25 February 2011

Be careful what you 'agree to' by email

Nottingham Solicitors are warning landlords to be careful what they write in emails or they could end up being thousands of pounds out of pocket.

If follows the case of a property management company which effectively validated a break clause by "accepting" it as an email - even though the lease required more formal notification.

The case involved a tenant who leased commercial premises for a term of ten years.

There was a break clause that allowed for termination of the lease after five years providing that the tenant gave six months notice served by hand or by special delivery post.

After five years, the tenant sent the notice by email to the property management company, which replied saying that it 'accepted' the notice.

The landlord later said that the management company's acceptance of the email was merely an acknowledgement of receipt and should not have been taken as an acceptance of notice to exercise the break clause.

Peter Sutherland of Andersons Solicitors in Nottingham says the case is a salutary lesson for all landlords because the court ruled in favour of the tenant.

"The court held that the acceptance of the email by the management company had to be taken as an acceptance of the break clause notice.

"Once the email had been accepted, the tenant was entitled to conclude that nothing more had to be done.

"It may seem a harsh decision but it shows the need to be careful when agreeing or seeming to agree to any legal document, even if it is in an informal email."

For more information contact Peter Sutherland on 0115 947 0641.

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