Can an option be exercised where the time frame has lapsed?

Retail and commercial leases often include an option to renew or extend the tenant’s tenure. The case of Tripple A Pty Ltd v WIN Television Qld Pty Ltd [2018] QCA 246 involved a situation where a tenant and landlord proceeded to exercise the option, despite the fact that the option had failed to be exercised within the allocated time frame. The Court held that although the tenant failed to exercise the option in time and as such this option was not enforceable, both parties had agreed to a further lease on terms that had been informally established through communication. Despite objections from the landlord, the new lease was legally binding. The Court of Appeal’s decision demonstrates that the Court will strictly interpret time frames to exercise an option and that landlords are unable to disregard option time requirements.

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