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Consultation Paper on the General Law of the Landlord and Tenant

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Commissi<strong>on</strong>’s preliminary c<strong>on</strong>clusi<strong>on</strong> is that such practicalc<strong>on</strong>sequences <strong>of</strong> secti<strong>on</strong> 3 <strong>of</strong> Deasy’s Act have been beneficial <strong>and</strong> soshould be retained as part <strong>of</strong> <strong>the</strong> law in Irel<strong>and</strong>.1.13 There may have been o<strong>the</strong>r c<strong>on</strong>sequences <strong>of</strong> secti<strong>on</strong> 3 <strong>of</strong>Deasy’s Act, but <strong>the</strong>y are not so clear. One up<strong>on</strong> which <strong>the</strong>re hasbeen some c<strong>on</strong>troversy is whe<strong>the</strong>r <strong>the</strong> founding <strong>of</strong> <strong>the</strong> relati<strong>on</strong>shipup<strong>on</strong> <strong>the</strong> agreement <strong>of</strong> <strong>the</strong> parties means that principles <strong>of</strong> c<strong>on</strong>tractlaw apply. In reviewing <strong>the</strong> equivalent provisi<strong>on</strong> in that part <strong>of</strong>Canada, 47 <strong>the</strong> Ontario <strong>Law</strong> Reform Commissi<strong>on</strong> suggested that itcould be c<strong>on</strong>strued as incorporating into l<strong>and</strong>lord <strong>and</strong> tenant lawc<strong>on</strong>tractual principles hi<strong>the</strong>rto <strong>of</strong> at least doubtful applicati<strong>on</strong>. 48 Onewas <strong>the</strong> doctrine <strong>of</strong> frustrati<strong>on</strong> <strong>of</strong> c<strong>on</strong>tract which until recently wasthought not to apply to leases. 49 In more recent times <strong>the</strong> courts <strong>on</strong>both sides <strong>of</strong> <strong>the</strong> Irish Sea have come round to <strong>the</strong> view that <strong>the</strong>re isno reas<strong>on</strong>, in principle, why it should not apply. 50 Ano<strong>the</strong>r was <strong>the</strong>principle that a party to a c<strong>on</strong>tract seeking damages for breach <strong>of</strong>c<strong>on</strong>tract is obliged to mitigate <strong>the</strong> loss suffered. The traditi<strong>on</strong>al viewhas always been that a l<strong>and</strong>lord is not obliged, for example, to takeacti<strong>on</strong> to recover possessi<strong>on</strong> from a tenant in order to minimise <strong>the</strong>damage which may occur if <strong>the</strong> tenant c<strong>on</strong>tinues to ignore repairingobligati<strong>on</strong>s. 51 Perhaps <strong>the</strong> most interesting principle raised by <strong>the</strong>Ontario Commissi<strong>on</strong> was <strong>the</strong> noti<strong>on</strong> that c<strong>on</strong>tractual obligati<strong>on</strong>s are4748495051See paragraph 1.10 <strong>and</strong> footnote 33 above.Report <strong>on</strong> <strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong> <strong>Law</strong> Applicable to Residential Tenancies(1976) at 5. For fur<strong>the</strong>r discussi<strong>on</strong> <strong>of</strong> <strong>the</strong> Ontario Report see <strong>the</strong> Nor<strong>the</strong>rnIrel<strong>and</strong> L<strong>and</strong> <strong>Law</strong> Working Group’s <strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong> Discussi<strong>on</strong>Document No 3 (HMSO 1982) at 9-19 <strong>and</strong> Final Report (HMSO 1990)Volume 1 at 253-263.See <strong>the</strong> doubts expressed by Black J in Groome v Fodhla Printing Co Ltd[1943] IR 380, 413-414; note also <strong>the</strong> mixed views <strong>of</strong> <strong>the</strong> House <strong>of</strong> Lordsin Cricklewood Property & Investment Trust Ltd v Leight<strong>on</strong>s InvestmentTrust Ltd [1945] AC 221.Neville & S<strong>on</strong>s Ltd v Guardian Builders Ltd [1995] 1 ILRM 1, approving(without reference to secti<strong>on</strong> 3 <strong>of</strong> Deasy’s Act) <strong>the</strong> views <strong>of</strong> <strong>the</strong> House <strong>of</strong>Lords in Nati<strong>on</strong>al Carriers Ltd v Panalpina (Nor<strong>the</strong>rn) Ltd [1981] AC675. See fur<strong>the</strong>r <strong>on</strong> this c<strong>on</strong>tractual doctrine Clark C<strong>on</strong>tract <strong>Law</strong> inIrel<strong>and</strong> (4 th ed Round Hall Sweet & Maxwell 1998) at 439; McDermottC<strong>on</strong>tract <strong>Law</strong> (Butterworths 2001) Chapter 20.This may not apply <strong>on</strong>ce <strong>the</strong> tenancy has expired: see Watkins, James<strong>on</strong> &Pim Ltd v Stacey & Harding (1961) 95 ILTR 122.14

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