The case of Kegran Pty Ltd v Warrik Pty Ltd involved an application to renew a lease.
The plaintiff sought a declaration that it had validly exercised an option to renew the lease under the terms of the parent lease, which contained terms relating to the method of renewal.
The plaintiff alleged that it had exercised the option to renew the lease when they sent an email to the sole director of the defendant, and by giving a handwritten note to the director of the defendant. The defendant denied receiving the note and argued that service by email was not a valid mode of exercise permitted by the lease.
The evidence showed that the email had been received by the defendant’s server and downloaded to a device connected to the recipient’s email address, and it was likely that it was read by the defendant’s director. As the terms of the lease required the option to be exercised ‘by a written notice,’ an email was sufficient. Additionally, the terms in the lease did not impose an exclusive method of service of motions, so even if the defendant’s director did not open and read the email, it had been served accordingly. This case illustrates the presumption that email communication can be effective for contract purposes.