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OPTION CLAUSE IN A TENANCY AGREEMENT BINDS SUCCESSIVE LESSORS

Dictum

An option clause in a tenancy agreement is a covenant which runs with the land and binds the successors of both the lessor and the lessee in possession. It is immaterial that the lease is not registered provided the lessee has entered into possession and paid the rent pursuant to the agreement, he acquired a legal tenancy. Both parties in such a case are bound by the terms of the agreement and the parties are treated as having the same rights and as being subject to the same liabilities as if a valid lease had been granted. See Manchester Brewery Co. v. Coombs (1901) 2 Ch. 608, p.613.

— Coker, JSC. Okoye v Dumez & Ors. (1985) – SC.89/1984

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PREMISES HAVE NO DEFINITE DEFINITION FROM THE AUTHORITIES CITED

Let us first examine the meaning of the term “premises”. From the many learned legal works cited to us by appellant’s counsel Corpus Juris Secondum (supra), Jowitts Dictionary of English Law( supra) and Strouds Judicial Dictionary of English Law (supra), it appears that the term premises’ has a fluid or flexible meaning without a static connotation. It sometimes means bare land and sometimes land with buildings thereon, its meaning at any given. time would be determined according to what the parties so decide, as may be ascertained from the document executed by the parties. On the other hand, from the authorities cited by the respondents Ponsford v. H.M.S. Aerosols, Doe d. Hemming v. Willetes (supra), Cuff v. J & F Store Property Co. Ltd (supra) and Turner v. York Motors Property Ltd the term premises’ under the Recovery of Premises Law, Cap 118, Law of Lagos States, is used in the two senses of buildings with its grounds or appurtenances or simply as land without any building thereon. It may be noted that what can be distilled from the authorities of decided cases cited to us, including a welter of definitions in lexicons is that the term premises’ may connote bare land or the land with the buildings thereon, depending on what the parties intend it to connote, having regard to the circumstances of the case. In the final analysis, there is no doubt whatsoever that the meaning or the definition of the term “premises” is fraught with difficulties and whether it is intended to convey a precise or specific meaning will continue to exercise the courts because the situation in each case will unquestionably depend on the facts of the case thereof.

— Achike, JSC. Unilife v. Adeshigbin (2001) 4 NWLR (Pt.704) 609

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TENANCY IS A BILATERAL CONDUCT BETWEEN PARTIES

An act of a new tenancy is conscious and specific one which must be a subject of bilateral conduct on the part of the landlord and tenant. As a matter of law, the parties must clearly and unequivocally express their willingness to enter into the new tenancy at the termination of the old one. As a specific act emanating from the landlord and the tenant, it cannot be a subject of guess or speculation. An agreement or contract is a bilateral affair which needs the ad idem of the parties. Therefore where parties are not ad idem, the court will find as a matter of law that an agreement or contract was not duly made between the parties.

– Tobi JSC. Odutola v. Papersack (2007)

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WHAT IS CUSTOMARY TENANCY?

A customary tenancy involves the transfer of an interest in land from the customary landlord or overlord to the customary tenant and which interest entitles the customary tenant to exclusive possession of the land and which interest, subject to good behaviour, he holds in perpetuity. Unless it is otherwise excluded, the main feature of a customary tenancy is the payment of tributes by the customary tenant to the overlord. And the status of his exclusive possession is such that it is enforceable against the world at large including even the customary landlord or those claiming through him.

— F. Tabai, JSC. Dashi v Satlong (2009) – SC.303/2002

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A CUSTOMARY TENANT CANNOT DISPUTE THE TITLE OF HIS TENANT

The statement that occupation by a customary tenant is no occupation by the landlord is, in my view, too wide and is certainly in disregard to the relationship between customary landlord and customary tenant. Although it has been said that a customary tenant who keeps the conditions imposed by the tenancy agreement can enjoy his tenancy in perpetuity, he is in
fact a tenant from year to year subject to the payment of rent or tribute. As in English Common Law when: a tenant cannot challenge the title of his landlord under customary law, a customary tenant cannot dispute the title of his landlord.

– Obaseki, JSC. Abioye v. Yakubu (1991) – SC.169/1987

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THERE IS PRESUMPTION OF OWNERSHIP IN CUSTOMARY TENANT UNLESS REBUTTED

In Raphel Udeze & Ors v. Paul Chidebe & Ors (1990) 1 NWLR (Part 125) 141 at 160-161 this Court per Nnaemeka-Agu JSC stated: “It is left for me to mention that the courts below also found that although the appellants pleaded that the respondents were their customary tenants who occupy the land in dispute on payment of tribute, they failed to proved such tenancy, It is significant to note that a customary tenant is in possession of his holding during good behaviour and until it is forfeited for misbehaviour. Once it is the case that such a person is a customary tenant and therefore in possession, then like any other person in possession of land, there is a presumption of ownership in his favour. Although the presumption is rebuttable by due proof of a tenancy, the onus is in the adversary to rebut it if he can. Where, as in this case, the customary tenancy is not proved, such a pleading may turn out to be a dangerous admission of possession in the opposite party upon which the trial court may base a presumption of ownership, unless, of course, it is rebutted.”

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MESNE PROFITS & DAMAGES FOR USE AND OCCUPATION

Another area of difference between mesne profits and damages for use and occupation is the date of commencement. Mesne profits start to run from the date of service of the process for determining the tenancy (see Canas Property Co. Ltd. v. K. L. Television Services Ltd. (1970) 2 QB 433. But damages for use and occupation start to run from the date of holding over the property, the function of the court being to ascertain an amount which may constitute a reasonable satisfaction for the use and occupation of the premises held over by the tenant. The previous rent may sometimes be a guide, but may not be conclusive.

– Nnaemeka-Agu, JSC. Petroleum v. Owodunni (1991)

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