A. The Owner is the owner of a building at 67-70 Funnel Parade, Peregian Springs, Qld, 4573 which comprises 350 lots under the Body Corporate and Community Management Act 1997 (Qld).

B. The Owner will be the lessee of units numbered 1-180 located on floors 3-20 (HotelLots).

C. The Manager has agreed to manage and operate a hotel as agent for the Owner in relation to the Hotel Lots.

D. The Owner is not the lessee of units numbered 181-350 located on floors 21-40 (Strata Lots).

E. The Manager agrees to manage and provide short term rental services to the Owner of the Strata Lots (Strata Lot Owner), if requested by the Strata Lot Owner.

F. The Owner and the Manager have agreed that the Manager will be entitled to exercise control over the Hotel Lots and common areas on floors Basement (B), Ground (G), 1 and 2 in accordance with the terms of this Agreement.

These are recital of a contract. Could you please explain recital E. Is this a right that gives rise to a second contract? is this related to nominations or assignment or novation at all?

As an example, if the manager attempted to assign the rights under the contract, would recital E be assigned and/or would the contracts created due to recital E be assigned?

Answer rating: 100% (QA)

Recital E states that the Manager agrees to manage and provide shortterm rental services to the Owner of the Strata Lots Strata Lot Owner if requested ... View the full answer