Northern Territory Consolidated Acts

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BUSINESS TENANCIES (FAIR DEALINGS) ACT - SECT 79

Unconscionable conduct of landlord in retail shop lease transactions

    (1)     A landlord must not, in connection with a retail shop lease, engage in conduct that is, in all the circumstances, unconscionable.

    (2)     Without limiting the matters to which a court may have regard in determining whether a landlord has contravened subsection (1), the court may have regard to the following:

        (a)     the relative strengths of the bargaining positions of the landlord and the tenant;

        (b)     whether, as a result of conduct engaged in by the landlord, the tenant was required to comply with conditions that were not reasonably necessary for the protection of the legitimate interests of the landlord;

        (c)     whether the tenant was able to understand any documents relating to the lease;

        (d)     whether undue influence or pressure was exerted on, or unfair tactics were used against, the tenant or a person acting on behalf of the tenant by the landlord or a person acting on behalf of the landlord in relation to the lease;

        (e)     the amount for which, and the circumstances in which, the tenant could have acquired an identical or equivalent lease from a person other than the landlord;

        (f)     the extent to which the landlord's conduct towards the tenant was consistent with the landlord's conduct in similar transactions between the landlord and other similar tenants;

        (g)     the requirements of an applicable industry code;

        (h)     the requirements of another industry code, if the tenant acted on the reasonable belief that the landlord would comply with the code;

            (i)     the extent to which the landlord was willing to negotiate the terms and conditions of any lease with the tenant;

        (j)     the extent to which the landlord unreasonably failed to disclose to the tenant:

            (i)     intended conduct of the landlord that might affect the interests of the tenant; and

            (ii)     risks to the tenant arising from the landlord's intended conduct (being risks that the landlord should have foreseen would not be apparent to the tenant);

        (k)     the extent to which the landlord and the tenant acted in good faith.



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