Lodger deposit dispute - who is in the right?

Landlord Discussion Legal
1

Hi,

I am in a bit of a difficult situation and I was hoping for some outside perspective. Sorry for the way it has been written - I am trying to be as neutral as possible! Here is the situation I am currently in:

Live in landlord gets a lodger. Landlord creates contract and both sign. Lodger sends deposit which is worth one months rent to the landlord via bank transfer. The contract states there is a fixed term and one months notice can only be given after 1 March. However, another part of the contract says one months notice can be given “at any time”. This clause was included by mistake.

Lodger gives notice at beginning of February but landlord points out the contract is for a fixed term and that unless they can find a new lodger the contract sticks and notice can only be given after 1 March as per the fixed term. Lodger claims the “at any time” clause is a break clause which they are exercising. Lodger leaves on 1 March anyway without a replacement lodger and is demanding the deposit is returned. Landlord is withholding deposit to cover rent for the month of March. Lodger has sent a “letter before action” notice to the landlord.

Who do you think is in the right in this situation?

Thank you!

2

A court would recognise the fact that the clauses are contradictory and then go on to try to resolve it. The principle they normally apply is to favour the interpretation most beneficial to the “junior” partner in the contract, which is the tenant. In my view they would be likely to uphold the tenants notice.

3 Likes
3

Thanks for taking the time to reply. It is much appreciated.

4

I think the tenant is in the right. If both clauses are in the contract they can choose to use the one more favourable to them

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5

Thank you for taking the time to reply! I am grateful for your input.