Land Mines In Canadian Commercial Leases

In commercial leasing, there is typically a strong emphasis on pricing and monetary terms. However, the fine print of a lease agreement cannot be ignored; it can even be more important. A lease can destroy or impair the goodwill of a commercial tenant's business when it contains potentially problematic provisions – ie, "land mines". These clauses are often hidden deep within the lease agreement and may pose the risk of serious consequences for tenants.

There are three common land-mine provisions that tenants must give careful thought to before signing a commercial lease to protect themselves from potentially serious consequences during the term of the lease. These three land mine provisions relate to exclusivity, demolition, and assignment.