is Trading and Tourism Compan-tenant
Assignment 4
- A is Trading and Tourism Compan-tenant
- B is the owner of a Building-Landlord
A interred with B into an investment Contract where A will take the building as an investment which is owned by B and will turn to Hotel. It was agreed that A prior to investing will take the approval from B on the plans and drawings. A sent the plans and the drawing to B for his approval. It was agreed that within a week if there were no answers from any of the parties on the correspondences of the other for any approval, therefore, it would mean that approval has been granted. A has started to do all the changes according to the plans and the drawings after a week from sending the plans. After a month A has received the reply from B with changes made in the plans and drawings. A has ignored the reply and continue the changes according to his plans. B was not happy and has demanded A to stop the work in the building and deliver the building at the same conditions he received it. A has replied to B that he has invested in the building according to the contract and if he wants the building back he has to pay the cost of his investments and the remedies of the damages that he has incurred. B has refused his demands and asked A to pay for all the repairs and damages caused to his building.
You have been contacted as a mediator between the A and B Please answer the following:
- What kind of relation between A and
Answer: Tenancy Agreement
- Identify the responsibility for both parties and their civil rights.
Answer: Duties and responsibilities under a Tenancy agreement
“A” as the tenant as the following rights
- Right of possession. Since he has rented the building to use in order to run his business, he has the right to possess it for the period outlined in the tenancy agreement with B without any interference.
- Right to “non-interference with use” A further has the right to occupy and use the premises without any form of interference.
However, A has to comply with the following duties; –
- Duty to pay rent for the premises and other related costs such as service charges.
- Duty to use the premises only for legal purposes.
- Duty not to alter the structure of the premises. Unless otherwise stated in the agreement- In this case, there was of course, and agreement to do so.
B on the hand as the tenant has the following civil rights;
- The right to receive rent for the premises.
- The right to inspect the property if need be.
- The right to set the terms of the tenancy.
B’s responsibilities include:
- Duty to abide by the terms of the tenancy agreement.
- Duty to maintain safe and habitable premises.
- Duty to handle all the matters related to the tenancy in good faith.
- What is the real problem between the two parties?
Answer: Breach of contract
- Does B have the right to stop work in the building and does A have the right to ignore B’s changes in the plans?
Answer: Since both parties agreed that if A did not receive any form of response within a week upon submitting the plans e could have the right to go ahead and do the structural changes, he indeed has the right to ignore B’s changes in the plans. On the other hand, B does not have the right to stop working on the building.
- What action A should take to make B accept the plans and drawings and to finish the work?
Answer: A can sue for damages and contract breach by B
- In your conclusion, you should provide a good solution for A and B to continue to work together without going to litigation.
Answer: A and can strike a point of compromise and accept “mutual mistakes” and thus resolve the issues without getting to court for litigation-which is likely to be a costly and tedious process. A erred by ignoring B’s warnings to stop the changes and B erred by the late response of the proposed structural changes. The two parties can thus reach a point of agreement on the way forward. For instance, B could cater to the costs of the proposed changes and A could amend accordingly.