LAW OF BUSINESS LEASES Term Paper Example | Topics and Well Written Essays - 2250 words

LAW OF BUSINESS LEASES - Term Paper Example The landlords often have to deal with the tenants who default on the lease or sub lease agreements. It is important that Mr. Ash takes early actions to collect the rent it always follows a very predictable pattern that starts with a series of late payments, that proceeds to paying only part of the rent and finally leading to complete default of the payment of the rent. When the tenants delay in making rent payment just like in the case of XYZ Ltd, Miss Beech and Mr. Cherry, the first option is the person that guaranteed Mr. Cherry payment to be approached Law of (Property Act 1925). This is the best strategy to be used if Mr. Ash needs to preserve the lease and the tenant has sufficient goods in premises that can cover the cost of the rent arrears. The right to rent distress is only available to the owner of the immediate reversion of the lease agreement that will end immediately he or she assign sells or transfer the reversionary interest to another party. The rest distraint involves the landlord seizing the goods that was pledge against the unpaid rent. This is basically a self help remedy that enables the landlord to take the goods of the tenants that are found on the leased premises as some form of security so that the rent arrears can be paid in full. Distress is a right of the landlord that was created under the common law defining the relationship of the tenant and the landlord (commercial credit Corp Ltd v. Harry D. Shields Ltd. (1980), 122 D.L.R. (3rd). It is important to note that the right to distress is the only right under which a landlord is allow ed to hold the goods of his tenants and can be applied upon nonpayment of any amount. The landlord has a right to use the rent distress instruments in case of nonpayment of any amount. According to Wallace v. Fraser (1878), 2 S.C.R. 522, the right of distress can be taken way or limited by the courts in lease if the landlord has forfeited the lease. This is because