Sunday, November 27

What are the most Important Details to Look for in a Commercial Lease?

Hiring a Commercial Lease Attorney 

In the business world contracts are a key part of daily activity and cover a wide assortment of business needs. Contracts between suppliers, property owners, and service providers are just some contracts your business may enter into. As every business is different the types of contracts you need can also vary. Even with the rise of digital retail and e-commerce many companies still require commercial property. Commercial leases are common as many companies do not see the finical benefit of owning their own property and appreciate the flexibility leasing can provide.

Your company may require leasing for storefronts, product storage, production, office space, or any other business need. As commercial leases can be quite involved you’ll want to consult a Commercial lease attorney in Houston to ensure that the deal you are receiving is fair and meets your business needs. However, not all commercial leases work out as agreed upon, and in situations such as that you may need legal representation to be made whole. What follows is a brief overview of commercial leasing and how a contract breach can harm your business.

Commercial Leases

A commercial lease is written to define the obligations of both parties and the specifics of the agreement. When you lease a commercial property you’ll want to know key factors in the nature of this business relationship. These can include:

  • The nature of the property including the size, common areas, and parking.
  • The nature of any modifications to the property, improvements, and signage.
  • The length of the lease itself how renewals are addressed and termination requirements.
  • The cost of monthly rent including escalations.
  • How insurance, property taxes, and maintenance are handled and by whom as different leases can have different responsibilities.

Due to being long-term agreements, you need the property owner to be diligent in upholding their end of the contract.

The Harm Commercial Contract Breaches Can Cause

When you run a business predictability is essential. When you rent a property you need to know it is accessible and usable for your agreed lease specifications. A property owner that does not uphold their end of a contract can cause notable material harm to your business and leave it without a needed component of daily business activity. These types of business disruptions are not just frustrating they are costly. Being unable to serve your clients or provide your workers the tools they need to perform their duties can cause service delays, lost sales, and in extreme cases loss of long-term contracts with your outside clients.

A commercial lease can be considered breached if the property owner does not meet contractual terms. Depending on the nature of your contract this can include the property not being accessible during agreed times, lack of maintenance and upkeep, services and features not being provided as discussed, and failing to cover legal needs such as property insurance or taxes. Going to your business and finding it unusable or unsafe is not just a disagreement it is a violation of an agreed-upon business contract.

What To Do if a Contract is Breached?

If you have been wronged by a property owner you will naturally want to be made whole due to their failure to honor the lease contract as discussed and signed. While the need to acquire suitable commercial property will certainly be at the front of your mind if a contract has been breached hiring property legal representation should still be high on your list of things to do. There are many ways the Texas courts can make you whole if your business has been wronged. Damages can include:

  • Specific Performance: in some cases, the court can order the breaching party to provide what they agreed upon in the contract.
  • Liquidated Damages: can be awarded as compensation for a breach of a legal contract. In some lease agreements, these are listed as a specific figure in writing however, liquid damages can still be defined and calculated as per court judgment.
  • Consequential and Incidental Damages: are damages that are foreseeable losses both direct and indirect.
  • Compensatory Damages: an award of compensatory damages is for losses you can specifically and exactly prove.

Why You Need Legal Representation

In situations where a commercial lease has been breached and a business partner, supplier, or vendor has failed to live up to their side of the agreement you need legal representation. When you sign a business agreement you expect the other party to be honest and transparent in their dealings.

Unfortunately, this is not always the case and if you have been wronged through no fault of your own you deserve your day in court. When you hire a skilled attorney you can rest easy knowing your case is in good hands. The lawyers at Weisblatt Law Firm, LLC, can help you be made whole and receive what you are owed. Contact us today to learn more.

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