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OPTION CLAUSE IN A TENANCY AGREEMENT BINDS SUCCESSIVE LESSORS

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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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TENANCY AT SUFFERANCE & STATUTORY TENANCY

A tenant who enters upon premises by reason of a contract with the landlord is a contractual tenant. Such a tenant holds an estate which is subject to the terms and conditions of the grant. Once that tenancy comes to an end by effluxion of time or otherwise and the tenant holds over without the will or agreement of the landlord, he becomes a tenant-at-sufferance. This is strictly a common law concept. But sometimes there is a statute which gives security of tenure to such a tenant after his contractual tenancy has expired. Where such a statute exists he now holds the premises no longer as a contractual tenant because there no longer exists a contract between him and the landlord. But he nonetheless retains possession by virtue of the provisions of the statute and is entitled to all the benefits and is subject to all the terms and conditions of the original tenancy.

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

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THE PAYMENT OF RENT IS IN A CLASS OF ITS OWN

In Property Holding Co. Ltd. v. Clarke (1945) 1 All ER 165 at 173, Evershed, L.J, approved a passage in Holdsworth History of England – “In modern law rent is not conceived of as a thing, but rather as a payment, which the tenant is bound by his contract to make to his landlord. From all indications, rent is in a class of its own, and it also stands very tall because the agreement to pay the rent outshines any other considerations. In other words, a tenant is not at liberty to engage in a rent strike because its covenant to pay rent is independent of the landlord’s obligation to effect repairs.”

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SEVEN LANDLORDS MUST NOT NEED OCCUPATION

Why must the seven landlords who were the plaintiffs in the case need the occupation of the single ground floor flat before they can recover possession of the flat. If that is the law, it is a law devoid of human face, human reason and common sense. I shall not project such a law.

– Ubaezonu JCA. Coker v. Adetayo (1992)

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THREE MAIN TYPES OF TENANCY

Be that as it may, there are 3 main types of tenancy, tenancy at will, periodic tenancy and fixed term (or term certain). – AMINA ADAMU AUGIE, JCA. Bocas v. Wemabod (2016)

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RENT CAN BE COLLECTED DESPITE SERVICE OF NOTICE TO QUIT

The fact that a landlord collected rent on a property still in occupation or possession of the tenant after notice to quit cannot by any stretch of the law, equity or imagination amount to a waiver of the notice to quit even where the notice had expired and the tenant refused to yield possession in time. The notice to quit would subsist until it is formally rescinded by the landlord and or when a fresh tenancy agreement is entered into.

– Ogunwumiju JSC. Pillars v. William (2021)

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WRIT OF SUMMONS REGULARISES DEFECTIVE NOTICE TO QUIT

The ruse of faulty notice used by tenants to perpetuate possession in a house or property which the land lord had slaved to build and relies on for means of sustenance cannot be sustained in any just society under the guise of adherence to any technical rule. Equity demands that wherever and whenever there is controversy on when or how notice of forfeiture or notice to quit is disputed by the parties, or even where there is irregularity in giving notice to quit, the filing of an action by the landlord to of the property has to be sufficient notice on the tenant that he is required to yield up possession. I am not saying here that statutory and proper notice to quit should not be given. Whatever form the periodic tenancy is whether weekly, monthly, quarterly, yearly etc., immediately a writ is filed to regain possession, their regularity of the notice if any is cured. Time to give notice should start to run from the date the writ is served. If for example, a yearly tenant, six months after the writ is served and so on. All the dance drama around the issue of the irregularity of the notice ends.

– Ogunwumiju JSC. Pillars v. William (2021)

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