A landlord is almost certain to lose a case if they seek to
force a loss-making tenant to trade. Courts consider such an
order:
- imposes unhelpful court supervision on the business;
- forces the tenant to incur further debt (eg to staff, suppliers
and the ATO) that it may not be able to pay; and
- is against public policy.
Landlord's Remedies – Specific Performance v
Damages
If a tenant breaches a lease, after making the appropriate
demand that the breach be remedied, the landlord may terminate the
lease and claim damages. In some circumstances, the landlord may
instead seek an order for specific performance.
An order of specific performance is an order from a court
directing the tenant to either do something, or to cease doing
something. For example, a tenant not complying with its permitted
use by selling take away coffee (when it is only permitted to sell
to patrons at tables) may be ordered by the court to stop selling
take away coffee. Such an order
