What do we do with this grant? O -> X and her heirs for 10 years - - PowerPoint PPT Presentation

What do we do with this grant? O -> X and her heirs for 10 years

• Law treats it differently – X has a non-freehold

estate

• X is a lessee/tenant
• O is a lessor/landlord

Term of Years (TOY)

• Dura=on – the term
• No=ce – none needed, automa=c

Periodic Tenancy (P/T)

• Dura=on – the period
• No=ce – period before termina=on
• Must end at the end of a period

Tenancy at Will (T/W)

• Dura=on – whim of either party
• No=ce – immediate upon termina=on

Garner v. Gerrish for and during the term of ______________ from the _____ day of ____, 1977 which term will end – _________________________________________ _________________________________________ for and during the term of quiet enjoyment from the first day of May, 1977 which term will end – Lou Gerrish has the privilege of termina9on [sic] this agreement at a date of his own choice

Crechale v. Smith

• Dec.-Jan. ‘68-’69 – Poten=al agreement
• Feb. 4, ’69 – LeJer Smith to Crechale, confirm oral

agreement to extend

• Feb. 6, ‘69 – LeJer C to S, denies agreement, say must

get out midnight on Feb. 6, ‘69

• Mar. 3, ‘69 – S sends check for Feb. – Mar., C cashes
• Apr. 6, ‘69 – S sends check for Mar. – Apr., says “final

payment,” C not cash

• Apr. 7, ‘69 – S tenders building
• Apr. 19, ‘69 – C says S holdover, treat renewal to Feb.

6, ‘74

Hannan v. Dusch

• Covenant of Quiet Enjoyment
• Implied?
• Waivable?
• Covenant of Delivery of Possession
• Implied?
• Should it be?
• Statutory modifica=on
• Waivable?

Ernst v. Condi@

• June 18, 1960 – Ernst leases to Rogers
• Sec=on 5 – “Lessee shall have no right to assign or

sublet the leased premises without prior wriOen approval of Lessors” (p. 442-43)

• July 1960 – Rogers sells biz to CondiJ
• Rogers and CondiJ go to Ernst for permission
• Sec=on 5 – “Lessor hereby consents to the

sublePng of the premises to A.K. CondiO”

• All three par=es sign (p. 443-44)
• Lease extended

Leasehold

L T

P/E P/K

Assignment

L T

P/E P/K

T1

P/E P/K* P/K

Sublease

L T

P/E P/K

T1

P/K* P/E P/K

Kendall v. Ernest Pestana, Inc.

• City of San Jose leases hanger to Perlitch
• Jan. 1, ‘70 – Perlitches in 25 year sublease to Bixler
• ini=al 5 year term, with four 5-year op=ons to

renew

• rent increased every 10 years
• 1981– Bixler looks to sell business (and sublease) to

Kendall and O’Hara

• Pestana, successor-in-interest to Perlitch refuses
• wriJen consent required before assignment of

interest

Reste Realty Corp. v. Cooper

• Cooper lease for five years on May 13, 1958
• During 1958 – rains causes interior flooding
• Sign new five year lease star=ng April 1959
• Donigian promises to remedy water problem
• Donigian dies on March 30, 1961
• “Crowning blow” – December 20, 1961
• Ask to clean up on December 21, 1961
• Cooper no=fies leaves on December 30, 1961

Doctrine of ConstrucGve EvicGon

• L can breach Covenant of Quiet Enjoyment through her

act or omission that:

• renders the premises substan=ally unsuitable for

the purpose for which it was leased or

• seriously interferes with the beneficial enjoyment
• f the premises
• Must be permanent interference
• T must provide no=ce of interference
• T must leave

Illegal Lease

• When defect must be present?
• What type of defect?
• Remedy?

Implied Warranty of Habitability

• What types of defects does it apply too?
• What must be defected?
• What standard do you apply to determine whether its

a defect?

• Is it waivable?
• Does it apply to commercial leases?

Implied Warranty of Habitability -- Remedies

• Hilder measures rent reduc=on:
• FMV(complying) – FMV(non-complying)
• Note 3 alterna=ve:
• Rent Agreed - FMV(non-complying)
• Difference? Note 4(d) under either op=on
• Hilder method gives T $50 (offsets rent owed)
• Alterna=ve gives T $0 (owes $50)
• Other damages available:
• consequen=al damages
• puni=ve damages

Chicago Board of Realtors, Inc. v. City of Chicago

• IWOH a good thing?