In the case of assigning a lease the effect is to

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Unformatted text preview: hat was originally caused by wear and tear from producing results altogether beyond what was so caused. Can a lease be assigned (transferred)? The general rule is that liabilities under a contract cannot be assigned. However, they may be assigned with the consent of the other party to the original contract (the party who is not the assignor). If consent is given, the assignment becomes a tripartite agreement; the contract between the original two parties is rescinded in consideration of a new contract being entered into on the same terms and between one of the original parties and the third party. In the case of assigning a lease, the effect is to release the assignor from their obligations under the original contract and to impose them on the new party, the assignee. Assignment must be distinguished from sub-letting. If a tenant transfers the whole of their interest under a leasing agreement, the result amounts to an assignment. But if the intention is to create a sub-letting, some reversion of the te...
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This document was uploaded on 04/23/2012.

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