Rohan Ingleton looks at a recent VCAT case and the
implication for landlords when determining whether to withhold
consent to an assignment of the lease.
In brief: In June 2018, VCAT in AVC Operations Pty
Ltd v Teley Pty Ltd [2018] VCAT 931 had to consider if a
landlord had unreasonably withheld its consent to an assignment of
the lease. Senior Member Riegler determined that the landlord had
unreasonably withheld consent and was required to act
"reasonably" in considering if the assignee had
sufficient financial resources or business experience to comply
with the lease.
What you need to know:
In considering if the tenant can assign the lease, the landlord
can only consider the assignee's financial resources and
business experience in assessing the assignee. A landlord is not
entitled to consider other matters, such as the assets held by any
guarantor. If the landlord unreasonably withholds its consent, a
tenant may have an action against the landlord in damages
