Commercial Property Leases / Tenancies by Estoppel - Ford Banks Irwin Solicitors - The Property Lawyers in Manchester
Please note: Not to be used or relied upon without legal advice. These notes are for illustrative purposes ONLYEstoppel is a legal principle which prevents a person from offering a different version of facts or questioning the accuracy of facts previously supported. It is an equitable principle of law and applies if it is required in the interests of fairness and justice. It applies to thought (intention), word (oral or written) and deed (conduct and behaviour).
Commercial Property Solicitors and Lawyers prefer to rely on a written Lease than have to tackle the evidential burden associated with Estoppel. It is conduct that is of particular interest in Commercial Property. For example, in the absence of a written Lease the parties behave like a Landlord and Tenant where the Landlord accepts rent and the Tenant has exclusive possession of the Property. In these circumstances the Court will infer there is in fact a Lease / Tenancy and the parties will be estopped from denying the behaviour. Commercial Property Solicitors and Lawyers tend to avoid creating a Lease from the equitable principle of Estoppel. It is one of the reason why it is so important to consult with your Solicitor at an early stage of any transaction.
Commercial Property Solicitors and Lawyers become involved in disputes where the Landlord granted a Lease but it subsequently transpired that the Landlord had no authority or insufficient title. What are the tenant's obligations under the Lease in these circumstances ? What are the Landlord's obligations under the Lease ?. The equitable principle of estoppel apply to both the Landlord and Tenant.
Case Study:
Manchester grants a Lease to Altrincham. Manchester did not realise they did not have title to grant the Lease. Along comes Stockport who have good title and evict Altrincham. Stockport claim damages for trespass against Altrincham. Altrincham would claim the return of rent and damages from Manchester.
It is clear the Law of Estoppel has wide reaching implications for Commercial Property Solicitors and Lawyers. Ford Banks Irwin Solicitors act for Landlords, Tenants and Mortgagees on a regular basis and can provide clear, concise and practical advice on all aspects of Commercial Property Law and the effects of the Law of Estoppel.