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.

 

Robert Toth / Accredited Commercial and Franchise Law Specialist

Robert@mmrb.com.au       Ph: 0412 67 37 57

 

Wollermann Franchise Developments

www.franchisedevelopments.com.au