In the recent case of 3 Sth Melb Pty Ltd v Red Pepper Property Group Pty Ltd [2018] VCAT 1684 the Victorian Civil and Administrative Tribunal ruled that a landlord had repudiated their lease with a commercial tenant by failing to replace an air-conditioning unit (‘AC’). The case involved a series of written and verbal agreements that related to the upkeep of the AC, with a special condition stating that the tenant was responsible for the maintenance and service of the unit, whilst the Landlord had agreed to provide an AC that serviced the premises. Following ongoing disputes about the adequacy of the supplied AC, the Tribunal surprisingly ruled in favour of the tenant, deciding that the Landlord had breached a fundamental term of the lease by not fulfilling his obligation to provide an AC that serviced the premises.  In the Tribunals eyes, this amounted to a repudiation of the contract.

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