commercial lease default letter template

A fundamental breach is not simply a breach of a contractual term. These definitions share similar principles. For instance, it has been defined as a breach “that deprives the innocent party of substantially the whole benefit of the contract”, or alternatively as “a breach that goes to the root of the contract”. The court did not agree and in coming to its decision reviewed the law of fundamental breach.Ī fundamental breach has been described in various ways.

As a result, the tenant argued, it was relieved of its obligations under the lease. In response to the landlord’s action to recover rent, the tenant argued that the landlord was in fundamental breach of the lease due to an infestation of mice and spiders, the presence of litter in the parking lot, incorrect back charges and an unreasonable refusal to provide a consent to sublet. The tenant had vacated the premises and had ceased paying rent. The plaintiff landlord in the Mao Dentistry case sought damages for breach of contract stemming from a lease entered into with the tenant, Mao Dentistry Professional Corp. is an example of a situation where the tenant attempted to use this remedy. The recent decision of Kenny Alwyn Whent Inc. Another right is to treat the lease as at an end where that is justified by a fundamental breach of the lease by the landlord. A tenant can, of course, bring an action for any damages suffered as a result of a breach by its landlord.

On the other hand, there will typically be no listing of landlord defaults or tenant rights and remedies.Ī tenant does have rights at common law. This will include a right to enter the premises and terminate the lease for any default not cured within the required notice and cure period. There will be long list of tenant defaults that will give the landlord a full range of remedies. Municipal, Land Use Planning & DevelopmentĪ typical commercial lease is not a balanced document in terms of rights and remedies for a breach of the lease.International Arbitration & Cross-Border Litigation.White Collar Defence, Fraud & Investigations.Structured Finance, Derivatives & Securitization.Competition, Antitrust & Foreign Investment.

Commercial lease default letter template