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Active Estates Ltd v Parness and another

Series: Estates Gazette ; [2002] 36 EG 147-155(9)Publication details: 2002Subject(s): Summary: ChD 19 April 2002. Claimant (A) was landlord of commercial premises under a 25 year lease granted by its predecessor in title. Defendants (P), parties to the lease as guarantors, were covenanted by clause 8.2 that in the event of disclaimer of the lease they would take a new one for the residue of the disclaimed lease when required to do so. Such a request was made in October 1999. P declined to do so on several grounds: surrender of the lease before disclaimer; premises recovered after disclaimer and before request to take new lease; delay disentitled A from enforcing clause 8.2 which was unenforceable by virtue of the Law of Property (Miscellaneous Provisions) Act 1989. "Held" P were required to take up a new lease pursuant to clause 8.2. (1) There was no forfeiture or surrender of the lease prior to the disclaimer. (2) The claimant did not take possession at any time and was not disentitled from enforcing clause 8.2 (3) The special nature of the clause 8.2 right made it a contingent obligation.
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Law report London Journal article ABS65961 (Browse shelf(Opens below)) 1 Available 119986-1001

ChD 19 April 2002. Claimant (A) was landlord of commercial premises under a 25 year lease granted by its predecessor in title. Defendants (P), parties to the lease as guarantors, were covenanted by clause 8.2 that in the event of disclaimer of the lease they would take a new one for the residue of the disclaimed lease when required to do so. Such a request was made in October 1999. P declined to do so on several grounds: surrender of the lease before disclaimer; premises recovered after disclaimer and before request to take new lease; delay disentitled A from enforcing clause 8.2 which was unenforceable by virtue of the Law of Property (Miscellaneous Provisions) Act 1989. "Held" P were required to take up a new lease pursuant to clause 8.2. (1) There was no forfeiture or surrender of the lease prior to the disclaimer. (2) The claimant did not take possession at any time and was not disentitled from enforcing clause 8.2 (3) The special nature of the clause 8.2 right made it a contingent obligation.