An agreement between joint tenants that, upon sale of the property, the proceeds are to be divided between them operates to sever the joint tenancy in equity, even if the agreement is not enforceable as a contract. In assessing whether joint tenants at law should be treated as tenants in common in equity, the focus is on the mutual intention of the parties rather than on whether formal consideration was given. The abandonment of a claim which the claimant reasonably and honestly believed existed constitutes good consideration. A liquidator who defends proceedings without seeking court directions or independent legal advice, where the defence is substantially based on collateral credit attacks, may be personally liable for costs.
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