Commercial Property
FocusPapers in the area of Commercial Property.
Lessors beware! A few loose words may land you with a five year obligation!
4 December 2007
Author: Philip Stern
Practice area: Commercial Property
Two recent decisions of the Administrative Decisions Tribunal Retail Leases Division have far reaching implications in declaring when a statutory lease or sub-lease exists. These cases establish that, even if a contract for a formal lease has not been entered into and only verbal or implied agreements exist, the combined effect of sections 3 and 8 of the Retail Leases Act 1994 (the Act) may mean that a statutory lease is nonetheless created. Section 16 of the Act then provides that this lease is for a minimum term of five years.