{"id":5654,"date":"2018-03-07T09:26:57","date_gmt":"2018-03-07T09:26:57","guid":{"rendered":""},"modified":"2019-07-16T13:17:29","modified_gmt":"2019-07-16T13:17:29","slug":"kings-motors-oxford-ltd-v-lax","status":"publish","type":"post","link":"https:\/\/www.lawteacher.net\/cases\/kings-motors-oxford-ltd-v-lax.php","title":{"rendered":"King\u2019s Motors (Oxford) Ltd v Lax"},"content":{"rendered":"

King\u2019s Motors (Oxford) Ltd v Lax [1969] 3 All ER 665<\/strong><\/p>\n

Contract \u2013 Option for Renewal \u2013 Void for Uncertainty<\/p>\n

Facts<\/h3>\n

The parties had a lease for seven years. The lease contained an option for renewal for a further term of seven years on the same terms as the existing lease, \u2018at such rental as may be agreed upon by the parties. When the lessor gave notice to terminate, the lessee sought a declaration that the notice was void for uncertainty because the main provision of the agreement in the form of the rent payable was only to be agreed in the future.<\/p>\n

Issues<\/h3>\n

Whether or not the option for renewal was void for uncertainty. Whether or not the phrase \u2018at such rental as may be agreed between the parties\u2019 was meaningless, considering the option also stated that the terms would be \u2018the same\u2019 as the existing lease and so could be disregarded.<\/p>\n

Decision\/Outcome<\/h3>\n

The option for renewal was void for uncertainty. The major part of the rental agreement in the form of the amount of rent payable could not be determined. The clause was therefore no more than an agreement to agree and was as a result unenforceable. The court was not able to imply a term suggesting that the rent be \u2018reasonable\u2019 as in Foley v Classique Coaches Ltd (1943) 2 KB 1<\/strong> because in that case there had been an arbitration agreement contained within the contract which allowed a mechanism for the settlement of this issue, whereas in this instance, there was no such agreement. In these circumstances, the court was unable to uphold the renewal clause, as it was no more than a mere agreement to agree and not an enforceable contract.<\/p>\n","protected":false},"excerpt":{"rendered":"

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