I want to break a contract(not even sure if I am bounded to the contract)

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Wan

Member
1 May 2020
1
0
1
Hello, I am currently living in a student housing company.
I started staying in one of the rooms here from the beginning of 2019 August and will stay here until July 2020 as I am bounded with one year contract.
Right before the corona virus became really bad here in Melbourne, I tried to extend my stay in this student housing company for another year (which is until July 2021).
However, I have not yet signed any contracts by paper nor sent the housing company my visa details.
All I have done is pay 2 weeks of rent for a deposit but the money has been used for the rent already.

Here is the question, am I bounded to the contract of July 2020 to July 2021? If so, can I break the contract?
Because of corona virus, I have to find a cheaper rent as I am unable to earn money due to the virus now so I cannot pay the rent of the housing company.
I will somehow manage to pay until the contract of August 2019 to July 2020.
 
Last edited:

JazKaz

Well-Known Member
11 April 2020
40
1
124
Hi Wan,
I have a few questions. when you attempted to extend your stay until July 2021, you mentioned that you have already paid 2 weeks of rent for a 'deposit'. Did you discuss how the payments of rent would go towards a deposit with the company? Was there any agreement that you would do this to hold placement in housing? What do you mean by the money has been used for rent already?

I assume that in order to live in this student housing you were required to sign a contract and send the housing company your visa details. In this instance they would already have this information, and unless they require an updated version in creating a new contract, this information is irrelevant. At best the fact that this info was not sent just shows incomplete knowledge and a lack of completion of a contract if there even is a valid offer in first instance.

Based only on the information given, it doesn't seem like there has been a new contract established. The issue in your case is that you paid 2 weeks rent for purposes of a deposit. If this was not an agreed to term by both parties for the purpose of extending a contract, I do not see how there has been acceptance. If by 'the money has been used for the rent already' you mean they accepted the amount, then there has been acceptance of a contract to hold your possession of the property until 2021.

My understanding is that you should discuss this with the company, explain your circumstances and possibly ask for the deposit back. as your current contract has not yet expired
I don't see any reason why the company should hold you to any new terms. If there was in fact a new contract created for the future, you can break it off as you deposited the funds to hold the position open, similar to the operations of an option contact, buying the right to possession in the future. At worst you may have lost your deposit but I believe it is open for discussion with the company.