This case also was about an exercise of an option and subsequent
negotiation. Here, the lessee seems to exercise its option, but
also asks for a longer term and some other changes. A rent review
process commenced which was not resolved. The lessee purchased an
alternate premises and moved their business. They argued that they
had not exercised the option and were only holding over on a
month-to-month basis. In this case, the Court found that the option
had not been exercised.
Intention to exercise option and
re-negotiation
PG Kazis Nominees Pty Ltd v Bakers II Pty Ltd [2018]
SADC 48
The lessee exercised its option within the required time, using
the following words: "I am writing to inform you of our
intention to extend our lease ... We would like to add another 5 by
5 year lease to the existing lease."
