Q.1. What is the Assignment Clause?

A.1. The clause prescribes to the Tenant the requirements to obtain the landlord’s consent to assign a property. The Lease provides that a Tenant cannot assign the premises unless certain conditions are fulfilled, the most important of which is that consent MUST be obtained from the Landlord. Too often tenants assign the premises and do not obtain the consent of the Landlord (e TecK).

Q.2. What happens if this Clause is breached?

A.2. The breach of the assignment is a once and for all breach which is incapable of remedy. The remedy available to the Landlord is forfeiture of the lease. This is a once and for all breach and entitles the Landlord to re-enter the premises and take back possession. It is important to note also that a caveat to the clause is that the consent is not to be unreasonably withheld by the Landlord. It is a relatively simple process once the proper procedure under the lease is followed.

Q.3. What steps should be taken if this Clause is breached?

A.3. If this clause is breached, the Tenant will be issued a breach letter requesting that the unauthorized company be removed from the premises and the Tenant is given a reasonable timeline to effect this action.  If the unauthorized business is not removed, a Notice before Forfeiture can be issued to the Tenant signaling e TecK’s intention to forfeit the lease. The other conditions would include that there should be no other breaches of the other terms of the lease, for example, if the Tenant is in arrears of rent or has breached the User Clause, the Landlord may withhold its consent until the breach is remedied.

Call Tenants’ Hotline at +1 (868) 224-1970

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