Renting Homes: The Final Report - Law Commission

Fundamental terms
2.12 Fundamental provisions in the Bill are incorporated in occupation contracts as
fundamental terms. They deal with the essential rights and obligations of
landlords and contract-holders. Parts 3 to 11 of this Report discuss each of the
fundamental provisions and terms separately. Most fundamental terms can be
modified or varied, but only in favour of the contract-holder. 8
Supplementary terms
2.13 Supplementary provisions set out in delegated legislation are incorporated in
occupation contracts as supplementary terms. These deal with all the practical
matters needed to make the contract work, for example, requirements that the
occupier pays the rent and that the occupier looks after the premises and fixtures
and fittings. In this Report we include our recommendations for provisions we
think the appropriate authority should prescribe in regulations. 9 The list will not be
finalised until there has been a consultation with appropriate bodies. 10
Additional terms
2.14 There are also additional terms. These deal with specific issues that parties want
dealt with in the contract, but in relation to which there is no statutory provision.
MODIFYING AND VARYING THE CONTRACT
2.15 Although our scheme places great emphasis on the provision of model contracts,
there must be flexibility to adapt them to meet particular circumstances. The Bill
provides for two possibilities: modification and variation.
Modification
2.16 The Bill provides that the parties can agree to incorporate most fundamental
provisions, and all supplementary provisions, with modifications.
2.17 Modification of fundamental provisions relating to prohibited conduct, to the
securing of a contract by deception, to survivorship and to the death of the
contract-holder is not permitted at all. 11
8 Cls 81, 86 and 89.
9 See Appendix A for our recommendations. The appropriate authority is defined in cl 228 as
the National Assembly for Wales, in relation to Wales, and in any other case the Secretary
of State.
10 In the illustrative model contracts attached to this Report, some of the supplementary
terms correspond to matters we have recommended should be in the contracts. Others are
illustrative of the types of provision landlords and tenants currently include in secure and
assured shorthold tenancies, which are likely to become supplementary provisions
following consultation. We have included them all as supplementary terms to give readers
a better sense of what the model contracts will look like.
11 Cl 11(4).
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