CASE

Mr Kane, a real estate investor, acquires real property in order to rent it out to companies. Mr Kane has hired a real estate agent, Waltmann & Co., to rent out his properties. Waltmann sign the rental contracts for the account of Kane, but in their own name; the rental contracts are concluded between Waltmann and the tenants. Waltmann carry out a number of administrative obligations, including giving the keys to the tenant at the start of the rental period and inspecting the properties after the end of the rental period. Waltmann also send invoices, collect the rent, deduct a fee, and then pay the remainder to Kane. Kane never comes into contact with the tenants, and most tenants have no particular knowledge of Kane being the owner of the property, although they could find out through the land registry, or by inquiring with Waltmann. One of the tenants, MyPad Inc., have damaged the property it has rented.

Questions

1. Can Waltmann sue MyPad for compensation for the damage caused to the property?

2. If Waltmann become insolvent after concluding a new rental contract with Nickel & Dime Ltd, what remedies do Nickel & Dime and Kane have against each other to safeguard their respective interests under this contract (access to and use of the building, and payment of the rent, respectively)?

DISCUSSIONS

BELGIUM

Siel Demeyere and Vincent Sagaert

I. Operative Rules

1. Waltmann can sue MyPad.

2. Nickel & Dime would be able to use the building. Kane would be able to seek payment of the rent.