Business/commercial law essay question and answers

Charlie Kabue leased his shop at High Pole Commercial centre to Ray Matata for a period of two years. In the lease agreement, Ray Matata was prohibited from using the shop for any other business other than for sale of groceries.

Charlie Kabue has discovered that Ray Matata has rented out the room used as a store of the shop to Ben Chege.

Moreover, Ray Matata is in rent arrears. Mr. Charlie Kabue is aggrived and seeks your advice on the remedies available to him.

Advise him.
• This problem is based on the obligations of the lessee in a tenancy agreement.
• As a lessee Ray Matata is bound to observe certain obligations. For example, he is bound not to sub-let the premises without Charlie Kabue‟s consent.
• In addition the lease provides that the premises must not be used for any other purpose.
• It is evident that Ray Matata is in breach of the lease agreement in two ways namely:
o Sub-letting the lease premises to Ben Chege.
o Rent arrears.
• Charles Kabue is entitled to feel aggrieved and has certain remedies for redress. My advise to him is to:

(i) Sue in damages for breach of the lease agreement.
(ii) Sue for the amount outstanding as rent (action for money).
(iii) Terminate the lease notice or forfeiture as the circumstances justify. However, he cannot terminate the lease forfeiture unless the lease contains a forfeiture clause.

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