In nine pages this paper analyzes these 2 recent House of Lords and Appeal Court judgments in terms of their repercussions. Four sources are cited in the bibliography.
Name of Research Paper File: JL5_JLashworth.rtf
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implied user restrictions in granting licence to assign)
In the case of Ashworth Frazer Ltd v Gloucester City Council, the landlord (the local council)
refused to allow an assignment to the tenant on the basis that such an assignment would result in the property being utilised for purposes which were not included in the
lease. The tenant asserted that it was not reasonable for the landlord to refuse such consent unless it could be proved that the proposed assignment would constitute a breach of
covenant; in such an event the landlord could enforce the covenant after the assignment had taken place.
The Appeal Court agreed that a breach of the use restriction would not necessarily be a consequence of the assignment and therefore
the landlord would not be within his rights to withhold consent. Lord Foscote stated that implying that there were included in the lease unexpressed user covenants would be unfair to
the interests of the assignee, Ashworth Frazer Ltd., who would have interpreted the relevant subclauses in a reasonable manner based on what was set out within them.
For example, it would have been reasonable for them to suppose
that building obligations were spent except under particular circumstances and that another subclause contained all the relevant user restrictions which would apply to an assignee. Lord Foscote was of the
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