No Formal Lease Agreement Signed

[pepe69sg]

I am a Sub-Tenant running a childcare centre and had a verbal agreement with the Tenant (incidentally my franchisor) who leased the premise from a property firm (Landlord). Terms were discussed between me and my franchisor and a estimated rent was paid, together with the rental deposit to the tenant. But I never sign on the agreement as I do not agree how the area was calculated and has question over clarity of other terms like charging of utilities etc. Nevertheless I continue to pay the rent with the understanding that these terms will get addressed and formerly signed at a later stage. However it got dragged for more than a year and now the Tenant has ran into financial trouble (there was a receivership placed on them but was temporary suspended). To preserve my right and protect my centre financially, I have stopped paying rent and demand my deposit back as my defence is that without a former contractual agreement, our lease is a periodic (monthly) and not a fixed term one. Can they bind me to the terms of the contract even though it was not signed by both parties and paid stamp duties? Does part performance on my part (by paying rent every month) implied I have obligation to fulfil the agreement which stipulates that we have to rent till a certain date?

[Friend In Court]

In order to encumber property, have a lease, it must be in writing agreed to and signed by all parties. Otherwise, it is a month to month tenancy without the obligations or rights of a lease. That is the principle of law in all jurisdictions that have their foundation in English law. Without a contractual agreement, month to month would be the case. Further, if they go into receivership, they are unable to fulfill any promises to guarantee you and your business the ability to remain. As long as you meet the requirements of giving adequate notice and leave the premises in the condition they were when you rented, you are entitled to return of your deposit.