Question 1

From a business perspective, a leasehold interest may be the only option where

Accepted Answer

A)  the perfect location is not for sale. 
B)  there is a tax advantage to leasing. 
C)  ownership requires additional, unwanted responsibilities. 
D)  a mortgage is unworkable for cash flow reasons. 
E)  All of the responses are correct. 
A)  the perfect location is not for sale. 
B)  there is a tax advantage to leasing. 
C)  ownership requires additional, unwanted responsibilities. 
D)  a mortgage is unworkable for cash flow reasons. 
E)  All of the responses are correct. E

Question 2

To be enforceable against a tenant, a lease of over three years must be registered on the title of the property.

Accepted Answer

A) True 
 B)False  False

Question 3

The legal responsibility for payment of property tax, even if provided for in the lease, rests with the lessee.

Accepted Answer

A) True 
 B)False  False

Question 4

The major advantage to a lessee in a sale-and-lease-back transaction is that what are now rental payments are a deductible expense.

Accepted Answer

A) True 
 B)False

Question 5

Severin leased a small shop from Matthew for a five-year term. The shop was located in a small town. Any lease for a term of more than one year is an agreement that must be in writing to satisfy the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 6

A lease creates __________, between lessee and lessor.

Accepted Answer

A)  privity of estate 
B)  privity of contract 
C)  privity of reversion 
D)  All of these relationships. 
E)  privity of estate and privity of contract 
A)  privity of estate 
B)  privity of contract 
C)  privity of reversion 
D)  All of these relationships. 
E)  privity of estate and privity of contract

Question 7

Where the leased premises are subject to a covenant that runs with the land, a third party with the right to enforce the covenant should sue the lessor for a breach of that covenant.

Accepted Answer

A) True 
 B)False

Question 8

Savesure Department Stores were a chain of discount stores offering low-priced consumer products in a no-frills environment. They had found great success, particularly in urban centres where they offered many name-brand or comparable products at prices far below the competition. As a result, Savesure had built a network of over 50 franchised stores, many located in shopping centres.
One of its stores was located in a leased building on the main street of a large city directly opposite a major shopping centre. The lease provided for a minimum annual rent of $24,000 payable monthly plus 10% of gross sales revenue. The lease also contained a covenant that the tenant would not open one of its stores within a eight-kilometre radius of the existing leased premises.
After several years the landlord sold the property and assigned the lease to the purchaser. The new owner then discovered that Savesure had been operating a store in the shopping centre across the street for five years.
What issues does this case present? What rights, if any, does the new landlord have?

Accepted Answer

This case is meant to explore the issue

Question 9

A lease bears similarity to a transfer of property in that

Accepted Answer

A)  if its term exceeds one year, it must be registered. 
B)  the lessee is entitled to "quiet possession." 
C)  any fixtures a tenant installs become part and parcel of the real property, as is the case for an owner. 
D)  both must be in writing to be enforceable. 
E)  any fixtures a tenant installs become part and parcel of the real property, as is the case for an owner and the lessee is entitled to "quiet possession." 
A)  if its term exceeds one year, it must be registered. 
B)  the lessee is entitled to "quiet possession." 
C)  any fixtures a tenant installs become part and parcel of the real property, as is the case for an owner. 
D)  both must be in writing to be enforceable. 
E)  any fixtures a tenant installs become part and parcel of the real property, as is the case for an owner and the lessee is entitled to "quiet possession."

Question 10

Distress is the right of a landlord to seize and sell a tenant's goods to satisfy rental arrears.

Accepted Answer

A) True 
 B)False

Question 11

All of the following are remedies belonging exclusively to the lessee, except

Accepted Answer

A)  distress. 
B)  distrain. 
C)  action on the covenant. 
D)  right of re-entry. 
E)  None of these are remedies. 
A)  distress. 
B)  distrain. 
C)  action on the covenant. 
D)  right of re-entry. 
E)  None of these are remedies.

Question 12

Ron has a two-year commercial lease with Southward Realty Inc. for his insurance business located in Calgary, Alberta. The lease was entered into on July 1 of year 1 and runs until year 3. It is a monthly periodic lease. In October of year 1 Ron decides that he wants to terminate the lease and move to new premises on May 1 of year 1. If there is no termination clause in the lease, when must he give notice of termination?

Accepted Answer

A)  March 31; the notice must be equal to one tenancy period. 
B)  April 1; the notice must be equal to one tenancy period. 
C)  February 1; the legislation requires 60 days notice. 
D)  February 1; the rule at common law is 60 days notice. 
E)  As there is no termination clause, Ron cannot give notice to terminate the lease. 
A)  March 31; the notice must be equal to one tenancy period. 
B)  April 1; the notice must be equal to one tenancy period. 
C)  February 1; the legislation requires 60 days notice. 
D)  February 1; the rule at common law is 60 days notice. 
E)  As there is no termination clause, Ron cannot give notice to terminate the lease.

Question 13

"Action on the covenant," and at Common Law, "distrain" are both remedies open to

Accepted Answer

A)  a tenant to enforce a right of quiet possession or repair. 
B)  a landlord for non-payment of rent. 
C)  a landlord to terminate a tenancy-at-sufferance. 
D)  a tenant to enforce a pre-existing right to sublet. 
E)  either party to a lease. 
A)  a tenant to enforce a right of quiet possession or repair. 
B)  a landlord for non-payment of rent. 
C)  a landlord to terminate a tenancy-at-sufferance. 
D)  a tenant to enforce a pre-existing right to sublet. 
E)  either party to a lease.

Question 14

Ron has a two-year commercial lease with Southward Realty Inc. for his insurance business located in Calgary, Alberta. The lease was entered into on July 1 of year 1 and runs until year 3. It is a yearly periodic lease. In October of year 1 Ron decides that he wants to terminate the lease and move to new premises on May 1 of year 2. If there is no termination clause in the lease, when must he give notice of termination?

Accepted Answer

A)  April 1, year 1; the notice must be equal one tenancy period. 
B)  May 1; the notice must be equal to one tenancy period. 
C)  February 1; the legislation requires 60 days notice. 
D)  February 1; the rule at common law is 60 days notice. 
E)  As there is no termination clause, Ron cannot give notice to terminate the lease. 
A)  April 1, year 1; the notice must be equal one tenancy period. 
B)  May 1; the notice must be equal to one tenancy period. 
C)  February 1; the legislation requires 60 days notice. 
D)  February 1; the rule at common law is 60 days notice. 
E)  As there is no termination clause, Ron cannot give notice to terminate the lease.

Question 15

Severin leased a small shop from Matthew for a five-year term. The shop was located in a small town. Any lease for a term of more than three years must be in writing and under seal to comply with the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 16

No lease other than a written lease may be brought before the Courts for enforcement.

Accepted Answer

A) True 
 B)False

Question 17

The day following expiry of a residential tenancy, the landlord has an absolute right to re-enter the premises.

Accepted Answer

A) True 
 B)False

Question 18

One individual may be both the landlord and tenant for the same parcel of land.

Accepted Answer

A) True 
 B)False

Question 19

The interest transferred in a lease is

Accepted Answer

A)  less than a conveyance in fee simple, but more than a licence or easement. 
B)  less than either a conveyance in fee simple or licence but more than an easement. 
C)  less than all three. 
D)  more than all three. 
A)  less than a conveyance in fee simple, but more than a licence or easement. 
B)  less than either a conveyance in fee simple or licence but more than an easement. 
C)  less than all three. 
D)  more than all three.

Question 20

Larry entered into a two-year lease with Ned, the landlord, to rent a small plot of land for a garden. Once the lease was made, Larry promptly sublet the land to Nayib. Nayib must pay rent to Ned under the sublease.

Accepted Answer

A) True 
 B)False

Exam 24: Restrictive Trade Practices

From a business perspective, a leasehold interest may be the only option where

To be enforceable against a tenant, a lease of over three years must be registered on the title of the property.

The legal responsibility for payment of property tax, even if provided for in the lease, rests with the lessee.

The major advantage to a lessee in a sale-and-lease-back transaction is that what are now rental payments are a deductible expense.

Severin leased a small shop from Matthew for a five-year term. The shop was located in a small town. Any lease for a term of more than one year is an agreement that must be in writing to satisfy the Statute of Frauds.

A lease creates __________, between lessee and lessor.

Where the leased premises are subject to a covenant that runs with the land, a third party with the right to enforce the covenant should sue the lessor for a breach of that covenant.

A lease bears similarity to a transfer of property in that

Distress is the right of a landlord to seize and sell a tenant's goods to satisfy rental arrears.

All of the following are remedies belonging exclusively to the lessee, except

"Action on the covenant," and at Common Law, "distrain" are both remedies open to

Severin leased a small shop from Matthew for a five-year term. The shop was located in a small town. Any lease for a term of more than three years must be in writing and under seal to comply with the Statute of Frauds.

No lease other than a written lease may be brought before the Courts for enforcement.

The day following expiry of a residential tenancy, the landlord has an absolute right to re-enter the premises.

One individual may be both the landlord and tenant for the same parcel of land.

The interest transferred in a lease is

Larry entered into a two-year lease with Ned, the landlord, to rent a small plot of land for a garden. Once the lease was made, Larry promptly sublet the land to Nayib. Nayib must pay rent to Ned under the sublease.

The Law and the Legal System

The Judicial System

Administrative Law

Intentional Interference

Unintentional Interference With Persons or Property

An Introduction to the Legal Relationship

Requirement of Consideration

Legal Capacity to Contract and the Requirement of Legality

The Requirements of Form and Writing

Failure to Create an Enforceable Contract

The Extent of Contractual Rights

Performance of Contractual Obligations

Breach of Contract

Electronic Business Law

Law of Agency

Law of Partnership

Corporation Law

Securities Regulation

Employment Relationship

Labour Law

Law of Bailment

Sale of Goods

Consumer Protection Legislation

Insurance Law

The Law of Negotiable Instruments

Interests in Land

The Law of Mortgages

Leasehold Interests

Commercial and Residential Real Estate Transactions

Security for Debt

Bankruptcy and Insolvency

Intellectual Property, Patents, Trademarks, Copyrights and Franchising

International Business Law

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