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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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CHAPTER 2FORMALITIES2.01 This chapter is c<strong>on</strong>cerned with <strong>the</strong> various formalities which<strong>the</strong> law lays down with respect to tenancy agreements <strong>and</strong> leases.These are derived largely from statute but, before entering into adiscussi<strong>on</strong> <strong>of</strong> <strong>the</strong>m, some fundamental distincti<strong>on</strong>s must be made. 1A C<strong>on</strong>tracts <strong>and</strong> Grants2.02 It is important to distinguish between a “c<strong>on</strong>tract” for <strong>the</strong>grant at some future date <strong>of</strong> a lease or tenancy <strong>and</strong> <strong>the</strong> actual “grant”<strong>of</strong> <strong>the</strong> lease or tenancy. The former comprises simply a preliminaryagreement, whereby <strong>the</strong> l<strong>and</strong>owner (<strong>the</strong> prospective l<strong>and</strong>lord)undertakes to grant <strong>the</strong> o<strong>the</strong>r party (<strong>the</strong> prospective tenant) a lease ortenancy at some future date. That agreement does not create <strong>the</strong> legalrelati<strong>on</strong>ship <strong>of</strong> l<strong>and</strong>lord <strong>and</strong> tenant between <strong>the</strong> parties nor c<strong>on</strong>fer <strong>on</strong><strong>the</strong> prospective tenant any legal interest in <strong>the</strong> l<strong>and</strong> in questi<strong>on</strong>. Thatrelati<strong>on</strong>ship will not arise, <strong>and</strong> <strong>the</strong> prospective tenant will not acquirehis or her tenancy or leasehold interest, until <strong>the</strong> l<strong>and</strong>lord carries out<strong>the</strong> agreement <strong>and</strong> makes <strong>the</strong> fur<strong>the</strong>r grant <strong>of</strong> <strong>the</strong> lease or tenancyc<strong>on</strong>templated by <strong>the</strong> agreement. The most <strong>the</strong> prospective tenant mayacquire under <strong>the</strong> agreement is an equitable interest, under <strong>the</strong> socalledrule in Walsh v L<strong>on</strong>sdale. 22.03 The reas<strong>on</strong> why it is important to distinguish between ac<strong>on</strong>tract <strong>and</strong> grant is that it has l<strong>on</strong>g been accepted 3 that <strong>the</strong>formalities governing a c<strong>on</strong>tract for a lease or tenancy, <strong>on</strong> <strong>the</strong> <strong>on</strong>eh<strong>and</strong>, <strong>and</strong> <strong>the</strong> actual grant <strong>of</strong> <strong>the</strong> lease or tenancy are different, ie,different statutory provisi<strong>on</strong>s apply. As is explained later, 4 c<strong>on</strong>tracts1234See generally Wylie Irish <strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong> <strong>Law</strong> (2 nd ed Butterworths1998) Chapter 5.See ibid at paragraphs 15.19-23.Certainly since <strong>the</strong> decisi<strong>on</strong> in McCausl<strong>and</strong> v Murphy (1881) 9 LR Ir 9.See Sheridan, “Walsh v L<strong>on</strong>sdale in Irel<strong>and</strong>” (1952) 9 NILQ 190.Paragraph 2.06 below.33

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