Latest News

Construction and Design Managers - Guidance Construction and Design Managers - Guidance
Don't Take it on Trust Don't Take it on Trust
Relief for Landlords Over Notices Relief for Landlords Over Notices
Secure Tenancy Revived = Rights Revived Secure Tenancy Revived = Rights Revived
Lucky Landowner Lands a Million Lucky Landowner Lands a Million
Guidance on Letters of Intent Guidance on Letters of Intent
End of Lease Tips End of Lease Tips
Small Business Rate Relief - Time Running Out Small Business Rate Relief - Time Running Out
EPCs for Commercial Property - Are You Ready? EPCs for Commercial Property - Are You Ready?
Court of Appeal Overturns Tenant Win in Consumer Law Case Court of Appeal Overturns Tenant Win in Consumer Law Case

Business Tenancies What is a Business

The question as to what sort of organisations can be regarded as businesses came before the courts in a case involving a not-for-profit company which had failed to give the required notices to protect their tenancy under the Landlord and Tenant Act 1954.

When the company sued the firm of solicitors who had failed to secure their renewal of leases over two sports grounds, the solicitors argued that the organisation had suffered no loss since they were a not-for-profit organisation and therefore would not qualify for the security of tenure available to businesses under the Act.

The court disagreed, concluding that the intention to make a surplus which would be reinvested in the leisure complex run by the not-for-profit company was sufficient to make it a business, in spite of the fact that any surplus arising was not distributable to the members of the company.

For the purposes of the Act, a 'business' need not be an organisation established for profit.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.