Summary
Verbal agreements can be legally binding but are harder to enforce without written evidence. Misrepresentation can form a basis for legal action, especially if your client relied on false information. Key legal principles include misrepresentation, verbal agreements, and lease agreements and terms. Start your legal research by identifying key legal terms, researching Victorian legal resources, consulting legal texts, and seeking professional advice. Consider mediation or legal advice from a property law specialist.Full Conversation
Our client purchased a tobacco business and took over the retail lease. The previous business owner (let's call her X), transferred the retail lease to a related entity controlled by X and subsequently subleased the tobacco shop to our client. During the initial inspection of the business, it was explicitly represented to our client that the business included a lease with an option to renew for an additional five years. Our client relied heavily on the representations made by X regarding the lease terms. The lease terms were a critical factor in our client's decision to proceed with the purchase. Note that our client was advised on the business purchase by another solicitor, which was referred by X, and this solicitor did not pick up on the fact that the terms of the sublease in fact did not provide for a further option to renew as was represented by X. Our client now wants to know what basis he can rely on to make X grant an extension of the lease for an additional 5 years?
Hi ****, thank you for sharing the details. To better assist you, could you please confirm if the representations made by X were documented in any form, such as in writing or email?
X verbally assured our client that it would be a *+5 year term
Thank you, ****. Here is some general information regarding verbal agreements and lease extensions in Victoria:
- Verbal agreements can be legally binding but are often harder to enforce without written evidence.
- Misrepresentation can form a basis for legal action, especially if your client relied on false information.
~Victorian Civil and Administrative Tribunal (VCAT)
Phone: * * *
Address: * King Street, Melbourne VIC *
Website: www.vcat.vic.gov.au
Have you considered seeking mediation or legal advice from a property law specialist?
can you tell me what legal principle this issue relates to? how can i start my legal research
Legal Principles Involved:
*. **Misrepresentation**:
- False statement of fact made by one party to another, which induces the latter to enter into a contract.
*. **Verbal Agreements**:
- Can be legally binding, but harder to prove without written evidence.
*. **Lease Agreements and Terms**:
- Specific to property law and leasehold interests.
Starting Your Legal Research:
*. **Identify Key Legal Terms**:
- Misrepresentation, verbal agreements, lease extension, sublease, reliance.
*. **Research Victorian Legal Resources**:
- Victorian Civil and Administrative Tribunal (VCAT) website for relevant cases.
- AustLII (Australasian Legal Information Institute) for statutes and case law.
*. **Consult Legal Texts**:
- Property law textbooks or legal commentaries specific to Victoria.
*. **Seek Professional Advice**:
- Consider consulting a property law specialist for comprehensive guidance.
Would you like additional information on any specific point?
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