Chapter 6 Commercial Tenancy

Question 1

In the event that the tenant abandons a commercial premises, the landlord is best advised to notify the tenant that the landlord intends to enter into possession of the premises solely to re-let on the tenant’s account:

(1) or else the doctrine of frustration will be applied to the situation.
(2) to avoid the tenant having grounds for an action in trespass.
(3) so that all of the landlord’s rights against the tenant will be preserved.
(4) because otherwise the landlord will be breaching the covenant of quiet enjoyment.

Answer 1

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Question 2

Where a commercial tenancy is expressed as lasting for a period of one year and terminating on a fixed date, how much notice must be given to terminate the tenancy?

(1) No notice is required.
(2) Thirty days’ notice is required.
(3) Six months’ notice is required.
(4) Reasonable notice is required.

Answer 2

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Question 3

A “periodic” tenancy is:

(1) a term lease.
(2) a lease for a certain period of time.
(3) a tenancy which automatically renews itself on the last day of the term for a further term of the same length until it is terminated by either party upon proper notice.
(4) a tenancy which is created in a commercial context after the entering of the lease and prior to the entering of possession by the tenant.

Answer 3

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Question 4

There are two ways to surrender a lease under a commercial tenancy. One is by an act of the parties; the other is:

(1) by operation of law.
(2) by the order of an arbitrator.
(3) by the order of the Public Trustee.
(4) not described above.

Answer 4

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Question 5

Where a landlord refuses to allow a commercial tenant to take possession of the demised premises the tenant may:

(1) get an order for specific performance.
(2) maintain an action for breach of the covenant of quiet enjoyment.
(3) sue the landlord for damages.
(4) do none of the above.

Answer 5

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Question 6

A “periodic” tenancy is:

(1) a term lease.
(2) a lease for a certain period of time.
(3) a tenancy which automatically renews itself on the last day of the term for a further term of the same length until it is terminated by either party upon proper notice.
(4) a tenancy which is created in a commercial context after the entering of the lease and prior to the entering of possession by the tenant.

Answer 6

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Question 7

There are two ways to surrender a lease under a commercial tenancy. One is by an act of the parties; the other is:

(1) by operation of law.
(2) by the order of an arbitrator.
(3) by the order of the Public Trustee.
(4) not described above.

Answer 7

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Question 8

Where a landlord refuses to allow a commercial tenant to take possession of the demised premises the tenant may:

(1) get an order for specific performance.
(2) maintain an action for breach of the covenant of quiet enjoyment.
(3) sue the landlord for damages.
(4) do none of the above.

Answer 8

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Question 9

An assignment of a commercial lease may be made by a tenant to a third party:

(1) only if there is an express provision in the lease allowing the tenant to do so.
(2) only if the tenant has a licence to do so from the landlord.
(3) only if the landlord’s consent can be implied from the course of dealings leading up to the execution of the lease.
(4) unless the tenant is specifically prevented from doing so by a covenant in the lease

Answer 9

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Question 10

With respect to commercial tenancies, the covenant of quiet enjoyment is:

(1) an implied covenant that the landlord will refrain and will cause others to refrain from making noise such that it would interfere with the conduct of the tenant’s business.
(2) an assurance that the tenant will conduct his or her business in such a manner as to obey all noise bylaws.
(3) an assurance that all unfurnished premises be fit for human habitation.
(4) an assurance to the tenant against the consequences of a defective title involving the landlord or those lawfully claiming under the landlord.

Answer 10

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Question 11

Which one of the following accurately describes the law with respect to security deposits on a commercial tenancy?

(1) Security deposits must not exceed 50% of the monthly rental.
(2) There is no limit on the amount of security deposit which may be charged.
(3) Security deposits are not permitted.
(4) Security deposits cannot exceed one month’s rent.

Answer 11

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Question 12

The most effective remedy available to a landlord when a tenant does not pay the rent in a commercial tenancy is:

(1) an injunction.
(2) a garnishing order.
(3) distress.
(4) a demand letter.

Answer 12

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Question 13

When, with respect to commercial tenancies, there is said to be an implied covenant of quiet enjoyment, it means:

(1) that the landlord will refrain and will cause others to refrain from entering into competition with the tenant’s business.
(2) that the tenant will conduct his affairs in such a manner as not to violate local noise bylaws and that, if he/she does, he/she will be liable for any fines or penalties levied.
(3) that the landlord provides assurance to the tenant against the consequence of a defective title involving the landlord or those lawfully claiming under him/her.
(4) that the landlord will ensure that all tenants conduct their affairs in such a manner as not to violate local noise bylaws.

Answer 13

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Question 14

One or more of the following statements correctly describes the law with respect to security deposits in a commercial tenancy.

A. The interest which accrues on a security deposit is always paid to the account of the landlord.
B. Return of the deposit is not a personal obligation of the landlord.
C. The amount of a security deposit may be freely negotiated between the two parties to a commercial lease.
D. Someone who purchases the property from the landlord is obligated to repay the security deposit to the tenant.

Which of the above statements is/are TRUE?

(1) All of the above are true.
(2) Only B and C are true.
(3) Only C is true.
(4) Only B, C and D are true.

Answer 14

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Question 15

The notice requirement for termination of a commercial fixed term lease is:

(1) 60 days.
(2) 120 days.
(3) dependent on the term of the lease, i.e. 1 month, 1 month’s notice; 6 months, 6 months’ notice, etc.
(4) not required because the lease automatically expires at the end of the term.

Answer 15

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Question 16

Larry owns a large gift shop. For the past eight years Marie, a jeweller, has leased an area in the back room for use as a workshop. Larry and Marie have an oral agreement that Marie will only use the workshop area during weekday mornings when the gift shop is not busy, so as not to disturb customers with the noise of her work. Marie pays $350 each month to Larry for this right. Larry has sold the shop to Theo for use as a restaurant, but he is uncertain what to do about his long-term tenant. You correctly advise Larry that:

(1) The Commercial Tenancy Act requires that “reasonable notice” of a least six months be given to Marie of Larry’s intention to terminate the tenancy.
(2) In order for Marie to enforce this agreement against Theo, it must be in writing and registered in the Land Title Office.
(3) The agreement between Larry and Marie is not enforceable against Theo because it is only a licence.
(4) The agreement is not enforceable against Larry because it does not meet the requirements of the Real Estate Services Act.

Answer 16

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Question 17

The duty to repair commercial premises:

A. is generally a landlord’s obligation unless the lease specifies otherwise.
B. is not imposed by the common law on a tenant except for an implied covenant to treat the leased premises in a tenant-like manner and to deliver up the premises as he or she found them, “wear and tear excepted”.
C. should be dealt with in writing in a lease to avoid disputes between lessee and lessor.
D. is enforceable by a court only if the lease is in writing and registered in the Land Title Office as required by the Land Title Act.

Which of the above statements is FALSE?

(1) Only B and C are false.
(2) Only A and D are false.
(3) None of the above are false.
(4) Only C is false.

Answer 17

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Question 18

Which of the following statements is TRUE?

(1) A term in a commercial lease which is contrary to the terms of the Commercial Tenancy Act is void and can only be enforced by the landlord if he has reasonable cause to do so.
(2) The implied covenant of quiet enjoyment at common law means that the tenant has a right of privacy.
(3) A tenant is usually responsible for reasonable wear and tear to the premises, unless otherwise stated in the lease.
(4) The doctrine of “interesse termini” is a common law rule stating that no estate in land passes until the tenant enters into possession of the leased premises.

Answer 18

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Question 19

An assignment of a commercial lease cannot be made by a tenant to a third party:

(1) even if there is a clause in the lease allowing the tenant to do so.
(2) if the landlord has not given his/her consent during the course of dealings prior to execution.
(3) if the tenant is specifically prevented from doing so by a clause in the lease.
(4) if the lease permits subletting of the premises.

Answer 19

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Question 20

One or more of the following statements are false. A tenancy agreement as statutorily defined:

A. usually entitles a landlord to exercise the right to distrain a tenant’s goods for arrears of rent.
B. requires a tenant to carry out all repairs and maintenance of the leased premises.
C. must always be registered in the Land Title Office to secure a tenant’s rights against subsequent owners of the leased premises.
D. must meet certain statutory requirements under the Commercial Tenancy Act of British Columbia.

Which of the above statements are FALSE?

(1) Only B is false.
(2) Only A and D are false.
(3) None of the above statements are false.
(4) All of the above statements are false.

Answer 20

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Question 21

One or more of the following statements correctly describes the law with respect to security deposits in a commercial tenancy.

A. The interest which accrues on a security deposit is always paid to the account of the landlord.
B. The interest rate on a security deposit is restricted by the federal Interest Act.
C. The amount of a security deposit may be freely negotiated between the two parties to a commercial lease.
D. Security deposits must not exceed 150% of the monthly rent as a higher amount is unconscionable and therefore illegal.

Which of the following statements is TRUE?

(1) B and C
(2) Only C
(3) B, C and D
(4) All of the above are true.

Answer 21

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Question 22

where a commercial tenancy is expressed as lasting for a period of one year and terminating on a fixed date how much notice must be given to terminate the tenancy

1. no notice is required
2. thirty days notice is required
3. 6 months notice is required
4. reasonable notice is required

Answer 22

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Question 23

which of the following statements about a commercial lease for a fixed term is/are true?

1. it automatically terminates upon expiration of the term specified in the lease
2. it may be for any specified length of time
3. it must contain a description of the commencement date and duration of its term
4. all of the above statements are true

Answer 23

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