Warranty of fitness for purpose
18 Warranty of fitness for purpose
If the lessor under a retail shop lease had, before entering into the lease, notice from the lessee that the premises were required for carrying on a particular business, the lease is taken to include a warranty that the premises will, for the duration of the lease, be structurally suitable for the purpose.
However, the warranty is excluded if the lessor gives notice of the exclusion, in the manner and form required by regulation, before execution of the retail shop lease by the lessee.
An exclusion pursuant to subsection (2) will also be taken to apply to—
a renewal or extension of the retail shop lease; and
any new retail shop lease between the same parties for the same premises (whether on the same or different terms).
An assignee or sub-lessee may sue on the warranty if the assignment or sublease is taken for the purpose of carrying on a business of the same kind.
In proceedings for breach of the warranty, it is a defence for the lessor to prove—
the premises were structurally suitable for the purpose when the retail shop lease was entered into; and
any change in the structural suitability of the premises is not attributable to the lessor.
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