residual liability

residual liability
The doctrine of privity of contract means that the original person entering into a contract or lease remains liable even after the benefit of that contract has been assigned to another person. The Landlord and Tenant (Covenants) Act 1995 has altered the position for leases entered into after 1 January 1996. The tenant is no longer automatically liable after he has transferred the lease to a new tenant.

Easyform Glossary of Law Terms. — UK law terms.

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