Cases - Scala House and District Property Co Ltd v Forbes

Record details

Name
Scala House and District Property Co Ltd v Forbes
Date
[1974]
Citation
1 QB 575
Legislation
Keywords
Leases
Summary

Leases often contain a prohibition against assignment or subletting. The covenant may be absolute (a complete prohibition) or qualified (not to assign or sublet without the landlord’s consent).

The Court of Appeal decided in this case that an unlawful subletting in breach of this covenant was incapable of remedy and so the landlord’s notice did not give a reasonable time for the breach to be remedied. The reason advanced by the Court of Appeal was that the sub-lease had been created and that fact could not be altered even if the sub-lease were surrendered.

The tenant did in fact take steps to put things right and the Court of Appeal granted relief from forfeiture.

Held

The judge ruled that a breach of the covenant either against subletting or against assignment is uniquely not a breach capable of remedy, and the lease was subject to forfeiture.