Chapter 10 Scenario questions

. Amil is the freehold owner of a business site comprising several units. In 1990 he leased unit 1 to Brian on a ten-year lease created by deed. The conveyance contained covenants that Brian would not sublet the property or assign his interest without Amil's consent and that the property would not be used for the preparation of food. Four years later, Brian sublet the property to Cherry who herself then sublet to Darren. Subsequently, Amil sold the whole site to Ewan who began manufacturing food on the site. What is the position as regards enforceability of the leasehold covenants in this pre-LTCA 1995 scenario? Select one of the following.

There is no privity of estate between Ewan and Cherry so Ewan cannot sue Cherry for the breaches of covenant.

Even if there had been privity of estate, Ewan could not enforce the covenant against Cherry.

There is privity of estate between Ewan and Cherry, though not between Ewan and Darren. This means that Ewan can sue Cherry for her breach of covenant.

There is privity of estate between Ewan, Cherry and Darren so Ewan can sue both Cherry and Darren.

. In 2010, Felix granted an eight-year lease over a plot of land to Ge. Ge covenanted not to use the land for the purpose of any business or trade. Ge is made an offer he cannot refuse and assigns his lease to BlingFonz Ltd which begins trading from the land. What is the position as regards enforceability of the leasehold covenant in this LTCA 1995 scenario? Select one of the following.

Ge, as an original tenant and having given up possession of the land, is not liable under the covenant; however, Blingfonz Ltd, as assignee of the lease, is subject to the burden of the covenant and can be sued by Felix for the breach.

Ge as an original tenant, despite, having given up possession of the land remains liable under the covenant under the LTCA 1995; Blingfonz Ltd is not subject to the burden of the covenant and can be sued by Felix for the breach.

Ge as an original tenant and having retained possession of the land is liable under the covenant; however, Blingfonz Ltd, as assignee of the lease, is also subject to the burden of the covenant and can be sued by Felix for the breach.

Ge as an original tenant, despite, having given up possession of the land remains liable under the covenant under the LTCA 1995; Blingfonz Ltd is also subject to the burden of the covenant and can be sued by Felix for the breach.

. Hank grants a seven-year lease to Ingrid of a commercial unit in a shopping centre. The lease contains a covenant against illegal or immoral user. In breach of this covenant, Ingrid uses the commercial unit for the purposes of selling drugs and prostitution. Hank seeks your advice as to her legal position. Which one of the following most accurately describes Hank's options faced with this breach of a leasehold covenant?

Hank should telephone the police and leave the matter to the criminal process and the criminal courts.

Hank should bring an action for damages for loss caused by the drug selling.

Hank should serve on Ingrid a s. 146 notice detailing the breach, seek compensation and asking Ingrid to remedy the breach within seven days.

Hank should serve on Ingrid a s. 146 notice detailing the breach, seeking compensation, informing Ingrid that this breach is incapable of remedy, and proceed to forfeit the lease.

. Jay granted a lease to Kim which, as is commonplace, contained a covenant requiring that Kim keep up with the rental payments and not fall into arrears. In breach of this covenant, Kim stopped paying rent and is now three months in arrears. Jay wants to forfeit the lease for non-payment. What steps must Jay take to do this? Which one of the following most accurately sets out the steps Jay must take?

Jay must issue a small claims application in the county court for recovery of the sums due.

Jay must serve a s. 146 notice, specifying the breach, seeking compensation and giving Kim a reasonable time to remedy the breach.

Jay must make a formal demand for payment, then issue possession proceedings in the county court to forfeit the lease (subject to Kim's seeking relief under the County Courts Act 1984 or under the court's inherent jurisdiction).

Given the significant arrears that have been amassed, Jay need not serve a formal demand for payment and can move immediately to initiate possession proceedings in the county court to forfeit the lease (subject to Kim's seeking relief under the County Courts Act 1984 or under the court's inherent jurisdiction).

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