Summary - In our blog article
"Is the Lease Option Exercise Binding?" we
wrote on the effect of a validly exercised option to renew. We
touched upon the need to ensure valid exercise of the option. In
this blog article, we stress the importance of the option being
validly exercised in more detail and note the statutory protection
that a tenant may be able to rely on in obtaining relief against
forfeiture of its option.
Option clauses constitute an irrevocable offer to renew subject
to the tenant satisfying certain pre-conditions including service
of a written notice of exercise of the option on the landlord
within a specified notice period.
Frequently, option clauses state that the tenant loses its right
to exercise the option if it has been consistently in breach of the
terms of the lease.
