In the case of Kegran Pty Ltd v Warrik Pty Ltd [2018] NSWSC 1357 the Supreme Court was asked to determine whether the exercise of an option to renew a commercial lease was valid, despite the fact it did not expressly meet the conditions laid out in the contract. In this case, the tenant had an option to renew for an additional 5 years if they gave notice no less than` six months before the expiration of the lease. The tenant sent an email to the defendant seven months prior to the leases’ expiration, saying ‘please accept this as us wishing to take up the next 5 year option.’

However, in a separate clause dealing with notices more generally, the lease stated that ‘all notices must be addressed to the landlord at the address stated in this lease’ and the landlord argued that this requirement was not met in the email sent by the tenant. Ultimately the Court held that this separate clause did not impose conditions on the option to renew. Therefore, the fact that the notice was delivered personally via email rather than to the address stated in the lease did not invalidate the exercise of the option.

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