The landlords claimed that the tenants remained bound under the lease to occupy and use the premises and pay rent. The tenant said that it had exercised a break option. The landlord said that the break was not exercisable because it had otherwise been in breach of the lease, though that breach had been remedied. Each party said that the meaning was clear and as they differently contested.
Held: The clause was ambiguous, but the commercially sensible construction was that which would allow a break clause to operate if a previous breach had been remedied: ‘while no doubt as a matter of language a clause having the meaning contended for by the appellants could conceivably be drafted, it would, in our view, require to be clearly and precisely expressed.’
Lord Kingarth
[2008] ScotCS CSIH – 56
Bailii
Scotland
Citing:
Applied – Bass Holdings Ltd v Morton Music Ltd CA 1987
The tenant had the option to take a further lease on giving written notice of their desire ‘if it shall have . . performed and observed the several stipulations on its part to be performed and observed up to the date of [the notice]’. The question . .
Cited – Charter Reinsurance Co Ltd v Fagan and Others HL 24-May-1996
The re-insurers appealed against a finding that they were liable to make payment under a contract which required them to pay ‘sums actually paid.’ They said that the company having become insolvent, no payment would in fact be made.
Held: The . .
Cited – Melanesian Mission Trust Board v Australian Mutual Provident Society PC 17-Dec-1996
(New Zealand) Lord Hope said: ‘The intention of the parties is to be discovered from the words used in the document. Where ordinary words have been used they must be taken to have been used according to the ordinary meaning of these words. If their . .
Cited – Credential Bath Street Ltd v Venture Investment Placement Ltd SCS 31-Dec-2007
. .
Cited – Bank of Credit and Commerce International SA v Ali, Khan and others (No 1); BCCI v Ali HL 1-Mar-2001
Cere Needed Releasing Future Claims
A compromise agreement which appeared to claim to settle all outstanding claims between the employee and employer, did not prevent the employee later claiming for stigma losses where, at the time of the agreement, the circumstances which might lead . .
Cited – Investors Compensation Scheme Ltd v West Bromwich Building Society HL 19-Jun-1997
Account taken of circumstances wihout ambiguity
The respondent gave advice on home income plans. The individual claimants had assigned their initial claims to the scheme, but later sought also to have their mortgages in favour of the respondent set aside.
Held: Investors having once . .
Lists of cited by and citing cases may be incomplete.
Landlord and Tenant
Updated: 11 November 2021; Ref: scu.277349
