Gan v Shop 3, 228-230 Hanvaylee Parade Kensington Pty
Ltd [2017] NSWSC 1322
In this recent appeal decision from NSW Supreme Court, the
lessee (a Malaysian Restaurant) claimed that the lessor's
actions in enforcing the lease, issuing breach notices and
ultimately ending the lease by re-entry were contrary to an implied
obligation to act in good faith and unconscionable. The Court
confirmed the Tribunal's decision that it was not a breach of
good faith to enforce clear contractual rights.
Towards the end of the lessee's first five year lease the
lessee exercised an option to renew. The rent for the option term
was to be determined by market review. The parties could not agree
on the new rent, and so the issue was referred to a valuer. The
valuer finalised the determination of the current market rent
approximately 3 months after the commencement of the option
lease.
