The applicant tenant sought a declaration that its commercial lease was valid and binding on the new owner of the building.
The applicant had signed a new five-year lease with the previous landlord, but the landlord claimed it was never received.
Both parties, however, acted as if the lease were in effect, with the applicant paying increased rent.
The new owner purchased the building and claimed the applicant was a month-to-month tenant, seeking to significantly increase the rent.
The court found that the lease was valid and enforceable through the doctrine of part performance.
Furthermore, the court held that the unregistered lease was binding on the new owner because the new owner was wilfully blind to the existence of the lease during the purchase process.
