When 'Guarantees' Are Not Explicitly Included in a Commercial Lease Agreement, They Are Not Enforceable

July 20, 2015

Links from this article: Read the article here.

It is important for parties to understand their rights and obligations in standard commercial leases. Strictly speaking, tenants cannot expect to enforce any guarantee not contained in the lease.

A cafe owner who relied on the local government talk of bringing events to the area to bring in tourist business, had no remedy against the government when it failed to bring in the events. Despite vacating the premises, the cafe owner continues to lease the premises as a sign of protest for the council’s alleged failure to bring events to the local community neighbourhood. The council claimed that they never made any guarantees to the cafe owner as a term to signing the commercial lease.

Read the article here.Take away:

  • In order to avoid disappointment, parties should clearly define the terms and conditions of the agreement as well as what will NOT be an implied term/condition in the agreement.
Commercial Lease
Definition of Commercial Lease
Commercial Activities