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The tenant held 999 year underleases of 42 apartments in a 33 storey building. Each underlease contained a covenant not to assign the whole of the property without the prior written consent of the landlord, such consent not to be unreasonably withheld.
The tenant decided to sell its apartments. It brought proceedings against its landlord for declarations that the landlord had unreasonably withheld consent in relation to two apartments and had unreasonably delayed consent in relation to one other.
Points to note/consider
The Supreme Court (and House of Lords) has considered through various cases the correct approach to adopt when interpreting, or constructing, contracts.
The registration gap again – another case showing the danger of delayed registration for a buyer.
A case illustrating the danger of using a restrictive covenant to secure an overage payment.
A case illustrating the importance of drafting complex commercial contracts precisely and consistently.
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