ROCKFORD TRILOGY LTD AGAINST NCR LTD [2021] ScotCS CSOH_49 (07 May 2021)

ROCKFORD TRILOGY LTD AGAINST NCR LTD [2021] ScotCS CSOH_49 (07 May 2021)

Sufficient notice of the defender's intention not to remain under the existing lease was given in the 21 January 2020 correspondence, which clearly stated the defender would only remain if new terms were agreed. This overt intimation excluded tacit relocation. No binding agreement for new terms was reached thereafter, and the Heads of Terms were not contractual. Therefore, the lease did not continue by tacit relocation and the defender is not liable for further rent or charges under the previous lease.

Citation
[2021] ScotCS CSOH_49
Parties
Pursuer: Rockford Trilogy Limited; Defender: NCR Limited
Jurisdiction
Scotland
Judgment Date
07 May 2021
Procedural Posture
Commercial Lease Dispute / Proof Before Answer
Outcome
Decree of absolvitor granted in favour of the defender.
Legal Topics
Tacit Relocation, Lease Termination, Notice to Quit, Contract Formation
Property Law Landlord and Tenant Law Tacit Relocation Lease Termination Notice to Quit Contract Formation

Case Brief

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Parties

Rockford Trilogy Limited

Pursuer

NCR Limited

Defender

Procedural Posture

Commercial Lease Dispute / Proof Before Answer

Legal Issues

  1. 1 Whether tacit relocation operated to extend the lease
  2. 2 Whether sufficient notice of intention to terminate was given
  3. 3 Whether a binding agreement for new terms excluded tacit relocation

Ratio Decidendi

Sufficient notice of the defender's intention not to remain under the existing lease was given in the 21 January 2020 correspondence, which clearly stated the defender would only remain if new terms were agreed. This overt intimation excluded tacit relocation. No binding agreement for new terms was reached thereafter, and the Heads of Terms were not contractual. Therefore, the lease did not continue by tacit relocation and the defender is not liable for further rent or charges under the previous lease.

Court Disposition

Decree of absolvitor granted in favour of the defender.

Orders

  • Second and third pleas-in-law for the defender sustained.
  • All questions of expenses reserved.