Contractual Disputes (Property) Case Studies

Seeking rescission of the new business lease of a leading hotel

We were asked to act for a husband and wife team who were directors of a catering business and were seeking the rescission of the new business lease of a leading hotel.

What effect did it have on the business:

Our clients were told during the negotiation of the new lease that the hotel business had an unconditional premises licence that would enable up to 100 weddings a year to take place. After the lease was signed and during the first two weeks of trade, it transpired that the hotel did not have an unconditional licence but on the contrary, there were restrictions which made it impossible for our clients to achieve their business aims.


Our strategy:

The claim for rescission was clearly articulated in a robust claim which led to a meeting of the parties and a settlement within a period of three weeks after we were originally instructed.

An urgent letter setting out the basis of the claim led to a settlement meeting and the outcome was an orderly handback of the hotel to the landlords and the rescission of the lease, which it was accepted would be treated as if it had never existed.

 

The outcome:

Our clients were quickly able to revert to running a catering business and not be faced with a hotel business doomed to fail and let to them for 25 years.

If you need advice and help with a dispute, contact us today.

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