PART 3PROVISIONS APPLYING TO ALL OCCUPATION CONTRACTS
CHAPTER 8DEALING
Sub-occupation contracts
I166Exclusion of contract-holder after abandoning contracts
1
This section applies if—
a
a contract-holder (“C”) under an occupation contract (“the head contract”) enters into a sub-occupation contract in accordance with the head contract, and
b
the sub-holder (“S”) believes that C no longer considers himself or herself to be a party to the head contract and the sub-occupation contract.
2
S may act to end the head contract in accordance with this section.
3
S must give C a notice—
a
stating that S believes that C no longer considers himself or herself to be a party to the head contract and the sub-occupation contract,
b
requiring C to inform S in writing before the end of the warning period if he or she does consider himself or herself to be a party to one or both of those contracts, and
c
informing C that after the warning period the head contract may be ended and his or her rights and obligations under the sub-occupation contract may be transferred to C's landlord.
4
S must give a copy of the notice to C's landlord.
5
During the warning period, S must make such inquiries as are necessary to satisfy himself or herself that C no longer considers himself or herself to be a party to the head contract and the sub-occupation contract.
6
At the end of the warning period S may, if satisfied as described in subsection (5), apply to the court for an order—
a
ending the head contract, and
b
that C's rights and obligations as landlord under the sub-occupation contract are to be transferred to C's landlord in accordance with sections 62 and 63.
7
The court may not hear S's application under subsection (6) if S has failed to comply with the requirement in subsection (4); but the court may dispense with that requirement if it considers it reasonable to do so.
8
C's landlord is entitled to be a party to proceedings on an application made by S under subsection (6).
9
If the court is satisfied that C does not consider himself or herself to be a party to the head contract and the sub-occupation contract, it may make the order applied for under subsection (6); and if it does so it must specify the date on which the head contract ends.
10
But the court may not make an order under subsection (9) if—
a
C's landlord is a party to the proceedings,
b
C's landlord asserts that the court would have made an order for possession against S, had an application for such an order been made by C in a possession claim made by C against S, and
c
the court is satisfied that it would have made an order for possession against S in those circumstances.
11
The warning period is the period of four weeks starting with the day on which a notice under subsection (3) is given to C.