PLP Workshop 10

• What is forfeiture in the context of commercial leases?

  Landlord's right to terminate lease early
• What is the primary purpose of forfeiture for a landlord?

  To reclaim possession of the premises
• Are the terms "forfeiture" and "re-entry" interchangeable?

  Yes, they refer to reclaiming premises
• Is forfeiture an automatic right for landlords?

  No, it requires explicit lease permission
• Under what conditions can a landlord forfeit a lease?

  Non-payment of rent, lease breaches, insolvency
• When can a landlord forfeit a lease for non-payment of rent?

  As soon as the lease permits after grace period
• What must a landlord do to forfeit a lease for breaches other than non-payment of rent?

  Serve a Section 146 notice to the tenant
• What is an 'insolvency event'?

  Appointment of receiver, bankruptcy, voluntary arrangement
• Why can forfeiture be an effective remedy for a landlord?

  It prompts tenants to settle debts quickly
• What are the two methods of achieving forfeiture?

  Peaceable re-entry and court proceedings
• What risk is associated with peaceable re-entry for forfeiture?

  Tenant may legally challenge the forfeiture
• How can a landlord waive the right of forfeiture?

  By acknowledging the lease's ongoing validity
• What is an implied waiver of forfeiture?

  Landlord's actions imply lease validity despite breach
• What is a "once and for all breach"?

  A breach that prevents future forfeiture rights
• What is a "continuing breach"?

  An ongoing violation giving new forfeiture rights
• What is relief from forfeiture?

  A remedy allowing tenants to restore forfeited lease
• Is relief from forfeiture guaranteed?

  No, it is discretionary based on circumstances
• What happens if a tenant is granted relief from forfeiture?

  The lease is restored as if forfeiture never occurred
• Can other parties apply for relief from forfeiture?

  Yes, parties with an interest in the lease can apply
• What are the key points regarding forfeiture of a lease?

  Forfeiture occurs for non-payment, breaches, insolvency
• What is a breach of repair covenant in the context of a lease?

  Failure to maintain or repair leased premises
• Why is a breach of repair covenant considered a special case for landlords?

  Common and often remediable breaches
• Can a landlord forfeit a lease for a breach of the repair covenant?

  Yes, but must follow standard procedure
• What does the Leasehold Property (Repairs) Act 1938 stipulate regarding breaches of the repair covenant?

  Tenant has 28 days to serve a counter-notice
• What must a landlord include in a Section 146 notice for breach of the repair covenant?

  Detail the breach and specify the remedy
• Can a landlord claim damages for a breach of the repair covenant?

  Yes, but limited to loss in value of reversion
• How are damages for a breach of the repair covenant typically measured?

  Based on loss of value to landlord's reversion
• Can a landlord seek specific performance for a breach of the repair covenant?

  Rarely granted except in exceptional circumstances
• What is a self-help clause (Jervis v Harris clause)?

  Allows landlord to repair and recover costs
• How would a self-help clause work in the context of a breach of the repair covenant?

  Landlord repairs and recovers full costs from tenant
• What are the main points regarding forfeiture and damages for breach of the repair covenant?

  Section 146 notice required for forfeiture or damages
• What are the advantages of using debt action for non-payment of rent?

  Reasonably simple and straightforward process
• What must a landlord serve for forfeiture or damages?

  A Section 146 notice
• What are damages for repair breaches limited to?

  Loss of value to the reversion
• What is the tenant's timeframe to serve a counter-notice under LPRA 1938?

  28 days
• Is specific performance commonly granted for repair breaches?

  No, it is rarely granted
• What is the most effective remedy for repair breaches according to Jervis v Harris?

  A self-help clause
• What are the key concepts related to breaches of the repair covenant in commercial leases?

  • Procedures for forfeiture
  • Damages limitations
  • Advantages of self-help clause
• What are the advantages of using debt action for non-payment of rent?

  Simple process and clear debt amount
• What is a disadvantage of using debt action for non-payment of rent?

  It can be costly and time-consuming