Azkanaad Pty Limited v Galanos Bros Pty Limited

Azkanaad Pty Limited (the landlord) and Galanos Bros Pty Limited (the tenant) were parties to a dispute concerning an alleged agreement for a lease. The tenant sought specific performance of this agreement. The matter came before the Court of Appeal of New South Wales.

The primary legal issues before the court were whether a concluded agreement for a lease, specifically a long-term lease, had been constituted by the parties' correspondence, or alternatively, by the tenant's entry into possession and payment of rent. Additionally, the court had to determine whether the landlord had waived its entitlement to a rent increase.

The court found that the correspondence exchanged between the parties did not demonstrate a concluded agreement for a lease. Furthermore, the court held that the tenant's entry into possession and payment of rent did not, in the circumstances, establish a concluded agreement for a long-term lease. The court also determined that the landlord had not waived its entitlement to a rent increase. The principles of contract formation and the requirements for specific performance, including proof of readiness, willingness, and ability, were central to the court's reasoning.

The appeal was dismissed, and the landlord was ordered to pay the tenant's costs.