Covenants in Leases

Question 1 of 37

Medal-premium 1

The covenant

Select one or more of the following:

  • Contractual terms contained in a lease

  • Implied covenants

  • Express covenants

  • Estate in land

Question 2 of 37

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Implied covenants

Select one or more of the following:

  • Plug gaps when parties fail to agree expressly

  • Common Law or Statute

  • Implied covenants always prevail of express covenants

Question 3 of 37

Medal-premium 1

Examples of L’s covenants implied by common law

Select one or more of the following:

  • 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

Question 4 of 37

Medal-premium 1

Examples of T’s covenants implied by common law

Select one or more of the following:

  • 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

Question 5 of 37

Medal-premium 1

Covenants implied by statute

Select one or more of the following:

  • 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

Question 6 of 37

Medal-premium 1

Express covenants

Select one or more of the following:

  • 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

Question 7 of 37

Medal-premium 1

Typical express covenants

Select one or more of the following:

  • Rent

  • Rent review

  • Repair

  • User

  • Alterations

  • Alienation (assignment and subletting)

  • Covenant for quiet enjoyment

  • Covenant to keep common parts in reasonable repair

Question 8 of 37

Medal-premium 1

Repairs

Select one or more of the following:

  • 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

Question 9 of 37

Medal-premium 1

Most common arrangement for repairing covenant

Select one of the following:

  • 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

Question 10 of 37

Medal-premium 1

Steps for disrepair?

Select one or more of the following:

  • 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

Question 11 of 37

Medal-premium 1

Windows - not deteriorated from previous physical state

Select one of the following:

  • Lace v Chantler

  • Walsh v Lonsdale 1882

  • Quick v. Taff Ely B.C.

  • Aslan v Murphy

Question 12 of 37

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What is the standard of repair?

Select one of the following:

  • Guidance in the lease as to the standard of repair

  • No guidance in the lease as to the standard of repair

Question 13 of 37

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‘fair wear and tear’ exception

Select one or more of the following:

  • 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

Question 14 of 37

Medal-premium 1

This will define standard of repair by reference to condition of property at start of lease

Select one of the following:

  • schedule of condition

  • schedule of dilapidations

  • ‘fair wear and tear’ exception

Question 15 of 37

Medal-premium 1

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

Select one of the following:

  • Proudfoot v Hart (1980)

  • Quick v. Taff Ely B.C. [1986]

  • Aslan v Murphy

Question 16 of 37

Medal-premium 1

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

Select one of the following:

  • FluorDaniel Properties v Shortland Investments [2001]

  • Aslan v Murphy

  • Calthorpe v McOscar

  • Proudfoot v Hart (1890)

Question 17 of 37

Medal-premium 1

Many leases require repair but not renewal

Select one or more of the following:

  • 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

Question 18 of 37

Medal-premium 1

Remedying of disrepair and inherent defect fell within scope of T’s covenant to repair
Work required was repair not renewal

Select one of the following:

  • 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)

Question 19 of 37

Medal-premium 1

CA set out three guidelines for repairing covenants

Select one of the following:

  • 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]

Question 20 of 37

Medal-premium 1

Three guidelines: a) Do the alterations..

Select one of the following:

  • 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?

Question 21 of 37

Medal-premium 1

Three guidelines: b) Do the alterations..

Select one of the following:

  • 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?

Question 22 of 37

Medal-premium 1

Three guidelines: c) Do the alterations..

Select one of the following:

  • 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?

Question 23 of 37

Medal-premium 1

Alienation: T disposing of lease

Select one or more of the following:

  • Assign

  • Sub-let

  • Mortgage

  • Part with or share possession

  • Part with or share occupation

  • Terminate

  • Surrender

Question 24 of 37

Medal-premium 1

Alienation

Select one of the following:

  • 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

Question 25 of 37

Medal-premium 1

Three categories of restrictive lease covenants:

Select one or more of the following:

  • Absolute covenant

  • Qualified covenant

  • Fully qualified covenant

  • Fully unqualified covenant

  • Unqualified covenant

Question 26 of 37

Medal-premium 1

Absolute covenant

Select one of the following:

  • 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

Question 27 of 37

Medal-premium 1

Qualified covenant

Select one of the following:

  • 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

Question 28 of 37

Medal-premium 1

Fully qualified covenant

Select one of the following:

  • 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

Question 29 of 37

Medal-premium 1

Absolute covenants against alienation

Select one or more of the following:

  • 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

Question 30 of 37

Medal-premium 1

Qualified and fully qualified covenants against alienation

Select one or more of the following:

  • 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

Question 31 of 37

Medal-premium 1

Section 144 LPA 1925

Select one of the following:

  • L cannot demand payment for his consent – only expenses

  • Converts qualified covenants against alienation into fully qualified covenants against alienation

Question 32 of 37

Medal-premium 1

Section 19(1)(a) LTA 1927

Select one of the following:

  • Converts qualified covenants against alienation into fully qualified covenants against alienation

  • L cannot demand payment for his consent – only expenses

Question 33 of 37

Medal-premium 1

LTA 1988 Section 1(3)

Select one or more of the following:

  • 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

Question 34 of 37

Medal-premium 1

Section 4

Select one of the following:

  • 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

Question 35 of 37

Medal-premium 1

What is a reasonable time?

Select one of the following:

  • Clear that L must act quickly

  • Three weeks reasonable in a complex case

Question 36 of 37

Medal-premium 1

When is it unreasonable to refuse consent?

Select one or more of the following:

  • 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

Question 37 of 37

Medal-premium 1

LTA 1927 section 19(1A)

Select one or more of the following:

  • 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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Covenants in Leases

nathan_hutchings
Quiz by , created over 3 years ago

Landlord and Tenant Law Quiz on Covenants in Leases, created by nathan_hutchings on 08/05/2013.

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Created by nathan_hutchings over 3 years ago
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