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Subletting Notes

LPC Law Notes > Commercial Property Notes

This is an extract of our Subletting document, which we sell as part of our Commercial Property Notes collection written by the top tier of Cambridge And Oxilp And College Of Law students.

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Elective: Commercial Property

Commercial Property Sub-lettings What remedies do tenants / sub-tenants have if LL is breaching a covenant?

There is NO DIRECT CONTRACT between the LL and Sub-tenant. Therefore the LL cannot be directly forced to provide a remedy to the Sub-tenant. However, in the terms of the under-lease there should be a covenant that the head tenant will enforce the LL covenants [both express & implied] under the headlease.

Key implied covenant: Landlord's covenant for quiet enjoyment -can be expressly in the lease or implied. The covenant will protect the tenant where there is a substantial interference with the tenant's use
& enjoyment of the premises. The implied covenant does not apply to superior title holder. Often a questi of fact: Owen v Gadd -[1956]
Scaffolding on pavements in front of shop which blocked access [i.e. no need to prove physical intrusion. Physical interference with enjoyment is enough]
Booth v Thomas [1926]

Flood caused by LL failure to repair

Mira v Aylmer

LL repairing the premises but caused prolonged and substantial interference [noise, dust, dirt].

Key implied Covenant: LL should not derogate from grant!
? Requires LL not to do anything which substantially interferes with the use of the premises for the purpose for which they were let. Port v Griffith [1938]
No derogation from grant where the LL use of the adjoining land merely makes the user of the premises more expensive Chartered Trust plc v It is a derogation from grant to stand back while Davies [HOL]: Tenant A, in breach of a covenant, commits acts of nuisance against Tenant B thus driving tenant B out of business. Tenant / Sub tenant should not be expected to bring his own individual action for a nuisance. T was allowed to repudiate the lease. Apply: if one tenant does something to adversely effect the common part and LL is in charge of maintaining the common parts - LL must take action or run the risk of derogating from his grant. Key express Covenant: Express covenant that T will not be a nuisance 1

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