Commercial lease termination

The commercial lease termination can stemmed from several situations. Indeed, it could arise from the common consent of the parties, from the material destruction of the real estate leased, or from the implementation of a cancellation clause.

Termination by a mutual agreement

One party could unilaterally terminate the commercial lease using the lease leave. Moreover, the termination could be done before the initially planned date in the lease, if it is the result of a mutual agreement between the parties. Notification of the termination shall be mentioned to the creditors, without having to satisfy to any particular legal form. The tenant will have to leave the rented premises.

Termination due to a material damage occurrence

The premise’s owner shall terminate the commercial lease in the case that the premises should be destroyed, in regard to the article 1722 of the civil Code which stipulates that, if the rented premise is totally destroyed, the lease shall be terminated as of rights. Some precedent law cases also accept the lease termination in a case of force majeur. In that regard, the article 1733 of the civil Code stipulates that a liability presumption hang over the tenant.

In order to avoid liability, the tenant shall prove a fortuitous event or a promise rented default and will have to repair any harmful consequences. In the case that promises rented are totally destroyed, termination could either result from the owner or the tenant, without indemnity. On the other hand, if the premises are partially destroyed, the tenant shall have the whole right to either terminate the contract or to reduce the rent, the tenant having no other choice than to comply.

Any improvement and construction done by the tenant shall be governed by the lease clauses.

All the lease termination difficulties come from the difference established between the total or the partial loss of the premises. Legal precedent cases law determine some criteria in that regard. The total loss could result from a material destruction of the premises, from the occupancy change, or, for example, from the important set to right expenses.


Termination for non performance of the legal obligation

This kind of termination shall be claimed for in court. The lease will be terminated at the date of de judgment. The owner has to motivate his claim. The claim’s ground are quite closed from the cancellation clause such as an irregularly transfer, or an irregular exploitation. The termination claim does not need to satisfy to any formal notice in order to be valid. It could arise at any moment, and will be return as verdict by the judge only if the offence is sufficiently grave, being one of the party’s fault.


Termination by application of a cancellation clause

This clause implies the termination of the lease in the case that the tenant breaches his obligations. The only condition is to previously notify the tenant to stop to violate his contractual obligations. It can only be considered if there is a breach to an express contractual term. As a consequence, the judge will apply the cancellation clause. The competent Court is the “Tribunal de grande instance”, located at the place of the premises.

Learn More on this topic

very warm human contact, always attentive to his customer, very responsive to requests, takes the customer's opinion into account. Very serious in the study of files = efficiency

Jacques Rosilio

Excellent firm, very professional. Lawyer expert in his art, thank you for the games of chess. Strong recommendation, both personally and professionally.

Nathan Laufer

Very very professional firm, Mr Bensussan and his collaborators excel in their work, always available, reactive and givers of good advice.

Traf Traf

A firm demonstrating a rare humanity as well as exceptional professionalism. During my visits, the approach was not limited to the basic processing of cases but to a real strategy

Pierre Barre

Contact US