Covenants in Leases

Descrição

Landlord and Tenant Law Quiz sobre Covenants in Leases, criado por nathan_hutchings em 08-05-2013.
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Quiz por nathan_hutchings, atualizado more than 1 year ago
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Criado por nathan_hutchings aproximadamente 11 anos atrás
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Resumo de Recurso

Questão 1

Questão
The covenant
Responda
  • Contractual terms contained in a lease
  • Implied covenants
  • Express covenants
  • Estate in land

Questão 2

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

Questão 3

Questão
Examples of L’s covenants implied by common law
Responda
  • 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

Questão 4

Questão
Examples of T’s covenants implied by common law
Responda
  • 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

Questão 5

Questão
Covenants implied by statute
Responda
  • 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

Questão 6

Questão
Express covenants
Responda
  • 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

Questão 7

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

Questão 8

Questão
Repairs
Responda
  • 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

Questão 9

Questão
Most common arrangement for repairing covenant
Responda
  • 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

Questão 10

Questão
Steps for disrepair?
Responda
  • 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

Questão 11

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

Questão 12

Questão
What is the standard of repair?
Responda
  • Guidance in the lease as to the standard of repair
  • No guidance in the lease as to the standard of repair

Questão 13

Questão
‘fair wear and tear’ exception
Responda
  • 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

Questão 14

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

Questão 15

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

Questão 16

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

Questão 17

Questão
Many leases require repair but not renewal
Responda
  • 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

Questão 18

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

Questão 19

Questão
CA set out three guidelines for repairing covenants
Responda
  • 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]

Questão 20

Questão
Three guidelines: a) Do the alterations..
Responda
  • 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?

Questão 21

Questão
Three guidelines: b) Do the alterations..
Responda
  • 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?

Questão 22

Questão
Three guidelines: c) Do the alterations..
Responda
  • 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?

Questão 23

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

Questão 24

Questão
Alienation
Responda
  • 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

Questão 25

Questão
Three categories of restrictive lease covenants:
Responda
  • Absolute covenant
  • Qualified covenant
  • Fully qualified covenant
  • Fully unqualified covenant
  • Unqualified covenant

Questão 26

Questão
Absolute covenant
Responda
  • 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

Questão 27

Questão
Qualified covenant
Responda
  • 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

Questão 28

Questão
Fully qualified covenant
Responda
  • 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

Questão 29

Questão
Absolute covenants against alienation
Responda
  • 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

Questão 30

Questão
Qualified and fully qualified covenants against alienation
Responda
  • 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

Questão 31

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

Questão 32

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

Questão 33

Questão
LTA 1988 Section 1(3)
Responda
  • 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

Questão 34

Questão
Section 4
Responda
  • 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

Questão 35

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

Questão 36

Questão
When is it unreasonable to refuse consent?
Responda
  • 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

Questão 37

Questão
LTA 1927 section 19(1A)
Responda
  • 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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