Memorandum on Suitability of Precedent L...
Memorandum on Suitability of Precedent Lease and Amendments Required
To: Supervisor Solicitor
From: Legal Advisor
Subject: Draft Lease
Date: 16th June 2017.
Re: Lease Draft Legal Issues and Comments
main objective of writing this memorandum you as the company solicitor is to
provide legal comments concerning the draft lease of the business as discussed
in two workshop tasks and preparatory task.
Code of 2007
solicitor the lease code of 2009 outlines the relationship between the tenant
and landlord as far as issues relating to the leasing of business premises are
concerned. Solicitor, one of the important
clauses of the Lease Code 2007 is about rent. Solicitor, first this clause talks
about rent deposits, whereby, the landlord is supposed to state the amount of
rent deposit to be paid by a tenant and the period of payment, plus the
accruing interest, using fair rate
(Crosby and Hughes, 2009). It indicates that tenant is supposed to be
safeguarded against landlord insolvency or default. Also, solicitor, the clause
state about rent review; this should be stated clearly by the landlord in the
agreement according to the lease code of 2007.
A close look at the lease draft, solicitor, indicates that it is
compliant with issue of rental deposits as they are clearly stated, and can be
used by the landlord to make any repairs to damages caused by the tenant (Crosby and Hughes, 2009).
However, solicitor I think, the issue of rent renewal does not comply with the
lease code of 2007 as it does not provide alternative means through which the
tenant can continue doing business without interruption, if the tenant does not
agree with the rent increment. Solicitor, I believe there should be changes
made to the rent renewal clause to be compliant with law as it current stands
it is illegal. The changes should provide detail about alternatives that the
tenant have concerning issues of rent renewal in case he or she does not agree
with rent increment. The clause seems only to protect the interests of the
landlord, but ignores the interests of the tenant, therefore it should be
changed to reflect the interests of both landlord and tenant as far as issue of
rent renewal is concerned.
solicitor, when it comes to the repair clause, it states that tenant repair
obligations should only be limited to the lease term and the premises condition
at the time of lease. Also, unless clearly stated otherwise, the tenant are
supposed to give back the premise at the expiry of the lease within the similar
condition the acquired it during the lease grant. The tenant has an obligation
of keeping the building in good condition and repair, meaning that the premises
should be in the same condition that it was given by the landlord during the
lease grant period. The lease draft is not complaint with the lease code when
it comes to the issue of repairs, whereby, the landlord give the tenant more repairs
than required by the lease code of 2007. The tenant is only supposed to keep
the premise in good condition and repair, but does not mean to keep replacing
different facilities and appliances found in the premise. Therefore, the draft
in this case violates the lease code law of 2007. Solicitor, I think there is
need to introduce change on the repair clause as provided in the lease draft.
The change should be introduced on issues of the tenant being required to make
changes to the premise facilities and appliances, this condition is illegal.
The tenant should only be required to keep the property in good shape, as long
as it is in the same condition that it was given by the landlord. However,
requiring the tenant to make changes to some appliances after a certain period
of time is not legal. Therefore, as the solicitor I think you need to introduce
changes in the lease draft; the change should indicate that the tenant is only
obligated to make repairs to the premise appliances and facilities as long as
they are not in the same condition as during the period when the premise was
granted to the tenant at the beginning of the lease period.
the clause on the future assignment of property by the tenant indicates that it
should be done without the permission of the landlord. The draft lease is in
compliance with this clause, as clearly states that the tenant cannot lease the
property to another tenant with making a written application of the landlord
for approval. The main objective of the clause is to ensure that the property
is leased to another tenant by the current tenant in line with the landlord
condition regarding the use of the premise.
of the Tenants Repairing Covenant
the lease agreement draft has a problem when it comes to the wording of the
clause related to tenant repairs. The words requiring the tenant to make
repairs on the appliances on an annual basis is wrong. The wording is illegal
as it does not follow the principle of maintaining a premise in good condition
and repair (Dupuis, 2007).
This principle states that the tenant is only supposed to ensure that the
premise is in the same condition as when it was given by the landlord at the
start of the lease agreement unless otherwise stated in the Head Terms of the
lease covenant. Therefore, the amendment
that needs to be introduced on the covenant wording, is supposed to show that
the tenant is only required to make repairs to the appliances and other things
in the facility on annual basis; if they are not in reasonable condition compared
to when they were issued by the landlord at the start of the lease agreement.
as far as the assignment clause is concerned, the only change that can be
introduced is relating to the need of the tenant making an application to the
landlord concerning renting the premise to another tenant who is going the same
business. The tenant should not make any application as it should be assumed
that the new tenant will be complying with the same terms and conditions of the
agreement as stated in the lease agreement with the occupying tenant.
I think that the Epharesse's position as the tenant can be protected by
ensuring that he is given an opportunity to state in writing one month to the
expiry of the lease agreement where as a tenant he wants to continue using the
premise of not. According to Manuel (2009), the lease law requires a landlord
to renew the contract of the lease with tenant on request. Therefore, the
landlord cannot give the property to another tenant as long as the current
tenant is in need of the property. Thus, Epharesse's can be protected by making
sure that the covenant states that at the expiry of the lease period, he will
be at liberty of renewing the lease agreement or not and should do so in writing.