Quitting A Lease
Nova Scotia courts have held that for a party to terminate a lease early, a fundamental breach of the lease must have occurred. A fundamental breach is a breach which essentially deprives a party of the entire benefit of the lease. A party may not quit the lease and list their grievances later. The courts have imposed a high evidentiary standard upon the party attempting to prove the fundamental breach. Most lease defaults are for financial reasons, in which case landlords can lease the premises on the tenant’s behalf and claim damages against the original tenant for any non-payment. It’s always important for both parties to seek advice when disagreements under a commercial lease agreement arise.
Recent Case Law
Tenants shouldn’t be intimidated by landlords. A recent Nova Scotia Court of Appeal decision awarded damages to a small tenant from a landlord who breached the exclusivity clause in their lease. The landlord had solicited and accommodated a large chain store causing a loss of income for the previously existing small tenant.
When negotiating a commercial lease, it’s important to reach terms that are amicable to both parties as these agreements are in place for several years. Anyone considering entering into a commercial lease should contact a commercial real estate lawyer.
Mark J. Charles is an associate with Boyne Clarke Barristers and Solicitors. He can be reached at mcharles@boyneclarke.ca.
