A question regarding Lanlords, Leases, and fines

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markjay

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Someone I know was fined by the Landlord for breach of the Lease.

I was told by a person affiliated with the Landlord that there is a provision in the Lease for imposing fines in cases where the Lease has been breached.

However a friend who happens to be a Managing Agent of many years experience, said he thought the whole thing was very odd business - his understanding was that a Lease can only impose compensation (agreed or otherwise) based on quantifiable damages, and if no damage was cause (and in any case the particular breach has stopped), a 'fine' would not be enforceable regardless of what the Lease might say.

This is an interesting point which to some extent mirrors the private parking 'fines', and I found this regarding contacts in general (i.e. not Lease):

Damages - Wikipedia, the free encyclopedia

Though I wonder if anyone know what is the situation regarding Landlord's Leases?

Unfortunately I can't be too specific, in case either party does decide to take this to court (unlikely as it may be at this stage).

What do you think?
 
Pretty sure a lease can contain anything in terms of conditions...if you sign it, you agree to bide by it?
cheers
 
I think that the problem is that if you agree to having a 'fines' system, where the fined amount is based on the Landlord's discretion, and is neither agreed in the Lease (unlike say agreeing to pay certain interest or surcharge for late payments) nor based on any actual damage caused, this is pretty much an open ended proposition?

The offending party does not dispute that there was a breach, which has since ceased, but I believe that they can dispute the Landlord's right to impose punitive and/or exemplary fines?
 
That's way above my pay grade, I just happen to know that leases can be extremely restrictive... :(

cheers!
 
It's a poor solicitor who would agree to a lease with 'fines' in it. It's pretty common though for a landlord to be able to charge a penalty interest rate.

It's also not uncommon for a Lease to covenant to comply with landlords estate management code of conduct / rules. This could I guess include fines for car parking or similar 'breaches'.
 

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