Department Of Mercantile Law - Mike Ross - Law Assessment Answer

Law Assessment Task

Harvey Specter leases his farm to Mike Ross for a period seven (7) with an option to renew for a further five (5) years and registers this lease against the title deeds of the farm. In the beginning of the seventh year Harvey Specter decides to sell the leased farm to Daniel Hardman.

At the time the agreement of sale was concluded Daniel was aware that Mike Ross was occupying the farm as a tenant under a seven year lease with an option to renew for another five years.

At the end of the seventh year Daniel wants Mike to vacate the farm since the first initial seven years of the lease have lapsed.

Mike approaches you for advice on the following:

1. Can Mike continue with the lease for an additional five years? (15)
2. Suppose Daniel was not aware of the duration of the lease would your answer to question one above change? Give reasons for your answer. (5)

Suppose the lease agreement was not registered against the title deeds would your answer to question one above change? Give reasons for your answer.      

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