A lessee announced the termination of the lease agreement after the lessor breached its obligations to repair defects in the leased property.
The Court accepted the claim and held that the agreement was duly terminated and that the lessee is to be compensated. When agreement is materially breached the harmed party may terminate it, while restoring the value of the consideration received by each party for the agreement and it also has the right to compensation for the breach. If it is a non-material breach, the harmed party must give the breaching party an opportunity to correct the breach. If it is not remedied within a reasonable time, the harmed party can terminate the agreement by notifying the breaching party within a reasonable time from the moment the breaching party has been given an opportunity to remedy the breach. Here, the lessee signed a lease agreement for the purpose of operating an animal barber shop, but the lessor did not bother to inform it of a planned renovation of the property that did not allow the business to operate. In addition, the lessor undertook in the agreement to repair defects in the property, but did so partially and with delay. Despite the warnings received by the lessor and a reasonable time to correct the defects, it did not make an effort to correct its breaches or to allow the lessee to operate its business under reasonable conditions during the renovation. In light of this, the termination of the agreement was duly done and the lessor is to compensate the lessee for the damage caused to it.