Disputes over make good on the termination or expiration of a
lease can be costly and time consuming and can result in
unnecessary tension between the parties.
Make good is often an issue which is overlooked by parties at
the commencement of a lease. At the start of a lease the parties
often focus on resolving the more contentious issues which arise
during lease negotiations, such as agreeing the commercial terms,
indemnities and the execution of the documents. The make good
clauses, which are generally accepted as "standard"
clauses in a lease, are usually not given due consideration until
the lease nears expiry or has already ended.
The parties to a lease usually accept that the tenant is obliged
to return the leased premises to the condition they were in at the
commencement of the tenant's occupation. However, often the
parties do not keep a record of the condition of the premises as at
that date. Consequently, when the lease nears expiry or had expired
and the
