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ARTICLE · 07 SEPTEMBER 2015

Landlord refusing exercise of renewal given run around - 2 September 2015

HopgoodGanim
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Compliance with covenants in lease agreements is essential to ensuring successful and continuing commercial relationships.

AustraliaReal Estate and Construction
Natalie Gerrard
Natalie Gerrard
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For business operators, compliance with Lease agreements is essential to ensuring successful and continuing commercial relationships.  This was reiterated in the recent case of Grepo & Anor v Jam-Cal Bundaberg Pty Ltd [2015] QCA 131, where the operator of a business was prevented from extending the term of their lease because they had breached a number of its provisions. 

In this Alert, Special Counsel Natalie Gerrard and Law Graduate Kerrod Giles discuss the reasoning behind this decision and outline the important reminders within this decision for lessors and lessees. 

Background

Mr and Mrs Grepo (Grepo) leased premises containing a scrap metal business to Jam-Cal Bundaberg Pty Ltd (the lessee).  The lease commenced on 14 May 2010 and expired on 13 May 2013, and contained provisions:

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