A person leased a building for opening a gym and after several weeks discovered that the zoning rules do not enable it and a special permit will be required and thus cancelled the agreement. The lease agreement specifically set that the lease is to obtain the required permits and that the lessee found the leased property fit for the purposes but the lessee argued that the lessor said that he will cancel the agreement absent permits.
The Court held that the version of the lessee is an oral version against a written document and is thus invalid. The burden to check all aspects, including legal aspects, of opening a business is on the person wishing to open a business and not on the lessor. Thus, the Court held that the termination of the contract was illegal and the lessee is to compensate the lessor.