Q&As

A tenancy agreement states that A is the landlord, however, both A and B state that B is the true landlord and A merely manages the property. The rent is received by B. The office copies also state that B owns the property. Whose name should be stated on a claim form and will it be an issue that B is the landlord but A is named on the tenancy agreement as the landlord?

read titleRead full title
Produced in partnership with Desmond Kilcoyne
Published on LexisPSL on 10/06/2020

The following Property Disputes Q&A Produced in partnership with Desmond Kilcoyne provides comprehensive and up to date legal information covering:

  • A tenancy agreement states that A is the landlord, however, both A and B state that B is the true landlord and A merely manages the property. The rent is received by B. The office copies also state that B owns the property. Whose name should be stated on a claim form and will it be an issue that B is the landlord but A is named on the tenancy agreement as the landlord?

This Q&A appears to involve an undisclosed principal; that is, a principal who is not known by the third party to be connected with a particular transaction made between the third party and the principal’s agent. As between that principal and the agent:

  1. they should have agreed to the existence of an agency relationship, and

  2. in entering into the contract with the third party, the agent must have intended to do so on the principal’s behalf

For the purpose of this Q&A it is assumed that:

  1. the tenant did not know of B’s connection with the tenancy (although the payment of the rent might be an objective factor—depending on the wording of the tenancy and/or all of the circumstances—which should have alerted the tenant to that fact in which case it may be arguable that B is the sole landlord)

  2. B authorised A to grant the tenancy, and

  3. A granted the tenancy on behalf of B

In Siu Yin Kwanr v Eastern Insurance Co Ltd, Lord Lloyd summarised the law relating to an undisclosed principal as follows:

  1. an undisclosed principal may sue and be sued on a contract made by an agent on their behalf, acting within the scope of their actual authority

Related documents:

Popular documents