Covenants Against Assignment and Subletting

Flashcards covering express covenants in leases, focusing specifically on assignment and subletting, legal principles in Lagos State, and the types of bars against subletting.

What are some common types of express covenants mentioned in the lecture?

Covenants of repair, covenants of use, covenants of rent, covenants to pay rates and outgoings, and covenants for renewal of lease.

What is prohibited by the covenant against assignments and subletting?

The express voluntary willful intention to assign or sublet the property.

Why is the covenant against assignment and subletting important for the landlord?

It ensures the landlord is in control of the tenants occupying the premises.

What is the general principle regarding a tenant's right to assign or sublet in the absence of a specific provision?

A tenant has unrestricted rights to assign the tenancy or create subtenancies.

Which case established the general principle of unrestricted rights to sublet?

Keves versus Dean

How does the tenancy law of Lagos State treat cases where the agreement is silent on subletting?

It expressly prohibits a tenant from assigning or subletting any part of the demised premises without the landlord's consent, even when the agreement is silent.

What does a covenant against subletting and assignment specifically protect?

The reversionary rights or reversionary interest of the lessor.

Which case supports the protection of the lessor's reversionary interest regarding assignment?

Inuwada versus Thomas Brine

What does a 'silent bar' mean in the context of a lease agreement?

It occurs where the lease is silent as to the right of a tenant to assign or sublet the property.

According to Section 7 sub 6 of the tenancy laws of Lagos State, what is required if a lease is silent?

The tenant is automatically prohibited from assigning or subletting any part of the demised premises without the landlord's consent.

What is the definition of an 'absolute bar' in a lease?

A restriction where the lessee cannot sublet any part of the property.

Why is the clause 'Tenants shall not assign or part with possession' considered incomplete for an absolute bar?

The tenant may still charge his interest in the property, and in the event of default, the chargee may take possession.

What is the proper wording for a comprehensive absolute bar clause?

"Tenant covenants not to assign, under let, charge or part with possession of the premises."

If a tenant allows a licensee to use the premises, does it constitute a breach of the covenant against assignment?

No, allowing a licensee to use the premises does not amount to a breach of the covenant not to assign or sublet.

What must occur for a tenant to be in breach of an absolute bar regarding the premises?

The tenant must part with possession, not just occupation.

Which case established that allowing other persons into the premises while the lessee remains in possession is not a breach?

Ishola Williams versus T. A. Hammond project

Which actions are explicitly excluded from being considered a breach of an absolute bar?

Assignments by transmission or operation of law, a declaration of trust in favor of a third party, and an equitable mortgage by mere deposit of title deeds.