Nature of the relationship

Eulalie N. Greenaway (Ms)

Course Director

Relationship arises in circumstances where:

a person who has an estate/interest in

real property grants or is deemed to have
granted to another an estate/interest
which is less than that which the grantor
holds

a contract exists or is deemed to be in

existence, albeit a unique form of contract

Estate/Interest created means that:

the relationship is one of tenure and so

covenants which touch and concern the land
will bind the person who has granted the
limited interest(grantor/landlord) and person to
whom the interest granted (grantee/tenant)

payment of rent is deemed to made in respect

of land resulting in rights to grantor/landlord
such as recovery of possession, distress, in
applicable jurisdictions, where rent unpaid

grantee/tenant is estopped from denying

the grantors/landlords title and the
converse is true

concurrent estates/interests can be held in

the same land, i.e. landlord/tenant/subtenant

estate/interest ends on the expiry of the

contract

This unique contract consists of the

fundamental requirements of a contract
such as:
capacity
offer & acceptance
intention to create legal relations
consideration; and
subject to any statute, rights and obligations will
be determined on the agreement of the parties,
common law, equity and practice.

The unique contract contd:

contract confers on the grantee/tenant an

estate/interest in land, whether this exists in
law or equity

The unique contract contd:

Confers the right to exclusive possession
of land that is either subject to or can be
made subject to a definite term:
Isaac v Hotel de Paris

Street v Mountford

Prudential Assurance v London

Residuary Body

Lace v Chandler

Term granted must be less than term held

by the lessor/landlord or sub-lessor:
Lewis v Baker

The unique contract contd:

A central requirement is that there must be
always a letting or demise of land or
interest in land:

mine, farm, house, strata/condominium,

hole in the ground

How is the relationship created?

Express agreement: document in writing - lease,

deed, other written agreement or oral agreement

Implied agreement :
Dougadeen v Ramsamooj (1959) 1 WIR 293

How is the relationship created?

Attornment :
Expressed or implied consent to rights
being transferred. For example, a tenant
may accept being the tenant of a new
landlord by continuing to occupy the leased
premises after it has been sold

How is the relationship created ?

Statute: e.g. Rent Restriction legislation

Estoppel:
Meredith v Gray
E.H. Lewis & Sons Ltd v Morelli
Mackley v Nutting
Harrison v Wells

How is the relationship created?

Acts of part performance :

Consider the Walsh v Lonsdale
principle

Creation of the lease is normally a two

stage process:
The agreement for a lease; and
The grant of a lease

Agreement for a lease:

A binding agreement for a lease is
determined by ordinary rules of law of
contract:
Rossiter v Miller

these rules require offer & acceptance:

Chew v Richmond
Jaigobin v Dias
Harvey v Pratt

Statute of Frauds 1677 (UK) :

oral lease treated as leases at will;
lease for three years or less need not be in
writing if some act of part performance and
fair market rent paid.
Equity developed an exception to the
statutory requirement of writing in favour of a
party who can show sufficient acts of part
performance referable to the contract
alleged

Essentials of an agreement:

must be in writing:
Burgess v Cox
North v Loomes

all leases of unregistered land must be by

deed (except in B/dos)

leases of registered land for 2 years or

more (J/ca over 1 year)

A valid legal assignment of a validly created

lease of registered land must be by deed or
instrument under hand

Must contain the material terms of the

agreement:

the parties fully described

the consideration , i.e. rent
the property full description
period/duration of the tenancy
signed by the party in respect of whom it will be
enforced; therefore both parties (party to be
charged)
Timmins v Mooreland Street Properties

Doctrine of Part Performance:

An oral agreement for a lease may still be
enforeceable
Party seeking to enforce agreement must
show:
(a) a binding agreement
(b) sufficient acts of part performance
(c)
such acts must be indicative of the
agreement & consistent with its
terms

What amounts to part performance? :

Brough v Nettleton
Rawlinson v Ames
Steadman v Steadman
Madison v Alderson

usual remedy is to order specific

performance to give effect to the
agreement or damages where specific
perfomance is not available.

Specific Performance :
an equitable remedy, granted at courts
discretion

the party in breach is required to perform

his part of the agreement

takes into account conduct of the parties,

whether performance is possible, effect of
order hardship, unreasonableness

a conflict between law and equity may

prevail:
Walsh v Lonsdale

Equity will not assist a breach by granting

specific performance:
Coatsworth v Johnson

Equity may not always assist a third party:

Metcalfe v Edgehill (1963) 5 WIR 417

Damages:
common law remedy breach of
contract
may extend to include equitable
damages

Capacity of the parties:

Absolute owner
Joint tenant
Tenant-in-common
Aliens
Minors
Mentally disabled persons
Corporations
Crown/State

Exclusive Possession:
The right to control the land and to exclude
all other persons from it, including the
landlord.

This is a significant factor that defines the

relationship
Issac v Hotel de Paris
Street v Mountford
Shell Mix Ltd v Manchester Garages Ltd.

All relevant factors must be considered

even where exclusive possession granted:
Dougadeen v Ramsamooj & others
Sylvester v Cyrus
Morgan v AG (P.C.)

Some considerations:
1.
Are the terms of the agreement consistent
with usual lease arrangements?
2.

What is the nature of the relationship

between the parties?
Romany v Romany; Facchini v Bryson

3.

What is the consideration involved?

(amount/value)

4.

Whether the occupant had previously

occupied the premises or has been let into
possession on account of the transaction
now in issue

5.

The capacity of the grantor to grant a

tenancy

Intention of the Parties:

Street v Mountford

A license does not create any interest/estate in land:

Charrington v Hoare
Street v Mountford
Glasgow City Corp v Johnston
Lodgers who have no separate apartment are generally
licensees

Definite Period:
In most cases the period is clear and
definite but in some circumstances this may
be the issue

Tenancies for a fixed term:

Lace v Chandler
Haigee v Erickson
Romany v Romany
Metcalf v Edghill

Periodic Tenancies:
Centaploy Ltd. v Matlodge Ltd
Rory Robinson v Texaco Caribbean Inc.

Tenancies at Will:
Palmer v James
Bramwell v Gordon
Romany v Romany
Haigee Erickson

Tenancy at Sufferance:

Tenancy by Estoppel:

THE END!!