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Examples of L’s covenants implied by common law
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Covenant for quiet enjoyment
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Covenant to keep common parts in reasonable repair
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Covenant to pay rent, rates and taxes
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Covenant to allow L to discharge his repairing obligation
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Examples of T’s covenants implied by common law
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Covenant to pay rent, rates and taxes
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Covenant to allow L to discharge his repairing obligation
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Covenant for quiet enjoyment
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Covenant to keep common parts in reasonable repair
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Covenants implied by statute
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Improve minimum standard of protection provided for L and T by common law
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Can usually override express agreement of parties (note contrast with covenants implied by common law)
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Express agreements always prevail
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Most statutes which imply terms provide that parties cannot contract out by express agreement
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Typical express covenants
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Rent
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Rent review
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Repair
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User
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Alterations
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Alienation (assignment and subletting)
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Covenant for quiet enjoyment
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Covenant to keep common parts in reasonable repair
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Antworten
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Parties free to allocate responsibility as they please
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Parties not free to allocate responsibility as they please
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L solely responsible (likely to recover cost from T through service charge)
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T solely responsible
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L and T share responsibility – most common arrangement :
– L repairs structure and exterior (likely to recover costs through service charge)
- T repairs interior
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Most common arrangement for repairing covenant
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L solely responsible (likely to recover cost from T through service charge)
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T solely responsible
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L and T share responsibility – most common arrangement :
– L repairs structure and exterior (likely to recover costs through service charge)
- T repairs interior
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Steps for disrepair?
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1) First identify physical extent of premises to which repairing covenant extends
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2) First identify physical extent of premises to which repairing covenant extends
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2) Is there disrepair?
Must be deterioration from a previous physical state
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1) Is there disrepair?
Must be deterioration from a previous physical state
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Windows - not deteriorated from previous physical state
Antworten
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Lace v Chantler
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Walsh v Lonsdale 1882
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Quick v. Taff Ely B.C.
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Aslan v Murphy
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What is the standard of repair?
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‘fair wear and tear’ exception
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natural deterioration
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T not liable for such damage if there is a fair wear and tear exception
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T liable for such damage if there is a fair wear and tear exception
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Has to be expressed in the repairing covenant
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Implied in repairing covenant
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This will define standard of repair by reference to condition of property at start of lease
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Standard of repair when lease does not give guidance
- put premises into state of repair contemplated by covenant
and then to
- keep premises in repair
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Implication of ‘reasonableness’ requirement
- L must act reasonably when carrying out repairs
- T cannot insist that works undertaken more cheaply if L is being reasonable in his approach
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Many leases require repair but not renewal
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Is there liability to do something about the disrepair?
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What is the standard of repair?
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Obligation to renew is more onerous than obligation to repair
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Remedying of disrepair and inherent defect fell within scope of T’s covenant to repair
Work required was repair not renewal
Antworten
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Ravenseft Properties Ltd v. Davstone (Holdings) Ltd [1980]
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National car parks v Trinity Development Co 2001
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FluorDaniel Properties v Shortland Investments [2001]
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Proudfoot v Hart (1890)
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CA set out three guidelines for repairing covenants
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McDougall v Easington D.C. (1989)
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National car parks v Trinity Development Co 2001
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Lister v Lane (1893)
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Ravenseft Properties Ltd v. Davstone (Holdings) Ltd [1980]
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Three guidelines: a) Do the alterations..
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affect the whole or substantially the whole of the building?
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make the building different in character from the building originally let?
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cost a significant proportion of the value of the previous existing building?
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Three guidelines: b) Do the alterations..
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affect the whole or substantially the whole of the building?
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make the building different in character from the building originally let?
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cost a significant proportion of the value of the previous existing building?
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Three guidelines: c) Do the alterations..
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affect the whole or substantially the whole of the building?
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make the building different in character from the building originally let?
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cost a significant proportion of the value of the previous existing building?
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Alienation: T disposing of lease
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T is free to dispose of premises as he chooses unless lease contains restriction on T’s right to dispose
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T is not free to dispose of premises as he chooses unless lease contains restriction on T’s right to dispose
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Three categories of restrictive lease covenants:
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T prohibited altogether from doing something
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T may do the thing in question but only with L’s consent
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T may do the thing in question with L’s consent and that consent must not be unreasonably withheld
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T may do the thing in question but only with L’s consent
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T prohibited altogether from doing something
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T may do the thing in question with L’s consent and that consent must not be unreasonably withheld
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Fully qualified covenant
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T prohibited altogether from doing something
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T may do the thing in question but only with L’s consent
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T may do the thing in question with L’s consent and that consent must not be unreasonably withheld
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Absolute covenants against alienation
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If T disposes of premises he will be in breach of covenant but disposal still valid
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Note also L may waive prohibition
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Prevented from disposing of interest unless can negotiate with L and obtain L’s consent to a disposal
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Qualified and fully qualified covenants against alienation
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T could request consent but L could still refuse consent on any grounds whatsoever
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T could request consent and L could not refuse consent
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T is helped when there is a qualified covenant by section 144 LPA 1925 and section 19(1)(a) LTA 1927
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T is not helped when there is a qualified covenant by section 144 LPA 1925 and section 19(1)(a) LTA 1927
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Section 144 LPA 1925
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Section 19(1)(a) LTA 1927
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LTA 1988 Section 1(3)
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L is under a duty:
- to give consent unless reasonable not to
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- to serve written notice on T of decision
- within a reasonable time
stating why any consent is withheld or the conditions subject to which it is granted
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T can sue L for damages if L fails to comply with duty
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What is a reasonable time?
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When is it unreasonable to refuse consent?
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Depends upon circumstances of particular case
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General principle = L not entitled to refuse consent for reasons which are not connected to subject matter of lease
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E.g. Proposed new T is of insufficient financial standing
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Proposed new T’s race or gender
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LTA 1927 section 19(1A)