Commentary

33 Contractual formula for variation of rent

AGRICULTURAL TENANCIES vol 2(1)
| Commentary

33 Contractual formula for variation of rent

| Commentary

33 Contractual formula for variation of rent

If the parties provide in the tenancy agreement for the rent to remain fixed unless varied (at a specified time or times during the tenancy) in accordance with a specified formula, that formula:

  1. 33.1

        must not preclude a reduction; and

  2. 33.2

        must not ‘require or permit the exercise by any person of any judgment or discretion in relation to the determination of the rent of the holding’1.

The formula must permit a mathematical and identifiable calculation to be made with no human judgment required. Determination by reference to indices would be a possibility under

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