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Nature of the relationshipEulalie N. Greenaway (Ms)
Course Director
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Relationship arises in circumstances where:
a person who has an estate/interest in
real property grants or is deemed to havegranted to another an estate/interestwhich is less than that which the grantorholds
a contract exists or is deemed to be inexistence, albeit a unique form of contract
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Estate/Interest created means that:
the relationship is one of tenure and socovenants which touch and concern the land
will bind the person who has granted thelimited interest(grantor/landlord) and person towhom the interest granted (grantee/tenant)
pament of !rent" is deemed to made in respectof land resulting in rights to grantor/landlordsuch as recover of possession, distress, inapplicable #urisdictions, where rent unpaid
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grantee/tenant is estopped from deningthe grantor"s/landlord"s title and theconverse is true
concurrent estates/interests can be held inthe same land, i$e$ landlord/tenant/sub%tenant
estate/interest ends on the expir of thecontract
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&his unique contract consists of thefundamental requirements of a contractsuch as:
capacit
o'er acceptance
intention to create legal relations
consideration and
sub#ect to an statute, rights and obligations willbe determined on the agreement of the parties,common law, equit and practice$
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The unique contract cont’d:
contract confers on the grantee/tenant an
estate/interest in land, whether this exists inlaw or equit
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The unique contract cont’d:
*onfers the right to exclusive possessionof land that is either sub#ect to or can bemade subject to a denite term:
Isaac v otel de !aris "treet v #ountford
!rudential $ssurance v %ondon&esiduary 'ody
%ace v (handler
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&erm granted must be less than term heldb the lessor/landlord or sub%lessor:
%ewis v 'a)er
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The unique contract cont’d:
+ central requirement is that there must be
alwas a letting or demise of land orinterest in land:
mine, farm, house, strata/condominium,
hole in the ground
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ow is the relationship created*
+xpress a,reement: document in writing % lease,deed, other written agreement or oral agreement
Implied a,reement :
ougadeen v Ramsamoo# (-..) - 0IR 1.2
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ow is the relationship created*
$ttornment :
Expressed or implied consent to rightsbeing transferred$ 3or example, a tenantma accept being the tenant of a newlandlord b continuing to occup the leased
premises after it has been sold
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ow is the relationship created *
"tatute: e$g$ Rent Restriction legislation
+stoppel:
4eredith v 5ra
E$6$ 7ewis 8ons 7td v 4orelli
4ac9le v utting6arrison v 0ells
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ow is the relationship created*
$cts of part performance :
(onsider the -alsh v %onsdaleprinciple
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$,reement for a lease: + binding agreement for a lease is
determined b ordinar rules of law ofcontract:
&ossiter v #iller
these rules require o'er acceptance:
(hew v &ichmond ai,obin v 0ias
arvey v !ratt
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"tatute of 1rauds 2344 5678 : oral lease treated as leases at will lease for three ears or less need not be in
writing if some act of part performance and
fair mar9et rent paid$
+quity developed an exception to thestatutor requirement of writing in favour of apart who can show su9cient acts of partperformance referable to the contractalle,ed
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+ssentials of an a,reement:
must be in writin,:
;urgess v *oxorth v 7oomes
all leases of unre,istered land must be b
deed (except in ;/dos)
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leases of re,istered land for 1 ears ormore (
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4ust contain the material terms of theagreement:
◦ the parties full described
◦ the consideration , i$e$ rent
◦ the propert = full description
◦ period/duration of the tenanc
◦ signed b the part in respect of whom it will beenforced therefore both parties (part to be
charged)Timmins v #ooreland "treet !roperties
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0octrine of !art !erformance: +n oral agreement for a lease ma still be
enforeceable >art see9ing to enforce agreement must
show:
(a) a binding agreement
(b) su9cient acts of part performance
(c) such acts must be indicative of theagreement consistent with its
terms
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-hat amounts to part performance* :;rough v ettleton
Rawlinson v +mes
8teadman v 8teadman4adison v +lderson
usual remed is to order speci?c
performance to give e'ect to theagreement or damages where speci?cperfomance is not available$
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"pecic !erformance : an equitable remed, granted at court"s
discretion
the part in breach is required to performhis part of the agreement
ta9es into account conduct of the parties,whether performance is possible, e'ect oforder = hardship, unreasonableness
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0ama,es: common law remedy > breach of
contract may extend to include equitable
dama,es
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(apacity of the parties: $bsolute owner oint tenant
Tenant?in?common $liens #inors #entally disabled persons
(orporations (rown/"tate
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+xclusive !ossession: &he right to control the land and to exclude
all other persons from it, including thelandlord$
&his is a signi?cant factor that de?nes therelationship
Issac v otel de !aris"treet v #ountford
"hell #ix %td v #anchester @ara,es %tdA
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+ll relevant factors must be consideredeven where exclusive possession granted:
0ou,adeen v &amsamooj B others
"ylvester v (yrus
#or,an v $@ 5!A(A8
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8ome considerations:-$ +re the terms of the agreement consistent
with usual lease arrangementsA
1$ 0hat is the nature of the relationshipbetween the partiesA
&omany v &omany. 1acchini v 'ryson
2$ 0hat is the consideration involvedA(amount/value)
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B$ 0hether the occupant had previousloccupied the premises or has been let intopossession on account of the transactionnow in issue
$ &he capacit of the grantor to grant atenanc
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0enite !eriod:
In most cases the period is clear andde?nite but in some circumstances this mabe the issue
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Tenancies for a xed term:7ace v *handler
6aigee v Eric9son
Roman v Roman4etcalf v Edghill
!eriodic Tenancies:
*entaplo 7td$ v 4atlodge 7tdRor Robinson v &exaco *aribbean Inc$
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