Archive for category Payment of Rent (Commercial)
When is the rent paid?
Posted by ROBERT HAY QC COMMERCIAL LAW BARRISTER in Disputes, Leasing, Payment of Rent (Commercial) on July 1, 2011
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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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