COMMON LANDLORD AND TENANT DISPUTES IN COMMERCIAL LEASES

Abstract

As not many businesses have the capital or corporate strategy to own a property, countless turned to engage in leases. However, when businesses need a change in space requirements, they may find themselves facing an unwilling landlord and legal disputes can be ignited. Leases are governed by the landlord and tenant law which is a complex mix of contract and property law. The objective of this research was to find out if more weight will be given to contract law as opposed to property law in the judging of disputes over early terminations on commercial leases. Cases concerning early determination that have been brought to court over the last 10 years were examined. Views of legal practitioners and landlords were also obtained through interviews to incorporate various perspectives of common issues leading up to pre-termination. Common issues were highlighted and recommendations were made in a bid to minimize such occurrences in the future. It was later found that contractual doctrines are largely referred to during the judgments and that is also due to the fact that most disputes arise from property terms. The inclination towards contract law also gave landlords higher negotiating power and the enforceability of break clauses on the part of the landlord can impact asset value positively. Unfortunately, examining cases over a 10 year span may not be most conclusive and landlords who were willing to lend their time for the interview could only provide a retail perspective.