Cases - British Gas Corporation v Universities Superannuation Scheme Ltd
Record details
- Name
- British Gas Corporation v Universities Superannuation Scheme Ltd
- Date
- (1986)
- Citation
- 1 EGLR 120
- Legislation
- Keywords
- Commercial property – landlord and tenant – rent review – whether the rent review based on a hypothetical letting on a lease containing the same provisions as those contained in the actual lease (other than yearly rent), required the rent review provisions to be omitted from the hypothetical terms
- Summary
-
The rent reviews of an office building were to be based on a hypothetical letting on a lease 'containing the same provisions (other than as to the yearly rent)' as were contained in the actual lease. The tenant successfully argued that these words did not require the rent review provisions to be omitted from the hypothetical terms.
To exclude all 'provisions ... as to ... rent' would require the entire omission of all clauses referring to rent and would produce a result manifestly contrary to commercial common sense. Clear wording could require just the rent review provisions to be disregarded, but this wording did not clearly have that effect and the hypothetical letting should be assumed to be on terms as close as possible to the actual letting.