Question
Under the facts, managaing contract exists between party A (owner of hotel) and party B (manager). Party B attempted to novate and/or assign a hotel
Under the facts, managaing contract exists between party A (owner of hotel) and party B (manager). Party B attempted to novate and/or assign a hotel managing contract to party C but failed due to party A not consenting, which was required due to clause 12 of the contract:
12. Transfer of rights and obligations
(1) The Manager shall not, without the prior written consent of the Owner, assign or transfer or in any way attempt to assign or transfer any or all of its rights and obligations arising under this Agreement.
The contract has party B manage floors 3-20, which are leased by party A. Under the recitals of the contract, an additional obligation is added and it states:
E. The Manager (party B) agrees to manage and provide short term rental services to the Owner of the Strata Lots (Strata Lot Owner), if requested by the Strata Lot Owner.
The strata lot owners are from floor 21-40, owned by individual owners.
Party B is attempting to assign and novate the rental agreements it individually made with the strata lot owners to party C.
Can they assign/novate these rental agreements or would they be restricted by Recital E and clause 12 above?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started