Can a landlord who accepts rent after knowledge of a sub-letting thereafter raise the issue of forfeiture?
British Columbia, Canada
The following excerpt is from Coast Hotels Ltd. v. 389079 B.C. Ltd., 1998 CanLII 6806 (BC SC):
In Lippman v. Lee Yick, supra, McRuer C.J.H.C. held that a landlord who accepted rent after knowledge of a sub-letting could not thereafter raise the sub-letting as cause for forfeiture. In contrast, it was held that forfeiture could be claimed, after acceptance of rent, for the continued breach of a covenant that the tenant would be the sole owner of all goods and chattels brought upon the premises. The court further held, however, that having accepted rent, the landlord must give the tenant reasonable notice to remedy the breach before the right of forfeiture could be exercised. The court set that period at 60 days.
In Walrond v. Hawkins (1875), L.R. 10 C.P. 342, it was held that a sub-letting in breach of a lease was not a continuing breach because the lessee, by his agreement with the under-tenant, had precluded himself from interfering with the under-tenant's occupation.
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