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Yaxley v Gotts [2000] Ch 162 was also concerned with section 2 of the 1989
Act. An oral agreement purporting to grant an interest in land, though void
and unenforceable under section 2, was held still to be enforceable on the
basis of a constructive trust under section 2(5) which provides that
"nothing in this section affects the creation or operation of resulting,
implied or constructive trusts". Robert Walker LJ stated, at p 175:
"Parliament's requirement that any contract for the disposition of an
interest in land must be made in a particular documentary form, and will
otherwise be void, does not have such an obviously social aim as statutory
provisions relating to contracts by or with moneylenders, infants, or
protected tenants. Nevertheless it can be seen as embodying Parliament's
conclusion, in the general public interest, that the need for certainty as
to the formation of contracts of this type must in general outweigh the
disappointment of those who make informal bargains in ignorance of the
statutory requirement. If an estoppel would have the effect of enforcing a
void contract and subverting Parliament's purpose it may have to yield to
the statutory law which confronts it, except so far as the statute's saving
for a constructive trust provides a means of reconciliation of the apparent
conflict." Clarke LJ stated, at p 182, that where a particular estoppel
relied upon would offend the public policy behind a statute it is necessary
to consider the mischief at which the statute is directed. Where a statute
had been enacted as the result of the recommendations of the Law Commission
it *44 is appropriate to consider those recommendations. He stated that in
his opinion: "the contents of that report [Transfer of Land: Formalities
for Contracts of Sale etc of Land (1987) (Law Com No 164)] will be of the
greatest assistance in deciding whether or not the principles of particular
types of estoppel should be held to be contrary to the public policy
underlying the Act. In this regard it seems to me that the answer is likely
to depend upon the facts of the particular case." Beldam LJ stated, at p
191, that "The general principle that a party cannot rely on an estoppel in
the face of a statute depends upon the nature of the enactment, the purpose
of the provision and the social policy behind it."