Cases - Guys 'N' Dolls Ltd v Sade Bros Catering Ltd

Record details

Name
Guys 'N' Dolls Ltd v Sade Bros Catering Ltd
Date
(1984)
Citation
1 EGLR 103 or 269 EG 129, CA
Legislation
Keywords
Commercial property – landlord and tenant – rent review – clause provided for an increase of review to £7,500 above the rack market rental value of the premises… and in all other respects on the terms and conditions of this lease” – proper construction of the contract – business efficacy – whether the lease should be construed in line with business efficacy
Summary

The rent review clause provided for the rent to increase on review to £7,500 above the rack market value of the premises for the unexpired residue of the term '... and in all other respects on the terms and conditions of this lease ...'. The tenant argued that the 'terms ... of this lease' included the obligation to pay £7,500 per annum above the market rent and that the market rent should be discounted accordingly, but the landlord successfully argued that this would defeat the purpose of providing for that extra rent and, in order to give business efficacy to the transaction, the provision for the extra £7,500 per annum should by implication be ignored.