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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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parties’ agreement. Fur<strong>the</strong>rmore, it should be made clear that <strong>the</strong>statutory “default” provisi<strong>on</strong>s displace <strong>the</strong> comm<strong>on</strong> law.4.12 As regards <strong>the</strong> particular provisi<strong>on</strong>s <strong>of</strong> secti<strong>on</strong> 17, a number<strong>of</strong> points may be made. One is that it relates to “pers<strong>on</strong>al chattels,engines, <strong>and</strong> machinery, <strong>and</strong> buildings accessorial <strong>the</strong>reto.” TheCommissi<strong>on</strong> is not c<strong>on</strong>vinced that it is necessary to specify <strong>the</strong>property which should be regarded as remaining in <strong>the</strong> ownership <strong>of</strong><strong>the</strong> tenant (or that <strong>of</strong> any third party from whom <strong>the</strong> tenant may haveacquired it under, eg, a hiring or leasing agreement). Arguably <strong>the</strong>statutory principle should be applicable to any property brought into<strong>the</strong> premises by <strong>the</strong> tenant, subject always to <strong>the</strong> terms <strong>of</strong> <strong>the</strong> lease ortenancy. It may even be questi<strong>on</strong>ed whe<strong>the</strong>r an excepti<strong>on</strong> should bemade for buildings or c<strong>on</strong>structi<strong>on</strong>s added by <strong>the</strong> tenant. 27 Secti<strong>on</strong> 17recognises “accessorial” buildings, <strong>and</strong> any o<strong>the</strong>r type <strong>of</strong> buildingwork would most likely be <strong>the</strong> subject <strong>of</strong> an express agreement.Apart from that, substantial buildings are not likely to be removablein practice <strong>and</strong> so ano<strong>the</strong>r way <strong>of</strong> recognising <strong>the</strong> tenant’s interestshould come into play, eg, compensati<strong>on</strong> for improvements. 284.13 Secti<strong>on</strong> 17 recognises <strong>the</strong> traditi<strong>on</strong>al categories <strong>of</strong> tenant’sfixtures, namely items installed for <strong>the</strong> purposes <strong>of</strong> trade, 29 agricultureor ornament or domestic c<strong>on</strong>venience. Again <strong>the</strong> Commissi<strong>on</strong> is notc<strong>on</strong>vinced that it is necessary or appropriate to put limits <strong>on</strong> <strong>the</strong>property which should be regarded as remaining in <strong>the</strong> ownership <strong>of</strong><strong>the</strong> tenant. As suggested in <strong>the</strong> previous paragraph <strong>the</strong> statutoryprinciple should apply to any property installed by <strong>the</strong> tenant, subjectagain to <strong>the</strong> terms <strong>of</strong> <strong>the</strong> lease or tenancy. 3027282930Note <strong>the</strong> substantial c<strong>on</strong>structi<strong>on</strong>s involved in Lombard <strong>and</strong> UlsterBanking Ltd v Kennedy [1974] NI 20 <strong>and</strong> Re Galway C<strong>on</strong>crete Ltd [1983]ILRM 402. See paragraphs 4.05-4.07 above.See Part IV <strong>of</strong> <strong>the</strong> <strong>L<strong>and</strong>lord</strong> <strong>and</strong> <strong>Tenant</strong> (Amendment) Act 1980: Wylie opcit Chapter 32. Note that <strong>the</strong> Commissi<strong>on</strong> has proposed dropping <strong>the</strong>statutory scheme (see <strong>Law</strong> Reform Commissi<strong>on</strong> <str<strong>on</strong>g>C<strong>on</strong>sultati<strong>on</strong></str<strong>on</strong>g> <str<strong>on</strong>g>Paper</str<strong>on</strong>g> <strong>on</strong>Business Tenancies (LRC CP 21–2003), paragraphs 3.38-3.40), but itwould remain open to <strong>the</strong> parties to negotiate such compensati<strong>on</strong>.The secti<strong>on</strong> adds “manufacture” but it not clear that this adds anything <strong>of</strong>substance to “trade” in <strong>the</strong> c<strong>on</strong>text <strong>of</strong> fixtures. In Re Galway C<strong>on</strong>crete Ltd[1983] ILRM 402 Keane J held that a batching plant, comprising twocement silos <strong>and</strong> two cement screw c<strong>on</strong>veyors, was a trade fixture.One <strong>of</strong> <strong>the</strong> interesting aspects <strong>of</strong> <strong>the</strong> Galway C<strong>on</strong>crete case is that it was79

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