Where a lessee claims compensation for pecuniary loss under the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) in respect of rent paid by a third party, the lessee must establish that it incurred a legal obligation to reimburse or indemnify the third party. The bare fact that rent was received by the landlord does not establish the lessee's loss. The equitable principle in In Re Cleadon Trust Ltd extends to cases where a third party pays the debtor's creditor directly, not only where money passes through the debtor's hands.
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