The case of Overseas Union Enterprise Ltd v Three Sixty
Degree Pte Ltd [2013] SGHC 71
("OUE") is instructive in the law
regarding leases, setting out the principles a court would adopt
when interpreting a lease. The case illustrates how courts would
interpret the particular wording of clauses that are prevalent in
leases, and helpfully expounds on principles applicable to the
implied covenants of quiet enjoyment and non-derogation of grant.
In this case note, we focus on these implied covenants and the
general principles relating to these covenants that landlords and
tenants should bear in mind when entering into leases.
Facts
The plaintiff, Overseas Union Enterprise Ltd (the
"Landlord") leased the 39th floor of its
hotel ("Level 39") to the defendant,
Three Sixty Degree Pte Ltd (the
"Tenant") under a lease agreement (the
"Lease"). However, due to peculiarities
with the leased premises, the Tenant faced difficulties in applying
for a fire safety certificate ("FSC
