The decision of the High Court in Gee Dee Nominees Pty Ltd v Ecosse Property Holdings Pty Ltd [2016] VSCA 23 (4 March 2016) highlights the risks involved in poor drafting of legal documents and using template documents that are not suitable for the required purpose.
The case concerned the construction of a lease whereby the subject land was leased for a term of 99 years.
The lessor wished to sell and the lessee wished to purchase the leased land for a consideration of $70,000 but they were precluded from doing so because of town planning restrictions.
The contracting parties, therefore, sought to achieve a similar result to a sale, by amending a standard form instrument of lease, with the rent for the entire 99 year term ($70,000) being paid upon entry into the lease.
