Plaintiff was a lessee of property that Defendant served a repair notice which had to be complied with within a time limit or Plaintiff would face ejection.
Plaintiff offered to sell the property to Defendant and negotiations continued for several months. Eventually they broke off, the repairs having been neglected and Plaintiff was ejected.
HL ruled that ongoing negotiations had the effect of suspending a notice to repair property, i.e. the time limit within which to repair the property was effective from the point that negotiations ceased.
It would be inequitable not to suspend the repairs since a party who thought that they might sell the remainder of the lease would obviously not undertake repairs.
There was an implied promise in the correspondence that the repairs notice would be delayed, and therefore it had to be ruled that the repairs notice was delayed during negotiations.
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Commercial Remedies BCL | Jervis V. Harris I Notes (3 pages) |