Lease Dispute in Victoria
The client operates a retail business in Victoria and has modified its operations to include new food products based on verbal approval from the centre management. After receiving an email confirming this approval, the property owner now contests the legitimacy of this inclusion, asserting that it contradicts the lease terms. The client has invested approximately AUD 150,000 in upgrades and equipment following this approval and has three witnesses to the agreement. Despite attempts to amend the lease formally, the landlord has failed to provide a clear explanation for their change of position, which significantly impacts the client’s business operations and financial health.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkWhat options do I have if the landlord verbally agreed to allow the sale of new products but now claims it's not permitted in the lease?
You could consider invoking the principle of estoppel, which prevents the landlord from denying prior consent if you acted to your detriment based on that approval. Demonstrating that the landlord's earlier verbal agreement and the subsequent email affected your significant investment of AUD 150,000 can strengthen your case. Reviewing the procedures of relevant tenancy tribunals for lease disputes may also be beneficial.
Can I formally modify the lease to include the sale of new products, and what are the steps?
To modify the lease, negotiate with the landlord for a written amendment that clearly states the permission to sell the new products. It is prudent to have a legal professional draft and review this amendment to ensure it meets your business needs and legal standards, especially considering your substantial investment.
What type of evidence will I need to show that the landlord consented to the sale of the new products?
To substantiate the landlord's consent, gather all relevant evidence, such as the initial email from the centre management and witness statements from those present during the verbal agreement. Documenting your investment can further illustrate reliance on the landlord's approval.
Is there a legal way to recoup costs incurred from renovations made based on the landlord's prior approval?
You may have recourse under the doctrine of promissory estoppel if your investment was based on the landlord's consent. Collecting evidence like emails and witness statements will be crucial in assessing the viability of such claims.
Does the landlord's refusal to allow these products imply a breach of any legal duty under the lease?
The refusal could potentially violate the implied covenant of quiet enjoyment, as the tenant's use of the property per the agreed terms may be impeded. Given the landlord's previous approval, this could suggest a constructive amendment of the lease.
