Legal Implications Of Lease Agreement


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A lease differs from a lease in that it is not a long-term contract and is usually done from month to month. This monthly lease expires and is renewed each month after the agreement of the parties concerned. It is not uncommon for commercial leases to require tenants to immediately inform the lessor and the competent authorities in the event of an infectious disease on or around the site, and to leak and thoroughly disinfect the premises at their own expense and to the satisfaction of that authority. Owners should be mindful of how they respond to these notifications (be careful not to take on more responsibilities than the law requires). The events that have taken place so far are unprecedented. Real estate players need to be prepared for further disruptions and should first determine the extent of their obligations under leases and the risks (and opportunities) that may result from a serious breach of contractual obligations. Landlords should check and consider security measures as part of their lease agreements and implement an action plan when secured obligations cannot be met. If a tenant attempts to renegotiate a lease, landlords should keep records of critical communication and correspondence to justify action in the event of a subsequent dispute. It is important that landlords ensure that they do not communicate in any way or make promises of rent reduction that may have legal effect against the landlord or prevent the lessor from demanding payment of rent in the manner prescribed in the rental agreement and other obligations to be met by their tenant. . . .

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