Did you realise that you can be locked into a commercial Lease without even signing the papers? If you're shaking your head, you need to take a look at the case below.
Commercial property owner, Priolo Corporation Pty Ltd, leased a property to Vantage Systems Pty Ltd, including six car parking spaces on the property.
With the original Lease due to expire, discussions began about a new Lease. Priolo emailed a proposal to Vantage, later revising the proposal for Vantage to consider.
The revised proposal covered all typical Lease details but mistakenly set the car parking licence fee at $375 per car space per annum, instead of $375 per month for each space. Vantage noticed the mistake but didn't draw attention to it.
A dispute arose as to whether or not the two companies were bound under this revised proposal.
The Court of Appeal held that Priolo and Vantage had intended to be bound as soon as they had agreed on the terms of the revised proposal.
Dealings and negotiations around commercial leasing have the potential to bind you. If the requirements of a valid contract are satisfied then the parties will be bound - even if formal documents have not been prepared or signed.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.