Under s 40 of the Retail and Commercial Leases Act 1995 (SA), a tenant who has paid rent in advance for a period during which the useability of premises was diminished by damage is entitled to credit the abatement against future rent charges. The word 'liability' in s 40 includes a liability that has been discharged by payment. The diminution in useability is measured objectively by reference to the floor space affected by the damage, not by reference to the particular use the tenant would have made of the premises. Landlords seeking to terminate for non-payment of rent must account for any abatement credit to which the tenant is entitled.
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