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Would be grateful for any advice on this I will try to summarise as best I can.
The directors of a company X provided both verbal and written assurances that lead my company Y signing an initial ‘property sourcing’ agreement and paying the relevant fees.
Y then signed a ‘rent to rent’ agreement with a third party Landlord and a management agreement with company Z (same directors as company X)
They failed to meet the promised occupancy rates resulting in 6 months of losses for my company while still having to pay the rent. The rental agreement can be terminated at 6 months, so no problem there. However the management agreement only provides for termination after 12 months on condition there have been multiple breaches of the agreement (I believe there have been).
The management agreement does not guarantee any occupancy and purports to exclude any representations made by company Z.
If I terminate early, the agreement says I must pay the average revenue that would have been received over three years. If they sue (me)Y, could I refuse to pay based on misrepresentation by either other both X and Z(same directors)? Would it be best to take action against them first, or let them take action and file a counterclaim for misrep?
Does anyone know of the chances of success in misrep cases as I understand the contract can then be set aside?
If wondering why I agreed to the terms…I had already paid the sourcing fee and signed the lease so felt pretty much had to complete the management deal and saw no problems based on the X assurances of high /fully booked occupancy. Even if I wait until 12 month I guess X/Z would still deny any breaches! Thank you for any help with this.
The directors of a company X provided both verbal and written assurances that lead my company Y signing an initial ‘property sourcing’ agreement and paying the relevant fees.
Y then signed a ‘rent to rent’ agreement with a third party Landlord and a management agreement with company Z (same directors as company X)
They failed to meet the promised occupancy rates resulting in 6 months of losses for my company while still having to pay the rent. The rental agreement can be terminated at 6 months, so no problem there. However the management agreement only provides for termination after 12 months on condition there have been multiple breaches of the agreement (I believe there have been).
The management agreement does not guarantee any occupancy and purports to exclude any representations made by company Z.
If I terminate early, the agreement says I must pay the average revenue that would have been received over three years. If they sue (me)Y, could I refuse to pay based on misrepresentation by either other both X and Z(same directors)? Would it be best to take action against them first, or let them take action and file a counterclaim for misrep?
Does anyone know of the chances of success in misrep cases as I understand the contract can then be set aside?
If wondering why I agreed to the terms…I had already paid the sourcing fee and signed the lease so felt pretty much had to complete the management deal and saw no problems based on the X assurances of high /fully booked occupancy. Even if I wait until 12 month I guess X/Z would still deny any breaches! Thank you for any help with this.
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