[2021] ACAT 68
General information, not legal advice.
ACT Civil and Administrative Tribunal
2021-07-23
Original judgment source is linked above.
After meeting with your group yesterday afternoon, some conditions have to be changed. I quickly did some work this morning based on your group's request. Here, I will confirm with you the first month's rental payment $4000 has arrived in nominated HSBC account.
The property owners agree to your requests, and also reduce the bond but the contract will be for a 2 YEARS LEASE, not 1 year. We will prepare a condition report on the property. We will reduce the house inspections to semi-annual, but we may have a special inspection for the property owners at the end of this year, subject to the Covid situation. We will give you at least 1 week's notice.
You requested that all the bedding furniture in the rooms be removed. We can do that for your group but it will require a few extra days to organise all the furniture. Therefore, we may not be able to hand over the keys later this week depending on the movers' time and truck availability. I will keep you informed. You also wished that you could have an extra storage room which we have not listed in our AD (blue decking room), we can try our best to relocate all the house items in mid-April but not guarantee at this stage. [emphasis omitted]
I called the bonds office today and because $5000 is more than 4 weeks rent, which is legally all they can accept, we won't be able to lodge the bond with the office. This is really important to us, however we understand that the owner wishes for the $5000 and as such we would like to cancel the rental contract as we understand you have other keen applicants and also have other preferences with lodging the bond privately anyway.
Could you please return the $4000 rental payment I made last night (2/2/2021) as soon as it arrives with the owner. We are really sorry for any inconvenience that this has caused but it seems to us that it would be better to cancel the contract now rather than have any differences down the line.
... We understand that you have incurred additional costs as a result of our failed agreement and are happy to reimburse you 1 weeks rent ($4000 monthly = $920.55 weekly) as well as a portion of any cancellation fees you may have had to pay for furniture removal services. If you can attach receipts for the payments you have made for these purposes to your reply to this email, as well as a receipt of transfer for the remainder of our rent payment once these costs have been accounted for that would be great.
Ideally we would prefer to have at least $3000 return to us within the next day but as previously stated, we can negotiate this based on any attached proof of costs you have had to pay.
This email is to formally acknowledge and accept your early termination of the lease of no 7 Foster Place Watson by email received on 04th Feb 2020 [sic].
As the legally binding tenancy contract has already been signed by both parties on 2nd Feb 2020 [sic] and the security deposit has been sent to the nominated account, the rental agreement had commenced on 02 FEB 2021.
Despite not having moved in yet, cancelling the rental agreement is considered breaking the lease, which legally incurs a break fee.
You will, therefore, must compensate for the rent until a new tenant is found and has signed a new tenancy contract. The cost of republishing the advertisement, agent fees, and administration services all have to be included.
We will inform you once a new tenancy contract has been well accepted, we will issue the refund in February. [emphasis omitted]
(a) on the tenants' case, the tenants lawfully terminated the residential tenancy agreement by notice in writing to the lessor's agent on 3 February 2021; or
(b) on the lessor's case, the lessor validly terminated the agreement on 9 February 2021 by written acceptance of the tenants' abandonment of the tenancy on 3 February 2021.
(a) whether the written terms providing for payment of a $5,000 bond and $4,000 rent monthly in advance are void because they are inconsistent with the standard residential tenancy terms; and
(b) if so, whether the agreement is ineffective because the parties have failed to reach agreement in relation to one or more essential terms.
Issue 1 - are the terms providing for payment of the bond and rent void?
It is agreed that the lessor grants to the tenant for value a right of occupation of the premises for use as a residence by the tenant in accordance with this tenancy agreement (including the 100 terms of the tenancy under the heading "Terms of Tenancy").
Issue 2 - was the agreement ineffective as a result?
The law does not permit a court to imply a term into a bargain between parties for the purpose of making their bargain an enforceable contract.[9]
...one regarding the actions of the Respondent in her false and misleading statements, the illegal nature of the lease agreement which led to the Applicants terminating the lease agreement. However, the $4000 deposit is still being retained by the Respondent despite settlement offers made.[10]
Without prejudice, we would like to once again request that you return the rent paid in advance to the sum of $4000...
We have been in touch with legal support on this matter and would like to bring to your attention several items:
The fact that the payment has been caused by a mistake is sufficient to give rise to a prima facie obligation on the part of the respondent to make restitution. Before that prima facie liability is displaced, the respondent must point to circumstances which the law recognizes would make an order for restitution unjust. There can be no restitution in such circumstances because the law will not provide for recovery except when enrichment is unjust. It follows that the recipient of a payment, which is sought to be recovered on the ground of unjust enrichment, is entitled to raise by way of answer any matter or circumstance which shows that his or her receipt (or retention) of the payment is not unjust.[13]
(1) For this Act, a dispute is a tenancy dispute if it -
(a) is between the parties (including between co-tenants) to a residential tenancy agreement; and
(b) is about, arises from, or relates to, the agreement.
(a) a dispute if an application relating to the dispute may be made under part 4 (Termination of residential tenancy agreements) or part 5 (Rental rate increases; and
(b) a referral of an application and notice of dispute taken to be an application about a tenancy dispute under section 35(3); and
(c) an application for compensation under this Act.
(1) An agreement is a residential tenancy agreement if -
(i) a person gives someone else (the tenant) a right to occupy stated premises; and
(ii) the premises are for the tenant to use as a home (whether or not together with other people); and
(b) the agreement is not an occupancy agreement under section 71C.
[1] Email to the tenants sent on 1 February 2021 at 7:29am
[2] RP 68 - effective from 1 November 2020 to 25 February 2021
[5] Progressive Mailing House Pty Ltd v Tabali [1985] HCA 14 at [28] (per Mason J, Wilson, Deane, and Dawson JJ agreeing); [4] (per Brennan J); [4] per Deane J; [1985] HCA 14; (1985) 157 CLR 17 at 29, 40-41, 53
[6] J. W. Carter, Contract Law in Australia (LexisNexis Butterworths, 7th ed, 2018) at [4.10] and the cases referred to in f.n. 37; J. D. Heydon, Heydon on Contract (Lawbook Co., 2019) at [3.60]
[7] Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd [2016] HCA 26 at [31] (French CJ, Kiefel and Bell JJ) and the cases referred to in f.n. 40 and 41
[10] 'History of Dispute' attached to the application filed on 6 April 2021
[11] Great Northern Developments Pty Ltd v Lane [2021] NSWCA 150 at [45] (Bathurst CJ), [100], [105] (Leeming JA), [119] (Emmett JA)
[12] [1992] HCA 48 at [40] (Mason CJ, Deane, Toohey, Gaudron and McHugh JJ)
[14] ACT Civil and Administrative Tribunal Act 2008 (ACAT Act), section 11
[17] See sections 37(unlawful entry for eviction purposes where person has prescribed possession); 56 (failure to vacate after termination and possession order); 58(2) (wrongful eviction); 60(2) (tenants vacates after giving defective termination notice); 62 (abandonment during fixed term); 63 (abandonment during periodic agreement); 64AC(5) (void residential tenancy agreement in relation to affected residential premises); 83(1)(d) (compensation for loss of rent, occupancy fees or any other loss caused by a breach of residential tenancy agreement); 84(1)(b) (notice of intention to vacate before end of fixed term accepted by lessor); 101 (contravention of Part 7 - Residential tenancy databases)
[21] Great Northern Developments Pty Ltd v Lane [2021] NSWCA 150 at [95] (Leeming JA); Owners of the Ship 'Shin Kobe Maru' v Empire Shipping Company Inc. [1994] HCA 54 at [46]- [49] (Mason CJ, Brennan, Deane, Dawson, Toohey, Gaudron and McHugh JJ)
BARROW & ORS
YU
Legislation cited: ACT Civil and Administrative Tribunal Act 2008 ss 11, 15, 16, 22, 56, 57
Magistrates Court Act 1930 ss 257, 258
Residential Tenancies Act 1997 ss 6A, 7, 8, 9, 20, 37, 56, 58, 60, 62, 63, 64AC, 72, 76, 77, 83, 85, 101
Residential Tenancies Act 1997 (Reprint 68) standard terms 16, 28
Cases cited: Australian and New Zealand Banking Group Ltd v Frost Holdings Pty Ltd [1989] VR 695
Crown Melbourne Ltd v Cosmopolitan Hotel (Vic) Pty Ltd [2016] HCA 26
David Securities Pty Ltd & Ors v Commonwealth Bank of Australia [1992] HCA 48
Great Northern Developments Pty Ltd v Lane [2021] NSWCA 150
Hopkins v Governor-General of Australia [2013] NSWCA 365
McCarthy v Federal Commissioner of Taxation [2013] FCA 715
Owners of the Ship 'Shin Kobe Maru' v Empire Shipping Co Inc. [1994] HCA 54
Progressive Mailing House Pty Ltd v Tabali [1985] HCA 14
List of J. D. Heydon, Heydon on Contract (Lawbook Co., 2019)
Texts cited: J. W. Carter, Contract Law in Australia (LexisNexis Butterworths, 7th ed, 2018)
(1985) 157 CLR 17