7: Assignments and Subleases

Question 1

Assignment, Majority rule: An assignment is a ______ ______ of the tenant’s ______ lease term.

Answer 1

complete transfer/remaining

An assignment is a complete transfer of the tenant’s remaining lease term.

Question 2

Assignment, Minority rule: ______ of the parties should determine whether an ______ is an ______ or ______.

Answer 2

INTENT/AGREEMENT/ASSIGNMENT OR SUBLEASE

Intent of the parties should determine whether an agreement is an
assignment or sublease.

Question 3

Assignment, Minority Rule: 4 questions

Answer 3

1. How did the parties behave?
2. Who pays who?
3. What did the parties call the transfer?
4. What was the duration?

Question 4

In an assignment, the assignee is in ______ of estate with the landlord, and so he can sue the landlord or be sued by the landlord.

Answer 4

privity

Question 5

A legal relationship between two or more parties that have an interest in the same real property:

Answer 5

privity of estate

Question 6

A common law principle that states that only the parties directly involved in a contract (the lease) can enforce the contract’s terms and be bound by its obligations:

Answer 6

privity of contract

Question 7

Landlord and assignee are not in privity of ______ with each other.

Answer 7

contract

Question 8

If an assignee reassigns interest to a new assignee, then the first assignee is ___ _____ _____ for rent.

Answer 8

no longer liable

Question 9

If an assignee fails to pay rent, the ______ assignee AND ______ are liable to the landlord.

Answer 9

If an assignee fails to pay rent, the LAST assignee (one in current possession) AND TENANT are liable to the landlord.

Question 10

Landlord cannot ______ ______ an assignee if they meet their ______.

Answer 10

kick out/obligations

Landlord cannot kick out an assignee if they meet their obligations.

Question 11

Sublease, Majority Rule: A sublease is a transfer for ____ ____ the _____ of the lease term.

Answer 11

less than/remainder

A sublease is a transfer for less than the remainder of the lease term.

Question 12

express release from contractual obligations

Answer 12

novation

Question 13

Sublease, Minority rule: ______ of the parties should determine whether an ______ is an ______ or ______.

Answer 13

Intent/agreement/assignment or sublease

Intent of the parties should determine whether an agreement is an assignment or sublease.

Question 14

Sublease, Minority rule: 4 questions

Answer 14

1. How did the parties behave?
2. Who pays who?
3. What did the parties call the transfer?
4. What was the duration?

Question 15

A sublessee is ______ _____for breach of covenants running with the land; he normally can’t _____ or _____ ______ by the LL, because the sublessee _____ _____ in pE with the LL.

Answer 15

A sublessee is not liable for breach of covenants running with the land; he normally can’t sue or be sued by the LL, because the sublessee is not in pE with the LL.

Question 16

If a sublessee fails to pay rent, the LL can go after the ______ for unpaid rent.

Answer 16

sublessor

Question 17

____ relationship between the LL and the sublessee, LL can declare forfeiture of original lease.

Answer 17

No

Question 18

In a ______ lease, absent a provision that restricts a party’s right to assign or sublease, a tenant ___ ____ to assign or sublease.

Answer 18

residential/is free

In a residential lease, absent a provision that restricts a party’s right to assign or sublease, a tenant is free to assign or sublease.

Question 19

Commercial lease, Majority rule: LL ______ ______ consent for arbitrary reasons if the lease states that a tenant cannot assign/sublease.

Answer 19

can withhold

Question 20

Commercial lease, Minority rule: Even if the lease does not explicitly state it, a landlord’s _____ to allow an assignment or sublease must be _____ and not arbitrary.

Answer 20

refusal/reasonable