In this tough economic climate in Queensland, it’s not uncommon for businesses to prematurely terminate their lease agreement. Especially if your working capital has been exhausted, you might have no better choice but to cancel the contract early and keep yourself from sinking into a deeper financial hole.
But this is often a privilege, not a right. As a lessee, you have an obligation to pay your rent until the end of the agreement. More often than not, you have no power to call it quits whenever you want because you might prejudice your lessor’s rental business. This is why many cases end up in a dispute.
Nevertheless, hope is not lost. Any experienced commercial lawyer in Brisbane would advise you to consider the following and terminate the contract without complications:
Ask for a Mutual Consent
Most problems can be avoided with proper communication, Creagh Weightman Lawyers suggests. Talking to your landlord about your wish to cancel the contract early should be your first move. Even if it’s legally binding, getting the nod of your landlord could cancel your commercial lease agreement.
But this is merely a request. Lessors generally have the right to refuse early termination and put their interest above yours.
Use Your Early Termination Clause
If your contract has a provision allowing you to cancel early, you’re in luck. This is why it’s advisable to ask for this special condition to be included in the contract before you sign it. As long as you abide by the requirements of this clause, you may successfully terminate your commercial lease agreement without a worry.
Find a New Lessee
It’s a lot easier to convince your landlord to let you go if you could find a good replacement. Of course, the only reason lessors would deny any request for your early termination is to avoid losing a stable source of income. So, if you could transfer your rights and obligation to another willing party, then your problem may be solved.
Requesting for the early termination of your commercial lease agreement can be stressful. Even if you know which route to take, it’s still wise to consult an experienced lawyer for sound legal advice.