Service Of Notices- Does It Matter?

Ben Cleuch Estates Ltd v Scottish Enterprise

The case concerns a dispute between Ben Cleuch, the Landlords and Scottish Enterprise ("SE"), the Tenant. The property was a commercial property in Dundee and the point in dispute was whether SE had validly terminated the lease of the Premises by exercising a break option, or alternatively whether Ben Cleuch were personally barred from denying that the break option was validly exercised. The decision would impact on whether SE were bound to a further ten year lease at a rent in excess of £200,000 per annum.

The lease was entered into in 1991 and contained a provision that SE were entitled at any time prior to 2nd February 2005 to give Ben Cleuch at least one year's written notice of termination of the Lease. In May 2003 SE contacted their solicitors asking for advice in relation to the break clause. Accordingly, their agents noted that in order to determine