Chancebutton Ltd & Anor v Compass Services UK & Ireland Ltd

The correct construction of the rent review clause is that the hypothetical term for determining current market rent is a term commencing on June 24, 1982 and having a duration of 25 years less one day, matching the term originally granted under the lease. The language of the clause, commercial reality, and the weight of authority support this interpretation.

Parties: Claimant: Chancebutton Limited; Claimant: Deletenumber Limited; Defendant: Compass Services UK and Ireland Limited
Jurisdiction: England and Wales
Judgment Date: 28 May 2004
Procedural Posture: Civil / Judgment
Outcome: Declaration granted in favour of the Claimants
Legal Topics: Rent Review, Lease Interpretation, Contract Construction

Land Law Landlord and Tenant Rent Review Lease Interpretation Contract Construction

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Full judgment text Downloadable case file Legal principles 3 Authorities cited 10 Party arguments 2 Amounts and remedies 2

Parties

Chancebutton Limited

Claimant

Deletenumber Limited

Claimant

Compass Services UK and Ireland Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

1 What is the correct construction of the rent review clause in the lease regarding the duration of the hypothetical term for determining current market rent?

Ratio Decidendi

Court Disposition

Declaration granted in favour of the Claimants

Orders

Declaration that the hypothetical term for rent review is a term commencing on June 24, 1982 and having a duration of 25 years less one day.