Lease Unit 7.pdf - LEASE Unit 7 Renewal of lease contract 1 Common law \u2022 Renewal of a lease takes place when immediately upon the expiration of the

Lease Unit 7.pdf - LEASE Unit 7 Renewal of lease contract 1...

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LEASE Unit 7: Renewal of lease contract
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1. Common law Renewal of a lease takes place when immediately upon the expiration of the lease - the lessee continues to hire the same property from the same lessor (tacit). Renewal takes places expressly, pre-emptive right is exercised ito an express clause in the lease contract. Although the parties and the subject matter must be the same for renewal, but the terms of the original agreement may be varied. [Note: terms may vary because Renewal of Lease brings about a new lease and is not a continuation of the old lease.] An agreement to renew the lease contract between the parties may be reached expressly or tacitly. Pre-emptive right
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Types of renewal 1.1) EXPRESS RENEWAL : This form of renewal is commonly effected by the exercise of an option to renew that is granted in favour of the lessee in the form of an express lease clause, or by a separate contract entered into during the currency of the lease known as an option agreement. The offer/option to renew is completed by the acceptance/exercise of the option, so that
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