Szabo & Associates News & Updates

Most lease agreements allow landlords to give notice to terminate a lease for a breach of its terms. A tenant must remedy a breach within a reasonable period of time after service of the notice. What constitutes a reasonable period of time to remedy the breach will, however, depend on the circumstances.

As a commercial property tenant, exiting a commercial property lease before the expiration date is not always straightforward. A lease is a legal contract, and a landlord can take you to Court if it is broken. However, depending on the circumstances, the landlord may be prepared to negotiate a compromise.

If a tenant breaches a lease by defaulting on the payment of rent resulting in the termination of the lease, a landlord will be entitled to recover damages for the rental arrears up to the termination date. In addition, the landlord may also seek to claim loss of bargain damages.

There are many reasons why a tenant might wish to exit a commercial lease some time before the lease is due to end. It may be that the premises are no longer suitable because of business expansion, contraction, or altered plans.

Many businesses occupy premises leased from another party. An option is a term in the lease agreement which allows a tenant the right to renew their occupation of the leased premises before the tenancy ends. The tenant does not have an obligation to renew, whereas the landlord does not have the right to deny the tenant from exercising the option unless there has been a breach.