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ARTICLE · 16 JUNE 2025

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Lease Termination Clauses: Know The Target Before Pulling The Trigger

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In the glow of negotiating a commercial lease, no landlord or tenant wants to think about how it might end early. But recent developments again remind us that a nuanced termination clause will significantly affect if...

CanadaReal Estate and Construction
Michael Mysak
Michael Mysak
David McKinnon
David McKinnon
Ciara Mackey
Ciara Mackey
Heather Taskey
Heather Taskey
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In the glow of negotiating a commercial lease, no landlord or tenant wants to think about how it might end early. But recent developments again remind us that a nuanced termination clause will significantly affect if, when and how a termination right is triggered. And then there is the practical question, how will the parties know when that termination right has been triggered? The recent decision in CNOOC Petroleum North America ULC v 801 Seventh Inc, 2025 ABKB 145 provides important insights into these questions and several other legal issues, including the interpretation of Alberta occupational health and safety legislation respecting asbestos, and the legal duties of good faith in contractual performance when parties are contemplating or planning litigation.

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