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How can a landlord seek possession of a property which was let to a company with one of their employees as a permitted occupier, where the employee fraudulently entered into the tenancy agreement on the company’s behalf without the company's knowledge or approval?

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Published on LexisPSL on 26/11/2020

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • How can a landlord seek possession of a property which was let to a company with one of their employees as a permitted occupier, where the employee fraudulently entered into the tenancy agreement on the company’s behalf without the company's knowledge or approval?

How can a landlord seek possession of a property which was let to a company with one of their employees as a permitted occupier, where the employee fraudulently entered into the tenancy agreement on the company’s behalf without the company's knowledge or approval?

For the purpose of this Q&A we have assumed there is no dispute that there has been fraudulent misrepresentation on the basis of the facts given, however, it should be noted that to prove fraudulent misrepresentation the following elements would need to be proven (Eco 3 Capital Ltd and others v Ludsin Overseas Ltd)

  1. the defendant makes a false representation to the claimant

  2. the defendant knows that the representation is false, alternatively, they are reckless as to whether it is true or false

  3. the defendant intends that the claimant should act in reliance on it

  4. the claimant does act in reliance on the representation and, in consequence, suffers loss

If it has been proven that there has been fraudulent misrepresentation on the facts, one of the remedies will be recession of the contract (and in this case the tenancy agreement would constitute the contract). Where a contract is rescinded for misrepresentation, the contract is set aside and treated as if it had never existed. For

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