Summary
Privity of contract and privity of estate are crucial for enforcing leasehold covenants. Privity of contract binds original lease parties to the lease terms, while privity of estate ensures obligations transfer to new parties upon lease assignment. The Landlord and Tenant (Covenants) Act 1995 applies to new leases and certain variations or assignments. In the scenario provided, Alan can enforce the covenant against Corinne, the current tenant, for breaching the lease by manufacturing food. Remedies include seeking an injunction to stop the activity and claiming damages for losses. Relevant case law, such as Stuart v Joy and Re King, supports the enforceability of covenants and the landlords right to seek injunctions.Full Conversation
What is the ****ifference between assignment an**** subletting
Hey there! Here’s a quick run****own of the ****ifferences:
- Assignment: Transfer of the entire lease from the original tenant to a new tenant. The new tenant takes over all responsibilities.
- Subletting: Original tenant rents out part or all of the property to a subtenant while still being responsible to the lan****lor****.
Is there a specific situation you nee**** help with?
can you explain subletting a bit more
Sure! Subletting means the original tenant (you) rents out part or all of the rente**** property to another person (subtenant). You remain responsible for the lease agreement with the lan****lor****, inclu****ing rent payments an**** any ****amages. The subtenant pays rent to you, an**** you pay the lan****lor****.
Is there a specific aspect of subletting you nee**** more information on?
What is the ****ifference between privity of contract an**** privity of estate
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Sure! Here’s the ****ifference between privity of contract an**** privity of estate:
- Privity of Contract: This exists between the parties who have signe**** a contract, making them legally boun**** to fulfill the terms of the contract.
- Privity of Estate: This exists between parties who have a mutual interest in the same property, such as a lan****lor**** an**** tenant.
Do you nee**** more ****etails on either concept?
Why privity of contract an**** privity of estate are important for the running of leasehol**** covenants
Case Rating: *
Privity of contract an**** privity of estate are important for the running of leasehol**** covenants because:
- Privity of Contract: Ensures that the original parties to the lease are legally boun**** to fulfill the lease's terms.
- Privity of Estate: Ensures that lease obligations transfer to new parties when the leasehol**** interest is assigne****, maintaining continuity of obligations like rent payments an**** property maintenance.
Is there a specific issue or leasehol**** covenant you're ****ealing with?
types of lease to which the Lan****lor**** an**** Tenant (Covenants) Act * applies
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The Lan****lor**** an**** Tenant (Covenants) Act * applies to:
- New leases: Leases grante**** on or after * January *.
- Certain variations of existing leases: If the variation is substantial, it coul**** be treate**** as a new lease.
- Assignments of new leases: When an existing lease grante**** after * January * is assigne**** to a new tenant.
Do you have a specific lease situation or issue you're ****ealing with?
Alan is the freehol**** owner of the Camulo****unum In****ustrial Estate, which is a business site comprising seven
in****epen****ent units. In *, Alan lease**** unit * to Baz for *-years. The lease was create**** by ****ee**** an****
registere**** at the Lan**** Registry.
Clause *.* of the lease between Alan an**** Baz is a covenant that says that the tenant cannot use the
premises to manufacture foo****. There is a separate covenant in the lease that says that the tenant can
assign the lease with the lan****lor****’s consent.
Earlier this year, Baz assigne**** the lease to Corinne, with Alan’s consent. When he assigne**** the lease to
Corrine, Baz followe**** all the formalities for assigning a lease of registere**** lan****. However, Corinne has
recently installe**** some vacuum cookers on the premises, which she has been using to cook strawberries,
raspberries an**** blackberries to make jams that she has been selling at local markets.
Who can Alan enforce clause *.* against? What reme****ies might Alan seek for the breach of covenant?
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Alan can enforce clause *.* against Corinne, as she is the current tenant an**** in breach of the covenant.
Possible reme****ies Alan might seek inclu****e:
- Injunction: To stop Corinne from manufacturing foo**** on the premises.
- Damages: Compensation for any loss cause**** by the breach of the covenant.
Woul**** you like more ****etaile**** information on how to procee****?
apply relevant case law
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To provi****e relevant case law, here are two cases relate**** to leasehol**** covenants an**** their enforcement:
- Stuart v Joy [*] * KB *: This case highlights that covenants in leases are bin****ing on the assignee of the lease, meaning Corinne is boun**** by the covenant not to manufacture foo****.
- Re King [*] Ch *: This case shows that a lan****lor**** can seek an injunction to prevent continue**** breaches of a covenant, supporting Alan's possible reme****y of seeking an injunction against Corinne.
Woul**** you like more ****etaile**** information on these cases or have any other questions?
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