ABSTRACT

The purpose of the provisions is to protect the tenant’s business. A tenant’s business will have acquired goodwill over a period of time, and this is associated with the premises from which the business is run, as customers and clients know where to find the business. This is particularly true of retail businesses. Also, it is expensive for a tenant to move premises, as new premises will often have to be fitted out and adapted. In addition, particularly in the case of tenants who are manufacturers, substantial costs may be incurred in moving machinery. Also, a tenant’s business becomes established in an area from which it may derive its workforce, and a move may create a variety of employment difficulties. Therefore, the economic repercussions in the termination of a lease make it desirable that the tenant be given security of tenure, and that the tenant should only be required to give up possession in certain circumstances. Equally, the terms upon which the tenant remains on the premises should not be disadvantageous to the landlord, and the statutory provisions seek to keep a fair balance between the tenant and the landlord in this respect.