The continuing liability of original lessees after assignment of lease – time for reconsideration?

Abstract

This article examines the maintenance of privity of contract between the original parties to a non-retail commercial lease after assignment against the background of changes to that rule made in England and Wales in 1996 and being made progressively in Australia in the case of retail shop leases. It calls for a re-consideration of the rule along the lines of the Landlord and Tenant (Covenants) Act 1995 (UK) which presages a relaxation of the current restrictions upon refusal of consent to assignments of lease but without any residual liability in the immediate assignor of the lease remaining. The article concludes by suggesting that the time may have arrived for re-considering the whole concept of retaining differences between privity of contract and privity of estate.