As instances of " collateral " covenants, we may take a covenant by a lessor to give the lessee a right of pre-emption over a piece of land adjoining the subject of the demise, or in the case of a lease of a beer-shop, not to keep any similar shop within a prescribed distance from the premises demised, or a covenant by a lessee to pay rates on premises not demised.
Should he desire to sell his estates, the right of pre-emption belonged to the tenants, or, in default, to the neighbours.
Compensation, under the Lands Clauses Acts, is assessed in four different modes: - (I) by justices, where the claim does not exceed £50, or a claimant who has no greater interest than that of a tenant for a year, or from year to year, is required to give up possession before the expiration of his tenancy; (2) by arbitration (a) when the claim exceeds £50, and the claimant desires arbitration, and the interest is not a yearly tenancy, (b) when the amount has been ascertained by a surveyor, and the claimant is dissatisfied, (c) when superfluous lands are to be sold, and the parties entitled to pre-emption and the promoters cannot agree as to the price.
Congress therefore reduced the price of land from $2 to $1.25 per acre, and adopted the policy of pre-emption, preference being given to the claims of existing settlers.
Should the tenant sell or exchange his interest in the property, the right of pre-emption is vested in the landlord, and a corresponding right is enjoyed by the tenant should the quitrent be for sale.