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Debra, Lawyer
Category: Canada Law
Satisfied Customers: 97965
Experience:  Lawyer
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In a business lease agreement it states terminating a lease:

Customer Question

In a business lease agreement it states for events terminating a lease:
The premises shall be vacated, abandoned, or remain unoccupied for 15 days or more while capabale of being occupied.
Then and in any of such cases, at the option of the landlord, the full amount of the current months and next 3 months installments of base rent and additional rent shall immediately become due and payable and the landlord may, without notice or any form of legal process, forthwith re-enter and take possession of the premises in order to re enter the premises or terminate this lease.
Would this mean the lease is terminated even if a 10 year lease was signed but the tenant can not longer afford the payments. Is the tenant relieved of his obligation of the lease?
Submitted: 1 year ago.
Category: Canada Law
Expert:  Debra replied 1 year ago.

The landlord has the option of treating the lease at an end but doesn't have to do so.

If there is a long lease then the landlord will not agree that the lease is over and the tenant is no longer obligated on the lease. Rather the landlord would sue for the remainder of the rental payments. At the same time the landlord has a duty to mitigate damages and so would have to make his/her best efforts to find a new tenant and when that happens then the tenant is no longer obligated on the lease and would just owe what damages the landlord suffered.

Customer: replied 1 year ago.
What if the Corporation Goes Bancrupt? Would the Landlord still have a claim?
Expert:  Debra replied 1 year ago.

The landlord could not sue the corporation if it declares bankruptcy. If someone guaranteed the lease personally then the landlord would sue the guarantor.

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