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Consultation Paper on the General Law of the Landlord and Tenant

Consultation Paper on the General Law of the Landlord and Tenant

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forfeiture for breach <strong>of</strong> covenant 45 <strong>and</strong> in most cases <strong>the</strong> risk <strong>the</strong>reby<strong>of</strong> losing <strong>the</strong> premises in which <strong>the</strong> tenant runs a business is likely tomake <strong>the</strong> tenant think seriously about c<strong>on</strong>tinuing to breachobligati<strong>on</strong>s. The tenant does not really have an equivalent remedy, as<strong>the</strong> law st<strong>and</strong>s. The right <strong>of</strong> set-<strong>of</strong>f, even extended as proposed in anearlier chapter, 46 can <strong>on</strong>ly be invoked as a defence to a claim by <strong>the</strong>l<strong>and</strong>lord for arrears <strong>of</strong> rent. It also remains to be seen whe<strong>the</strong>r <strong>the</strong>Irish courts will follow <strong>the</strong> English courts in permitting tenants to“rescind” <strong>the</strong> tenancy in circumstances where <strong>the</strong> l<strong>and</strong>lord is allegedto have repudiated <strong>the</strong> agreement. 47 There are several problems aboutthis development. One is that, quite apart from <strong>the</strong> lack <strong>of</strong> Irishauthority, it is still not clear what <strong>the</strong> scope <strong>of</strong> this principle is.Ano<strong>the</strong>r is that it seems reas<strong>on</strong>ably clear that it can <strong>on</strong>ly be invokedwhere <strong>the</strong> l<strong>and</strong>lord is guilty <strong>of</strong> a very serious, if not fundamental,breach <strong>of</strong> obligati<strong>on</strong> <strong>and</strong> it is questi<strong>on</strong>able whe<strong>the</strong>r breach <strong>of</strong> arepairing obligati<strong>on</strong> would amount to this. Perhaps <strong>the</strong> biggestproblem is that <strong>the</strong> remedy, ie <strong>the</strong> right to treat <strong>on</strong>eself as dischargedfrom any fur<strong>the</strong>r performance <strong>of</strong> <strong>the</strong> tenancy, is not what <strong>the</strong> tenantwants in many, if not most, cases. The tenant does not want to giveup <strong>the</strong> tenancy; what <strong>the</strong> tenant wants is to c<strong>on</strong>tinue with itsenjoyment, but also with <strong>the</strong> l<strong>and</strong>lord carrying out his or herobligati<strong>on</strong>s.10.17 To some extent <strong>the</strong> tenant may achieve an effective remedyby invoking <strong>the</strong> provisi<strong>on</strong>s <strong>of</strong> secti<strong>on</strong> 87 <strong>of</strong> <strong>the</strong> <strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong>(Amendment) Act 1980. 48 This entitles a tenant, where <strong>the</strong> l<strong>and</strong>lordrefuses or fails to carry out repairing obligati<strong>on</strong>s despite being calledup<strong>on</strong> to do so by <strong>the</strong> tenant, to execute <strong>the</strong> repairs <strong>and</strong> <strong>the</strong>n to set <strong>of</strong>f<strong>the</strong> expenditure against <strong>the</strong> rent. 49 The problem about this remedy,which arguably could be extended to cover breaches <strong>of</strong> o<strong>the</strong>r4546474849See Chapter 14 below.See paragraphs 8.15-16 above.See paragraph 6.09 above.Like most <strong>of</strong> <strong>the</strong> 1980 Act <strong>the</strong> secti<strong>on</strong> is c<strong>on</strong>fined to “tenements”, but <strong>the</strong><str<strong>on</strong>g>C<strong>on</strong>sultati<strong>on</strong></str<strong>on</strong>g> <str<strong>on</strong>g>Paper</str<strong>on</strong>g> <strong>on</strong> Business Tenancies (LRC CP21-2003) proposedextending <strong>the</strong> Act to all tenancies: see paragraph 3.43 (c<strong>on</strong>cerning <strong>the</strong>provisi<strong>on</strong>s <strong>of</strong> Part V, which are c<strong>on</strong>fined to covenants in leases ortenancies).CP21-2003 proposed some minor amendments to secti<strong>on</strong> 87: ibidparagraph 4.55.137

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