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Contracts, Charges, and Conditions


NigelMoore

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In view of the current interest in these issues endangering focus on the issues surrounding Injunctive Relief, I am starting this topic more prematurely than I had wished.

 

Iain’s analysis of s.43 needs some comment, so it is best responded to here.

 

There is a fundamental representational omission in the conflating of two distinct phrases within that section that distorts the effect.

 

So long as there isn't a statute prohibiting a charge being made, or a charge is specified in the Transport Act, (or later legislation*) CaRT can charge what they like, and set terms and conditions

 

Thus, that which previously was not charged for, can be charged for, unless legislation specifically exempts a charge being made, i.e. new charges and conditions can be set and made, unless specifically prohibited by previous legislation.

 

That is misleading. The relevant section actually says: “so far as it expressly provides for freedom from charges OR otherwise prohibits the making of any charge.” [my emphasis of course]

 

So there is express prohibition and implied prohibition. It is standard law that if an enabling Act does not expressly provide for the making of a charge, then it must be taken to prohibit such a charge.

 

That is where the “otherwise prohibits” enters the picture, to the effect that no charges can be made that are not expressly provided for. I have provided extensive case law quotes on the issue previously.

 

It is arguable that the section could apply once some future legislation HAS expressly provided for the making of a charge relating to a service that had hitherto not been provided for. However, if that subsequent legislation itself prescribes limits on conditions or charges, then that must negate any application of the earlier, 1962 provision. So, for example, the 1971 Act introduced river registration for the first time, but prescribed strict specified fee levels.

 

Even then, the issue of such certificates, upon application with the required details and relevant fee, could STILL not be constrained by conditions, s.43 notwithstanding. The situation is emphasised by the difference made in that same Act between pleasure boats and houseboats – the latter being expressly made subject to both statutory conditions and others that might be determined by BW.

 

This inability to impose conditions of issue on river registrations was admitted by BW in the Select Committee minutes debating the 1990 Bill. There too, during the discussions, the dubiety of application of s.43 to impose conditions on the byelaw empowered licence was also acknowledged. Hence applyng for the power to do so.

 

Then again, there is the mechanism whereby conditions for use of the waterways by boats is to be imposed and enforced. Those were ALWAYS imposed under byelaws, empowered under s.16 of the BTC Act 1954.

 

It is imperative that the distinction is recognised between the issue of a licence as a condition of bringing a boat onto the waterways, and any conditions as to how the boat is used once on those waterways – the conditions for such use will be enshrined within the byelaws and enforceable as such.

 

Following the application by BW to Parliament for the statutory power to place conditions upon issue of both licences and certificates where those had not applied previously, assent was given to the 3 pre-conditions listed in s.17 of what became the 1995 Act. Prior to that, no such conditions could have applied to the issue of either pleasure boat licences or pleasure boat certificates.

 

All such boats are, as they always were even before such licences and certificates were authorised, subject to the conditions of use of the waterways as are found in the byelaws and statutes. No agreement to those is required for them to have effect. Everyone is bound by them regardless, and subject to the prescribed penalties in the event of any breach. You cannot contract out of them anymore than you can contract into them.

 

CaRT remain able to impose any further conditions they please, subject only to approval by the Secretary of State following public consultation. Contentious as that power is, and disapproved of by the House of Lords in principle, it has been transferred from the BW legislation as something we have to live with.

 

Regardless, insofar as it is mandatory for CaRT to issue the licence upon a proper application if s.17 is met, that issue is NOT a matter of contract, it is a statutory obligation, and cannot legally be made subject to an agreement by applicants that they will obey any extraneous rules CaRT chooses to impose by way of alleged contract.

 

AG v United Dairies applies.

 

I add that these arguments over s.43 were made within my skeleton for the main trial in my s.8 case. Much to the puzzlement of the judge [but not to me], BW chose not to engage with them.. As the means of imposing T&C's was only by way of the boat licence anyway, and the finding was that they could not impose that requirement, the issue became irrelevant. The judge did, however, deliver his opinion, obiter dicta, that he could not see that BW had ever validly applied s.43 in the relevant sense.

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Looks like CaRT's interpretation of this section 43 has a good amount of evidence against it, Nigel is not inventing reasons why its bogus, he is pointing out facts. I can't see any evidence that CaRT's version could be true.

 

 

 

May I point to my freedom of information request's further questions which have not been answered yet ?

 

https://www.whatdotheyknow.com/request/enforcement_officers_authority_t#outgoing-596561

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The best scenario for CaRT is that if the licence is issued under the three statutory conditions of the 1995 act, which they do acknowledge, AND Parliament has made a huge error in forgetting about the 1962 act that gives CaRT the power to do anything it wants just by writing it into an arbitrary licence contract, a very special contract mind, one that can override statute contrary to the fundamental principle of English law !

 

 

 

The question is what are we going to do about it ? Because CaRT don't care what we or anyone else thinks, they have no one they have to answer to, Parliament don't want to know ,nor do the charities commission, the ombudsman was appointed by CaRT, and the trustees don't answer to correspondence.

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OK, so it appears that the vital part of the discussion is on the meaning of "or otherwise prohibits".

 

If it means that if charges not previously expressly permitted by legislation, or permitted by subsequent legislation are illegal, then one rapidly runs into logical inconsistencies, and the whole of section 43 could have been written much more simply. What would be the purpose of the words "expressly provides for"? Where does that leave the legal maxim that "that which is not prohibited, is permitted", if "otherwise prohibits" is a mere lack of express permission?

 

I have googled the phrase "otherwise prohibits", and have not (so far!) found any other cases where it means the lack of express permission.

 

The salient point in the case AG v United Dairies was that the 2d per pint charged by the Milk Marketing Board went to the Government, and was therefore a tax. The raising of taxes, apart from by Parliament, IS expressly forbidden.

Edited by Iain_S
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The best scenario for CaRT is that if the licence is issued under the three statutory conditions of the 1995 act, which they do acknowledge, AND Parliament has made a huge error in forgetting about the 1962 act that gives CaRT the power to do anything it wants just by writing it into an arbitrary licence contract, a very special contract mind, one that can override statute contrary to the fundamental principle of English law !

(snip)

 

The fact that a licence has to be issued is a separate issue from conditions attached to the said licence.

 

The 1962 Act does not give CaRT the power to do anything it wants. Section 43 only allows it to charge for services and facilities, and make the use of services and facilities subject to conditions. That said, it would appear from later parliamentary discussions prior to the 1995 Act, that there was a realisation that perhaps CaRT (or British Waterways, as it was then) had, perhaps been granted too extensive powers!

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OK, so it appears that the vital part of the discussion is on the meaning of "or otherwise prohibits".

 

If it means that if charges not previously expressly permitted by legislation, or permitted by subsequent legislation are illegal, then one rapidly runs into logical inconsistencies, and the whole of section 43 could have been written much more simply. What would be the purpose of the words "expressly provides for"? Where does that leave the legal maxim that "that which is not prohibited, is permitted", if "otherwise prohibits" is a mere lack of express permission?

 

I have googled the phrase "otherwise prohibits", and have not (so far!) found any other cases where it means the lack of express permission.

 

The salient point in the case AG v United Dairies was that the 2d per pint charged by the Milk Marketing Board went to the Government, and was therefore a tax. The raising of taxes, apart from by Parliament, IS expressly forbidden.

 

The section was drafted for maximum inclusiveness. Some elements of the enabling Acts provided for certain charges, but exempted certain people and cargoes etc from those charges. That is not a blanket prohibition on charges, but the conferring of an explicit freedom from those charges for a class of person or waterway. An example would be s.43 of the 1793 GJCC Act, wherein a toll was to be imposed on boats transiting between the GJC and the Thames at Brentford carrying coal. An expressly provided provision for freedom from those tolls applied to boats than went no further and came from no further, than Bax’s Mill – i.e never progressed beyond the tidal section. Another example would be, in the same Act, an exemption from private pleasure boats from paying tolls when going through locks if they used no water in doing so [otherwise a toll was chargeable].

 

That element, in other words, will refer to known legal charges which in some circumstances had exemptive clauses providing explicitly for freedom from them, as well as blanket freedom from any charges at all for all boats – as again exampled in the 1793 Act banning the levying of any charges whatsoever on the use of boats kept to the tidal section, where charges might be levied on the same boats for the same use if used on the non-tidal section.

 

The “otherwise prohibits” has to apply to unspecified charges, such as were dealt with in judgments dealing with the topic from the 19thC to present times.

 

Where does that leave the legal maxim that "that which is not prohibited, is permitted"? Right where it should be left – applying to private citizens, as in real rather than artificial statutory persons such as BW and CaRT. The opposite maxim is true of such statutory creations; for them, unless a thing is expressly permitted it is prohibited.

 

The point to take from AG v United dairies, is that where issue of a licence is mandatory, making something that is illegal a compulsory matter of agreement as a condition of issuing the licence, cannot make it legal. You cannot make something illegal legally binding just because it is written into a contract. Just so, CaRT cannot make agreement to that which is forbidden a condition of issuing a licence they are obligated to issue without any such agreement. They cannot even make agreement to perfectly legal terms that would be allowed, a mandatory precondition of issuing a licence they are obligated to issue without any such agreement.

 

Most of the T&C’s are, after all, mandatory anyway, as byelaws and statutes – but even IF they needed agreement to be enforceable [which is a laughable concept], making agreement to them a mandatory pre-condition of issuing a mandatory licence is illegal.

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The point to take from AG v United dairies, is that where issue of a licence is mandatory, making something that is illegal a compulsory matter of agreement as a condition of issuing the licence, cannot make it legal. You cannot make something illegal legally binding just because it is written into a contract. Just so, CaRT cannot make agreement to that which is forbidden a condition of issuing a licence they are obligated to issue without any such agreement. They cannot even make agreement to perfectly legal terms that would be allowed, a mandatory precondition of issuing a licence they are obligated to issue without any such agreement.

But surely they are only obligated to issue the licence if they are "satisfied", and this is where everything falls to pieces because the concept is vague. CRT would surely argue that the T&Cs are an expansion and definition of the way this satisfaction can be attained and that advance agreement to their T&Cs is an indication that the boater will conduct themselves in a manner that will satisfy the conditions, while actions breaking the T&Cs during the course of the licence period are an indication that satisfaction is not intended to be given and therefore a licence may be refused or cancelled. The acceptance and adherence to the T&Cs is an advice to the Board that the boater intends to fulfil their side of the deal, and vice versa.

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Interesting take.

 

And wrong too, I'd have thought.

 

The board only needs to be 'satisfied' that the boat will be used bona fide for navigation throughout the period of the licence or that the boat has a mooring, Shirley?

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Bold is mine

 

The section was drafted for maximum inclusiveness. I'd agree, but would also suggest that the Act was designed to give the various authorities the maximum freedom to run their respective businesses in an efficient manner.

 

Some elements of the enabling Acts provided for certain charges, but exempted certain people and cargoes etc from those charges. That is not a blanket prohibition on charges, but the conferring of an explicit freedom from those charges for a class of person or waterway. An example would be s.43 of the 1793 GJCC Act, wherein a toll was to be imposed on boats transiting between the GJC and the Thames at Brentford carrying coal. An expressly provided provision for freedom from those tolls applied to boats than went no further and came from no further, than Bax’s Mill – i.e never progressed beyond the tidal section. Another example would be, in the same Act, an exemption from private pleasure boats from paying tolls when going through locks if they used no water in doing so [otherwise a toll was chargeable].

Good examples, but also demonstrating why "or otherwise prohibits the making of any charge" was used in S43 as well as "expressly provides freedom from charges"

 

That element, in other words, will refer to known legal charges which in some circumstances had exemptive clauses providing explicitly for freedom from them, as well as blanket freedom from any charges at all for all boats – as again exampled in the 1793 Act banning the levying of any charges whatsoever on the use of boats kept to the tidal section, where charges might be levied on the same boats for the same use if used on the non-tidal section.

 

The “otherwise prohibits” has to apply to unspecified charges, such as were dealt with in judgments dealing with the topic from the 19thC to present times.

I agree, "such as were dealt with in judgments dealing with the topic" is not the same as "not mentioned anywhere in legislation"

 

Where does that leave the legal maxim that "that which is not prohibited, is permitted"? Right where it should be left – applying to private citizens, as in real rather than artificial statutory persons such as BW and CaRT. The opposite maxim is true of such statutory creations; for them, unless a thing is expressly permitted it is prohibited. Agreed, but applying the logic that "otherwise prohibits" means "not expressly allows" leaves the private citizen in the same place as a statutory person. Words cannot change their meaning just because they are used in legislation. There must be some basis for the prohibition. The statutory person needs some authority for their actions, but not necessarily by the specific actions being defined by statute.

 

The point to take from AG v United dairies, is that where issue of a licence is mandatory, making something that is illegal a compulsory matter of agreement as a condition of issuing the licence, cannot make it legal. You cannot make something illegal legally binding just because it is written into a contract.

I agree with this, but the illegality did not arise from a mere lack of permission; the illegality arose from the Bill of Rights 1689, which specifically states "That levying money for or to the use of the Crown by pretence of prerogative, without grant of Parliament, for longer time, or in other manner than the same is or shall be granted, is illegal;"

 

Just so, CaRT cannot make agreement to that which is forbidden a condition of issuing a licence they are obligated to issue without any such agreement. No argument from me here!

 

They cannot even make agreement to perfectly legal terms that would be allowed, a mandatory precondition of issuing a licence they are obligated to issue without any such agreement.

 

Most of the T&C’s are, after all, mandatory anyway, as byelaws and statutes – but even IF they needed agreement to be enforceable [which is a laughable concept], making agreement to them a mandatory pre-condition of issuing a mandatory licence is illegal.

 

There are other mandatory pre-conditions for issuing a mandatory licence, though, the most obvious being payment.

 

 

How did I get into this discussion, anyway? !!! cheers.gif

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And wrong too, I'd have thought.

 

The board only needs to be 'satisfied' that the boat will be used bona fide for navigation throughout the period of the licence or that the boat has a mooring, Shirley?

Well yes, but the bulk of the argument is how you define the bona fide and the navigation bit. One man's bona fide is another man's poisson. If you see what I mean.
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The 1995 Act provides that CaRT “MAY refuse a relevant consent in respect of any vessel UNLESS – [the following conditions are met]”. As CaRT officially recognise, the corollary is that they MAY NOT refuse, IF the following conditions are met. What they go on to do despite that, is confuse conditions for the grant of the consent for the boat with the conditions for use of the boat once it has received the consent. Even there, they make adherence to unilaterally composed T&C’s an allegedly voluntary contract, despite the fact that everyone has to comply with the conditions of use of the waterway as authorised, whether agreed to or not.

 

“Authoritative” comment from them on the subject, as exhibited in the forthcoming action: -

I have added your insurance details to the online account, but you still need to accept the terms and Conditions of holding a licence before we can proceed.” Natalie Jones, Customer Service Advisor.

EO has been clear (following previous guidance on the matter) that he does not have to accept terms, but that means the boat won’t be able to remain on CRT waters and will be subject to enforcement action if it remains. The terms are the terms, they are published. We will make reasonable attempts to clear up any specific questions about meaning but if the customer wants to quibble on legalities then we won’t engage with that – it’s a voluntary contract which he can accept or not.” Simon Cadek, London Region Enforcement Supervisor.

you have been asked to accept the term and conditions of the licence, which is mandatory . . .” “If you are not happy with anything within the terms and conditions you can choose not to accept them, this will mean the craft would remain unlicensed and as such would have further letters of Enforcement served upon it . . .” Tony Smith, Enforcement Officer, London Region.

Best of all: -

CRT has the power to make the licence subject to such terms and conditions as it thinks fit by virtue of section 43(3) of the Transport Act 1962, section 14 of the British Waterways Act 1971 and section 16 of the British Waterways Act 1995.” Lucy Barry, Associate Solicitor-Advocate, Shoosmiths LLP.

That last is classic – the two latter sections she refers to apply only to houseboat certificates, not to licences [nor even to pleasure boat certificates]. They are two sections that would be totally redundant had the 1962 Act had the force she claims for it.

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CaRT's use of s.43 has got bolder since earlier BW days, as the above correspondence demonstrates. BW were more hesitant a quarter century ago.

 

On day one of the House of Lords presentation in 1990, Mr Lockhart-Mummery QC told them that “These licences are issued and charged for pursuant to the Board’s powers under Section 43(3) of the Transport Act 1962.” . . . “There has been uncertainty, let me say straightaway – and this is one of the regions where there have been different views as to the legal position expressed – as to the level of detail which can be prescribed under section 43(3) in relation to licences.” . . . “because there has been uncertainty as a matter of law as to the extent of the powers available under section 43(3) . . .”

Three years later, on day one of the presentation to the Commons Select Committee, BW acknowledged that those alleged powers could not be applied to the rivers at all: “The distinction is between that power on the one hand which regulates canals and accordingly regulates pleasure boats on canals, and pleasure boat certificates which are granted pursuant to the British Waterways Act 1971 which places on us a mandatory duty to issue a certificate provided an application is made for it and the fees are charged. Those are the conditions, and the regulation of pleasure boats on rivers is limited by the terms of that litigation.” [i suspect he meant legislation] . . . “That is quite an important, fairly basic point in one’s mind that in terms of the rivers being controlled, we are obliged in terms of the 1971 Act, absent this legislation [i.e. the 1990 Bill that became the 1995 Act], to issue a certificate if the application is made for it, whereas we have a wider power, the exact scope of which may be controversial, in terms of the 1962 Act.”

Now well into the 21stC, and with all effective oversight withdrawn, CaRT and their legal wolves are emboldened to drop all hesitancy and to proclaim their absolute power to impose on boaters whatever they wish, and to deny boat licences regardless of their statutory obligation.

This is where, in my view, revival of old common law remedies such as Contempt of the Sovereign still has a place - because disparaging commentaries notwithstanding as to its redundancy, the fact is that much modern enabling legislation for many authorities does NOT provide for sanctions within them, if the authorities act in defiance of them.

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Notable that it was recognised that Section 43 granted wide ranging powers, although the exact limits were unclear. I suspect the learned QC was a bit uneasy that the powers granted by the Transport Act were too wide ranging!

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In view of the current interest in these issues endangering focus on the issues surrounding Injunctive Relief, I am starting this topic more prematurely than I had wished.

 

Iain’s analysis of s.43 needs some comment, so it is best responded to here.

 

There is a fundamental representational omission in the conflating of two distinct phrases within that section that distorts the effect.

 

So long as there isn't a statute prohibiting a charge being made, or a charge is specified in the Transport Act, (or later legislation*) CaRT can charge what they like, and set terms and conditions

 

Thus, that which previously was not charged for, can be charged for, unless legislation specifically exempts a charge being made, i.e. new charges and conditions can be set and made, unless specifically prohibited by previous legislation.

 

That is misleading. The relevant section actually says: “so far as it expressly provides for freedom from charges OR otherwise prohibits the making of any charge.” [my emphasis of course]

 

So there is express prohibition and implied prohibition. It is standard law that if an enabling Act does not expressly provide for the making of a charge, then it must be taken to prohibit such a charge.

 

 

 

Nigel,

 

whilst I would broadly agree with the explanation, including the distinction between what is expressly forbidden, and what is taken to be forbidden because it is not expressly permitted;

 

I fear that your argument founders elsewhere!

 

We are, I think broadly in agreement that one of the main differences between natural and legal persons is the treatment of those things that the law is silent on.

 

For a natural person, if the law doesn't forbid it, it is permitted. For a legal person, if the law doesn't permit it, it is forbidden.

 

So, it follows that PRIOR to the passing of the 1962 Act, there was no power to charge for anything that wasn't explicitly mentioned in legislation. I believe that we agree on that.

 

Where we differ is on the effect of the 1962 Act.

 

Your argument seems to be that it has no actual effect at all, as it grants powers to do things that powers were already granted for. Although you could argue that in this sense it is confirmatory so as to ensure that there is no implied repeal of those powers.

 

Mine is that it is actually expanding the scope of what can be charged for to anything not expressly forbidden in the original Acts.

 

You have focussed on the "otherwise prohibits" as being key to this, whilst I regard it as an example of otiose verbosity in drafting.

 

I would contend that the really crucial words here are "from any local enactment"

 

The Act is explicit that it doesn't take away any exemption from charges provided in any Local Act.

 

However the exemption from other charges is NOT contained in any Local Act. The exemption from other charges derives from the Companies Acts, which are Public General Acts, and as such the prohibition is not within the scope of what is protected from the new powers.

 

It is also worth noting that the Companies Act 2006 has greatly watered down the concept of things being prohibited.

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Your argument seems to be that it has no actual effect at all, as it grants powers to do things that powers were already granted for.

 

No Dave, you have misunderstood me – and I think this lies at the core of our differences on this subject. I believe in fact that the clause had a profound and lasting effect, granting rights as to charging that differed from anything that went before.

 

I know I have traced the origins of this before now, but I am hopeless at searching this site for previous posts, so I will try repeating myself: Unlike you, I do not read this as granting any powers to charge whatsoever; these rights to charge and condition use of the waterways existed from the first enabling Acts, and nothing up to and including 1962 added to that.

 

What the 1962 Act DID do, was add a further removal of restrictions as to how much they could charge. The British Transport Commission Acts had already impacted on rights to charge, in that they unified charges in lifting the fixed ceilings enumerated in the enabling Acts, and imposed only a requirement that the level of new charges should be reasonable – the test of reasonableness being open to arbitration.

 

What the 1962 Act did in s.43 was to remove even that criterion, and open the level of charges to whatever they saw fit. In granting so open ended a right, they were careful to note that [in effect] this applied only to what they could already charge for.

 

My former post quoted all the relevant legislative items in chronological order; if I CAN find it again I will post it up, because I believe it reveals the incremental progression of rights to charge perfectly.

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It is also worth noting that the Companies Act 2006 has greatly watered down the concept of things being prohibited.

 

Sadly - from my own viewpoint that authorities should be strictly constrained in the powers they wield over us - that sort of progressive erosion of rights due to increased liberties for authoritarian bodies is ever increasing. The apparent abolition of the statutory limitations of creatures of statute evidenced in the Localism Act 2011 is an appalling example.

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Notable that it was recognised that Section 43 granted wide ranging powers, although the exact limits were unclear. I suspect the learned QC was a bit uneasy that the powers granted by the Transport Act were too wide ranging!

 

I read it differently. I believe he was gung-ho for interpreting it as widely as possible, but had been compelled to acknowledge the voices raised in protest over the years of argument during consultation on the Bill.

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Sadly - from my own viewpoint that authorities should be strictly constrained in the powers they wield over us - that sort of progressive erosion of rights due to increased liberties for authoritarian bodies is ever increasing. The apparent abolition of the statutory limitations of creatures of statute evidenced in the Localism Act 2011 is an appalling example.

In general I would agree from libertarian principles but it is not quite that simple and I am not sure that the characterisation of an 'authority' as having an independent agenda is always correct.

 

As an example, there seems to have been some press comment recently in the wake of a potential house purchaser discovering that the property he wanted comes with a covenant that bans him from parking a commercial vehicle outside overnight. Since he runs a business with a large van he claimed that this was unfair discrimination and such restrictions should not be allowed. He should be free to do as he likes. It is not up to a big developer to tell him what he can and cannot do with his property.

 

Leaving aside the fact that parking on street (or, alas on pavement) outside your property has never been a right, only on the driveway, even the more sympathetic experts had to admit that such clauses are generally welcomed by most people since streets becoming filled up with lots of commercial vehicles, usually much larger than cars, is not what they want. Indeed, the protection of the value of their properties is often conditional on such restraints. They look to 'the authority' (because it is the developer as the beneficial owner) to enforce the rule.

 

It is rare, if ever, that one person's freedom does not impact someone else's rights and broadly speaking civilised society hands to 'authority' both the right and the duty to ensure that agreed rules are kept. Liberty, as a concept, does not endow the right to trample over other people's rights.

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