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ARTICLE · 06 MAY 2019

Can an email serve as a good notice under a contract?

The case highlights that the valid exercise of notice depends on the interpretation of the terms of the lease as a whole.

AustraliaReal Estate and Construction

Technology is becoming increasingly popular and dominant, and individuals and businesses now rely on email as a main form of communication. However, can an email be a valid method of serving a notice under a legal contract? This issue was recently considered by the Supreme Court of NSW in Kegran Pty Ltd v Warrik Pty Ltd [2018] NSWSC 1357.

Facts

This case relates to the exercise of an option to renew a commercial lease. The lease relevantly granted the tenant an option to renew for an additional 5 year period subject to the tenant giving the landlord notice no less than six months before the expiration of the initial term.

However, the lease also provided that any notice must be addressed to the landlord and would be "sufficiently served if it was served personally, sent to the lessor's facsimile number or sent by prepaid post". Importantly, this section did not allow for notices to be served by email.

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