Leases, Bailments and Licenses

LAW 3000 - General Topics for Week 5

This week we will look at three specific types of agreements that involve property, Leases, Bailments and Licenses.

1. Read http://en.wikipedia.org/wiki/Lease . What are the requirements for a lease to exist? What are the main types of tenancies and how do they differ?

A lease is a type of contract. As such, they must include: An agreement to lease (through offer and acceptance) for consideration. A lease conveys the possession and use of property, so a lease must also describe the property. Since a lease is a type of contract, the parties may agree to additional lawful terms and conditions.

The four tenancies are:

Tenancy for Years (Fixed Term) – A lease for a tenancy for years requires that there is a fixed beginning and end for the lease. These times do not need to be dates, but can be events as long as both parties are capable of understanding when such events occur. In general, a tenancy for years must be in writing or the court will construe it as a periodic tenancy. If one party to the lease breaks a tenancy for years they are generally strictly liable for the costs incurred by the other party for the remainder of the lease and many courts will require specific performance on the part of a landlord who tries to repossess property held under a tenancy for years.

Periodic Tenancy - A lease with a periodic tenancy is automatically renewed at a certain period, usually based on a regular payment. Most leases fall into this category. In general, either party may cancel a periodic lease with notice of a full renewal period. However many jurisdictions apply different statutory rules to the lease of a residence, with longer periods required for cancellation. Non-payment of the lease generally results in it being terminable by the lessor. Again, longer periods may be required for the termination for non-payment on the lease of a residence. Under the common law, periodic tenancies do not have to...