Cases - Law Land Company Ltd v Consumers' Association Ltd (CA)

Record details

Name

Law Land Company Ltd v Consumers' Association Ltd (CA)

Date

(1980)

Citation

2 EGLR 109

Legislation

Landlord and Tenant Act 1954

Keywords

Commercial property – rent review –market rent – open market – vacant possession - user clause – user clause required premises to be occupied as offices for the Consumer Association or associated organisations only – whether the rent should be assessed on the basis that there was only one tenant and therefore reflect the lack of competition

Summary

The user clause in the lease required premises to be occupied as offices for the Consumer Association or associated organisations only. The tenant could not persuade the court that the rent should be assessed on the basis that there was only one tenant and the rent should reflect the lack of competition. The Court of Appeal held that this would frustrate the purpose of the clause and conflict with the requirement to determine a 'market rent' in the 'open market' with 'vacant possession'.

They held that the rent should be assessed on the basis that the identity of the tenant would be established after the rent had been agreed but the user clause would then prohibit a change of use.