Covenants in Leases

Descripción

Landlord and Tenant Law Test sobre Covenants in Leases, creado por nathan_hutchings el 08/05/2013.
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Test por nathan_hutchings, actualizado hace más de 1 año
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Creado por nathan_hutchings hace alrededor de 11 años
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Resumen del Recurso

Pregunta 1

Pregunta
The covenant
Respuesta
  • Contractual terms contained in a lease
  • Implied covenants
  • Express covenants
  • Estate in land

Pregunta 2

Pregunta
Implied covenants
Respuesta
  • Plug gaps when parties fail to agree expressly
  • Common Law or Statute
  • Implied covenants always prevail of express covenants

Pregunta 3

Pregunta
Examples of L’s covenants implied by common law
Respuesta
  • Covenant for quiet enjoyment
  • Covenant to keep common parts in reasonable repair
  • Covenant to pay rent, rates and taxes
  • Covenant to allow L to discharge his repairing obligation

Pregunta 4

Pregunta
Examples of T’s covenants implied by common law
Respuesta
  • Covenant to pay rent, rates and taxes
  • Covenant to allow L to discharge his repairing obligation
  • Covenant for quiet enjoyment
  • Covenant to keep common parts in reasonable repair

Pregunta 5

Pregunta
Covenants implied by statute
Respuesta
  • Improve minimum standard of protection provided for L and T by common law
  • Can usually override express agreement of parties (note contrast with covenants implied by common law)
  • Express agreements always prevail
  • Most statutes which imply terms provide that parties cannot contract out by express agreement

Pregunta 6

Pregunta
Express covenants
Respuesta
  • Expressly agreed between the parties as result of negotiations
  • In commercial context L and T can often afford to appoint solicitors and leases can be lengthy and complex

Pregunta 7

Pregunta
Typical express covenants
Respuesta
  • Rent
  • Rent review
  • Repair
  • User
  • Alterations
  • Alienation (assignment and subletting)
  • Covenant for quiet enjoyment
  • Covenant to keep common parts in reasonable repair

Pregunta 8

Pregunta
Repairs
Respuesta
  • Parties free to allocate responsibility as they please
  • Parties not free to allocate responsibility as they please
  • L solely responsible (likely to recover cost from T through service charge)
  • T solely responsible
  • L and T share responsibility – most common arrangement : – L repairs structure and exterior (likely to recover costs through service charge) - T repairs interior

Pregunta 9

Pregunta
Most common arrangement for repairing covenant
Respuesta
  • L solely responsible (likely to recover cost from T through service charge)
  • T solely responsible
  • L and T share responsibility – most common arrangement : – L repairs structure and exterior (likely to recover costs through service charge) - T repairs interior

Pregunta 10

Pregunta
Steps for disrepair?
Respuesta
  • 1) First identify physical extent of premises to which repairing covenant extends
  • 2) First identify physical extent of premises to which repairing covenant extends
  • 2) Is there disrepair? Must be deterioration from a previous physical state
  • 1) Is there disrepair? Must be deterioration from a previous physical state

Pregunta 11

Pregunta
Windows - not deteriorated from previous physical state
Respuesta
  • Lace v Chantler
  • Walsh v Lonsdale 1882
  • Quick v. Taff Ely B.C.
  • Aslan v Murphy

Pregunta 12

Pregunta
What is the standard of repair?
Respuesta
  • Guidance in the lease as to the standard of repair
  • No guidance in the lease as to the standard of repair

Pregunta 13

Pregunta
‘fair wear and tear’ exception
Respuesta
  • natural deterioration
  • T not liable for such damage if there is a fair wear and tear exception
  • T liable for such damage if there is a fair wear and tear exception
  • Has to be expressed in the repairing covenant
  • Implied in repairing covenant

Pregunta 14

Pregunta
This will define standard of repair by reference to condition of property at start of lease
Respuesta
  • schedule of condition
  • schedule of dilapidations
  • ‘fair wear and tear’ exception

Pregunta 15

Pregunta
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
Respuesta
  • Proudfoot v Hart (1980)
  • Quick v. Taff Ely B.C. [1986]
  • Aslan v Murphy

Pregunta 16

Pregunta
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
Respuesta
  • FluorDaniel Properties v Shortland Investments [2001]
  • Aslan v Murphy
  • Calthorpe v McOscar
  • Proudfoot v Hart (1890)

Pregunta 17

Pregunta
Many leases require repair but not renewal
Respuesta
  • Is there liability to do something about the disrepair?
  • What is the standard of repair?
  • Obligation to renew is more onerous than obligation to repair

Pregunta 18

Pregunta
Remedying of disrepair and inherent defect fell within scope of T’s covenant to repair Work required was repair not renewal
Respuesta
  • Ravenseft Properties Ltd v. Davstone (Holdings) Ltd [1980]
  • National car parks v Trinity Development Co 2001
  • FluorDaniel Properties v Shortland Investments [2001]
  • Proudfoot v Hart (1890)

Pregunta 19

Pregunta
CA set out three guidelines for repairing covenants
Respuesta
  • McDougall v Easington D.C. (1989)
  • National car parks v Trinity Development Co 2001
  • Lister v Lane (1893)
  • Ravenseft Properties Ltd v. Davstone (Holdings) Ltd [1980]

Pregunta 20

Pregunta
Three guidelines: a) Do the alterations..
Respuesta
  • affect the whole or substantially the whole of the building?
  • make the building different in character from the building originally let?
  • cost a significant proportion of the value of the previous existing building?

Pregunta 21

Pregunta
Three guidelines: b) Do the alterations..
Respuesta
  • affect the whole or substantially the whole of the building?
  • make the building different in character from the building originally let?
  • cost a significant proportion of the value of the previous existing building?

Pregunta 22

Pregunta
Three guidelines: c) Do the alterations..
Respuesta
  • affect the whole or substantially the whole of the building?
  • make the building different in character from the building originally let?
  • cost a significant proportion of the value of the previous existing building?

Pregunta 23

Pregunta
Alienation: T disposing of lease
Respuesta
  • Assign
  • Sub-let
  • Mortgage
  • Part with or share possession
  • Part with or share occupation
  • Terminate
  • Surrender

Pregunta 24

Pregunta
Alienation
Respuesta
  • T is free to dispose of premises as he chooses unless lease contains restriction on T’s right to dispose
  • T is not free to dispose of premises as he chooses unless lease contains restriction on T’s right to dispose

Pregunta 25

Pregunta
Three categories of restrictive lease covenants:
Respuesta
  • Absolute covenant
  • Qualified covenant
  • Fully qualified covenant
  • Fully unqualified covenant
  • Unqualified covenant

Pregunta 26

Pregunta
Absolute covenant
Respuesta
  • T prohibited altogether from doing something
  • T may do the thing in question but only with L’s consent
  • T may do the thing in question with L’s consent and that consent must not be unreasonably withheld

Pregunta 27

Pregunta
Qualified covenant
Respuesta
  • T may do the thing in question but only with L’s consent
  • T prohibited altogether from doing something
  • T may do the thing in question with L’s consent and that consent must not be unreasonably withheld

Pregunta 28

Pregunta
Fully qualified covenant
Respuesta
  • T prohibited altogether from doing something
  • T may do the thing in question but only with L’s consent
  • T may do the thing in question with L’s consent and that consent must not be unreasonably withheld

Pregunta 29

Pregunta
Absolute covenants against alienation
Respuesta
  • If T disposes of premises he will be in breach of covenant but disposal still valid
  • Note also L may waive prohibition
  • Prevented from disposing of interest unless can negotiate with L and obtain L’s consent to a disposal

Pregunta 30

Pregunta
Qualified and fully qualified covenants against alienation
Respuesta
  • T could request consent but L could still refuse consent on any grounds whatsoever
  • T could request consent and L could not refuse consent
  • T is helped when there is a qualified covenant by section 144 LPA 1925 and section 19(1)(a) LTA 1927
  • T is not helped when there is a qualified covenant by section 144 LPA 1925 and section 19(1)(a) LTA 1927

Pregunta 31

Pregunta
Section 144 LPA 1925
Respuesta
  • L cannot demand payment for his consent – only expenses
  • Converts qualified covenants against alienation into fully qualified covenants against alienation

Pregunta 32

Pregunta
Section 19(1)(a) LTA 1927
Respuesta
  • Converts qualified covenants against alienation into fully qualified covenants against alienation
  • L cannot demand payment for his consent – only expenses

Pregunta 33

Pregunta
LTA 1988 Section 1(3)
Respuesta
  • L is under a duty: - to give consent unless reasonable not to
  • - 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
  • T can sue L for damages if L fails to comply with duty

Pregunta 34

Pregunta
Section 4
Respuesta
  • L is under a duty: - to give consent unless reasonable not to
  • T can sue L for damages if L fails to comply with duty

Pregunta 35

Pregunta
What is a reasonable time?
Respuesta
  • Clear that L must act quickly
  • Three weeks reasonable in a complex case

Pregunta 36

Pregunta
When is it unreasonable to refuse consent?
Respuesta
  • Depends upon circumstances of particular case
  • General principle = L not entitled to refuse consent for reasons which are not connected to subject matter of lease
  • E.g. Proposed new T is of insufficient financial standing
  • Proposed new T’s race or gender

Pregunta 37

Pregunta
LTA 1927 section 19(1A)
Respuesta
  • Applies only to leases of commercial premises granted on or after 1st January 1996
  • Affects only assignments
  • Applies only to leases of commercial premises granted on or after 1st January 1993
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