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I have a small business, just myself and Im incorporated.

I have a small business...
I have a small business, just myself and I'm incorporated. I'm renting an office space and my personal name and company name is XXXXX XXXXX lease. The lease expires nov 2013 but because of my recent health issues I need to take care of, I am not working the business at all and I'm wondering if there is any way I can break my lease. Would desolving the corporation help me to do this? I plan to disolve it in nov anyway. The property I rent from has just been bought by another company who of course I now pay rent to till nov. I would really like to end my lease since im paying for space that I am not using at all.
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Answered in 5 minutes by:
6/10/2013
ScottyMacEsq
ScottyMacEsq, Attorney
Category: Landlord-Tenant
Satisfied Customers: 17,532
Experience: General practice attorney
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ScottyMacEsq :

Thank you for using JustAnswer. I am researching your issue and will respond shortly.

ScottyMacEsq :

I'm sorry to hear about your situation. Unfortunately if you have signed the contract in your personal capacity as well as the business, that's essentially you "cosigning" the contract, meaning that you personally are liable for it. Even if the corporation is dissolved, the owner can go after you personally for repayment. Only if the lease was signed by the business alone would dissolving the corporation have any effect on whether the landlord could recover or not.

ScottyMacEsq :

Now that being said....

ScottyMacEsq :

Just because you do breach the contract does not necessarily mean that the landlord is going to be going after you. Ultimately the landlord would weigh the costs versus the benefit of pursuing you for the unpaid rent amount.

ScottyMacEsq :

Further, a landlord has a "duty to mitigate" damages.

ScottyMacEsq :

What that means is that if you breach, the landlord has a duty to try to re-lease the property to another tenant, to minimize your amount of the breach.

ScottyMacEsq :

For instance, if you had a lease of $3,000 a month and 10 months to go ($30,000 total), and the landlord could find someone in 2 months, then 8 months would be covered, and you really would only be on the hook for 2 of them ($6,000).

ScottyMacEsq :

The landlord is not entitled to a double recovery, and if you can show that the landlord didn't even try to mitigate damages after the breach, the landlord could be completely barred from any recovery against you.

ScottyMacEsq :

So if the real estate market is hot in your area, it might be better to let your landlord know you're breaching and reiterate the duty to mitigate your damages, such that the landlord really will take efforts to lease out the property to another tenant, and thereby minimize (or completely negate) any liability that you would otherwise have, .

ScottyMacEsq :

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX luck to you!

Customer: I understand. Thank you so much:-)
ScottyMacEsq :

My pleasure.If you have any other questions, please let me know. If not, and you have not yet, please rate my answer AND press the "submit" button, if applicable. Please note that I don't get any credit for my answer unless and until you rate it a 3, 4, 5 (good or better). Thank you, XXXXX XXXXX good luck to you!

ScottyMacEsq
ScottyMacEsq, Attorney
Category: Landlord-Tenant
Satisfied Customers: 17,532
Experience: General practice attorney
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