PP 2002/171

Reasonableness in a new guise? Q L withholds his consent to assign on the ground that T has failed to obtain satisfactory financial references from certain persons specified in the lease. T claims that such insistence is unreasonable in the circumstances. L points out that (as explained in PP 2002/154) the reasonableness of his refusal cannot be called into question because the lease provision in question operates as a condition. T accepts this, but nevertheless contends that it is an implied term of that condition that any request made by L pursuant to the condition has to be genuinely intended to ensure L’s financial security. Is such an argument open to T? A Yes, according to Nicholas Strauss QC in Mount Eden Land Ltd v Towerstone Ltd [2002] 31 EG 97 (CS), while holding on the facts that the intentions of the claimant lessor were quite genuine. Related item: PP 2002/223