Weekly review: 17th – 21st September 2012

Leases: construction: interpretation

An ambiguity in a lease can be resolved by looking at the counterpart (Matthews v Smallwood).

Leases: remedies: distress: apparent ownership

Where a head landlord has notice that goods at the property are owned by a sub-tenant in possession then they are not in the apparent possession of the intermediate tenant (Fort Crown Investments Ltd v Tam Virginia V).

Leases: remedies: forfeiture: relief from forfeiture

Where leased property is sold under the terms of a court order that expressly preserves the parties’ rights, relief from forfeiture is available after the sale but the parties’ rights shift to the proceeds of sale (On Demand Information plc v Michael Gerson (Finance) plc).

Leases: remedies: forfeiture: relief from forfeiture

Relief against forfeiture is available ‘in appropriate and limited cases to relieve against forfeiture for breach of covenant or condition where the primary object of the bargain is to secure a stated result which can effectively be attained when the matter comes before the court, and where the forfeiture provision is added by way of security for the production of that result.’ (Shiloh Spinners Ltd v Harding Lord Wilberforce, 723)

Leases: remedies: forfeiture: waiver

‘Waiver of a right of re-entry can only occur where the lessor with knowledge of the facts upon which his right to re-enter arises does some unequivocal act recognizing the continued existence of the lease.’ (Matthews v Smallwood  786, per Parker J.)


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