Explanatory Notes

Tribunals, Courts and Enforcement Act 2007

2007 CHAPTER 15

19th July 2007

Part 3: Enforcement by Taking Control of Goods

Commentary on Sections: Part 3

Section 85: Contracts for similar rights to be void

401.This section ensures that any contractual provision which gives a landlord a power to recover rent (or other similar types of payment) by taking control of, or selling, goods or which modifies a landlord’s right to commercial rent arrears recovery (CRAR), will be void, i.e., have no legal effect. A contractual provision that seeks to do any of these things will accordingly be unenforceable. But contracts will be valid and enforceable to the extent that they prevent or restrict the use of CRAR. For example, a contract may provide that:

402.This section is accordingly intended to prevent a landlord from making contracts to enlarge his power to take control of goods by CRAR or side-step the abolition of rent distress. For example, it will prevent a landlord from including any of the following provisions in a contract: