Virtual Assignment is not Assignment
27th May, 2010
A ‘virtual assignment’ is a device by which a tenant effectively appoints another organisation to deal with the practical aspects of its tenancy, in effect acting as attorney for the tenant.
Since most leases contain a clause which prohibits the tenant from parting with possession of the let property without the landlord’s consent, it was inevitable that eventually a case would come before the courts to consider whether a virtual assignment breached a lease.
Last year, a case on this issue came before the High Court, which ruled that the virtual assignment was in breach of the covenant in the lease not to share or part with possession of the property.
The Court of Appeal has now overruled that decision, considering that the virtual assignment in this case was in effect an agency agreement and the tenant had not parted with possession of the property or been sharing possession of it.
Contact Emma McGlinchey for advice on any commercial property or landlord and tenant matters on [email protected] or call her on 01244 405567
You might also be interested in...
Solicitors’ Professional Indemnity Insurance: Run-off and alternative regulators
18th July, 2018
Special Focus: Solicitors’ Professional Indemnity Insurance Run-off – it dominates the thoughts of sole practitioners and partners in smaller law firms in my experience and restricts the ambitions of firms. The SRA could help law firms by relaxing their rules on run-off cover on their Solicitors’ Professional Indemnity Insurance to help firms merge or close more easily. This would protect... Read More »
Senior employment lawyer joins Theatr Clwyd board
17th July, 2018
Helen Watson, Head of Employment Law at Aaron & Partners LLP, has taken up an invitation to become a Trustee of both the Trust Board and the Main Board Theatr Clwyd has bolstered its senior leadership team with the appointment of an experienced employment law solicitor to support its vision of being at the forefront of theatre making... Read More »
Why there is more to CSR than just boosting a company’s ego
6th July, 2018
When a business invests in its community it deserves praise – but it must go beyond that, writes Helen Watson, a trustee at Claire House and partner at Aaron and Partners Solicitors. Corporate social responsibility (CSR) is the link between a company and the community in which it operates. As a trustee on charity boards including Claire House... Read More »