This standard clause is for use in a contract for the sale of freehold land by a local authority where the title documents indicate that the legal title is vested in the seller's statutory predecessor in title. Changes to local authority boundaries and administrative functions are effected by statute, and usually involve a deemed transfer of title to land.

The standard clause explains the apparent discrepancy between the seller's actual title and the apparent title according to the title documents. It also confirms that the seller has the right to sell.