Yearly tenants have an implied obligation to use the property in a tenantlike manner

Yearly tenants have an implied obligation to use the property in a tenantlike manner. This means that if they have done anything to change the character of the property then they have a duty to reinstate.

Marsden v Edward Heyes Limited ([1927] 2 KB 1, CA (Eng)) concerned a yearly tenancy of property that included a shop and residential accommodation. The tenant removed the wall between the shop and the residential accommodation to form a larger shop. It was held that this changed the character of the property and was a breach of the yearly tenant’s obligation to use the property in a tenantlike manner. The tenant has to yield up at the end of the term property of the same character as that demised to him.

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