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A lets a house to B, reserving power to revoke the lease if, in the opinion of a specified surveyor, B…

The illustration to section 42 states that the lease to C "operates as a revocation of B's lease subject to the opinion of the surveyor" on B's use of the house. Under…

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A lets a house to B, reserving power to revoke the lease if, in the opinion of a specified surveyor, B makes a use of it detrimental to its value. Later, A, thinking that such a use has been made, lets the house to C. What is the effect of the lease to C?

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Correct answer D

The illustration to section 42 states that the lease to C "operates as a revocation of B's lease subject to the opinion of the surveyor" on B's use of the house. Under section 42, a later transfer for consideration by a person who reserved a power to revoke works as a revocation of the earlier transfer "subject to any condition attached to the exercise of the power". No separate formal act of revocation is needed, but A cannot ignore the condition that the surveyor must form the opinion.

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