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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> judges <strong>of</strong> <strong>the</strong> old Exchequer Chamber 40 somewhat surprisinglytook <strong>the</strong> view that a tenancy for <strong>on</strong>e year was not less than a tenancyfrom year to year. The reas<strong>on</strong>ing <strong>of</strong> <strong>the</strong> majority has been muchcriticised by later judges 41 <strong>and</strong> <strong>the</strong> Commissi<strong>on</strong> agrees with thatcriticism. Clearly, this point should be cleared up <strong>and</strong> new legislati<strong>on</strong>should provide that a tenancy not exceeding <strong>on</strong>e year may be createdorally. At this stage <strong>the</strong> Commissi<strong>on</strong> is not c<strong>on</strong>vinced that <strong>the</strong> periodfor fixed term tenancies should be extended, 42 given that periodictenancies, whe<strong>the</strong>r yearly or for lesser successive periods, can also becreated orally <strong>and</strong> may last for l<strong>on</strong>ger than a year. 43 If <strong>the</strong> parties wishinitially to create a tenancy for a term exceeding <strong>on</strong>e year, it seemssensible to commit <strong>the</strong>ir agreement <strong>and</strong> <strong>the</strong> terms <strong>of</strong> <strong>the</strong> tenancy towriting. Fur<strong>the</strong>rmore, where it is part <strong>of</strong> <strong>the</strong> parties’ agreement that<strong>the</strong> tenant has <strong>the</strong> right to require an extensi<strong>on</strong> <strong>of</strong> <strong>the</strong> term, whichextensi<strong>on</strong> would result in <strong>the</strong> combined terms exceeding <strong>on</strong>e year, 44 itwould again seem sensible to require <strong>the</strong> agreement to be put inwriting. 45 Secti<strong>on</strong> 4 <strong>of</strong> Deasy’s Act does not deal with this point. TheCommissi<strong>on</strong> provisi<strong>on</strong>ally recommends that secti<strong>on</strong> 4 <strong>of</strong> Deasy’s Actshould be recast to provide that <strong>the</strong> following tenancies may becreated orally: (i) any periodic tenancy; (ii) any tenancy for a fixedperiod not exceeding <strong>on</strong>e year, but not a tenancy for a fixed periodwith an opti<strong>on</strong> to renew which, if exercised, would result in <strong>the</strong>combined periods exceeding <strong>on</strong>e year.39404142434445Whiteside CJ, Palles CB, Fitzgerald B <strong>and</strong> Fitzgerald J. Cf Dowse <strong>and</strong>Deasy BB <strong>and</strong> O’Brien J.The Court below (<strong>the</strong> old Court <strong>of</strong> Comm<strong>on</strong> Pleas) had taken a differentview: (1873) IR 7 CL 134 (M<strong>on</strong>ahan CJ, Morris <strong>and</strong> <strong>Law</strong>s<strong>on</strong> JJ).Within a very short time: see Brew v C<strong>on</strong>ole (1875) IR 9 CL 151. See alsoLord Arran v Wills <strong>and</strong> Ryan v Chadwick, both reported at (1883) 14 LR Ir200 (<strong>and</strong> note <strong>the</strong> report <strong>of</strong> <strong>the</strong> appeal in Ryan v Chadwick at 353);James<strong>on</strong> v Squire [1948] IR 153, 165-166 (per Black J); McGrath vTravers [1948] IR 122, 125 (per Dix<strong>on</strong> J). For discussi<strong>on</strong> <strong>of</strong> this case lawsee Wylie op cit paragraphs 5.30-32.In Engl<strong>and</strong> a tenancy not exceeding three years may be created orally:secti<strong>on</strong> 54(2) <strong>of</strong> <strong>the</strong> <strong>Law</strong> <strong>of</strong> Property Act 1925.Ie <strong>the</strong>y c<strong>on</strong>tinue for successive periods until ei<strong>the</strong>r party serves a notice toquit: see Wylie op cit paragraph 4.10 <strong>and</strong> following.Eg a tenancy for nine m<strong>on</strong>ths with an opti<strong>on</strong> to extend it for a fur<strong>the</strong>r sixm<strong>on</strong>ths.Cf secti<strong>on</strong> 54(2) <strong>of</strong> <strong>the</strong> <strong>Law</strong> <strong>of</strong> Property Act 1925.41

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