Covenants and Leases

Flashcards covering the definitions, types, nature, and factors of covenants in lease agreements as discussed in the lecture.

What are covenants in the context of a lease?

Covenants are basically promises made by either the landlord to the tenant or vice versa in respect of the demised premises; they can also be undertakings or obligations.

What is the difference between positive and negative (restrictive) covenants?

Positive covenants stipulate the performance of an act or payment of money, while negative or restrictive covenants forbid doing an act or acts.

What factors guide the choice of covenants to be inserted in a lease?

The type of lease, nature of the property, relationship between the parties, practices within the jurisdiction, and trade usages.

What are the three categories of covenants in a lease mentioned in the lecture?

Usual covenants, implied covenants, and express covenants.

How are usual covenants defined?

They are proper and common covenants that exist naturally between the landlord and the tenant, inserted in the lease based on presented facts or evidence.

Who determines what amounts to a 'usual' covenant?

Determined by the court.

What standard must usual covenants meet to be valid?

They must be reasonable and pass the test of a reasonable man on the streets.

Name the factors that determine the inclusion of usual covenants in a lease.

Judicial interpretation, purpose and usage of the property, custom of the locality, type of lease (short versus long term), and nature of the property.

Give examples of usual covenants.

Covenant of quiet enjoyment, payment of rent, payments of rates and taxes, delivering up the property in a good state, and allowing the lessor to enter and view the state of repairs.

What are implied covenants?

Covenants which the law will imply and enforce into the agreement as a result of the landlord or tenant relationship, even if they are not expressly provided for in the lease agreement.

List the essential implied covenants for a tenant.

Not to commit waste of the property, to pay rates and taxes chargeable to a tenant (e.g., electricity, water), and to use the premises in a tenant-like manner.

What are the essential implied covenants for a landlord?

To give quiet enjoyment to the tenant, that the property is fit for use and habitation, and non-derogation from grant.