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Leases (Commercial and Retail) Act 2001
22Prohibited conduct in dealings
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22 Prohibited conduct in dealings
(1) A party to a lease, or a party to negotiations for a proposed lease, must
not, in dealings with another party to the lease or negotiations, engage
in conduct that is unconscionable or harsh and oppressive.
(2) Without limiting the matters the Magistrates Court may consider
when making an order in relation to a dispute arising from an alleged
contravention of subsection (1) in relation to unconscionable conduct,
the court may consider any of the following matters:
(a) the relative strengths of the bargaining positions of the lessor
and tenant;
(b) whether, because of conduct engaged in by a party to the lease
or negotiations, the other party was required to comply with
conditions that were not reasonably necessary for the protection
of the legitimate interests of the party who engaged in the
conduct;
(c) whether the party to the lease or negotiations who did not
prepare the lease or another document relating to the lease could
understand the lease or other document;
(d) whether undue influence or pressure was exerted on, or unfair
tactics were used against, a party to the lease or negotiations (or
an agent) by the other party to the lease or negotiations (or an
agent) in relation to the lease or negotiations;
(e) the circumstances under which the tenant could have acquired a
lease on similar terms over similar premises from someone other
than the lessor;
(f) the extent to which the lessor’s conduct towards the tenant was
consistent with the lessor’s conduct in similar lease transactions
between the lessor and similar tenants;
(g) the requirements of this Act;
(h) the extent to which a party to the lease or negotiations
(the failing party) unreasonably failed to disclose to the other
party (the uninformed party)—
(i) any intended conduct of the failing party that might affect
the interests of the uninformed party; or
(ii) any risk to the uninformed party arising from the failing
party’s intended conduct that the failing party should have
foreseen would not be apparent to the uninformed party;
(i) the extent to which the lessor and the tenant acted honestly.
(3) Without limiting subsection (1), a lessor is taken to have engaged in
harsh and oppressive conduct if—
(a) the lessor discriminates against a tenant because the tenant is a
member of, or intends to become a member of, an association to
represent or protect the interests of tenants, or intends to form
such an association; or
(b) the lessor’s conduct has the effect of preventing a tenant from
forming or joining, or compelling a tenant to form or join, an
association to represent or protect the interests of tenants.
(4) Without limiting subsection (1), someone is not taken to have
engaged in unconscionable or harsh and oppressive conduct only
because the person applied to the Magistrates Court under this Act.
(5) When applying subsection (2), the Magistrates Court must not have
regard to circumstances that were not reasonably foreseeable at the
time of the alleged contravention.
Conduct of parties Part 5