Business Franchise Australia

Variation of a Lease – Risks and issues to consider during COVID-19 rent relief negotiations

A variation of a lease may operate to surrender the existing lease and become a new lease incorporating the variation due to a common law principle.

This derives from the common law principle of “estoppel” that is, that two leases cannot co-exist. Therefore, subject to the degree of variation (irrespective of the parties intentions) the existing lease must be surrendered, for the new variation to take effect.

 

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