Forfeiture if within the leasing agreement there is

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Unformatted text preview: tion by surrender Surrender of a lease can arise from an agreement between the parties that the lease will terminate through surrender at law. Where an act done by one party and assented to by the other is consistent with discontinuing the lease—for example, if the tenant gives up possession of the premises, or another person is granted a lease and takes possession with the consent of the original lessee—the old tenancy is surrendered. The nature of the new tenancy or lease is immaterial in such cases. Where the premises are re-let, this is not in itself an acceptance of the tenant’s surrender. Forfeiture If, within the leasing agreement, there is no provision for re-entry on breach of a covenant, the lessor may use the penalty of forfeiture only if it can be established that the provision breached was not a mere covenant but a condition. It has been held that payment of rent is to be considered a condition rather than a mere covenant. For example, s 146 of the Property Law Act 1958 (Vic) and s 129 of the Conveyancing Act 1...
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This document was uploaded on 04/23/2012.

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