The lease provided that the lessee should pay ‘by way of further and additional rent all yearly or other sums as the Lessor shall from time to time properly expend or pay to any insurance company in respect of or for insuring and keeping insured the demised premises’. The tenant contended that the landlord might have found cheaper insurance, and asked the court whether there had to be implied into the lease a term that the insurance premiums would be fair and reasonable.
Held: A landlord need not seek lowest insurance premiums, but need only act in normal course of business.
Evans LJ said that the landlord was entitled to an assumption that he had ‘paid the sums claimed to an insurer of repute and otherwise acted in accordance with the contract.’
Judges:
Evans LJ
Citations:
Times 01-Apr-1994, (1994) 49 EG 111
Jurisdiction:
England and Wales
Cited by:
Cited – Quirkco Investments Ltd v Aspray Transport Ltd ChD 23-Nov-2011
The defendant tenant said that it had exercised a break clause in the lease held of the claimant. The claimant said the break notice was ineffective because the defendant was in breach of the lease, not having paid an iinsurance service charge, and . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant
Updated: 26 October 2022; Ref: scu.81281