The Assignment vs. Sublease Flashcards
What is it called when T transfers his interest in whole? In part?
Assignment
Sublease
In the lease, L can prohibit T from assigning or subletting without . . .
Prior written approval.
Once L consents to one transfer by T, L waives the right to object to future transfers by T UNLESS . . .
L reserves that right
T1 has 10 months remaining on a 2 year term of years. T1 transfers all 10 months to T2. This is a . . .
As a result, L and T2 are . . . (describe relationship)
Assignment
In privity of estate
What does privity of estate mean?
Means that two people are liable to each other for all of the covenants in the original lease THAT RUN WITH THE LAND.
Under an assignment, L and T2 are not in privity of what? Unless…
Contract
Unless T2 assumed all promises in the original lease.
Under an assignment, L1 and T1 are longer in what? They remain in what?
No longer in privity of estate
Remain in privity of contract
Describe L1 and T1’s liability to one another in an assignment situation?
Secondarily liable
L leases BA to T1. T1 assigns to T2. T2 assigns to T3. T3 then engages in flagrant abuse of the premises.
Can L proceed against T3? Explain.
Yes. Privity of estate
L leases BA to T1. T1 assigns to T2. T2 assigns to T3. T3 then engages in flagrant abuse of the premises.
Can L proceed against T2? Explain
No. Privity of estate ended when T2 assigned to T3. There was never privity of contract UNLESS T2 assumed all original promises (which is unlikely).
Which type of privity exists between a sublessee and the landlord?
None
In a sublease situation, which type of privity exists between T1 and L?
Both. Relationship fully in tact.
In a sublease situation, is T1 responsible to T2? How about T2 to T1?
Yes and yes.
An assignee is in privity of _____ with the landlord.
Estate
An assignee is liable for all covenants that . . . .
Run with the land
