● n The acceptance of money from tenant did NOT constitute a waiver: Powerful Dragon

Ltd v Windsor Sauna Co. Ltd (2004)

●
● l Procedure:
● *NON PAYMENT OF RENT
● n Demand of rent must be made unless, (i) it contains that word “whether formally
demanded or not” (in Clause 4(a) of Tenancy Agreement), (ii) at least half a year’s rent is
owed OR (iii) any goods on the premises available for distress are insufficient to satisfy the
arrears.
● u In the present case, it is not sure whether any goods on the premises available for distress
are insufficient to satisfy the arrears
● *OTHER BREACHES
● n If demand must be made, a notice under s.58(1) of the CPO must be served by the
landlord to the tenant. The notice must
● u (a)specify the breach complained of; AND à (must be included in the notice)
● u (b) require the breach to be remedied unless the breach is not remediable AND à [only if
the breach is remediable, then it must be included. IF NOT capable of remediable, NO need
to refer (b)]
● u (c)Specify the compensation required by the landlord unless the landlord does not
require compensation
● u AND the lessee fails, within reasonable time thereafter to remedy the breach, if it is
capable of remedy and to make reasonable compensation in money to satisfaction of the
lessor for the breach
● u HOWEVER, there is exceptions stated in s.58(8)-(10) CPO and tenancy agreement
CANNOT be contracted out as stated in s.58(11) CPO.
●
●
●
● l Then get a court order for possession
● n Has to serve the writ to the tenant
● n Service – contain a demand for possession, it constitutes a notional re-entry by the
landlord
● n Cannot re-enter before getting the order
● n The date of re-entry will date back the service of the writ
● n So can sue for occupational rent- mense profit after service of the writ
● n If tenant does want to terminate the lease- they may ask for relief from the court
● u deposit the rent in landlord account, so when money is transferred à there will be no case
for the landlord
● u order of re-entry will be suspended à if condition is satisfied, nth happen
● l but if condition is breached by tenant à forfeiture will take place
● l If NOT go to the court for possession:
● n S.23 of Public Order Ord – re-entry must be peaceful, and cannot use force, cannot
threatened the tenant, cannot collect un-usual no of people
●
● l Effect of forfeiture:
● n The landlord may claim mense profit (damages equivalent to the market rent) from
the date of termination up to delivery of possession