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38 Cards in this Set

  • Front
  • Back
What is an assignment?
T transfers everything, holding nothing back!
What is a sublease?
T transfers a portion of the lease period, holding some time back.
ASSIGNMENTS
Intro Card
Situation One: Landlord sues tenant
Are successive tenants on a lease liable to the landlord?
A lease is considered two things, what are they?
a lease is both a CONVEYANCE and a CONTRACT, and these are separate and independent grounds of liability.
Where does liability on the conveyance come from?
Privity of estate.
Ask: is there POE btw L and whichever T is being asked about? If yes, liability on conveyance.
Liability on the contract comes from where?
Privity of contract.
Ask: Is there POC between L and whichever T is being asked about?
What if there is only POE or POC, not both?
T is liable to L-- there's no need for both.
Privity of estate exists only between whom?
The present L and the present T!
Privity of contract exists between whom?
Exists where there is an agreement between the parties, or where assignee 'expressly assumes' the obligations under the lease.
In addition to rent, what other covenants might there be?
Other covenants will run with the land IF they TOUCH and CONCERN the land.
What the "Touch & Concern" test?
If performance of the covenant makes the land more valuable or more useful, then it meets the T&C test and runs with the land. (such as a promise to fix the fence, that will T&C the land).
Situation Two: Tenant sues Landlord
If L sells to a successor landlord, can T sue the original landlord and any successor landlord on the lease?
Will the original landlord continue to be liable to T?
Yes, b/c of privity of contract.
Is successor landlord also liable?
Yes, as long as the lease covenant runs with the land AND there is either privity of contract or privity of estate.
SUBLEASES
Intro Card
Is a sublessee liable to L for?
No, b/c no POC or POE (because the sublessOR is deemed to have kept the estate).
What if a clause says "T may not assign or sublet without L's permission"? Is it valid and enforceable?
Yes, even though it's a restraint on alienation.
What if there's a violation of the non-assignment or non-sublease clause?
Then the attempted transfer is merely VOIDABLE at the option of L. If L does nothing, nothing happens.
What is the effect of L's giving permission for an assignment?
Giving permission ONCE means the clause is then waived for all time, unless L states otherwise at the time of giving permission.
What if L accepts rent by the assignee or sublessee?
Then that gives permission for a transfer.
CONDEMNATION (EMINENT DOMAIN)
Intro Card
If the State takes property under a lease by its power of condemnation, what are the two questions to ask?
1. Is T excused from paying rent?
2. Will T share in the condemnation award?

To answer, look to see if only part or all of the leased property is taken!
What if the condemnation is just a partial taking?
It doesn't release T from the obligation to pay full rent, but T gets a condemnation award equal to the rent that will have to be paid over the remainder of the lease for the property taken.
What if the condemnation is a full taking?
The lease will extinguish, and T is excused from paying rent.

T shares in the condemnation award only to the extent that the fair rental value of the lease exceeds the rent due under the lease.
LANDLORD'S TORT LIABILITY
Intro card
What is the general rule on tort liability for the landlord?
No duty of Landlord to T or to T's invitees for injuries on the premises during the life of the lease.
What are the 5 exceptions to the general rule on L's tort liability?
1. Latent defects
2. Short term lease of a furnished dwelling
3. Common areas under landlord's control
4. Negligent repairs
5. Public use exception
Latent defects rule?
L is under a duty to disclose latent defects which L either knows or has reason to know of.
What does T need to know about the defect?
T does not know of the defect, and a reasonable person in T's position would not discover it.
Does L have to repair the latent defect?
No, L must only disclose it.
Rule for Short Term lease of a furnished dwelling?
L is liable for defects even if L neither knows nor has reason to know of them.
A short term = 3 mos or less.
Common areas under landlord's control?
If injury is in an area subject to L's control, then L is liable if L failed to use reasonable care.
Negligent repairs?
L is liable for injury resulting from L's repair of a defect in the premises, even if L used all due care in making the repair! (L creates the deceptive appearance of safety, for which L is liable).
Public use exception?
L is liable for injury from defects in the premises, if 3 conditions are satisfied.
What are the 3 exceptions?
1. L must know or should know of major defects, AND
2. L must know or should know that T will not fix the defect, AND
3. L must know or should know the public will be using the premises.
TENANT'S TORT LIABILITY
Intro Card
What is always true of T's tort liability?
T is always liable to third party invitees for negligent failure to correct dangerous conditions on the premises, regardless of whether L may be contractually liable or not.