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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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14.04 The questi<strong>on</strong> remains whe<strong>the</strong>r <strong>the</strong>re should be fur<strong>the</strong>rrestricti<strong>on</strong>s <strong>on</strong> <strong>the</strong> right <strong>of</strong> forfeiture, in particular, whe<strong>the</strong>r it shouldremain available in full force 8 in cases involving commercialpremises, effectively being, any premises not c<strong>on</strong>fined to use as adwelling. The Commissi<strong>on</strong> inclines to <strong>the</strong> view that it is a veryimportant remedy for l<strong>and</strong>lords in commercial cases <strong>and</strong> that what isneeded is legislati<strong>on</strong> to improve its effectiveness, ra<strong>the</strong>r than torestrict or abolish it. 9 The Commissi<strong>on</strong> provisi<strong>on</strong>ally recommends that<strong>the</strong> remedy <strong>of</strong> forfeiture should remain available to l<strong>and</strong>lords <strong>of</strong>properties o<strong>the</strong>r than dwellings.14.05 The discussi<strong>on</strong> in <strong>the</strong> remainder <strong>of</strong> this chapter proceeds <strong>on</strong><strong>the</strong> basis that <strong>the</strong> remedy <strong>of</strong> forfeiture will remain available tol<strong>and</strong>lords <strong>of</strong> commercial <strong>and</strong> mixed use properties. It deals withnumerous difficulties c<strong>on</strong>cerning <strong>the</strong> present law, including <strong>the</strong>procedure for effecting a forfeiture, <strong>and</strong> <strong>the</strong> rights <strong>of</strong> interestedparties.B The Right <strong>of</strong> Forfeiture14.06 The comm<strong>on</strong> law rule is that, in <strong>the</strong> absence <strong>of</strong> an expressprovisi<strong>on</strong> for forfeiture or re-entry, <strong>the</strong> right exists <strong>on</strong>ly for a breach<strong>of</strong> a “c<strong>on</strong>diti<strong>on</strong>” <strong>of</strong> <strong>the</strong> lease or tenancy. 10 It is rare nowadays toexpress obligati<strong>on</strong>s in a lease as “c<strong>on</strong>diti<strong>on</strong>s”: usually <strong>the</strong>y take <strong>the</strong>form <strong>of</strong> “covenants” <strong>and</strong> so it is important to provide expressly that<strong>the</strong> l<strong>and</strong>lord may forfeit <strong>the</strong> lease <strong>and</strong> re-enter for breach <strong>of</strong>covenant. 11 It would be helpful to practiti<strong>on</strong>ers if <strong>the</strong> rule were <strong>the</strong>reverse, ie, that <strong>the</strong> right to forfeit <strong>and</strong> re-enter for breach <strong>of</strong>obligati<strong>on</strong> applies to all tenancies (including oral <strong>on</strong>es) unless it isexcluded by statute 12 or an express provisi<strong>on</strong> in <strong>the</strong> particular lease ortenancy agreement. The Commissi<strong>on</strong> provisi<strong>on</strong>ally recommends that<strong>the</strong> right <strong>of</strong> forfeiture <strong>and</strong> re-entry should apply to any breach <strong>of</strong>89101112Apart from restricti<strong>on</strong>s where <strong>the</strong> tenant becomes insolvent: see paragraph14.03 above.Ie adopting <strong>the</strong> view ultimately reached by <strong>the</strong> English <strong>Law</strong> Commissi<strong>on</strong>:see paragraph 14.01 footnote 2 above.Doe d Henniker v Watt (1828) 8 B & C 308.Doe d Wils<strong>on</strong> v Phillips (1824) 2 Bing 13.See paragraphs 14.02-3 above.167

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