Investments v Hotel Terrigal (1965) 113 CLR 265; 276 per Kitto J--"quiprior est tempore, potior est jure"--if the merits are equal, priority in time of creation is considered to give the better equity
This description avoids some of the obscurities in the judgments of the High Court decision in Latec
Investments Ltd v Hotel Terrigal Pty Ltd (in liq), (43) and does not shy away from the fact that the right to rescind is proprietary in some respects and personal in other respects.
The bona fide purchaser defence extends to the purchaser of an equitable interest, but only where the prior interest is a 'mere equity': Phillips v Phillips (1862) 4 De G F & J 208, 218; 45 ER 1164, 1167 (Lord Westbury); Latec
Investments Ltd v Hotel Terrigal Pry Ltd(in liq) (1965) 113 CLR 265, 277-9 (Kitto J).