The judgment in Beadica 231 CC and Others v Trustees for the time being of Oregon Trust and Others (CCT109/2019) serves as an important turning-point in our law around contracts and specifically the freedom of persons to enter into any contract on terms to which the parties agree.
A legal issue receiving almost constant attention since the lockdown commenced is the liability of commercial tenants for rental of their business premises during the Lockdown (including the more relaxed Alert Levels).
The Property Industry Group (PIG) give some relief to tenants who can accept their landlord’s offer to provide for any of the relief. It should also be noted that any acceptance of a landlord’s offer for a remission of rental, in accordance with the PIG’s relief package, should be considered against whether or not a landlord is entitled to rental at all. Tenants are not bound to accept these terms; however, once an election has been made, such decision is final, and any rights waived can likely not be revisited. We would therefore urge tenants to take proper advice, and to consider the full extent of their rights before accepting any such offers from landlords.