LAW OF LEASE LCSP4814 UNIT 4 SUBLETTING CESSION ASSIGNMENT
1 . SUBLETTING: • Definition Sublease by W.E. Cooper: a contract whereby a lessee lets(rents out) property which he has hired . Such a contract (in which the lessee is the lessor and the sub-lessee the lessee) has the same elements and gives rise to the same rights and obligations as a lease. • If the parties did not agree otherwise in their contract, the lessee is entitled to sublet anything that has been let . There is an exception to this rule in respect of rural tenements which requires the lessor’s prior written consent . In terms of the Placaetten of 26 September 1658. Furthermore, the proposed sub-lessee must NOT be a person to whom the original lessor could reasonably OBJECT . [ Practice note: “Lessor shall NOT unreasonably withhold consent” – refusal cannot be on a personal ground of the lessor] • A sublease does not create any contractual relationship whatsoever between the ORIGINAL LESSOR and the SUB-LESSEE . Because the sub-lessee’s continued occupation of the property is dependant on the original lessee’s title to the property , once the original lease is terminated, the sub-lessee can be EVICTED , subject to the statutory protection of PIE . [Practice note: “Head lease”] • SUBLETTING in breach of a prohibition is a material breach of the terms of the lease and entitles the lessor to terminate the lease even in the absence of a cancellation clause.
2. CESSION: • The effect of a cession is that the lessee ceases to be the lessor’s creditor , and the cessionary steps into the shoes of the lessee as the creditor of the lessor . In other words the lessee (cedent) transfers the rights he has against the lessor to the cessionary but since only rights and no obligations are transferred by cession, the cessionary does not become debtor in the place of the lessee. The lessee thus retains his obligations in terms of the lease.
- Fall '18
- Contract Law, Lessor