 and 105] and Foreclosure [LPA 1925 s91]. Right to sue on the personal covenant (Limitation Act 1980 s20) - Molineux Ltd may sue Chris if he is in breach of his covenant to repay. The problem is that if Chris default on mortgage repayments he may not have any money and therefore not worth suing. Power of sale [LPA 1925 ss101-105] this give the Mortgagee the power to sale the property however Section 101 states that the power of sale must have arisen. The criteria is that a) the mortgage must have been made by deed b) the mortgage money must have become due c) there must have been no provision excluding sale in the mortgage agreement. The power of sale must have become exercisable (s103): a) the mortgagor has been in default for three months following the service upon him of a notice requiring payment of the mortgage money or b) some interest on the mortgage has remained unpaid for two months after becoming due or c) there has been a breach of some mortgage term other than a covenant to repay. Once the sale has been completed the mortgagee is rendered a trustee of the resulting proceeds [LPA s105]. He has a duty to pay firstly his costs; secondly to pay himself and other mortgagees sufficient to discharge the mortgage and finally to pay any