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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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<strong>the</strong> courts’ desire in <strong>the</strong> past to prevent legislati<strong>on</strong> designed to protecttenants from being easily circumvented by “sham” agreements draftedby <strong>on</strong>e party <strong>and</strong> forced <strong>on</strong> <strong>the</strong> o<strong>the</strong>r <strong>on</strong> a “take it or leave it” basis.But <strong>the</strong>re must surely be some evidence in <strong>the</strong> particular case tosuggest that such unfair advantage is being taken, or that a party isbeing deprived <strong>of</strong> rights which could be reas<strong>on</strong>ably expected to arise.In circumstances such as existed in <strong>the</strong> Smith case it is difficult to seethat any such evidence existed; indeed, <strong>the</strong> evidence quite clearlysuggested o<strong>the</strong>rwise. The Commissi<strong>on</strong> provisi<strong>on</strong>ally recommends thatnew statutory guidelines should require <strong>the</strong> courts to give effect to <strong>the</strong>express provisi<strong>on</strong>s <strong>of</strong> documents relating to <strong>the</strong> occupati<strong>on</strong> or use <strong>of</strong>l<strong>and</strong>, provided each <strong>of</strong> <strong>the</strong> parties has had <strong>the</strong> benefit <strong>of</strong> independentlegal advice. If such advice has been received, <strong>the</strong>re seems no reas<strong>on</strong>to distinguish between different categories <strong>of</strong> occupati<strong>on</strong>, such asresidential <strong>and</strong> commercial. Where, however, no such advice hasbeen received, it should remain open to <strong>the</strong> court to disregard <strong>the</strong>terms <strong>of</strong> <strong>the</strong> agreement, but <strong>on</strong>ly if <strong>the</strong> evidence before it establishesthat it does not reflect accurately what all <strong>the</strong> parties intended.1.32 The questi<strong>on</strong> remains whe<strong>the</strong>r <strong>the</strong> statutory guidelinesshould go fur<strong>the</strong>r than what is proposed in <strong>the</strong> previous paragraph <strong>and</strong>earlier paragraphs. 127 For example, taking into account <strong>the</strong> guidanceprovided by <strong>the</strong> case law, 128 <strong>the</strong> legislati<strong>on</strong> might raise a presumpti<strong>on</strong>that a tenancy has been created wherever a party is granted exclusivepossessi<strong>on</strong> <strong>of</strong> l<strong>and</strong> in return for payment <strong>of</strong> rent or some o<strong>the</strong>r form <strong>of</strong>c<strong>on</strong>siderati<strong>on</strong>, but that this would be rebutted by evidence establishing(for example) that –(i) The parties had no intenti<strong>on</strong> to create legal relati<strong>on</strong>s; or(ii) The grant was made as an act <strong>of</strong> kindness, friendship orsimilar motive; or(iii) The grant was pers<strong>on</strong>al to <strong>the</strong> grantee; or(iv) A special relati<strong>on</strong>ship between <strong>the</strong> parties or specialcircumstances relating to <strong>the</strong>m or <strong>the</strong> l<strong>and</strong> or to <strong>the</strong>127128Ie paragraphs 1.20, 1.23, 1.24 <strong>and</strong> 1.25 above.See Wylie Irish <strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong> <strong>Law</strong> (2 nd ed Butterworths 1998)Chapter 2.30

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