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ARTICLE · 29 JANUARY 2015

Could your permitted use covenants in your lease agreements breach competition laws?

DibbsBarker
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A recent English case decided that a permitted use clause was unenforceable because it breached competition laws.

AustraliaReal Estate and Construction
Michael Sutton
Michael Sutton
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Focus: The enforceability of "permitted use" clauses
Services: Property & projects
Industry Focus: Property

Have you stopped to consider the enforceability of "permitted use" clauses in your lease agreements from the perspective of Australian competition laws?

A recent decision of the English Courts1 (the Martin Case) serves as a reminder not to take the enforceability of permitted use clauses for granted.

Previous leasing updates have considered the importance of both considering whether a permitted use is intended to be an "exclusive use" and the scope of the definition of permitted use. This update considers the impact of the Competition and Consumer Act 2010 (Cth) (the CCA) on commercial leases.

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