Archive for category Payment of Rent (Commercial)

When is the rent paid?

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Disputes often arise about whether the tenant has paid the rent by the due date in accordance with the lease.

The problem usually arises where a tenant posts the rent and the rent is not received by the due date.

The basic rule is that a debtor (including a tenant) must seek out his creditor (including a landlord) and is not regarded as having paid the rent until the remittance actually arrives in the landlord’s possession.

The mere fact that as a matter of course the tenant had paid by post does not , without more, indicate that the creditor has authorised use of the post such that the creditor takes the risk of non-delivery or that payment was deemed to have been made from the date of posting.  The authorities are examined in detail by Deputy President Macnamara in Happy Century Pty Ltd v Nezville Pty Ltd (2000) V ConvR 58-546.




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