Business law Study Case Ⅰ

Mr.Steve

6 months rent contract

Miss.Kelly

Steve found 3 defects

Kitchen fire

Faulty electricity

Boiler

Steve left the room

Kelly

Steve• Give me my deposit !!

Kelly • You breach the contract!!

Main IssueWhether Steve should get back his deposit?

Legal Principles• Section549, In case of defects and eviction, the

letter will be responsible.

• Section550, The letter is liable for any defects and he must make all repairs which may become necessary

• Section557 Hirer should inform letter when they want to repair for defects

Legal Principles• Section559 The hirer should pay rent at the end of

each period (i.e. rent per year or at the end of each month)

• Section560 Payment is required within a period of not less than 15 days in case of non payment of rent the letter may terminate the contract.

• The hirer’s obligation includes timely payment of rent.

Legal Analysis1) Ms. Kelly is liable for all the defects in the room.

2) Steve wrote a letter to Ms. Kelly about the defects.

3) Ms. Kelly solved two problems out of three.

4) The 3 defects were the faulty electricity, boiler, and kitchen fire.

Legal Analysis• According to section 559, it is Steve’s

obligation to pay rent at the end of each month. However, he had an outstanding payment of 17 days.

• According to section 560, payment is required within the period of not less than 15 days.

• But he failed to do so and breached the contract.

Legal Analysis• Find new tenant so the landlord cut the

money from the tenant’s deposit.

• Now the tenant wants the deposit back saying the landlord didn’t repair all the defects on time.

Conclusion• Steve should not get his deposit from

Kelly

Recommendation・Steve could have repaired it by himself

・Steve should talk with Kelly before he left