Andrews v Colonial Mutual Life Assurance Society Ltd - [1982] 2 NZLR 556

Contract — Offer and acceptance — Before agreeing to purchase a shop in leased premises the plaintiff sought renewal of the current lease at market rental — Lessor replied that it was prepared to offer plaintiff a new lease for three or six years — Plaintiff's solicitor did not reply to lessor's letter — Purchase of shop was concluded and plaintiff took possession — Whether a contract had been concluded for the renewal of the lease between plaintiff and lessor — Whether there was certainty as to the term and as to the rental to be charged.

Equity — Proprietary estoppel — New tenant believed it had a renewal of its lease for six years and spent a large sum of money on refurbishing premises — When lessor learnt of refurbishing it did nothing to disabuse tenant of the fact that the lease in its view expired in 16 months — Lessor altered an entrance step at tenant's request — Whether lessor's conduct gave rise to an action based on proprietary estoppel — Whether tenant was entitled to a new lease.