Termination of leases can be a complex minefield from both a
practical and legal perspective. It has not been made easier by the
Courts finding that ordinary contractual principles apply to
leases, including principles dealing with termination for
repudiation or fundamental breach and breach of an essential
term.
In the current economic climate there is even more reason to be
resolute in managing tenant defaults in order to secure a constant
income stream.
Potential Traps for Landlords
Example 1
The Supreme Court Case of Dee-Tech Pty Limited & Anor v
Neddam Holdings Pty Limited has highlighted the need to ensure that
termination of a lease by notice is done in no uncertain terms, to
ensure "an unequivocal act or statement that the innocent
party is treating the contract as at an end".
