Consequences Of Breaching A Commercial Lease Agreement

Despite the current pandemic, in the absence of an express right in the commercial lease agreement, tenants cannot unilaterally withhold rents without running the risk of putting themselves into a default.

In addition to non-payment of rent and other breaches of the lease, an abandonment of the leased premises by a tenant may constitute a fundamental breach of the lease, entitling the landlord to a number of common law remedies and possibly additional remedies available to the landlord under the lease.

Subject to the lease agreement, in the event of a tenant default, a landlord has several possible options available to it at law generally.

1. It may do nothing to alter the relationship, simply continue to insist on performance by the tenant and sue for rent and any damages it has sustained on the basis that the lease remains in full force and effect.