For failure to pay rent
Proceed against T
Kitchen damage
Proceed against T1 because continuing
breach
S51 and Liability for Past breaches
Section 51 does not affect the general rules on past breaches
does not mean
that the new assignee is liable for complete breaches after transfer.
o
Neither does s 52.
See Griffith CJ in
Measures v McFadyen
; Gillies J in
Big Country.
These sections do not transfer personal obligations. The sections are contained
to matters to do with the transfer of the estate.
o
Inconsistency with touch and concern
Who is liable for what?
1.
Tenant breaches and assigns
o
For a continuing breach, assignee will be liable
o
For a complete breach, tenant will remain liable and assignee will not
be liable
o
Landlord can still sue tenant on contract after the assignment occurs
2.
Landlord breaches then assigns
o
For a continuing breach, assignee will be liable

23
o
For a complete breach, s118 applies i.e. burden of being sued goes
with reversion
3.
Landlord assigns, then tenants breaches
o
S117 applies so benefit of being able to sue tenant for breach goes
with reversionary estate
4.
Tenant breaches and then landlord assigns (
Ashmore Developments; Measures
v McFadyen; Big Country
)
5.
Landlord breaches then tenant assigns
o
Assignment does not affect tenant’s right to sue for breaches that are
complete
o
For breaches that are continuing, assignee can sue not tenant
Termination of Lease
Termination of lease law is based on circumstances where the tenant breaches
and the landlord is looking to terminate
Law of real property assumes that the landlord wants to get the freehold estate
back safely BUT this law does not take into account that the landlord might want
damages
this has been challenged especially in commercial leases
Remedies derived from contract law may apply, giving landlord access to a larger
amount of damages
Re-entry and forfeiture f
or lessee’s breach of covenant
Where a tenant breaches a covenant in the lease, and either:
o
The lease reserves the right of re-entry expressly or
Where the right is express look to the terms of the clause to
see if it is to be exercised in a particular way.
o
There is an implied statutory right (see s 85(1)(d)
CA
)
Any breach will give rise to a right of re-entry
is not
concerned with the quality of the breach
Statutory requirements for re-entry
o
Rental covenant
–
see s 85(1)(d)
–
one month in arrears (i.e. one
month behind)
o
Non-rental
–
s 85(1)(d)
–
2 months or for repair: notice to repair served
and no repair in reasonable time.

24
+ Notice under s 129(1)
CA
for non-rental clauses
specify
breach
For form of notice
Schedule 6
You cannot contract out of the requirement for notice
–
s129(10)
Service where assignment or sublease
o
Must be served on the assignee
o
No requirement to serve the notice on the assignor
o
Where there is a sublease you must serve the notice on the sub-lessor
Manner of forfeiture
o


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