Government and corporate contracting G Essay Example
Government and corporate contracting
Sections 122-126 of the Leases (Commercial and Retail) Act 2001(ACT) provides protection for tenants against unlawful evictions or unreasonable lease termination. In Giovanni’s case, his lease is affected by the law in that his lessor (Department of Parliamentary services) has a conflict of interest in the termination of his lease. The Act stipulates that tenants may contest the termination of their lease even in cases where the lessor is within their contractual right to terminate the lease if the tenant’s business has put the lessor at a competitive advantage should they take over the business using the same premises (Legislation.act.gov.au, 2016). The tenant can argue that his tenure during the four years has put the tenant at a competitive advantage considering that the tenant wishes to continue delivering the same services as Giovanni.
This can be grounds for contesting the termination or seeking extension or compensation. However, this argument may not turn out in favour of the tenant as the Department of Parliamentary services has enough grounds to terminate the lease. Additionally, the contract and disclosure statement do not require the lessor to give reasons for the lease termination as long as a termination notice is served to the tenant within the specified time frame.
Also, the Parliamentary Precincts Act1988 (Cth) grants the lessor powers through the contract manager to grant leases and institute the terms of the lease contracts (Austlii.edu.au, 2016). It is therefore upon Giovanni to decide whether to contest the termination under grounds that the termination is incentivized by the lessor’ self-interest to take over his business rather than for convenience as stipulated or abide by the contract and vacate the premises (Dibbsbarker.com, 2016).
Also, Sections 122-126 of the Leases (Commercial and Retail) Act 2001(ACT) provides the ground on which Giovanni can contest his lease termination (Austlii.edu.au, 2016). The section requires that property owners give reasonable grounds for lease termination and be prepared to prove the same when called upon to do so. The reason given, in this case, convenience must be proven in the case the tenant contest the termination of his or her lease. Giovanni can argue that he acted honestly and diligently within the limits of the contract for the entire span of his lease. It is, therefore, unreasonable that the Department of Parliamentary services would seek to terminate his lease without being presented with a reason to do so. Such an argument can be presented to a magistrate within 14 days upon issuance of a termination notice (Scola, Lang and Cabot, 2013).
However, the court in making its decision must weigh whether compliance with the lease contract should constitute enough grounds to cancel the lease termination or if the terms of the contract should be upheld and the termination sustained. The Parliamentary Precincts Act1988 (Cth) does not in any way stipulate the conditions for lease termination and therefore does not have an impact on the lease contract unless where the authority of the lessor to terminate the lease comes into question
Legislation.act.gov.au. (2016). ACT legislation register — Leases (Commercial and Retail) Act 2001 — main page. [online] Available at: http://www.legislation.act.gov.au/a/2001-18/ [Accessed 28 Mar. 2016].
Dibbsbarker.com. (2016). Landlord and Tenant Alert: Commercial leasing in Canberra — capitalising on local expertise in a unique market — DibbsBarker. [online] Available at: http://www.dibbsbarker.com/publication/Landlord_and_Tenant_Alert__Commercial_leasing_in_Canberra_-_capitalising_on_local_expertise_in_a_unique_market.aspx [Accessed 28 Mar. 2016].
Austlii.edu.au. (2016). LEASES (COMMERCIAL AND RETAIL) ACT 2001. [online] Available at: http://www.austlii.edu.au/au/legis/act/consol_act/lara2001233/ [Accessed 28 Mar. 2016].
Austlii.edu.au. (2016). PARLIAMENTARY PRECINCTS ACT 1988. [online] Available at: http://www.austlii.edu.au/au/legis/cth/consol_act/ppa1988259/ [Accessed 28 Mar. 2016].
Scola, J., Lang, P. and Cabot, K. (2013). Termination of Commonwealth contracts. Commercial Notes, (37), pp.2,4,6-8.
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