Commercial lease agreement

  • commercial lease cancell

    The inconvenience for a landlord caused by an early cancellation will be annoying; but a tenant has the RIGHT to cancel a lease.

    We receive many enquiries from both landlords and tenants, but mainly tenants, regarding the subject of commercial lease cancellations and early terminations of such leases.

    It is not a straightforward matter and is governed by both the common law of contract and the Consumer Protection Act, No 68 of 2008.

    As I have said before; you cannot just cancel a lease agreement.

    It is a contract and if you want to cancel it or terminate it earlier than the expiry date; that legal process must be dealt with correctly, professionally, properly and legally.

  • commercial lease cancel

    Landlords and their agents often refer to an early cancellation of a lease agreement by the tenant as “a breach of contract.” This is not the case.

    Here is a recent query that was received by The Legal Advice Office last week:

    “Hi, Hugh. My company is the tenant in a Commercial Property in Centurion. We were led to believe by the landlord’s agent that the foot traffic in our new Mall would be considerable, but this is simply not the case. The Mall parking is incomplete as is the final building completion and promises made to us at the time of the negotiations with the agents for the lease have simply not materialised. We feel that we were misled into signing this lease for 5 years and still have 4 years and six months to run and are simply not able to keep afloat as we have run at a loss for the last 6 months. Is there any advice you can give us to assist us in terminating this lease?”

  • break lease agreement

    You can not just pack up and move out.

    The termination or cancellation of a commercial lease agreement/s is always a legal conundrum.

    One of the matters that we specialise in is Consumer law and also in lease agreement cancellations and terminations.

    It is a contract and must be dealt with correctly and legally if you want to cancel it or terminate it prematurely ie before its expiry date.

    You cannot just cancel a lease agreement.

    If you breach the lease and simply vacate and abandon the premises the High Court can grant the landlord an order for specific performance.

    This can mean that the court orders you to return to the premises and pay the rental for the balance of the lease period. Alternatively, it can allow the landlord the right to cancel the lease because of your breach and grant an order for damages in favour of the landlord being equivalent to the rent due for the balance of the period.

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Legal Advice Office

South Africa

Kandelaar Street, Vermont, Hermanus
Phone: +27 (028) 316 2458
Email: info@legaladviceoffice.co.za