Your client Templar Holdings Pty Ltd has instructed me to prepare contract for the sale of its private hospital business known as "St Andrew's Private Hospital". The contract used is the standard Contract for the Sale of Business - 2015 Edition ['contract']. Assume that no amendments have been made to that contract, and no special conditions have been added. The sale is to be subject to the transfer of the current lease for the hospital building in which the business is being conducted. The general manager of the company asks your advice on a number of issues in Question 1, Question 2 and Question 3. Certain variations to the lease have been agreed between the purchaser and the landlord at the time of the transfer of the lease. Is the vendor or purchaser responsible under the contract to pay for costs related to these variations made to the current lease? Which of the following answers best describes the response you should provide? Select one answer only.

1. The purchaser is responsible for the costs related to these variations to be made to the current lease.
2. The vendor is responsible for the costs related to these variations to be made to the current lease.
3. This is a matter for negotiation between the parties.
4. Variations cannot be made to a lease in these circumstances

Q2 With reference to the facts in Question 1, if the purchaser, as tenant, defaults in the payment of rent under the transferred lease, can the landlord take action against Templar Holdings Pty Ltd? Which of the following answers best describes the response you should provide? Select one answer only.

1. The vendor does not have a right of indemnity against the purchaser.
2. At common law the transferor does not remain liable for non-payment of rent under a transferred the lease.
3. No the landlord cannot take action against the vendor as the former lessee.
4. Yes the landlord can still take action against the vendor as the former lessee.

Q3 Again with reference to the facts in Question 1, if the landlord does not consent to the transfer of the current lease within the time stated in the contract, what action can the vendor take and when? Which of the following answers best describes the response you should provide? Select one answer only

1. The vendor can make a requisition.
2. The vendor can rescind the contract by the 60th day after the contract date.
3. The vendor can rescind the contract by the 90th day after the contract date.
4. The vendor can rescind the contract by the 30th day after the contract date.