Cases - Riverlate Properties Ltd v Paul and others

Record details

Name

Riverlate Properties Ltd v Paul and others

Date

[1974]; [1974]; [1975]

Citation

2 AII ER 656; 3 WLR 564; Ch 133, CA

Keywords

Landlord and tenant – service charge – tenant’s covenant to pay half of the landlord’s costs and expenses for insurance, exterior decoration and water rates – lease provided that the landlord was responsible for structural repairs – rectification – whether the landlord was entitled to rectification of the lease – whether there was a unilateral mistake

Summary

This involved a lease of a self-contained maisonette. The tenant covenanted to pay one half of the costs, expenses and matters for which the landlord was responsible by virtue of paragraphs (b), (c) and (d) of clause 6 which referred to insurance, exterior decoration and water rates. Paragraph (a) provided that the landlord was responsible for exterior and structural repairs. The lease therefore contained no provision for the tenant to bear any costs relating to exterior or structural repairs.

The landlord sought rectification of the lease and it was held that:

1. the tenant neither directly nor indirectly knew of the landlord's mistake and since the tenant was not guilty of sharp practice, there was no justification for rectification, either on the ground of a common mistake or on the ground of knowledge on the tenant's side that the landlord was making a mistake at the time the lease was granted.
2. there was a unilateral mistake by the lessor, there was no principle of law which entitled the lessor to rescind or annul the agreement or to require the lessee, who had acquired an interest on the terms on which he had intended to obtain it, to accede to the terms which the lessor meant to impose but did not.