Chapter 14 Self-test questions

. In 2017, Loran leased a shop to Tarquin for ten years at £10,000 per annum rent. There is no 'break clause' in the lease. Tarquin is finding that business is not quite as good as he expected, and he wants to give up the lease to avoid further liability for the rent. How can he achieve this?

Just close down and walk away.

Negotiate a 'surrender' with his landlord (i.e. terminate the lease by agreement).

Say that the lease has been 'frustrated'.

Give six months' notice to terminate the lease.

. A lease of which of the following types of property cannot be forfeited by peaceable re-entry?

A dwelling house which has clearly been abandoned by the former tenant.

A dwelling house which is still lived in.

A factory still in use.

A shop still open for business during normal hours.

. Which of the following actions is not a 'waiver' of the right to forfeit for a particular breach of covenant?

'Distraining' (i.e. seizing the tenant's goods) to cover rent arrears arising prior to the breach, giving rise to the forfeiture claim.

Accepting a payment of rent arrears, where the arrears relate only to a period prior to the breach, giving rise to the forfeiture claim.

Deliberately sending out a rent demand for rent for a period which comes after the date of the breach, giving rise to the forfeiture claim.

An employee mistakenly sending out a rent demand for rent for a period which comes after the date of the breach giving rise to the forfeiture claim.

. A landlord takes court proceedings to forfeit for non-payment of the rent. The tenant belatedly clears off the arrears of rent and the judge grants relief from forfeiture. Who pays the costs of the court proceedings?

The landlord, as he in effect 'lost' his claim for forfeiture.

The tenant pays the costs, as this will be a condition of his being granted relief.

As the case in effect ended in a 'draw', the costs will be met out of public funds.

As the case in effect ended in a 'draw', the costs are split 50-50 between the parties.

. A landlord keen to forfeit a lease has physically repossessed the property. In what circumstances can a court still grant relief from forfeiture to a head lessee under s.146 LPA 1925?

When the forfeiture is for non-payment of rent.

When the forfeiture has been achieved by peaceable re-entry.

When the forfeiture has been achieved by the landlord obtaining and executing a court order for possession.

In any circumstances when the court thinks it just to grant relief.

. A landlord serves a section 146 notice on a tenant which is not correctly drafted, as it does not give details of the alleged disrepair. The landlord then commences court proceedings for possession. What will the court decide?

The possession proceedings are valid, but the fact that the notice was defective will be a factor in the favour of the tenant if the tenant asks for relief.

The defectively drafted notice is of no effect. The court proceedings must be dismissed, and the landlord must start all over again.

The defectively drafted notice is nevertheless effective, and the defect has no impact on the court proceedings.

The court has discretion whether to allow the proceedings to continue, or to strike them out.

. On the current state of authorities, which of the following breaches of covenant is not capable of remedy?

A breach of covenant against assigning the lease.

Illegal use by a sub-tenant, where the landlord wishes to forfeit the head lease.

Breach of a covenant to reconstruct the premises by an agreed date.

Breach of covenant to keep the premises in repair.

. Leonard has leased a house to Terri. Terri has used the house for illegal drug dealing. The lease contains a forfeiture clause, and Leonard yesterday served a correctly drafted section 146 notice. He is anxious to issue his claim form for possession as soon as possible. When is the earliest he can issue the claim form?

Today.

In a fortnight's time.

In three months' time.

In six months' time.

. If the breach of covenant giving rise to the right to forfeit is illegal use (e.g. running a brothel), when can the court grant relief from forfeiture?

It can never grant relief.

It will only grant relief if the illegal use was by a sub-tenant, and it is the head tenant who is claiming relief.

Relief is at the court's discretion, taking into account all the circumstances.

It will refuse relief if the tenant gets a custodial sentence, but grant relief if he gets a non-custodial sentence.

. In 2002, Lavinia leased two adjoining fields, East Fields and West Field, to Topos for 60 years. In 2015, Topos sub-let East Field to Sasha for 40 years.
Lavinia is now forfeiting the head lease for arrears of rent. Topos is not contesting the forfeiture. Sasha is seeking relief under section 146(4) LPA 1925. What form should that relief take?

Grant a new head lease to Sasha of both East and West Fields, the lease to run out in 2062.

Grant a new head lease to Sasha of both East and West Fields, the lease to run out in 2063.

Grant a new lease to Sasha of East Field only, the lease to run out in 2063.

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