PROPERTY
8.27.09
Quick Overview
 Type of lease
 Notification/termination
 Hold-over
o What happens when tenant arrives after DOB (date of beginning)?
 Tenant is held responsible for taking care of the hold over
 Delivery of possession
DOB-----------------------------------Landlord and Tenant----------------------------------DOT
LEASE= Contract
(Contractual promise)+(contractual agreement)
Privity of Contract
 WIKI
 The doctrine of privity in contract law provides that a contract cannot
confer rights or impose obligations arising under it on any person or agent
except the parties to it.
 The premise is that only parties to contracts should be able to sue to
enforce their rights or claim damages as such. However, the doctrine has
proven problematic due to its implications upon contracts made for the
benefit of third parties who are unable to enforce the obligations of the
contracting parties.
 Goes no where between L and T
o The textbook errs in saying that it does pg.391
Privity of Estate
 WIKI
o Privity of estate is the concept in property law that there is a legal
relationship between two parties with a similar interest in property, with
shared rights and responsibilities. This relationship does not arise out of
contract but connected through possession of the property on the land. In
English common law, this was historically restricted to landlord-tenant
relationships, however American courts have expanded the concept to
include relationships such as grantor-grantee in a land sale.
o The landlord and tenants share an interest in the same property. When the
tenant transfers his interest in the property to another person, called the
assignee, all covenants in the original lease "that touch and concern the
land" are binding on the assignee. Privity of estate flows to that person,
allowing the assignee to sue the landlord.
Assignment
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Enters property for the entirety of the time established on lease
T transfers all duties and rights over to T1
WIKI
o An assignment (Latin cessio) is a term used with similar meanings in
the law of contracts and in the law of real estate. In both instances, it
encompasses the transfer of rights held by one party—the assignor—
to another party—the assignee. The legal nature of the assignment
determines some additional rights and liabilities that accompany the
act.
T is liable for T1
o Privity of contract
T is able to charge T1 any amount they want and cut out L
o Perfectly viable
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Sub-Lease
 WIKI
o In real estate law, sublease (or, less formally, sublet) is the name given to
an arrangement in which the lessee in a lease assigns the lease to a third
party, thereby making the old lessee the sublessor, and the new lessee the
sublessee, or subtenant. This means you are renting and renting out the
same property at the same time. For example, the owner of an office
building may lease the whole building to a management company. This
company may then sublease parts of the building to other people. The
management company is said to sublet the property to the individual
tenants by means of a sublease. In this event, the management company
(which was previously the lessee under the original lease) becomes the
sublessor, and the individual tenants are subtenants or sublessees.
o Sublessor remains liable to the original lessor for any damage to the
property and for payment of rent. Often the original lessee requires a
lower rent payment from the sublessee than what he or she may have
originally paid, leaving a partial amount of the rent left up to the original
lessee.
o A sublease can also apply to vehicles as an alternate type of car rental. In a
vehicle sublease, a lessee or vehicle owner can assign a lease to a third
party and by way of contractual agreement for specific dates. Although
this arrangement is not popular, it is a growing trend in the travel industry
as a less expensive alternative for travelers and locals.
 T is able to sublease to T1 for any amount they want and cut out L
o Perfectly viable under sub-lease
Novation WIKI
o Novation is a term used in contract law and business law to describe the
act of either replacing an obligation to perform with a new obligation, or
replacing a party to an agreement with a new party. In contrast to an
assignment, which is valid so long as the obligee (person receiving the
benefit of the bargain) is given notice, a novation is valid only with the
consent of all parties to the original agreement: the obligee must consent
to the replacement of the original obligor with the new obligor.[1] A
contract transferred by the novation process transfers all duties and
obligations from the original obligor to the new obligor.
o For example, if there exists a contract where Dan will give a TV to Alex,
and another contract where Alex will give a TV to Becky, then, it is
possible to novate both contracts and replace them with a single contract
wherein Dan agrees to give a TV to Becky. Contrary to assignment,
novation requires the consent of all parties. Consideration is still required
for the new contract, but it is usually assumed to be the discharge of the
former contract.
o The criteria for novation comprise the obligee's acceptance of the new
obligor, the new obligor's acceptance of the liability, and the old obligor's
acceptance of the new contract as full performance of the old contract.
Surety

Ernst v. Conditt
 Assignments and Sub-leases
o Issue statement
 Whether the (T1)’s interest in the land constituted as assignment
or a sub-lease when the language of the lease is for the remainder
of the term and the T has no right of reversion but has agreed to
remain liable on the lease. Given that all reference are to sub
lease/sub-let.
o Facts
 Term of years
 T1 wants to take over the lease
 Creates an amendment to the original lease to extend the
lease from 1 year 7 days to 2 years
 T1 stops paying after a few months
 T1 reasons that he was a sub-lease and only liable to T not
L
o T1 is correct under the belief that it is an assignment
 Not in privity of contract and L is not viable to sue T1
 T states that it is not
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o Court rules
 Contract is, in substance, an assignment but the it screams a