Buying a Tourism Business in Gambia: Bars, Restaurants, Hotels
Assignment
An assignment of a lease takes place when the tenant (assignor)
transfers/sells to another person (assignee) their entire
interest in the property for the unexpired residue of the
lease.Section 52 (1) of the Law of Property Act 1925 requires
that for the legal estate to pass to the assignee, then the
assignment must be by Deed.Under the doctrine of "privity
of contract", the original tenant remains liable to perform
all the covenants in a lease throughout the term. Thus, if
the lease is assigned to a third party, in the event that
the new tenant defaults, the original tenant remains liable
for the covenants contained therein.
In some cases therefore, if an assignee is found to be in
breach of contract, the landlord is able to look to the assignor
to seek redress; even though the original tenant has no control
over the subsequent occupiers business.
The Landlord and Tenant (Covenants) Act 1995 sought to address
this issue and relieve the original tenant from such liability
upon assignment. Modern leases granted on or after 1st January
1996 usually incorporate this change in legislation.
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