RES exam question on Tenancy, Torts & Mortgage: A head-tenant deals with part of his interest in the leased premises
A head-tenant deals with part of his interest in the leased premises. Evaluate the statements: (i) An assignment transfers the whole of the remaining term to the assignee (ii) A sub-lease carves out a shorter term, and the head-tenant remains liable to the landlord (iii) Both an assignment and a sub-lease usually require the landlord's consent under the lease (iv) After a valid assignment, the original tenant is automatically released from all liability for future rent Which statements are CORRECT?
- A(i), (iii) and (iv) only
- B(ii), (iii) and (iv) only
- C(i), (ii) and (iii) only
- D(i), (ii), (iii) and (iv)
Show answer & explanation
Answer
C. (i), (ii) and (iii) only
Explanation
(i) is correct: an assignment passes the whole of the remaining term to the assignee. (ii) is correct: a sub-lease carves a shorter term out of the head-lease, and the head-tenant stays the landlord's tenant and remains liable to him. (iii) is correct: most leases require the landlord's consent to both. Singapore has no statute that releases the original tenant automatically on assignment. So (i), (ii) and (iii) only.
Why the other options are wrong
- (iv) is wrong: after an assignment the assignee becomes liable to the landlord on the covenants, but the original tenant also stays liable on the lease covenants for the rest of the term through privity of contract, unless the landlord releases him (for example by a novation).
Study the concept behind this question: Landlord & Tenant Law: Covenants, Quiet Enjoyment & Forfeiture
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