A Calgary commercial lease provides both parties with certain rights and provisions. Some of the provisions of a commercial lease must be strictly adhered to by a tenant or it might result in allowing the commercial landlord the right to exercise a termination clause.
The language found within the lease must be carefully reviewed by all tenants so that they are fully aware of their responsibilities and financial obligations.
There may be some situations where the tenant can
actually request that a landlord terminate a lease in a variety of situations such as bankruptcy, loss of sales or other causes. Be aware that the landlord may still possess the right to file suit for damages or charge additional fees for early termination.
Generally, a commercial landlord also has the right to initiate the termination of the lease under certain circumstances. Some clauses that may allow early termination such as for the requirement of building renovations and provide provisions where they will agree to pay the tenant a certain amount of rebate in return.
Otherwise, the landlord may also be entitled to terminate a commercial lease where the tenant has specifically defaulted on the terms defined within the lease.
In other situations, the landlord may prefer to apply default remedies which should also be outlined in the lease contract. In some situations, the landlord may also be allowed to initiate the sale of the Tenant’s goods to make good on a lease default such as in the case of insolvency or bankruptcy.
In situations where a landlord terminates the tease, the tenant will forfeit the remainder of the term of the lease term and has the option to find relief from forfeiture through a court order. Even if a clause exists which waives the tenant’s right to seek relief in court, it is a discretionary power of the court and may not be enforceable.
The right of termination in any commercial lease must be clearly set out and defined. When entering into a commercial lease, the provisions of the lease should be reviewed and carefully explained to a prospective tenant by their legal representative so they clearly understand their lease responsibilities, obligations and alternative legal recourses.
