A breach of a room size tolerance provision in an agreement for lease does not necessarily give the tenant a right to refuse to complete the lease.
The tenant (T) entered into an agreement for lease under which the landlord (L) agreed to procure the construction of two blocks of student accommodation. T agreed to take a long lease of the blocks following practical completion of the works.
The agreement prevented L from making any variations to the works which materially affected the size of the rooms. The agreement provided that a size reduction of more than 3% from the sizes shown on the original drawings was deemed material. 56 of the completed rooms were found to be more than 3% smaller than this tolerance level.
T sought a declaration that any failure to meet the 3% tolerance level was a material and substantial breach of the agreement for lease, allowing T to terminate the agreement or prevent the employer’s agent from certifying practical completion under the agreement.
Professional Development Lawyer
david.harris@brownejacobson.com
+44 (0)115 934 2019
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