agreement for a lease

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A contract to enter into a lease. Special rules govern the creation of such a contract. Before 27 September 1989, a contract to grant a lease was unenforceable unless it was evidenced in writing (Law Property Act 1925 s 40) or evidenced by a sufficient act of part performance (such as entering onto the property and paying rent). Since 27 September 1989, a contract to grant a lease for not more than three years may be made orally or by any kind of written agreement so long as it does not give rise to a future lease. A contract to grant a longer lease must be in writing, incorporating all the terms of the agreement, and signed by the parties. A contract that does not comply with these requirements is void irrespective of performance unless it gives rise to a constructive or resulting trust (Law of Property (Miscellaneous Provisions) Act 1989; Yaxley v Gotts [1999] EWCA Civ 3006, [2000] Ch 162).

Subjects: Law.

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