Q&As

A landlord entered into a lease of commercial premises with a tenant company and an individual guarantor and accepted rent for a number of years. The lease includes an express forfeiture clause. The landlord then discovers that the tenant company did not exist at the time the lease was granted. The rent was being paid by the guarantor who is running a business at the premises. Arguably, an implied periodic tenancy arose with the guarantor and the terms of the tenancy are set out in the lease. Is the fact that the lease contains the express forfeiture clause likely to be sufficient for the landlord to forfeit by peaceable re-entry?

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Published on: 12 April 2018
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This Q&A considers forfeiture of commercial premises where it is argued that an implied tenancy exists.

An implied tenancy may arise where a person is in exclusive possession of premises by the owner’s consent, and their possession is not as employee or agent or as a licensee holding under an irrevocable licence, and is not held in virtue of any freehold estate or of any tenancy

Christopher Snell
Christopher Snell

New Square Chambers

Advice and representation in all areas of commercial and chancery litigation.

Instructed on behalf of both retail and investment banks [including BNY Mellon; HSBC; Royal Bank of Scotland] in relation to a variety of commercial issues.

Retained in relation to a wide range of international disputes; including disputes in the Bahamas; Isle of Man; BVI and Kuwait.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Forfeiture definition
What does Forfeiture mean?

Forfeiture is the lost right to possession.

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