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RES exam question on Tenancy, Torts & Mortgage: Mr Chan's lease of his restaurant unit reserves a right of re-entry for non-payment…

MediumLandlord & Tenant Law · Paper 1

Mr Chan's lease of his restaurant unit reserves a right of re-entry for non-payment of rent. The tenant owes eight months' rent, and Mr Chan starts a court action for possession on the ground that the lease is forfeited. Soon after being served, the tenant raises the full amount owed. What is the tenant's position?

  1. AIf he pays the arrears and costs into court in time, the action ceases and his lease continues.
  2. BHe has lost the lease, since serving the claim ended it and later payment does not revive it.
  3. CHis remedy is a refund of his security deposit, less the arrears, once the unit is re-let.
  4. DHe may seek relief if Mr Chan agrees, as relief is a matter for the landlord to grant.
Show answer & explanation

Answer

A. If he pays the arrears and costs into court in time, the action ceases and his lease continues.

Explanation

Answer: If he pays the arrears and costs into court in time, the action ceases and his lease continues, without a new lease.Watch out: If he misses the window, the court at trial orders possession no sooner than 4 weeks ahead unless he pays in, and once that order is enforced without payment he is barred from all relief.Rule: A landlord can forfeit only where the tenancy reserves a right of re-entry for the breach. A tenant sued to forfeit for non-payment of rent who pays all arrears and costs into court within the time for acknowledging service keeps his lease.Source: Conveyancing and Law of Property Act 1886 s 18A (2020 Rev Ed, current at 1 Oct 2026); RESPrep /learn/landlord-and-tenant-law-covenants-forfeiture, current at 1 Oct 2026

Why the other options are wrong

  • Serving the claim ended the lease: Serving the claim does not put the lease beyond saving; paying in within the time for acknowledging service keeps it.
  • A deposit refund less arrears: A deposit refund is not his remedy; relief against forfeiture is.
  • Relief only if Mr Chan agrees: Relief is for the court to grant, not a favour for the landlord to give.

Study the concept behind this question: Landlord & Tenant Law: Covenants, Quiet Enjoyment & Forfeiture

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Original study material mapped to the public CEA RES syllabus. Verify any rate-based figures against current IRAS/CPF/MAS rules before relying on them.