LEASING TIPS
By Harvey M. Haber, Q.C
Arbitration
If a lease provides that any dispute between the landlord and the tenant, then it is to be settled by arbitration.
Can a tenant nevertheless bring an application to the court to decide the matter?
No!
The Arbitration Agreement speaks for itself.
Proper Notice
Make sure that a tenant gives notice exactly as prescribed under the lease. Improper notice can invalidate whatever the notice the tenant is giving.
Late Notice!
The lease calls for written Notice to be delivered to the landlord, and the Notice is deemed to be delivered on the date of delivery.
The tenant, exercising its right to extend the term, sends its extension Notice by regular mail, and it is received by the landlord 2 days after the date it was supposed to have been delivered.
Has the tenant lost its right to extend because of the late date of delivery?
Yes!, except in the event of extremely mitigating circumstances.
Canadian Courts have taken a position that delivery of an extension Notice when it is supposed to have been delivered is a “condition precedent” and they will construe it strictly.
American Courts appear to be more lenient in such event, particularly if there is no prejudice to the landlord.
Many of you who receive my monthly newsletter might know someone involved in commercial leasing who could use my help from time to time. I am always delighted to help, on a complimentary basis, when someone has a simple question about commercial leasing.
Please feel free to call me or pass along my name. And, if my firm can help you with a legal matter, that’s another reason to call.
I am delighted to inform you that in addition to being a Chartered Mediator and Arbitrator, I have been appointed as an International Mediation Institute (IMI) Certified Mediator. Don’t hesitate to call me if you need a Mediator or Arbitrator.
These commercial leasing tips are provided by Harvey M. Haber, Q.C., J.D., LSM, DSA, C. MED., C. ARB., B.A. (retail, office and industrial leasing, lease interpretation, mediation and arbitration).