Chapter 12 Self-test questions

. Lax PLC leases a small factory to Tot Ltd for ten years. The only clause in the lease relating to repairs states that Tot must keep the INTERIOR of the building in good repair. Nothing is said about the exterior structure (roofs, walls etc.). Who is, in principle, liable to repair a defective exterior wall?

Neither of the parties.

Tot Ltd

Lax PLC

Both parties are liable equally.

. Raj has a six year lease of the house he lives in. Yesterday, some tiles flew off the roof. What is his BEST course of action?

DO the repairs himself, as he is liable.

Immediately tell the landlord; if he does nothing, take legal proceedings.

Immediately tell the landlord; if he does nothing, either take legal proceedings or put the repairs out to tender and deduct the cost from future instalments of rent.

Immediately issue a claim form against the Landlord.

. Reena has a six year lease of Baroque Cottage, which was a beautiful building. Last month a lorry crashed into the front wall, spoiling the appearance of the building and making it unsafe for Reena to live there. She is paying for temporary alternative accommodation.
The Landlords X Ltd, know of the damage, but have written to Reena saying 'We are doing nothing – we want to demolish and redevelop'. Reena wants to be able to resume living in Baroque Cottage.
What is her BEST course of action?

Sue for specific performance of the landlord's repairing obligation.

Sue for damages.

Sue the local authority.

Sue for both specific performance and damages.

. In December 1996, Teresa took a twenty year lease of Sky House, a detached property in what was then quite a high class suburb. The area has gone very downmarket over the last twenty years.
Most buildings, including Sky House, are in poor condition and in visible need of repair.
It is now early 2017. Repairing Sky House to the 1996 standard would be very expensive. Teresa covenanted to keep Sky house 'in good repair', and there was no exception for 'wear and tear'. What is Teresa's position at the end of the lease in December 2017?

She is under no liability.

She must repair the property to the standards of the 1996 suburb.

She should do minimal repairs to ensure that the house is safe.

She must repair the property to the standard of the 2017 'downmarket' suburb.

. Lariq is letting Green Farm to Tobias for twenty years. He wants to ensure that the rent keeps in line with land values in the area, which he expects will increase. What special clause does he put in the lease?

A clause index-linking the rent to the Retail Prices Index.

A clause providing for a rent review, if necessary by an arbitrator, every five years.

A clause for providing for a rent review, if necessary by an arbitrator, every two years.

A clause providing that the rent should increase by five per cent every year.

. In January 2006, Lawrence leased a factory in Blogtown to Terry for 20 years. The lease provided for a rent review after ten years, the 'new' rent to start from January 2017.
It is now February 2019. Lawrence suddenly realises that he has forgotten to invoke the rent review clause. (The economy in Blogtown is very strong and has defied the recent recession.)
What should Lawrence do?

Nothing; it is too late.

Check the terms of the lease to see if there is a clause making 'time of the essence' for the rent review. If there is not, immediately invoke the rent review machinery.

Try to persuade Terry he is under a moral obligation to pay a higher rent.

Whether or not there is a clause in the lease making time 'of the essence' of the rent review, immediately invoke the rent review machinery.

. In 2000, Lionel leased a house to Tariq for 25 years. The lease contains an absolute covenant against assignment. Lionel knows that Tariq wants to assign the lease to Raquel. What is the correct legal position?

The lease cannot be transferred to Raquel even though Lionel, Tariq and Raquel are all happy that that should happen.

Lionel can 'waive' the absolute covenant and that waiver must not be unreasonably withheld.

Lionel can "waive" the covenant, but it is entirely up to him, and the decision cannot be challenged in court.

The absolute covenant is void, and Tariq can go ahead and assign to Raquel without even asking permission.

. In 2009, Lennox leased Blackacre to Tarquin for 25 years. The lease included a clause, 'this lease shall not be assignable except with the landlord's consent. The landlord reserves the right to withhold his consent on any ground he sees fit'.
Lennox believes that Tarquin wants to assign the lease to Roxxi, but he has not yet been asked for his consent. What is the correct legal position?

The lease can be lawfully assigned without Tarquin even asking for consent.

The lease can be assigned, but only if Lennox consents. If Lennox refuses his consent, his veto cannot be challenged in court.

The lease can be lawfully assigned without first asking Lennox, provided either Lennox or the court later (retrospectively) gives his / its consent.

The lease can be lawfully assigned, provided Lennox is asked for his consent to an assignment, and either he agrees or he is unreasonably withholding his consent.

. In 2009, Lenny leased a house to Tomas for 25 years. The lease contains a qualified covenant against assignment. Tomas has just written to Lenny asking for permission to assign to Ronald. Lenny does not want to consent, as he considers Ronald to be responsible for the breakup of his (Lenny's) marriage. Ronald is also long term unemployed, so it is difficult to see how he can pay the rent.
How should Lenny respond to the assignment request?

Say no and give no reasons.

Say no: 'He ran off with my wife'.

Say no, 'he is unemployed and will not be able to pay the rent'.

Say no, 'he ran off with my wife, and anyway he is unemployed and will not pay the rent'.

. Same facts as in Question 9, but in addition Lenny has already written to Tomas saying, 'I veto this assignment because Ronald had an affair with my wife'. Lenny also now has proof that Ronald has a serious criminal record. Tomas and Ronald bring proceedings for a declaration that Lenny is unreasonably withholding consent, and they also seek damages for the delay in the (proposed) transaction.
What will be the result of the court case?

Lenny will win when he presents the judge with proof of Ronald's criminal record.

Lenny will win if he can prove that Ronald cannot pay the rent.

Tomas and Ronald will get a declaration but not damages.

Tomas and Ronald will each get a declaration, and damages for the delay.

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