Waterhouse v Waugh

The parties to this matter were the lessors, Waterhouse and Waugh, and the lessee, whose assignee was the respondent. The dispute concerned the assignee's obligation to deliver vacant possession of the leased premises at the end of the lease term. The appeal was heard by Handley and Giles JJA, and Young CJ in Eq.

The primary legal issues before the court were whether the assignee had breached the covenant to deliver vacant possession by leaving a substantial quantity of rubbish on the premises, and whether the assignee was entitled to an assignment of the lessor's accrued rights under section 117 of the Conveyancing Act 1919 (NSW), notwithstanding a purported contrary intention.

The court held that the presence of a substantial quantity of rubbish constituted a breach of the covenant to deliver vacant possession, as it rendered the premises not truly vacant. Regarding the assignment of accrued rights, the court found that the wording of the lease did not clearly demonstrate a contrary intention sufficient to exclude the operation of section 117 of the Conveyancing Act.

The appeal was allowed in part, and orders were made accordingly.