A commercial tenant sought a declaration that its lease had been validly renewed for an additional five‑year term and alternatively requested relief from forfeiture under s. 20 of the Commercial Tenancies Act.
The court held that the renewal clause, as amended, was unenforceable because it required rent to be determined by future agreement without providing a mechanism such as arbitration, making it an agreement to agree.
The tenant also failed to satisfy the conditions precedent for renewal, including timely written notice and compliance with lease obligations.
The court further found that s. 20 of the Commercial Tenancies Act did not apply where the landlord was not seeking re‑entry during the existing term, and equitable relief was unavailable because the tenant sought to obtain a new right rather than preserve an existing one.
Waiver and estoppel arguments were rejected, particularly given a non‑waiver clause and the involvement of third‑party leasing arrangements.