The appellant tenant appealed a decision regarding its obligation to pay rent under a commercial lease.
The lease contained a latent ambiguity regarding the Completion Date and Rental Commencement Date.
The tenant argued it was not required to pay rent because the landlord had not completed all buildings in the shopping centre as stipulated in the lease.
The Court of Appeal dismissed the appeal, finding that it was not commercially reasonable for the tenant to take possession, operate its business, and use the landlord's services without paying rent.
By taking possession and opening for business, the tenant effectively waived strict compliance with the landlord's obligation to complete all buildings as a condition precedent to paying rent.
