PART 3PROVISIONS APPLYING TO ALL OCCUPATION CONTRACTS

CHAPTER 8DEALING

Sub-occupation contracts

I162End of head contract

1

This section applies (subject to subsection (6)) if—

a

the contract-holder under an occupation contract (“the head contract”) enters into a sub-occupation contract in accordance with the head contract, and

b

the head contract ends after the head contract's occupation date.

2

If the sub-occupation contract subsists immediately before the head contract ends—

a

the sub-occupation contract continues (as an occupation contract which is not a sub-occupation contract), and

b

the contract-holder's rights and obligations as landlord under the sub-occupation contract are transferred to the head landlord.

3

If the sub-holder asks the head landlord for a further written statement of the contract under section 31(4) (and subsection (5) of this section does not apply), the references to the contract-holder in sections 34(4) and 35(5) (failure to provide statement) include the person who was the contract-holder under the head contract.

4

Subsection (5) applies where—

a

a head landlord has given notice in accordance with section 61(7) and (8) in relation to a contract, and

b

the contract continues because of subsection (2)(a) of this section.

5

Where this subsection applies, for the purposes of section 31(1) (written statement of contract) the occupation date of the contract is to be treated—

a

if the notice mentioned in section 61(7) is given to the sub-holder before the end of the head contract, as the day on which the head contract ends;

b

if the notice is given to the sub-holder on or after the day on which the head contract ends, as the day on which the notice is given.

6

This section does not apply if the head contract is a fixed term standard contract which ends at the end of the fixed term.