South Australian Current Acts South Australian Current Acts (1) The term for which
a retail shop lease is entered into must be at least five years.
The term of a retail shop lease is worked out under this section on the
assumption that any right or option of renewal or extension under the lease or
a collateral agreement will in fact be exercised. However, a right or option
of renewal or extension will not be taken into account if it is given after
the lease is entered into.
(2) A lease is not
invalidated by contravention of this section but the term of the lease is
extended to bring the term (or aggregate term) to five years.
Example—
If a lease is entered into for a term of three years, its term is extended by
two years to five years. If a lease is entered into for a term of two years
with an option for a further one year after that initial two years, the term
of the lease is extended to four years (with the option for a further one year
after that initial four years).
(3) This section does
not apply to a lease if—
(a) the
lease is a short-term lease (ie a lease entered into for a fixed term of
6 months or less); or
(b) the
lease arises when the lessee holds over after the termination of an earlier
lease; or
(c) the
lease contains a certified exclusionary clause; or
(d) the
lessee has been in possession of the retail shop premises for at least
5 years; or
(e) in
the case of a retail shop lease that is a sublease—the term of the
retail shop lease is as long as the term of the head lease allows; or
(f) the
lease is of a class excluded by regulation from the ambit of this Division.