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October 2013 Midterm Marking Guide .docx

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University of Alberta
Business Law
B LAW402
Elaine Geddes

BLAW 402 Marking Key for October 2013 Midterm Exam 1. Fred and Frederica have entered into a fixed term lease because it has a set start and end date and the term of the lease can be determined in advance. 2. The landlord’s obligation is to provide actual occupancy of the leased premises at the commencement of the lease. 3. Whether Boris expected them or not, Fred and Frederica had a right to take possession on May 1 according to the lease. 4. Failure to give immediate and actual possession on the first day of the lease is a fundamental breach of contract which would entitle Fred and Frederica to immediate repudiate the contract and get out of the lease. 5. If they decide not to end the lease, then Boris owes them damages for the losses that they incur due to not being able to move in on time. 6. This would include the costs of staying in a hotel and the costs of storing their goods until the house became empty. 7. The tenants who have not left are over-holding tenants, in breach of their obligation to vacate promptly at the end of the tenancy, and would be liable to Boris for all of the losses he incurs through being liable to Fred and Frederica. 8. Alandlord has an obligation to provide habitable premises at the commencement of the lease. 9. Adirty house is still habitable but a non-functioning water tank would probably make the house uninhabitable. 10. Such a breach would again entitle Fred and Frederica to repudiate the lease for breach of a fundamental obligation of the landlord. 11. As Boris has accepted his responsibility for the hot water tank, he owes Fred and Frederica for the cost of performing his obligations. 12. Other problems with the house have to be categorized as landlords are not generally responsible to perform repairs or fix things unless it is in the contract or in the Residential Tenancies Act. 13. So minor flooding or issues with the appliances are probably not something Boris has to fix but pest infestations are different and you can force the landlord to do something about them under the Residential Tenancies Act. 14. The landlord has the obligation to grant tenants quiet possession meaning that the landlord will not interfere with the tenant’s possession of the property nor allow anyone else to do so. 15. Landlords are not permitted to enter on to the premises without consent or notice to the tenant except in cases of abandonment or emergency. 16. Boris has clearly violated the right to exclusive quiet possession of the premises by repeatedly entering the property for non-emergency reasons without permission. 17. Normally, a tenant cannot get out of a fixed term lease until the expiration of the fixed term, but given the number and severity of the violations of the lease that have occurred here, Fred and Frederica could terminate. 18. However, if they decide to stay, they are obligated to pay rent and cannot use the landlord’s breaches as an excuse not to pay rent. 19. When Fred and Frederica stay past the end of December, they have become overholding tenants and are liable to Boris for both rental payments outstanding, and any loss he suffers due to them not moving out. 20. There also could be an implied month to month lease created because they have stayed and he has accepted them staying and therefore they have to pay rent and give proper notice to leave. 21. Boris cannot make Fred and Frederica liable for any damage done to the property as no pre-occupation walkthrough was done and he cannot prove that the damage was not present when they moved in. 22. Fred and Frederica can go to court to be allowed not to pay rent for the last month or to get reimbursed for any costs they may have incurred but they cannot arbitr
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