136Certain invalid leases under powers to be construed as agreements to lease

#### 136 Certain invalid leases under powers to be construed as agreements to lease 136 Certain invalid leases under powers to be construed as agreements to lease > > (1) Where in the intended exercise of any power of leasing, whether derived under an Act or under any instrument lawfully creating such power, a lease has been or may hereafter be granted which is, by reason of the non-observance or omission of some condition or restriction, or by reason of any other deviation from the terms of such power, invalid as against the person entitled after the determination of the interest of the person granting such lease to the reversion, or against other the person who, subject to any lease lawfully granted under such power, would have been entitled for any estate to the property comprised in such lease, such lease, in case the same has been made bona fide, and the lessee named therein, the lessee’s executors, administrators, or assigns (as the case may require), have entered thereunder, shall be considered in equity as a contract for a grant at the request of the lessee, the lessee’s executors, administrators, or assigns (as the case may require), of a valid lease under such power, to the like purport and effect as such invalid lease as aforesaid, save so far as any variation may be necessary in order to comply with the terms of such power; and all persons who would have been bound by a lease lawfully granted under such power shall be bound in equity by such contract— > > > (2) Provided that no lessee under any such invalid lease as aforesaid, the lessee’s executors, administrators, or assigns, shall be entitled by virtue of any such equitable contract as aforesaid to obtain any variation of such lease where the persons who would have been bound by such contract are willing to confirm such lease without variation. > > > (3) Land the subject of any such equitable contract shall, for the purposes of subsection (2) of section 14 of the [Real Property Act 1900](/view/html/inforce/current/act-1900-025), be deemed to be a leasehold.