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24/02/2011 09:00:29 KimB Posts: 1	I have signed a 1 year lease on a workshop which is due to expire on 9th May 2011. I have given notice as I have found a more suitable workshop, however there is a clause on one of the pages which states "6(a) Subject as hereinafter mentioned this Licence shall be for a period starting on the tenth day of May, 2010 and ending on the date set out in Part III of the Schedule" Part III states: "Expiry Date 9th May 2011. Unless a new Licence is fully agreed by both parties two months before the end of the Expiry Date Being The 9th May, 2011 then The Premises are to return to the Licensor clear of all belongings of THE LICENSEES and in satisfactory tidy and clean condition" Then on the page under 6a there is clause 6b: "6(b) Notwithstanding subclause (a) above the parties hereto may terminate this Licence after TEWLVE MONTHS occupation and giving Two Months notice meaning Fourteen MONTHS at earliest by mutual agreement or otherwise and the Licensor shall have the right (without prejudice to any other remedies) to terminate this Licence by giving notice in writing to the Licensee taking immediate effect if the Licence Fee shall be due and unpaid for seven days or if the Licensee shall fail to observe or perform any of the terms and conditions on his part herein contained." I have included capitalisation and bad spelling as it was laid out in this 'contract'. Surely clause 6b is nonsensical? A 12 month lease is just that, and as it says, unless a new lease is signed we have to be out by that day...not after 14 months ie July 3rd as he is now trying to imply. There are further complications to this but I just wanted someone's opinion as to whether that clause is legally binding? Thanks
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24/02/2011 14:58:33 www.clicklegalservices.co.uk Administrator Posts: 374	I think the first point I would query is whether this is a lease or a licence - which are separate concepts in law. It sounds like a lease being called a licence, but without details I could not comment further. Also, any answer given here does not take into account any statutory provisions which may or not apply to business premises - i.e. the Landlord and Tenant Act 1954 (as amended). I think the clauses are confusing but "arguably" consistent (whether they are legal is, as I say, beyond this note, though). As I read it, it runs for 12 months - from May to May - and unless a new licence is agreed before the last 2 months of that initial period, you vacate in May, and leave it in a tidy condition etc. If though, you agree a new licence - and the arrangement on the face of it therefore continues after May 2011, then, either side then agree to give 2 months notice to the other - and again at the end of that notice period period, you leave the premises tidy etc. If, you fail to pay or create a mess etc., he can demand that you go, without notice. I think I would do him a note to clarify your understanding of the arrangement - i.e. unless agreed a new licence by the start of March, you vacate in May - and if possible ask him to reply in writing. It seems confusing in that he is making provision as to what happens if you "hold over" (the best term I can think of but not really accurate here) - but you can only "hold over" under the terms of the agreement if you have already agreed a new licence - and if you have agreed a new licence then this begs the question as to why are these clauses in - as they would presumably be dealt with in that new licence - and take effect then - subject to whatever is agreed in that new licence. Landlords sometimes try and call leases "licences" so as to purport to try and allow lesser protection to tenants.
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