Legally Binding Tenancy Contract???

Tenancy agreement was signed on March 21 2007 for 12 months with an option of further 12 months. Stamp duty was paid on April 2 2007 (by landlady).


Agreed payment upfront is 1 month's rent + 2 months' rent as deposit. Rent is $3500 per month. Upfront payment is therefore $10500. Rent free period is March 21 2007 to March 31 2007.


On March 23 2007, tenant said he could only pay $6000 and moved in on the same day. Tenant explained that his UK HSBC ATM card had a daily limit of HK$3,000 on withdrawals. He promised to take money out the day after and the day after to settle the agreed upfront payment. But he still has not fulfilled his verbal promise up to this date. No further payments have been made so far. Tenant keeps telling landlady there is problem with HSBC in the UK since March 25th.


Landlady has extended her courtesy to let the tenant stay in the apartment until May 1st, tenant has to settle the deposit due plus rent for May in full by then, or else the tenant has to move out.


Tenant insists that if the landlady asks him to leave, she will have to give him back $2500 because the monthly rent is only $3500.


Questions for the legal professionals:


1. Tenant has not fully fulfilled his obligation - pay the agreed sum upfront, is this a legally binding contract?


2. Or does this mean the contract has been invalidated/voided under the condition that the tenant has not fulfilled his obligation?


2. Does the landlady has the right to evict the tenant? Or ask the tenant to leave?


3. If landlady decides to kick tenant out on May 1st because of no payment, does the landlady have to return the $2500 to tenant even though tenant never fulfills his obligation?


Thank you for your help.

From what you have said, the contract is a legal one. A contract is not invalidated when one or more parties to the contract does not uphold it, they would be in breach of the contract.


On the assumption the lease is legal (government stamped), the landlady is entitled to terminate the tenancy if a tenant is 15 days late in paying the rent.


The $2500 should be considered as a partial deposit and, therefore, should be returned. It can't be used as compensation for the inconvenience or as a penalty/punishment but it could be put against any damage to the property by the tenant.


Most landlords require the deposit and first month's rent upon signing the agreement and before handing over the keys because of these kinds of situation.


Here is some further information:

http://www.hkclic.org/en/topics/landlord_tenant/failureToPayRent/index.shtml

Thanks Claire. The link is very helpful. Thank you very much indeed.