deposit TPC =E2=80=93 La= w Q13
10/08/2= 01810= /08/2018 Thomas Sim PEA2066
The Landlord and tenant signed t= he tenancy contract, however tenant has not paid the security deposit. Is t= he contract valid?

In most cases, the landlord is a busy = person. When the tenant confirms taking the premises by paying a booking fe= e (a month of rental), the landlord considers the property has already been= rented out. However, the tenant (or landlord) may not follow up with the s= equence of events closely. This will sometimes result in complication.

The landlord is outstation. The bookin= g fee has been paid to him via online transfer. The tenant drafted the tena= ncy agreement and emailed to the landlord. The landlord prints it out and r= ead through. Satisfied with it, he signs the tenancy agreement and send bac= k to tenant. Over another few weeks, the tenant has not paid the the securi= ty deposits and utility deposits. Yet, tenant asks to move in to the premis= es.

Is the contract (now signed by both pa= rties) effective? Should the landlord give vacant possession to the tenant?= The tenant said, you give me vacant possession and I will pay you the rema= ining monies. After all, I have signed the tenancy contract, why are you so= scared?

This is actually a voidable contract. = Why? Because what the promisor (tenant) said he would do was not completely= done. He said, he offers to rent this place, the terms were told to him (2= months security deposit and half month utility deposit with 1 month advanc= e rental), but yet he did not complete the payment of deposits. Although la= ndlord has signed the tenancy agreement, it was signed with the intention t= hat these payments be made immediately - being a contingent contract. Witho= ut it being paid, the landlord has all the rights to void the contract as i= n S.40 CA50.

S.40 Effect of party to perform promis= e wholly.

When a party to a contract has refused= to perform, or disabled himself from performing, his promise in its entire= ty, the promisee (in this case the landlord) may put an end to the co= ntract, unless has has signified, by words or conduct, his acquiescence in = its continuance.

Tomorrow, we see how should the correc= t sequence be.