Question one: Building that has been sub-divided into four substantial office suites. For the purpose of letting these four suites of offices, and while he is In Australia on a six month holiday, he appoints Florence as his agent and gives her full authority to enter into any agreement for these purposes. Florence then enters into the following agreements on Sebastian's behalf:
(i) an oral agreement granting a lease of office no.1 to Dougal for a period of three years taking effect in possession and at a monthly rent which is the market rent for that suite of offices (without taking a fine or premium for the lease);
(ii) a written agreement for a lease of office no.2 to Zebedee for a period of five years taking effect in possession but at a monthly rent which is only three quarters of the market rent for the offices in question albeit in the written agreement Zebedee has covenanted not to use office no.2 for any illegal or immoral purposes.
Sebastian has recently returned from Australia and is disappointed with Florence's efforts.
Dougal has not paid any rent for the last four months and has apparently sub-let part of office no.1 to Ermintrude.
Zebedee, on the other hand, having paid monthly rent and on time, is now using office no.2 for the purpose of publishing pornographic literature.
Advise Sebastian as to his remedies against Dougal, Ermintrude and Zebedee500.
In order to determine if any person has any equitable or legal rights over Sebastian one has to consider if it is capable of being an equitable or legal interest. The first consideration under 1(1)(a) is that for there to be a legal interest it has to be an estate in fee simple absolute in possession and (b) A term of years absolute. The second consideration is under 1(2) which identifies only those interests which can be legal interest, which includes such examples as a legal lease of which both leases are.
The first question is whether Sebastian is bound by the leases created...