A lease of business premises contained an option to renew the lease and provided for any such new lease: ‘to be for a further term of 21 years at a rent to be fixed having regard to the market value of the premises at the time of exercising this option taking into account to the advantage of the tenant any increased value of such premises attributable to structural improvements made by the tenant.’ Where an option was expressed to be exercisable at a price to be determined according to some stated formula, without any effective machinery being in terms provided for working out that formula, the Court had jurisdiction to determine it. The Court was reluctant to hold void for uncertainty any provision that was intended to have legal effect, and where it was accepted that the option was intended to have business efficacy.
Megarry J said: ‘No doubt there may be cases in which the draftsman’s ineptitude will succeed in defeating the court’s efforts to find a meaning for the provision in question; but only if the court is driven to it will it be held that a provision is void for uncertainty’.
Judges:
Megarry J
Citations:
[1972] Ch 53
Jurisdiction:
England and Wales
Cited by:
Cited – Leeds Rugby Ltd v Harris and Bradford Bulls Holdings Limited QBD 20-Jul-2005
The claimant sought damages from the defendants saying that the second defendant had induced a breach of contract by the first when he left to play rugby for the second defendant.
Held: The contract could not be said to be void as an agreement . .
Cited – Westvilla Properties Ltd v Dow Properties Ltd ChD 15-Jan-2010
The owner sought specific performance of its contract to sell land to the defendant. The land was subject to a proposed lease which the defendant had concluded was uncertain and unattractive, and claimed to have rescinded the contract.
Held: . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant, Contract
Updated: 17 May 2022; Ref: scu.229005