Celebrating 10 years! 2007-2017

How to get out of a lease?

My boss leased a commercial building last Fall for $9k a mon kenco04/28/17
Based on the information presented, your boss is right. jeffm04/28/17
Look at your lease and see what it says about early terminat isthisit04/28/17
I don't know what your boss's business coach purports to do, 3lol04/28/17
A lease is an agreement. The lessee is expected to live up ruralattorney04/28/17
You can breach and then when they sue, raise failure to miti ericcrapton04/28/17
See if the lease is pretty liberal about subleasing and assi guyingorillasuit04/28/17
Most will let you break the lease if you provide the new ten adamb04/28/17
Check your lease for a so called "good guy" guarantee. If yo wtretire05/08/17
The most important question is "what does the lease say?" retard05/08/17
kenco (Apr 28, 2017 - 3:10 pm)

My boss leased a commercial building last Fall for $9k a month, for a one year contract. He assumed his new business idea would be successful, but six months later, no luck. The monthly payment is killing us.

You'd think his business coach would get us out of it, but nooooooooo.

My boss doesn't want to get sued, so he says we are stuck here.

Reply
jeffm (Apr 28, 2017 - 3:13 pm)

Based on the information presented, your boss is right.

Reply
isthisit (Apr 28, 2017 - 3:26 pm)

Look at your lease and see what it says about early termination.

If you have 6 months left, maybe you can negotiate an early release by paying 3 months rent or something up-front.

Out of curiosity, what kind of business are you guys in?

Reply
3lol (Apr 28, 2017 - 5:10 pm)

I don't know what your boss's business coach purports to do, but unless he's the landlord he can't get you out a contractual obligation you entered into.

Reply
ruralattorney (Apr 28, 2017 - 5:14 pm)

A lease is an agreement. The lessee is expected to live up to their end of the agreement.

That being said, does the entity that entered into the lease have any assets? If it is a business that is failing, and has no assets, collecting on a judgment may be quite difficult.

Reply
ericcrapton (Apr 28, 2017 - 5:26 pm)

You can breach and then when they sue, raise failure to mitigate damages as a defense to limit the damages. If they have a liquidated damages clause, often there has to be a relationship between the actual damages and the amount of the liquidated damages in order for it to be enforceable.

Reply
guyingorillasuit (Apr 28, 2017 - 5:26 pm)

See if the lease is pretty liberal about subleasing and assignments. You may be able to recoup some of your losses by putting tenants in some of the space. The problem is the short term nature of the lease - most people don't want to move unless there are 3 years or more left on the lease. However, your lease may also have a renewal option.

Reply
adamb (Apr 28, 2017 - 6:47 pm)

Most will let you break the lease if you provide the new tenant. Or assign or "sublease" the whole thing or whatever.

Reply
wtretire (May 8, 2017 - 6:03 pm)

Check your lease for a so called "good guy" guarantee. If your lease includes a good guy guarantee, and your lawyer set up the lease properly (under an entity that does not have much in terms of assets) your boss may be able to walk. Unlikely that he got a good guy guarantee on a in year lease though....

Reply
retard (May 8, 2017 - 9:43 pm)

The most important question is "what does the lease say?"

Is the lease in his name personally? If not, did he PG it? In the unlikely event that he did not PG, does the lessee entity have any assets? If there is a PG is there a good guy clause on the PG?

Does the business happen to have very heavy and burdensome equipment to move in the premises?

If the lessee is an entity with no assets and either no PG or a good guy limitation on the PG that is satisfied AND he doesn't care about his reputation...I think you know what to do.

THIS IS NOT LEGAL ADVICE AND INDIVIDUAL STATE LAW MAY VARY.

Reply
Post a message in this thread