Professional Documents
Culture Documents
Leasehold Forfeiture
Leasehold Forfeiture
Express Right
● First obstacle - prove that you have the power to forfeit (not automatic power)
○ Express or implied
○ Clause 4a - This agreement shall absolutely cease but without prejudice to any right
of action of the Landlord in respect of any outstanding breach
■ Tenant can only sue for breaches before the termination of agreement
■ Can only forfeit if any of the events took place
● Bankruptcy - preservation of property
○ What if company goes into voluntary liquidation e.g.
amalgamation or reconstruction → It’s alright
● No performance of covenants
● Non-payment of rent for at least two months
● If all these happened, it’d be LAWFUL for the landlord to RE-
ENTER the premises and the agreement will cease and determine
without prejudice to other remedies
■ Look out for ‘whether legally or formally demanded’ → if such term existed,
no notice has to be given
● IF absence of this clause, may rely on the implied right
IMPLIED RIGHT
● Agmt must enter on or after 27 Dec 2002
● Part IV LT(C )O
● Domestic letting
● 4 Grounds
○ Non payment of rent within 15 days of the due date
○ Using the premise for illegal or immoral purposes
○ Causing annoyance disturbance
○ Making structural alterations