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Jackson Leasing Pty Ltd (JLPL) is the landlord for a group of commercial shops on Logan Road at Mount Gravatt. JLPL has been having difficult
Jackson Leasing Pty Ltd (JLPL) is the landlord for a group of commercial shops on Logan Road at Mount Gravatt. JLPL has been having difficult finding tenants for the shop spaces for the last 12 months. Mr Kim is an aspiring restaurant owner who recently immigrated to Australia. Mr Kim wants to set up a Korean BBQ restaurant as he thinks that this type of food is popular in Australia and he has not had much success getting work as an employee. Mr Kim approaches JLPL about leasing space at Logan Road. He has limited English speaking ability but he asks whether any of the shop spaces have restaurant equipment. If the shop was already equipped with a commercial kitchen, Mr Kim would reduce his costs and enable the restaurant to commence business earlier than scheduled. JLPL advised Mr Kim that there was a fully operational commercial kitchen installed, however he must sign the lease within 2 days if he would like to go ahead or he will miss out on the opportunity to lease the property. JLPL suggested that they had two other potential tenants interested in the same shop space. Mr Kim did not have time to inspect the property or to have any experts check that the kitchen was in full working order in the two-day timeframe and therefore had to rely on the advice provided by JLPL. JLPL did not offer Mr Kim any photos, videos or service reports showing the kitchen to be in working order. Mr Kim signed the lease for 2 years with the option to extend for a further two years as he was concerned that he would miss out on the opportunity. The lease agreement included a clause that denied liability for JLPL if any equipment was not working when the tenant gained access to the building. Mr Kim found that the refrigeration equipment and the cooking plate were not in working order and he had to spend $15,000 to have the equipment repaired .
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