Covenant of Use and User Covenants in Leases

Practice questions covering the definition, importance, legal precedents, and remedies associated with user covenants in property leases.

What is a user covenant or covenant of use?

A provision that specifies the purpose for which the lessee is to put the premises, which may be for residential, agricultural, or commercial use.

In what scenario can a tenant use a demise property for any lawful purpose, even if not originally contemplated?

The tenant can use the property for any lawful purpose when the lease is silent regarding user or the user covenant.

Which case is cited regarding a tenant's right to use property for any lawful purpose when the lease is silent?

Dawodu v. Odulaja.

What two factors should be considered in drafting a covenant to ensure it is not too restrictive?

Town planning law and the certificate of occupancy.

What was the court's holding in the case of Zard v. Saliba ($1955$-$1956$)?

The court held that building a proprietary club constituted 'trading' and was in line with the clause in the lease.

What are the primary reasons for including a covenant of use clause?

To avoid quick depreciation, protect neighbors, prevent illegal or immoral use, protect the lessor's reversionary interest, prevent nuisance, comply with town planning laws, and help the lessor control the property's purpose.

What are the three remedies available for a breach of the covenant of use?

1. Action for injunction to prevent contrary use. 2. Action for damages to compensate. 3. Action for forfeiture and reentry (if provided in the lease).

According to the transcript's draft example, what is the standard phrasing for a lessee's covenant of use?

'The lessee covenants to make use of the premises and to permit the premises to be used for the purpose of residence, commerce, agriculture only.'

Whose interest is primarily protected by the insertion of a covenant of use?

The professional interest of the landlord.