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Forfeiture Leases Model Answer Notes

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Forfeiture Clause 7 - Landlord can forfeit (enter Premises and end lease), and not breach any of his covenants in the process, in these circumstances:

Rent is outstanding for 20 working days days (Clause 7.1)

Tenant or Guarantor breach any of the covenants (Clause 7.2)

(Clause 7.3.1) Guarantor or Tenant has an Administration Order against him

(Clause 7.3.2) Court makes winding up order against Tenant or Guarantor

(Clause 7.3.3) A receiver on Admin receiver or manag. receiver is appointed against

(Clause 7.3.4) Is struck out of the Register of Co.s

(Clause 7.3.5) is unable to pay its debts under section 123 of Insolvency Act 1986


What is the rent?

NOTICE (Clause 8 (8.1 in writing; 8.2 served at registered office; 8.3.1 personally; 8.3.2 if by post If Mini Mee breaches rent covenant - based on p330 flowchart deemed served on 3rd working day)


Clause 1.1 (Definitions) - "Principal Rent"  Clause 3 The "Rent" and "VAT"


Clause 4.4 exclusive of VAT

Any payment or consideration to LL is

Forfeiture clause covering non-payment of rent? - Yes. Clause 7

Formal demand necessary? - No. Clause 7.1 ("whether or not formally demanded")

Mini Mee has failed to pay - Peaceful re-entry (Clause 7.5) - ends lease

If Mini Mee pays in arrears and asks Landlord for relief, Chloe has to apply to court to carry on with the same lease. If relief is granted by Landlord without an application to the court, a new lease is created


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