New case law on fixed-term leases creates pitfalls for landlords

Real Estate & Construction

ILO Newsletter, 9 May 2014

With the sale and delivery of a large quantity of branded goods subject to a larger retail chain´s retention of title clause, confusion often arises over which goods were delivered by the seller at an earlier point and have been paid for and which are still unpaid goods. In insolvency cases, the question of the legal fate of the goods sold under a retenTenancy law stipulates certain formal criteria for fixed-term leases. In particular, agreements must be in writing and specify a definite end date. If these criteria are not met, the landlord cannot enforce the end date. Two Supreme Court decisions on these criteria underline that parties need to agree whether they want to provide for a renewal option or a non-binding declaration of intent before signing a lease agreement. ion of title clause frequently arises.


Dr. Martin Foerster

LL.M. (LONDON) Partner