Q&As

A lease was executed by a director of the tenant company, however, the director had resigned three days prior to this. Is the lease still valid? If not, what recourse does the landlord have a number of years later, now that the tenant is claiming that the lease was not valid and therefore the landlord is liable for rates?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 24/01/2020

The following Property Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • A lease was executed by a director of the tenant company, however, the director had resigned three days prior to this. Is the lease still valid? If not, what recourse does the landlord have a number of years later, now that the tenant is claiming that the lease was not valid and therefore the landlord is liable for rates?

A lease was executed by a director of the tenant company, however, the director had resigned three days prior to this. Is the lease still valid? If not, what recourse does the landlord have a number of years later, now that the tenant is claiming that the lease was not valid and therefore the landlord is liable for rates?

In order for a lease to be valid at law, it must be in writing and executed as a deed (section 52(1) of the Law of Property Act 1925 (LPA 1925)). LPA 1925, s 54(2) provides for certain exceptions, such as a lease for a term not exceeding three years, including periodic tenancies. In this scenario, given that the lease has been executed, it can be assumed that the lease falls within LPA 1925, s 52(1).

By section 43 of the Companies Act 2006 (CA 2006), a company may make a contract by writing under its common seal or a contract can be made on its behalf by a person acting under its authority, express or implied. The formalities that apply to an individual apply to a contract made by or on behalf of a company.

By CA 2006, s 44, a

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