Assignment Flashcards
(12 cards)
What is the effect of an absolute covenant against assignment?
A. Assignment is entirely prohibited
B. Assignment requires landlord’s consent
C. Assignment is permitted with a guarantor
D. Assignment is automatic if rent is paid
A. Assignment is entirely prohibited
Explanation: An absolute covenant means the leaseholder cannot assign at all. This is common for part assignments.
Which statute upgrades a qualified covenant to a fully qualified one, requiring landlords to act reasonably?
A. Law of Property Act 1925
B. Landlord and Tenant Act 1927
C. Landlord and Tenant Act 1988
D. Land Registration Act 2002
B. Landlord and Tenant Act 1927
Explanation: Section 19(1)(a) of LTA 1927 upgrades qualified covenants so the landlord must act reasonably in giving or withholding consent.
What does the Landlord and Tenant Act 1988 require landlords to do when a tenant requests consent to assign?
A. Automatically approve the assignment
B. Serve a statutory notice
C. Give a decision within a reasonable time
D. Re-negotiate lease terms
C. Give a decision within a reasonable time
Explanation: Under LTA 1988, landlords must act promptly and reasonably in deciding whether to consent to assignment.
Under a new lease (post-1996), how is an outgoing tenant’s liability for future breaches handled upon assignment?
A. It continues automatically
B. It transfers to the original landlord
C. It depends on the subtenant
D. It ends unless an AGA is signed
D. It ends unless an AGA is signed
Explanation: Under LTCA 1995, the outgoing tenant is released from liability unless they enter into an Authorised Guarantee Agreement.
Martin holds a lease granted in 1994 and assigns it to Leo. Who can the landlord pursue for unpaid rent?
A. Both Martin and Leo
B. Only Martin
C. Only Leo
D. Neither, unless consent was withheld
A. Both Martin and Leo
Explanation: This is an old lease. The original tenant (Martin) remains liable under privity of contract; Leo may be liable under privity of estate.
Which of the following would be a reasonable ground for withholding consent to assignment?
A. The landlord dislikes the assignee
B. The assignee has no trading history or accounts
C. The assignee is from a competing industry
D. The premises need refurbishment
B. The assignee has no trading history or accounts
Explanation: Landlords can withhold consent if there are legitimate concerns about the assignee’s financial ability to pay rent.
Under LTCA 1995, which of the following covenants does not pass on assignment of a lease?
A. Payment of rent
B. Repair of the property
C. A covenant expressed to be personal
D. Insurance obligations
C. A covenant expressed to be personal
Explanation: Covenants explicitly stated to be personal do not transfer to the assignee under section 3(6) LTCA 1995.
A lease requires the assignee to provide a guarantor. The tenant applies to assign, but the assignee refuses to provide one. Can the landlord refuse consent?
A. No, unless the lease is an old lease
B. Yes, if the tenant offers an AGA
C. No, because that condition is void
D. Yes, as it is a valid condition under section 19(1A)
D. Yes, as it is a valid condition under section 19(1A)
Explanation: Conditions such as requiring a guarantor are valid grounds to refuse consent if clearly stated in the lease under LTA 1927 section 19(1A).
Which principle allows the current landlord and current tenant to enforce lease terms during their ownership?
A. Privity of estate
B. Privity of contract
C. Mutuality of obligation
D. Legal interest priority
A. Privity of estate
Explanation: Privity of estate exists between the current landlord and tenant and allows enforcement of covenants that “touch and concern” the land.
A tenant assigns their lease and signs an AGA. The assignee later assigns to someone else. What happens to the AGA?
A. It becomes binding on the new assignee
B. It falls away
C. It transfers to the landlord
D. It converts into a guarantee covenant
B. It falls away
Explanation: The AGA only covers the immediate assignee. Once that assignee assigns the lease, the outgoing tenant’s AGA obligations end.
What is the primary legal effect of a lease assignment?
A. The lease ends and a new lease is granted
B. The rent amount changes
C. The assignee becomes the tenant and takes on tenant obligations
D. The lease becomes voidable by the landlord
C. The assignee becomes the tenant and takes on tenant obligations
Explanation: Assignment transfers the lease to the new tenant, who steps into the assignor’s shoes and becomes responsible for rent and covenants.
Which of the following would not be a reasonable refusal of assignment consent by the landlord?
A. Assignee’s use conflicts with lease
B. Tenant has rent arrears
C. Assignee refuses to sign direct covenant
D. Landlord prefers to lease to a different type of business
D. Landlord prefers to lease to a different type of business
Explanation: Personal preference alone is not a valid reason to withhold consent. Refusals must relate to the landlord-tenant relationship.
