What happens if a tenant exercises their option then
subsequently the parties negotiate different terms and conditions?
This recent Supreme Court case decided whether the lease arising
out of that option had been abandoned by the tenant by negotiating
the terms of a new lease (substantially different to the option
lease) over a long period of time. In this case, the Court found
the protracted negotiations did not mean the tenant had abandoned
the option lease.
Valid exercise of option or abandonment
Mr Gupta (Tenant) brought proceedings against
Fordham Laboratories Pty Ltd (Landlord) (Gupta
v Fordham Laboratories Pty Ltd [2018] NSWSC 551) seeking,
amongst other things, injunctive relief to restrain the Landlord
from treating particular letters as valid notices to terminate his
tenancy (due to breaches which are not dealt with in this article)
and from taking any steps to re-enter the premises or to forfeit
the Tenant's leasehold interest in the premises. The
