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Update: commercial property

Ben Brayford and Eugene McMahon consider the recent OFT guidance on land agreements, what recent case law tells us about tenants' break clauses and a ruling on how to fend off a fixtures and fittings dispute

15 November 2010

Land agreements

Three months ago we wrote about how the revocation of the Competition Act 1998 (Land Agreements Exclusion and Revocation) Order 2004 on 6 April 2011 would impact on land agreements containing competitive restrictions. Now, with the publication of draft guidance by the Office of Fair Trading on 15 October 2010, further help is at hand.

Currently land agreements are excluded from the Competition Act 1998’s prohibition against anti-competitive agreements (the chapter I prohibition). However, from 6 April 2011, with retroactive effect, land agreements that restrict, prevent or distort competition within the UK and have an effect on trade in the UK will be prohibited and such agreements will generally be unenforceable. Parties to an agreement prohibited under chapter I may face enforcement action by the OFT which can impose substantial fines and give directions to take steps to bring an infringement to an end. An agreement that does not...

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