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Joshua
Joshua, Lawyer
Category: UK Law
Satisfied Customers: 24527
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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What legal meaning of the words Forfeited and/ Disclaimed when

Resolved Question:

What legal meaning of the words Forfeited and/ Disclaimed when they appear in a legal document?
Submitted: 1 year ago via LawDepot.
Category: UK Law
Expert:  Jo C. replied 1 year ago.
Hi

Thank you for your question and welcome to Just Answer. My name is XXXXX XXXXX X will try to help with this.

In order to give you an answer tailored to your circumstances, I will just need to ask you some preliminary questions so that I can consider your position from all angles.

Is this for an assignment?
Customer: replied 1 year ago.

For Jomo1972 No. These words appear in a legal lease document..

Expert:  Jo C. replied 1 year ago.
Thats not my area then.

I'll opt out for others.
Customer: replied 1 year ago.


Where are "others"/

Expert:  Joshua replied 1 year ago.
Thanks for your question. Please kindly RATE my answer when you are satisfied

My colleague has asked me to look at this for you. Could you advise the document(s) you have come across these terms in please or is this a general academic question please?
Customer: replied 1 year ago.


These words appear in aLease agreement for Office space.

Expert:  Joshua replied 1 year ago.
Thanks. Are you able to give me the sentences in which they appear so I can be as precise as possible in my response or do you not have the document to hand?
Customer: replied 1 year ago.

 


3.4


If this lease is forfieted or the liability of the Tenant under this lease is disclaimed then as compensation for the Expences, the Landlord will be entitled to take from the Deposit the amount equal to the Expenses,and shall refund any balance of the Deposit to the Tenant.

Expert:  Joshua replied 1 year ago.
Leasehold property can be forfeited by landlords from tenants in certain circumstances principally as provided for by the terms of your lease but also under statute. The main basis for forfeiting the lease is failure to pay rent but it can also arise by breaching any one of a range of covenants contained in the lease. If the landlord forfeits the lease you can apply for relief to the courts from forfeiture and providing you remedy any claimed breaches of covenant or pay rent up to date a court will usually be willing to grant relief from forfeiture.

Disclaiming property is relevant where the lease is owned by a limited company which subsequently is wound up because for example it is insolvent. Any company assets not sold to creditors and so on passes to the crown. The crown can disclaim such property it does not want to deal with.

What the above clause is saying is that where forfeiture or disclaimer occurs as above then the landlord can seek to recover its reasonable expenses from your deposit. A court has the power to reign in landlords excess under such a clause.

Is there anything above I can clarify for you?
Customer: replied 1 year ago.

I had a Tenant, a major Company within the U.K. who signed up to take 2 units on an "easy-in easy-out" agreement. Prior to signing they caused me to incur Solicitors charges of £850.00 plus VAT. They never moved in and invoked the Break Clause. Please see below clause 3.3. within 5 weeks of signing.


3.3 The landlord will be entitled to withdraw from the deposit at the exouryof the term (howsoever that may occur) an amount reasonable to any reasonable costs, outgoings, losses, damages and expenses (and any VAT on them) incurred bny the Landlord and arising from any Default or the lawful exercise of the Landlord of its rights and obligations contained or referred to in this lease.


 


Do you feel that the Solicitors fees are recoverable under this clause?


I had hoped they couldbe reclaimed under 3.4 previously mentioned . In the light of your reply this is obviously not possible.

Expert:  Joshua replied 1 year ago.
My sincere apologies for the delay in reverting to you. I have been away over the weekend. May I continue to assist with the above?
Customer: replied 1 year ago.

Please!

Expert:  Joshua replied 1 year ago.
What were the solicitors costs you refer to precisely please? Were they for drafting the agreement? Who was to pay for the initial drafting work? You?
Customer: replied 1 year ago.

The agreement had been drafted by solicitors ( at my cost and has been used with very little difficulty with other existing Tenants) but the Tenants required a number of clauses to be removed on wich I asked for the drafting solicitors opinion.Most of the items were wihtdrawn and in others some wording was slightly modified .I would normally have accepted the costs envolvedso as long as the Tenancy had continued.

Expert:  Joshua replied 1 year ago.
Thanks. The provision above provides that you may claim monies from the deposit any costs arising from a default or your lawful exercise of your rights under the agreement. From what you say the tenant is not in default - e.g. not in arrears with rent. If there is a provision that provides that the tenant would be liable for your legal costs in preparing the agreement or that they are liable if they exercise a break clause this would entitle you to deduct monies.

If there is no such provision then I cannot see that you could retrospectively attempt to claim your initial costs on the basis of them exercising their break clause I regret. You may wish to contact your solicitors if they failed to explain to you how easily the tenant could extricate themselves fro the agreement as it could be there is a measure of negligence in this respect if they failed to do so.
Customer: replied 1 year ago.

The tenants are in default They have not paid the July rent, the invoice for this was sent by email on the 20thJune monies should have been in the business account as cleared funds by the !st July this payment still hasn't been made. a letter was received dated 2nd July in which the tenants solicitor stated her clients wished to terminate the term of the lease on the 7th August, The wording of the Break Clause is shown below.


 


20. Break Clause.


 


20.1 Either the Landlord or the Tenant may terminate this lease by serving a Break Notice on the other party.


20.2 A Break Notice served by the Tenant shall be of no effect if, at the Break Date


:


(a) The Tenant has not paid any part of the Annual Rent, or any VAT in respect of it, which was due to have been paid;


(b) Vacant possession of the whole of the property is not givern; or


 


Subject to Clause20.2, following service of BreakNotice this lease shall terminate on the Break Date.


 


20.3 Termination of this lease on the Break Date shall not affect any other right or remedy that either Party may have in relation to any earlier breach of this lease.


 


20.4 The Landlord shall within 14 days refund to the Tenant the proportion of the Annual rent and any nthat paid in respect of it for the period from and nexcluding the Break Date calculated on a daily basis.


 


There are insufficient Deposit funds to cover Interest due on Late Payment £250.00 Admin Fees and the Solicitors Fees.


 



 



 



 

Expert:  Joshua replied 1 year ago.
Thanks. It would appear that the break clause cannot be exercised if the rent is in arrears and so if the break notice was served whilst they were in arrears it would appear to be defective. You could negotiate a settlement with the landlord or advise them that you reject their break notice and will be seeking recovery from them of rent. They may prefer to settle with you rather than be liable for further rent pending their serving a correct break notice.

The agreement will very likely provide that you can recover your legal fees in recovery of unpaid rent.
Customer: replied 1 year ago.

My Thanks for Your Help !!

Expert:  Joshua replied 1 year ago.
A pleasure. I hope you reach an "understanding" with the landlord. Remember if negotiating in writing, remember to say without prejudice to your rights under the lease in any correspondence unless and until you reach an agreed settlement. This prevents you from being bound by any offers you make of settlement until they are final and means that you can always fall back on the terms of the lease agreement until that time.

If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with though please reply back to me though.
Customer: replied 1 year ago.

I am in fact the Landlord , does this affect any of your previous answers??

Expert:  Joshua replied 1 year ago.
Sorry this is a slip of the keyboard on my part - I am of course well aware of that. I should have said "I hope you reach an "understanding" with the tenant". All of the above is based upon my understanding you are the landlord - apologies for the typo.

Best wishes
Joshua, Lawyer
Category: UK Law
Satisfied Customers: 24527
Experience: LL.B (Hons), Higher Prof. Dip. Law & Practice
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