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Covenants in Leases

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Landlord and Tenant Law Quiz on Covenants in Leases, created by nathan_hutchings on 08/05/2013.
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Quiz by nathan_hutchings, updated more than 1 year ago
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Created by nathan_hutchings almost 11 years ago
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Resource summary

Question 1

Question
The covenant
Answer
  • Contractual terms contained in a lease
  • Implied covenants
  • Express covenants
  • Estate in land

Question 2

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

Question 3

Question
Examples of L’s covenants implied by common law
Answer
  • 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

Question
Examples of T’s covenants implied by common law
Answer
  • 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

Question
Covenants implied by statute
Answer
  • 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

Question
Express covenants
Answer
  • 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

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

Question 8

Question
Repairs
Answer
  • 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

Question
Most common arrangement for repairing covenant
Answer
  • 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

Question
Steps for disrepair?
Answer
  • 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

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

Question 12

Question
What is the standard of repair?
Answer
  • Guidance in the lease as to the standard of repair
  • No guidance in the lease as to the standard of repair

Question 13

Question
‘fair wear and tear’ exception
Answer
  • 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

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

Question 15

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

Question 16

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

Question 17

Question
Many leases require repair but not renewal
Answer
  • 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

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

Question
CA set out three guidelines for repairing covenants
Answer
  • 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

Question
Three guidelines: a) Do the alterations..
Answer
  • 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

Question
Three guidelines: b) Do the alterations..
Answer
  • 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

Question
Three guidelines: c) Do the alterations..
Answer
  • 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

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

Question 24

Question
Alienation
Answer
  • 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

Question
Three categories of restrictive lease covenants:
Answer
  • Absolute covenant
  • Qualified covenant
  • Fully qualified covenant
  • Fully unqualified covenant
  • Unqualified covenant

Question 26

Question
Absolute covenant
Answer
  • 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

Question
Qualified covenant
Answer
  • 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

Question
Fully qualified covenant
Answer
  • 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

Question
Absolute covenants against alienation
Answer
  • 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

Question
Qualified and fully qualified covenants against alienation
Answer
  • 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

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

Question 32

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

Question 33

Question
LTA 1988 Section 1(3)
Answer
  • 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

Question
Section 4
Answer
  • 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

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

Question 36

Question
When is it unreasonable to refuse consent?
Answer
  • 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

Question
LTA 1927 section 19(1A)
Answer
  • 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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