Law of Lease: Analyzing Covenant Enforcement and Restrictive Benefits

This case study delves into the intricacies of lease law, particularly focusing on the enforcement of covenants and the benefits of restrictive covenants. It begins by defining a lease as a contract outlining the terms of property rental, emphasizing the obligations and consequences for both lessee and lessor. The analysis includes a scenario involving Geoff, Tosin, Asha, and Baz, examining right-of-way issues and the enforceability of covenants related to property use and maintenance contributions. The discussion further explores the complexities of restrictive covenants, including the conditions for their validity between successive landowners and the implications of burden and benefit. The case study concludes that while rights of way allow land usage without ownership, the enforcement of covenants is subject to specific legal rules and conditions, highlighting the importance of understanding lease agreements and property law.

LAW OF LEASE

INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
PART A.......................................................................................................................................4
Advise Baz whether he will be able to enforce the covenants....................................................4
Part B...........................................................................................................................................5
The benefit of a restrictive covenant runs at both law and equity. Critically examine whether
this is an unnecessary complication.............................................................................................5
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................7

INTRODUCTION
Lease is an contracting outlining of those terms within which one party agree over renting
asset or property to another party. It is helpful for lessee also known as tenant over usage of
property with permission of lessor or landlord. It further ensures landlord over regular payments
for a specified period in exchange. Both the lessee and the lessor face consequences if they fail to
uphold the terms of the contract. In other words lease is part of corporal right which is been
given by one party to another. As per the lease law covenants is been covered within it and has
various kinds of remedies in order to sustain beach if taken place at anytime. In this file things to
be covered is based upon enforcement of covenants and benefit of a restrictive covenant runs at
both law and equity is been covered within the file.
MAIN BODY
Case study: Geoff was the registered proprietor of a large plot of land. In 2015 he
divided the land into two plots Plot One and Plot Two and sold Plot One to Tosin Tosin
covenanted for the benefit of Plot Two that he would only use the land for residential purposes
and contribute towards the cost of maintenance and repair of a road leading to both plots of land
Geoff also granted Tosin a right of way over this road. In 2019 Tosin sold Plot One to Asha who
covenanted to observe and perform the covenants and to indemnify Tosin for any breaches of the
covenants. Geoff sold Plot Two to Baz a year later. Asha is now refusing to contribute towards
the maintenance of the road and is about to start a business making and selling jewellery on Plot
One.
PART A
Advise Baz whether he will be able to enforce the covenants.
Right of way is that kind of rights which is been granted in relation over making use of
land for certain purpose. This right is been granted to use part of another's property in a
particular way even though they do not own it. The right must be recorded by deed and in the
case of registered land, should be recorded on the Title Register for each property affected. So in

the above case scenario it can be observed that Baz has been sold second part of the plot of land
and first part was sold to Tosin then to Asha. In this case it can marked out that Asha is required
to pay the money over the repair of road since she is the owner of property and Right of way
applied over the owner as well as the person not owning the land. Also Baze cannot enforce
restrictive covenants since he owns only second part not whole property. “A restrictive covenant,
occasionally called an anti-competition provision, usually gives the tenant certain exclusivity
rights. Typically these rights prevent a landlord from renting to another merchant whose goods
and services are the same as the tenant's (Dow, 2019).”
Part B
The benefit of a restrictive covenant runs at both law and equity. Critically examine
whether this is an unnecessary complication
There are various rules that must be met over restrictive covenant which is valid between
successive landowners. This can be made clear with the help of example there must be land
which is actually benefited by the covenant so that, for example, if A subdivides and sells on the
retained land, there may be parcels of land so far from the land subject to the covenant that they
cannot be said to benefit from the covenant. In that case the owners of that land would not be
able to enforce the covenant (Ballem, 2019).
Benefit: Certain legal rules which must be met for a restrictive covenant to be valid between
successive landowners (e.g between someone who buys A's land and someone who buys B's land
where A and B had entered into a restrictive covenant). For example there must be land which is
actually benefited by the covenant so that, for example, if A subdivides and sells on the retained
land, there may be parcels of land so far from the land subject to the covenant that they cannot be
said to benefit from the covenant. In that case the owners of that land would not be able to
enforce the covenant. It has both benefit and loss which is given as
Burden: The burden over covenant will not run over common law which makes future owner of
burdened land will not be bound by restriction. This is having preserve effect over leaving
liability over compliance through restriction with original land owner. In order to avoid such
liability for a chain of indemnity covenants which is been created. Other words it can be said that
seller of land is been burdened and must makes sure that clause is been included within in the
transfer to buyers which agrees to indemnify over seller against any claim over breach of

covenants. The owner of land can still sue the original owner of land over breach of
contract(Amini and et. al.., 2020).
So, from the discussion it can be marked out that rights of way is that kind of right which
is been given in order to use any part of land of other party in any way whether he is the owner
or not. Further regarding case study it can be find out that Baze can enforce covenant. Then
benefit of a restrictive covenant runs is explained with the help of example. In this restrictions is
been applied over breach of covenant.
CONCLUSION
From the above discussion it can be concluded that lease is the process by which an
property is been leased in legal and effective manner which makes right to be possessed over
property up to time period specified in lease. The in this file two parts are there first part explains
about right of way is been discussed which is based upon making a person used part of land
without giving the ownership. Then in second part critical evaluation is done over benefit of a
restrictive covenant runs.

REFRENCES
Books and Journals
Amini, A and et. al.., 2020. Terms and Conditions of Transfer of Lease Agreement to New
Tenant in Iranian Jurisprudence and Law.
Ballem, J.B., 2019. Preface to the Third Edition. In The Oil & Gas Lease in Canada (pp. xi-xii).
University of Toronto Press.
Dow, J., 2019. To Drill or Not to Drill: Does a Lessee Truly Have to Drill a Well to Satisfy the
Habendum Clause of an Oil and Gas Lease?. Tex. Tech L. Rev., 52, p.315.
Ferreira, A.C. and Costa, M.S., 2019. CJEU issues decision on rural property lease VAT
exemption. International Tax Review.
Giner, B. and Pardo, F., 2018. The value relevance of operating lease liabilities: Economic
effects of IFRS 16. Australian Accounting Review, 28(4), pp.496-511.
Pawlowski, M., 2021. The concurrent lease as a financing tool. Estates Gazette, (2111), pp.54-
55.
Secrieru, A., 2018. Lease Contract for Real Estate: Its Role and Place in the Circulation of the
Republic of Moldova (Civil Law Issues). Studii Juridice Universitare, p.135.
Willink, D., 2021. Hope Community Church (Wymondham) v Phelan & Ors: High Court
(Chancery Division): Falk J, 22 May 2020 [2020] EWHC 1240 (Ch) Right of church
congregation to enfranchise lease. Ecclesiastical Law Journal, 23(2), pp.244-245.
Zhang, K., Saules, S., Wagner, L. and Throupe, R., 2017. A Review of the Impact of Marijuana's
Legalization on Colorado's Industrial Warehouse Lease Rates: How High is High?.
Journal of Real Estate Literature, 25(1), pp.1-29.