Alienation Flashcards
(13 cards)
Who does privity of contract exist between?
Original landlord and tenant
Who does privity of estate exist between?
Any current landlord, and a current tenant of the property - lasts only for the period while the lease is vested in the tenant
What is an ‘old lease’?
A lease granted before 1 January 1996
What is a new lease?
A lease granted on or after 1 January 1996
Under an old lease, where does liability remain?
With the original landlord and tenant for the full duration of the lease term
Who is liable under a new lease?
Original tenant: generally obtains an automatic release from the tenant’s covenants on assignment
Original landlord: does NOT obtain an automatic release, but generally the tenant would grant this
New lease: when would there be no automatic release from a covenant?
If the assignment is an excluded assignment
Under a new lease, what type of covenants do not pass to a third party?
Covenant is expressed to be personal to each party
What is an AGA?
Guarantee by an outgoing tenant of the obligations of the incoming assignee - sometimes required as a condition of giving consent to an assignment of a new lease
What options does an AGA provide for a landlord?
Can sue the current assignee
Or the outgoing tenant
What remedy can a landlord claim if they sue a former tenant?
Remedy is limited to damages as they have no control of the premises
What remedy can a landlord claim if they sue the current assignee?
Can obtain an equitable remedy as they are in control of the land
How can a former tenant protect themselves against the default of an assignee?
Provide an indemnity - contractual obligation
