To advise Laxmi, we have to first consider two vital facets of the facts. The first important aspect is the time frame, the time frame is between 2008 and 2013 which is a 6 year lease and the lease in question is of a total of 10 years. Since that has been cleared we now focus our intention on is the clients interest in this case, the clients main interest in such a case is usually getting rent, making sure that the property is secured and damages for the all are paid by whoever is liable.
Since the event has already taken place, we have to see which relevant cases and statutes can be used to advise Laxmi the best. Creating a timeline and looking at the events we see that a lot of activities in relation with the property had taken place. Looking at the lease and one of its first point being that there is an absolute covenant against ‘assignment, subletting or parting with possession’ of the premise, which could be legally done by making Troy sign an Authorised Guarantee Agreement under s16 LT(C)A 1995 . Though Troy did assign the property to Ai-Ai, we have to inform Laxmi that it is not a breach of a term of the lease as the facts show us that she had given her consent for the assignment to take place. On giving her advice, we have to tell her that the actual problem comes into place when Ai-Ai allowed Boo to let her use the studio alongside her. Since it does not state that the relation of the lease between Ai-Ai and Boo it is up to us to advise her on what is best .
The type of leasing to advise her on first is about Assignment, assignment is a form of alienation which includes the transfer of rights of real property from one tenant to another. The basic rule which applies here is that, covenants in a lease are enforceable between the landlord and the tenant of the lease and in this case the lease in enforced between the landlord and assignee. The facts of the case suggest that Boo has not yet
moved in and he is staying in a studio alongside Ai-Ai to see whether or not he would like to take over the tenancy, it is important to advise Laxmi that it is not a virtual assignment as the importance of a virtual assignment is that the occupation of the property is not transferred to, or shared with, the assignee. If Ai-Ai did not assign the property to Boo, then anything that Boo does as Ai-Ai’s guest, Ai-Ai is responsible and through the Authorized Guarantee Agreement Troy will be responsible. We should advise Laxmi to be aware of s16(4)(a) which may protect Troy from further assignees.
We can tell Laxmi that Ai-Ai may been in breach of the lease as she should not be parting with the possession under Section 19 LTA 1927 , Ai-Ai has left the property for over a year and has been to Thailand and this aspect of her leaving the property for about a year may be provide us with an intent of her not coming back. This intent can be further scrutinized by the fact that she had no money for rent and had called Boo to pay her rent and stay...