Considerations In Canadian Commercial Leases

Leasing practices in the United States and Canada are similar in most respects, including the standard forms utilized for commercial office, retail and industrial properties. However, there are some principles which are different in Canada from those in the United States, the most important of which are outlined in this article.

In Canada, agreements to lease (letters of intent or accepted offers to lease) may be enforceable in accordance with their terms without the necessity of entering into a formal lease unless the parties otherwise provide in their agreement. In order to be enforceable, the agreement must be in writing, be executed and delivered by the landlord and the tenant, and specify the location, size and condition of the space, term duration, commencement date, basic rent and additional rents. For example, to be enforceable, it is not essential that matters such as repair and insurance obligations and restrictions on assignment and subletting be