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Review Your SQE 1 Practice Records

Examination Timing: 00H00M50S

Colin is the owner of Sutherland House, a freehold property. In 1979, he grants a 25-year lease of the whole property to Paul. In 1984, Paul assigns the unexpired term of his lease to Michael. Colin transfers the freehold to Joanne in 1989. In 1994, Michael grants a sub-lease of Sutherland House to Jake. 

Which of the following statements best describes the legal position between Joanne and Jake?

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No privity of contract or privity of estate exists between Joanne and Jake. They cannot enforce any covenants against each other because they are not the original parties to the lease and there is no direct landlord-tenant relationship between them. Joanne is the freehold owner, Michael is her tenant, and Jake is Michael's subtenant. Privity of estate only exists between parties in a direct landlord-tenant relationship. 

Key Point: Privity of contract allows the enforcement of covenants between the original parties to a lease. Privity of estate allows enforcement between parties in a direct landlord-tenant relationship. Without either privity, covenants cannot be enforced between parties.

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