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Starting in March 2016 Allan leases a coffee shop to Wendy in a new shopping centre on the outskirts of Brisbane for $1000 per week. The lease is for five years. The centre’s operations are not very successful and many of the tenant shopkeepers leave. After twelve months Wendy asks Allan if her rent can be reduced to $500 per week. In May 2017 Allan agrees and for the next twenty weeks Wendy pays the reduced rent. Allan hears a rumour that Wendy is about to vacate and give notice terminating the lease. Allan starts legal proceedings against Wendy to recover $10,000 arrears of rent for the twenty week period. Advise Wendy of her legal position and the likelihood that Allan can succeed in the case. Use case references in the analysis.
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