Land Law – Mutuality Principle

Introduction -Land Law – Mutuality Principle

Despite that majority of human laws are received with great contention among people, the mutuality principle has stood to be the most contested in the contemporary society. Many scholars and philosophers have offered opposing viewpoints on the efficiency of the mutuality principle. The issue of bias and inefficiencies has been adequately attributed to this principle by many scholars. Land Law – Mutuality Principle. Despite that many scholars have also embraced the principle; the criticism attributed to it is very explicit. Primarily, mutuality principle is established by case law and is developed on the proposition that organizations can not develop income from itself. Based on the principle, if a group of people contribute a common fund, any surpluses from the common fund can not be counted as income.

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It should further be noted that any provisions concerning tax should not be lose sight towards the mutual entities. This should however been observed in cases of sporting, socially desirable roles, charitable activities, community services and recreational services. Land Law – Mutuality Principle.


With reference to the discussion and analysis of the principle of mutuality, it is evident that it is overwhelmed by numerous weaknesses. The principle has been adequately challenged by different scholars for creating loopholes on tax evasion. Land Law – Mutuality Principle. The key elements of the principles concerning exemption from tax to entities which are aimed at serving a common goal or benefits to members has been highly criticized. In this case, it should be noted that the principle is the only way to pass over burden of a positive freehold covenant. With regards to the weaknesses or the principle significant reformulation and reviews need to be undertaken on the mutuality principle. Land Law – Mutuality Principle.

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