That's not what we thought it would mean!: negotiating a lease agreement

It's no secret that it's a lessee's market out there and landlords are eager to entice and secure potential tenants. If you are looking for new office space, you need to be aware that even before you enter into a formal lease, you can be held to a binding agreement to lease.

Unfortunately a potential tenant recently learnt this the hard way when the District Court handed down its decision in Activ Foundation Incorporated v WBHO-Carr Pty Ltd [2014] WADC 174 on 23 December 2014. The defendant was ordered to pay $657,470.85 for breaching an agreement to lease some office space even though the parties had not executed a formal lease agreement and the defendant had not at any stage occupied the office space.