Renting Homes: The Final Report - Law Commission

Surrender and transfer
4.35 We wanted, as far as possible, to avoid the complexity of the rules relating to
surrender and transfer found in landlord and tenant law. Indeed, the principal
reason for recommending a new procedure relating to abandoned premises is the
complexity of that law and the fact that many people may think they have
abandoned their obligations under the agreement when, in law, they have not.
Thus the common law rules on surrender and transfer do not apply to occupation
contracts. Clause 152 of the Bill provides the only ways in which an occupation
contract can be ended, namely, in accordance with:
(1) terms included in the contract in accordance with part 6 of the Bill
(including fundamental terms incorporating fundamental provisions
relating to termination); or
(2) an enactment (including in particular the Rented Homes Bill and the
Consumer Protection (Distance Selling) Regulations 2000. 42
Clause 152 therefore means that other methods of ending contracts which would
otherwise have been available at common law are not available in the case of
occupation contracts.
Rescission and frustration
4.36 Nonetheless clause 152 does provide that any right of the landlord or the
contract-holder to rescind the contract (for example for misrepresentation or
duress) is not affected; nor is the operation of the law of frustration. 43
Abandonment
4.37 One issue which emerged strongly from our consultation was the lack of any
specific provision to deal with the not uncommon situation where a person who
has been occupying premises simply walks away from their contractual
obligations.
42 SI 2000 No 2334.
43 Cl 152(2).
70