RES exam question on Leasing of Private Property: A commercial lease states
A commercial lease states: "The tenant shall not assign this lease without the prior written consent of the landlord." The tenant finds a creditworthy assignee, and the landlord refuses consent without giving a reason. What is the position?
- AHe may assign anyway, the landlord having given no reason for refusing
- BHe may assign after giving the landlord 30 days' written notice
- CThe refusal stands: no statute implies consent must be reasonable
- DA court will imply that consent may not be unreasonably withheld
Show answer & explanation
Answer
C. The refusal stands: no statute implies consent must be reasonable
Explanation
Issue: whether the law adds a reasonableness requirement the lease left out. Rule: in England, section 19(1) of the Landlord and Tenant Act 1927 reads 'consent not to be unreasonably withheld' into such covenants, but that Act does not apply in Singapore and no local statute does the same. Section 17 of the Conveyancing and Law of Property Act 1886 goes only as far as barring a fine for consent. Application: this clause says nothing about reasonableness, so the landlord may refuse, and the tenant who assigns anyway breaches the covenant and risks forfeiture. Had the lease said consent is 'not to be unreasonably withheld', an unreasonable refusal would have let him seek a declaration and assign. No notice period lets a tenant bypass consent. Conclusion: the refusal stands — the lease wording decides.
Study the concept behind this question: Leasing Private Residential Property (Singapore)
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