The "Quiet Enjoyment" clause ensures that a tenant or property owner can use and enjoy the premises without interference or disturbances from the landlord or any third parties claiming superior title. This clause is essential in real estate and lease agreements, providing legal protection from unwarranted interruptions that could affect the tenant's use of the property.
15. QUIET ENJOYMENT
15.1 If so requested by the Owner in relation to any Employment Contract (the Relevant Contract), and subject only to the conditions set out in Clause 15.2, the Lender shall use its reasonable commercial efforts promptly to enter into a quiet enjoyment agreement in favour of the charterer on such terms as the charterer may reasonably require. If the Lender is unable, by using its reasonable commercial efforts, to agree a quiet enjoyment agreement on such terms, the Lender shall promptly enter into a quiet enjoyment agreement in the form attached as Schedule 2 (or a form no less favourable to the charterer).
(3)Quiet enjoyment: The Owner:
(a)warrants and undertakes to the Charterer that throughout the Charter Period, subject to Clause 5 (Termination and Early Termination) hereof, the Owner shall not and shall procure that the Mortgagee shall not interfere with the use, possession and quiet enjoyment of the Vessel by the Charterer only in accordance with, and only subject to, the terms of the Quiet Enjoyment Agreement and shall comply with and procure compliance by the Mortgagee with the terms and conditions of the Quiet Enjoyment Agreement; and
(b)the Owner further undertakes, if reasonably requested to do so by the Charterer, to take such action as is available to it to protect the use, possession and quiet enjoyment of the Vessel during the Charter Period by the Charterer from interference by third parties.
(3)Quiet enjoyment: The Owner:
(a)warrants and undertakes to the Charterer that throughout the Charter Period, subject to Clause 5 (Termination and Early Termination) hereof, the Owner shall not and shall procure that the Mortgagee shall not interfere with the use, possession and quiet enjoyment of the Vessel by the Charterer only in accordance with, and only subject to, the terms of the Quiet Enjoyment Agreement and shall comply with and procure compliance by the Mortgagee with the terms and conditions of the Quiet Enjoyment Agreement; and
(b)the Owner further undertakes, if reasonably requested to do so by the Charterer, to take such action as is available to it to protect the use, possession and quiet enjoyment of the Vessel during the Charter Period by the Charterer from interference by thirdparties.
QUIET ENJOYMENT AGREEMENT
This Quiet Enjoyment Agreement (this “Agreement”), dated [●], 201[●] is made and entered into by and among (i) CELSE - Centrais Elétricas de Sergipe S.A., a sociedade anônima duly incorporated in Brazil (together with its successors and permitted assigns, the “Charterer”); (ii) Compass Shipping 23 Corporation Limited, a corporation organized under the laws of the Marshall Islands (together with its successors and permitted assigns, the “Financing Owner”), (iii) Golar Nanook UK Limited, a company duly incorporated in the United Kingdom (together with its successors and permitted assigns, the “Disponent Owner”), (iv) Golar FSRU8 Corporation, a corporation organized under the laws of the Marshall Islands (the “Bareboat Owner”) and (v) Citibank, N.A., a national banking association organized and existing under the laws of the United States of America (“Citibank”), acting as offshore collateral agent on behalf of the Secured Parties (as defined in the Charterer’s Financing Documents) (together with its successors and permitted assigns, the “Collateral Agent”). The Charterer, the Financing Owner, the Disponent Owner, the Collateral Agent and the Bareboat Owner are each a “Party” and together the “Parties”.
13.LANDLORD'S COVENANT FOR QUIET ENJOYMENT
The Landlord covenants with the Tenant, that, the Tenant will have quiet enjoyment of the Property without any lawful interruption by the Landlord or any person claiming under the Landlord.
37.Covenant of Quiet Enjoyment. Provided that Subtenant is not in default hereunder beyond applicable notice and cure periods, Subtenant’s quiet enjoyment of the Subleased Premises shall not be interfered with or disturbed by Sublandlord, provided, however, if the Primary Lease has been terminated for a reason other than (i) casualty or condemnation, or (ii) a default by Sublandlord in performing in obligations thereunder (excluding any default that is caused by Subtenant’s failure to perform its obligations under this Sublease) or under this Sublease (including Section 7 hereof), the termination of this Sublease as a consequence of the termination of the Primary Lease shall not constitute a breach of this covenant of quiet enjoyment.
13.LANDLORD'S COVENANT FOR QUIET ENJOYMENT
The Landlord covenants with the Tenant, that, the Tenant will have quiet enjoyment of the Property without any lawful interruption by the Landlord or any person claiming under the Landlord.
2.7
Representations and warranties in respect of novation, Approved Mortgage and Quiet Enjoyment Agreement
Owner hereby represents and warrants to Charterer that the following shall occur:
(a)
on the Execution Date, SPV Owner shall provide a Quiet Enjoyment Agreement executed by the Mortgagee and in the form set out at Part A of Schedule X – Form of Quiet Enjoyment Agreement save for minor logical changes; and
6. Quiet Enjoyment. So long as Tenant shall not be in default of any of its obligations set forth in this Lease, Landlord agrees that Tenant shall have the quiet enjoyment and peaceable use and possession of the demised Premises during the term of this Lease, subject to the terms of this Lease.
36.1 Quiet enjoyment
(a) Unless a Termination Event has occurred and is continuing or this Charter or the Charter Period has terminated pursuant to the terms of this Charter, the Owners undertake with the Charterers that they will not, nor shall any permitted person claiming through it (as mortgagee or assignee but always subject to the terms of any quiet enjoyment letter issued by such party to the Charterers), disturb or interfere with the quiet, peaceful and continuing possession, use and enjoyment of the Vessel by the Charterers due to any act or failure to act on the part of the Owners or any permitted person claiming through or under the Owners; provided always that the Owners shall not be liable to the Charterers or any other person for any interruption or disturbance to the Charterers’ or such other person’s quiet, peaceful use, or continued enjoyment of the Vessel as a result of (i) a defect in the Owners’ ownership of or title to the Vessel as transferred to the Owners by the Seller, or (ii) breach of any obligations by any Relevant Party under any Operative Documents or (iii) compliance by the Owners with any applicable law, provided that if the Owners become aware that there has been or there is pending a change in any applicable law which would result in any such interruption or disturbance to the Charterers’ quiet, peaceful use, or continued enjoyment of the Vessel, the Owners shall immediately notify the Charterers of the nature of such change or pending change and take whatever action may reasonably require by the Charterers to mitigate such interruption or disturbance, or (iv) total loss of the Vessel.
(b) If required by any relevant Sub-Charterer or potential Sub-Charterer (or any other relevant counterparty) to facilitate the Charterers entry into any future Sub-Charter (or other employment contract for the Vessel), the Owners agree to use best endeavours to issue a letter of quiet enjoyment to the relevant Sub-Charterer (or other relevant counterparty) on the terms of the Owners’ Issued Quiet Enjoyment Agreement.
(c) The Owners shall use best endeavours to procure that the Finance Parties and/or relevant mortgagee will issue in favour of the Charterers and any Sub- Charterer a Finance Party Quiet Enjoyment Letter.
4.04 Quiet Enjoyment
Tenant initial Landlord covenants and agrees that, subject to terms, covenants and conditions of this Lease, Tenant shall and may, upon observing and complying with all terms, covenants and conditions of this Lease, peaceably and quietly occupy the Premises without hindrance, disturbance or ejection by Landlord or any other person.
45. QUIET ENJOYMENT
The Charterers shall enter into the Quiet Enjoyment Agreement with the Mortgagee whereby the Mortgagee shall agree that except in the case of occurrence of any Termination Event which is continuing and has not been remedied or waived, the Mortgagee shall not enforce the Mortgage in such a way as shall prevent the Charterers from having quiet use and enjoyment of the Vessel and that in the case of occurrence of any event of default under the Mortgage, the Mortgagee may nominate a third party who must be acceptable to the Charterers and who shall take over the contractual position of the Owners hereunder and shall enter into and execute all documentation necessary to do so.
16. LANDLORD’S COVENANT FOR QUIET ENJOYMENT
The Landlord covenants with the Tenant, that, so long as the Tenant pays the rents reserved by and complies with its obligations in this lease, the Tenant shall have quiet enjoyment of the Property without any interruption by the Landlord or any person claiming under the Landlord except as otherwise permitted by this lease.
16. Prohibitions Against Violating Laws and Causing Disturbances. Tenants shall be entitled to quiet enjoyment of the Leased Premises. Tenants and their guests or invitees shall not use the Leased Premises or adjacent areas in such a way as to: (1) violate any law or ordinance, including laws prohibiting the use, possession or sale of illegal drugs; (2) commit waste or nuisance; or (3) annoy, disturb, inconvenience or interfere with the quiet enjoyment and peace and quiet of any other tenant or nearby resident.
QUIET ENJOYMENT LETTER – AGENT/MORTGAGEE
[Name of Contractor], a company incorporated in [country] with company number [•] and with its registered office at [Address] (“Contractor” which definition shall include any assignee thereto pursuant to the terms of the Contract) is the Affiliate (as defined in the Contract) of the owner of the mobile offshore drilling unit “[Name of Drilling Unit]” (“Drilling Unit”), which is hired to [•], a company incorporated in [•] with company number [•] and with its registered office at [address] (“Company” which definition shall include any assignee thereto pursuant to the terms of the Contract) pursuant to the Contract for the Provision and Operation of Offshore Drilling Unit dated [Date] (“Contract”).
41. Quiet Enjoyment
(a) As long as the Charter is in full force and effect and no default has occurred thereunder which entitle the Owner to lawfully terminate the Charter and withdraw the Vessel from service under the Charter, Owners agree and undertake that during the period of the Charter they will not interfere with the quiet use, possession and enjoyment of the Vessel by the Charterers and, if required, their sub-charterers.
(b) The Owners shall ensure that on entering into any Financial Instrument, the prospective Mortgagee of the Vessel provides the Charterers and, if required, their sub-charterers, with a Letter of Quiet Enjoyment in accordance with the terms of Clause 36, always provided that such quiet enjoyment letters shall be in a form and substance satisfactory to the Charterer, sub-charterer (if it requires) and Mortgagee and the Charterers undertake to use reasonable efforts to avoid the requirement for quiet enjoyment letters. In addition to the provisions of Clause 36, the Quiet Enjoyment Letter will confirm that to the extent that the Charterers have paid to the Owners the Outstanding BBC Principal Balance as per Schedule A attached hereto, payable on such date, the Mortgagee will immediately release and discharge the mortgages and all Financial Instrument.
Quiet enjoyment is a legal term typically found in real estate and rental agreements. It refers to the tenant’s right to enjoy their rented property without interference from the landlord or any third party. This means tenants can live, use, and benefit from the property in peace, without disturbances or unlawful interruptions. This covenant is implied in most lease agreements, even if not expressly stated.
When should I use Quiet Enjoyment?
You should use quiet enjoyment:
When drafting or reviewing rental or lease agreements to assure tenants of their right to live peacefully in the property.
In legal disputes where tenants are experiencing undue disturbances or interferences from landlords or other parties.
To assert a tenant’s rights in conversations or negotiations with landlords.
How do I write Quiet Enjoyment?
In a lease or rental agreement, the clause for quiet enjoyment might appear as follows:
“The Landlord covenants that the Tenant, upon paying the rent and performing the covenants herein, shall peacefully and quietly have, hold, and enjoy the leased premises for the agreed term without interruption by the Landlord or any persons lawfully claiming through the Landlord.”
Which contracts typically contain Quiet Enjoyment?
Contracts that typically contain a quiet enjoyment clause include:
Residential lease agreements
Commercial lease agreements
Sublease agreements
Long-term rental agreements
Such clauses ensure that both parties acknowledge and respect the tenant’s right to a disturbance-free living or business environment.
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