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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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premises, <strong>the</strong> alternative <strong>of</strong> a new lease just for <strong>the</strong> additi<strong>on</strong> may bevery unsatisfactory, because <strong>the</strong> l<strong>and</strong>lord <strong>and</strong> tenant will <strong>the</strong>n have tooperate two leases in respect <strong>of</strong> what is meant to be <strong>on</strong>e holding.2.24 The law <strong>on</strong> this subject is somewhat c<strong>on</strong>fusing. 80 TheEnglish courts seem to have been more inclined to c<strong>on</strong>strue suchvariati<strong>on</strong>s as amounting to a surrender by act <strong>and</strong> operati<strong>on</strong> <strong>of</strong> law <strong>and</strong>requiring a regrant <strong>of</strong> a new tenancy to incorporate <strong>the</strong> variati<strong>on</strong>. 81The Irish courts have tended to take a more pragmatic view. Forexample, <strong>the</strong>y have held that rent reviews or variati<strong>on</strong>s (such as anabatement <strong>of</strong> rent) do not effect a surrender. 82 They have also heldthat surrender does not necessarily occur where <strong>the</strong> demised premisesare enlarged or diminished 83 or o<strong>the</strong>rwise altered. 84 The Commissi<strong>on</strong>takes <strong>the</strong> view that such a pragmatic approach is sensible <strong>and</strong> inaccord with what <strong>the</strong> parties will usually wish. However, it alsoc<strong>on</strong>cedes that <strong>the</strong>re may be more fundamental variati<strong>on</strong>s which,arguably, should involve a surrender <strong>and</strong> regrant <strong>of</strong> a new tenancy toreflect <strong>the</strong> variati<strong>on</strong>. This is where <strong>the</strong> transacti<strong>on</strong> involves <strong>the</strong>l<strong>and</strong>lord in a new demise or grant which should be carried out by <strong>the</strong>surrender <strong>of</strong> <strong>the</strong> old tenancy <strong>and</strong> a grant <strong>of</strong> <strong>the</strong> new <strong>on</strong>e. The typicalexample is where <strong>the</strong> term <strong>of</strong> <strong>the</strong> tenancy is being extended. 85 On <strong>the</strong>o<strong>the</strong>r h<strong>and</strong>, given that Irish law is founded <strong>on</strong> <strong>the</strong> parties’ agreement,<strong>and</strong> that <strong>the</strong> parties’ intenti<strong>on</strong> is paramount, 86 it may be argued that<strong>the</strong>y should be free to make any kind <strong>of</strong> variati<strong>on</strong> to <strong>the</strong> tenancywithout having to suffer a surrender <strong>and</strong> regrant. The Commissi<strong>on</strong>provisi<strong>on</strong>ally recommends that <strong>the</strong> law governing <strong>the</strong> effect <strong>of</strong>variati<strong>on</strong>s <strong>of</strong> tenancies should be clarified, to make it clear that,80818283848586See Dowling “Variati<strong>on</strong> <strong>of</strong> Lease or New Tenancy” [1995] C<strong>on</strong>v 124.See Fredco Estates Ltd v Bryant [1961] 1 All ER 34; Jenkin R Lewis &S<strong>on</strong> Ltd v Kerman [1970] 3 All ER 414; Friends Provident Life Office vBritish Railways Board [1996] 1 All ER 336.Clarke v Moore (1844) 7 Ir Eq R 515, 518 (per Sudgen LC). See alsoLord Inchiquin v Ly<strong>on</strong>s (1887) 20 LR Ir 474; Watt v Marquis <strong>of</strong>Clanricarde (1896) 30 ILTR 128.Curoe v Gord<strong>on</strong> (1892) 26 ILTR 95; Thoms<strong>on</strong> v Hagan [1906] 1 IR 1.Walsh v Hendr<strong>on</strong> Bros (Dublin) Ltd (1947) 82 ILTR 64.See Re Savile Settled Estate [1931] 2 Ch 210; Baker v Merckel [1960] 1QB 657.See Chapter 1 above.49

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