In the case of Lauder Pty Ltd v Angor Investments Pty Ltd & Ors  QSC 175, Lauder granted a lease to Angor. Angor fell into arrears in February 2013 and Lauder sought to recover possession of the premises.
Angor argued that Lauder was unable to take possession since a new lease had been formed. Angor claimed that on 15 March 2013 it went to the office of Lauder’s letting agent and met with Ms Eiser, an employee.
At the meeting Angor handed over an envelope containing a copy of the lease with substantial handwriting alterations. It stated “as acceptance of these lease changes the lessor will allow the lessee to pay three years rent in advance of $1800.” The envelope also contained a tax invoice, stating that Lauder would accept $200 for the balance owing under the original lease. Angor handed over cheques for $1800 and $200 which were banked that day by Ms Eiser. Lauder and Ms Eisler were unaware of the contents of the envelope until 19 March.
Angor argued that a contract was made on 15 March 2013 by their offer being made in the presentation of the documents with the two cheques and Lauder accepted by conduct in banking the cheques. The Court rejected this, stating that on an objective view, Lauder accepted the two cheques as part payments of the amount due under the original lease. Further, a letting agent does not have implied authority to agree to terminate and grant leases.