Termination of Leases-1

Termination of Leases
KAG - FLAW 210- IMMOVABLE PROPERTY II -

TERMINATION OF LEASES 1
Grounds for termination of leases
 Expiry or effluxion of time
 Notice
 Forfeiture
 Surrender
 Merger
 Frustration?

Expiry or Effluxion of Time
 Under common law, the lessor is
entitled to automatic possession when
a lease comes to an end – time or by
reason of a condition.
 The Rent Act however puts some
restrictions on the right of the lessor to
retake possession on the expiration of a
lease.
Notice
 Where a lease makes an express provision for
termination by notice, either of the parties can
exercise that right by giving the requisite notice.
 Savage v. GIHOC[1973] 2 GLR 242
 For notices on periodic tenancies see the Court of
Appeal decision in
 Alameddine Brothers v. Paterson Zochonis & Co. Ltd
[1971] 2 GLR 403

Forfeiture
 The right of a landlord to forfeit a lease
arises at common law where
 An event which has been expressly
stipulated in the lease as terminating it has
occurred;
 The tenant has breached a condition in the
lease (subject to statutory restrictions); S. 29
(1)

Forfeiture
 The tenant has breached a covenant in a
lease which has been fortified by a forfeiture
clause. S. 29 (1)
 Sackey v. Ashong
 Bassil v. Said Raad (1958) 3 WALR 108
 Western Hardwood Enterprises Ltd. v.

West African Enterprises Ltd
 Asante v. K. Compu Services Ltd. [2001-
2002] 1 GLR 562
Forfeiture
 The lessee denies the title of the landlord.
This gives the landlord an automatic right to
forfeit the lease without any statutory
restrictions.
 Antie & Adjuwah v. Ogbo [2005-2006]
SCGLR 494
 Safo v. Badu [1977] 2 GLR 63
 Adu-Sarkodie v. Karam & Sons Ltd

[1975] 1 GLR 411
Forfeiture – Asserting the right
 Section 29 of NRCD 175:
 By action or otherwise.
 It has however been held that the

usual practice is for the lessor to
sue for recovery of possession.
 Interplast v. Bonsu [1979] GLR
285
Forfeiture – Asserting the right
 Section 29
 Notice to lessee specifying breach;
 Requiring lessee to remedy if remediable;
 Payment of reasonable compensation;
 Lessee should have knowledge of the fact that
notice has been served;
 Lessee fails to remedy breach within a
reasonable time.
 Western Hardwood Enterprises Ltd. v.
West African Enterprises Ltd [1998-99]
SCGLR 105
Forfeiture - Waiver
 The lessor may waive his right to
forfeit.
 The waiver must be related to a
particular breach and is not
continuous.
 Section 32 of NRCD 175
 The waiver may be express or implied.
Forfeiture - Relief
 The court may grant a relief against
forfeiture to a lessee or a sublessee.
 Section 30 of NRCD 175
 Section 17 (6) of Act 220
 Western Hardwood Enterprises Ltd. v. West

African Enterprises Ltd [1998-99] SCGLR 105
 Asante v. K. Compu Services Ltd. [2001-2002]
1 GLR 562 (Appau J.)
 Interplast v. Bonsu [1979] GLR 285

Surrender
Yielding up by the lessee of the
residue of the leasehold interest to
the lessor.
The leasehold interest and the
reversion thereby merges in the
landlord and the lease is
extinguished.
Merger
Union of the lease and the
reversion in the lessee.
The lease is thereby
extinguished.

Frustration???
 The general principle is that leases cannot be
frustrated.
 There is therefore the need for the parties to insure
their interests to cater for any ‘frustrating’ events.
 The parties may also put in the agreement clauses
that may lead to the suspension of obligations in
case certain unforeseen events happen.
 Iddrisu v. Attorney-General [2001-2002] 1 GLR
608
 National Carriers Ltd. v. Panalpina (Northern)
Ltd. [1981] AC 675; 1 All ER 161
Rent Act – Restrictions on
recovery of possession
 For all premises that are subject to the
Rent Act, for a Landlord to recover
possession of the leased premises, he
must, in addition to his right to
terminate under common law or any
other enactment, find an additional
ground under S. 17 of the Rent Act.
Premises subject to Rent Act
 Section 1(1) states that the Act applies to all premises in
Ghana but subject to the exceptions in section 1 (2) which
include
 Public officer being a tenant with the government as
landlord;
 Lease of bare land or lease of premises which was
demolished and another constructed within five years of
the lease;
 Tagoe v. Mobil Oil (Gh) Ltd. [2003-2005] 1 GLR 459, CA
 Concessions;
 Government buildings rented out but which have been

certified by the Minister that it yields no financial gain to
the government;
 Market stalls owned by Councils or local authorities; etc.
Grounds for recovery of
possession under the Rent Act –
section 17
 Section 17 (1) (a) – Arrears of rent for one month or more;
subject to subsection 4
 Chas-Ocloo v. Kyei (1989-90) GLRD 11
 Osekre v. Saah [1967] GLR 144
 Section 17 (1) (b) – Breach of an obligation of the tenancy

with the exception of rent;
 Dahabieh v. SA Turqui [2001-2002] 1 GLR 171 (SC)
 Section 17 (1) (c) – Nuisance by tenant or any person

residing with tenant;
 Ofori v. Arthur
 Dennis v. Agbetetei
 Mensah v. Addison [1981] GLR 784

Section 17
 Section 17 (1) (d) – Conviction for the use of or
conviction for allowing premises to be used for
immoral or illegal purpose; (d)
 Section 17 (1) (e) – Deterioration of premises
as a result of waste caused by tenant or any
person residing with tenant;
 Section 17 (1) (f) – Tenant giving notice of
intention to quit and landlord based on that
notice contracted to sell or let the premises to
another person.

Section 17
 Section 17 (1) (g) –
 Premises required by landlord for personal
occupation as a dwelling house by himself,
a member of his family or a person in his
whole time employment;
 Saka v. Lokumal [1991] 1 GLR 312
 Owusu v. Asante [1973] 2 GLR 220
 Nimako v. Archibald [1966] GLR 612
 Adu v. Clegg [1981] GLR 173
 Gbedemah v. Ofori [1991] 1 GLR 345

Section 17
 Section 17 (1) (h)
 Lease expired and the landlord reasonably
requires the premises for his own business
purposes; not less than six months’ notice in
writing to tenant of Landlord’s intention to apply
for an order for recovery of possession;
 Larbi v. Acquaah (1980) GLR 629
 Barnor v. Appah (1989-90) GLRD 38
 Allamedine v. PZ
 Dankwa v. Anokwa (1989-90) GLRD 78
 John Lawrence Chemists Ltd. v. Obeng-Ansong [1995-
96] 1 GLR 146

Section 17
 Section 17 (1) (i)
 Where tenant has ceased to be in employment of
landlord if premises was let by reason of
employment;
 Haroutunian v. Medz-Moroukian [1962] 2 GLR 94
 Ampomah v. VRA
 Section 17 (1) (j)
 Where landlord personally in occupation and let
premises substantially furnished for a term during
his absence and has returned and requires the
premises for his re-occupation.
Section 17
 Section 17 (2)
 Lease expires, tenant a statutory tenant and landlord
 Intends to pull down the premises and construct new
premises;
 Intends to remodel the premises; subject to section 18
 Requires premises to carry out a scheme of
redevelopment; not less than 6 months’ notice
 Asamoah v. Zwennes [1980] GLR 867
 Seraphim v. Pacific Stores [1974] 1 GLR 301
 Osei v. Anokye [2007-2008] SCGLR 463
 Condition that if no such redevelopment is carried out
within a reasonable time, tenant should be reinstated as a
statutory tenant;
 Duty on tenant to monitor the progress of work.
 Osei v. Anokye

Statutory Tenant
 Section 36 defines a statutory tenant as a
tenant who
 Remains in possession of premises after the
determination by any means of the tenancy and
cannot by reason of Act 220 be deprived of
possession by the Landlord; or
 On the commencement of Act 220 is in possession
of premises of which the tenant retained possession
prior to the commencement by virtue of any
enactment repealed by Act 220; or
 Is a tenant by virtue of section 17 (7)

Statutory Tenant – Rights and
Obligations
 Holds the premises as a tenant from month to month on the
same terms and conditions as the expired tenancy;
 Section 29 of Act 220
 a statutory tenant cannot therefore sublet without the prior
consent of the landlord.
 Dahabieh v. S. A. Turqui
 Dhalomal v. Puplampu
 Osekre v. Saah
 May determine the tenancy by a notice as in a monthly tenancy;
 Landlord has a right of distress for arrears of rent.
 Statutory Tenant cannot demand a premium as an inducement to
give up possession;

Offences
 Section 25 – general offences;
 Demanding or receiving more than recoverable rent;
 Demanding premium;
 Receiving more than 5% of recoverable rent for a
year as an agent;
 Demanding more for furniture, fittings or fixtures
where such articles are conditions for grant;
 Enters into any agreement with the intention of
defeating purpose of the Act;
 Fails to furnish information required to be furnished
as a LL under the Act;
Offences
 Ejecting tenant for failing to pay more than
recoverable rent;
 Failing to reinstate tenant after remodeling
premises contrary to section 18;
 Contravenes any provision of the Act.
 Charges a rent advance of more than six months
– section 25(5)
 Section 27 – inducing tenant to quit by
doing an act or refraining to do an act;
 Section 28 – demanding of premium by
statutory tenant.

Termination of Leases-1

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Termination of Leases

KAG - FLAW 210- IMMOVABLE PROPERTY II -

KAG - FLAW 210- IMMOVABLE PROPERTY II -

KAG - FLAW 210- IMMOVABLE PROPERTY II -

KAG - FLAW 210- IMMOVABLE PROPERTY II -

 Bassil v. Said Raad (1958) 3 WALR 108

 Western Hardwood Enterprises Ltd. v.

 Adu-Sarkodie v. Karam & Sons Ltd

 It has however been held that the

 Western Hardwood Enterprises Ltd. v. West

KAG - FLAW 210- IMMOVABLE PROPERTY II -

KAG - FLAW 210- IMMOVABLE PROPERTY II -

 Government buildings rented out but which have been

 Section 17 (1) (b) – Breach of an obligation of the tenancy

 Section 17 (1) (c) – Nuisance by tenant or any person

KAG - FLAW 210- IMMOVABLE PROPERTY II -

KAG - FLAW 210- IMMOVABLE PROPERTY II -

 Nimako v. Archibald [1966] GLR 612

 Adu v. Clegg [1981] GLR 173

 Gbedemah v. Ofori [1991] 1 GLR 345

KAG - FLAW 210- IMMOVABLE PROPERTY II -

KAG - FLAW 210- IMMOVABLE PROPERTY II -

KAG - FLAW 210- IMMOVABLE PROPERTY II -

KAG - FLAW 210- IMMOVABLE PROPERTY II -

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