Weekly review: 10th – 14th September 2012

Contracts: formalities

An enforceable agreement to create a land contract can arise where the necessary conditions are satisfied even if some further formal agreement is envisaged. It is a question of the presence or absence of an intention to be contractually bound and sometimes the fact that a later agreement is anticipated can indicate a lack of intention to create legal relations (Tang Wai Man v Fotosky Investment Ltd).

Leases: alienation: unlawful sub-letting

An unlawful sub-tenant (where the sub-lease was granted in breach of a prohibition in the head-lease) is not a trespasser until the head-lease has been brought to an end (Zenuna Ltd v Jingdou Trading Co Ltd).

Leases: remedies: forfeiture

A lease is brought to an end by re-entry or by the issue and service of proceedings (not the issue alone) (Canas Property Co Ltd v K.L. Television Services Ltd).

Leases: surrender: surrender by operation of law

Surrender by operation of law rests on common law estoppel by representation. Where a landlord takes back possession and re-lets with the outgoing tenant’s consent there is a surrender by operation of law (Nickells v Atherstone).

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