QUESTION
Can I terminate a lease if the contract doesn't state that I can or cannot even if the landord is telling me no?
Asked on Oct 09th, 2013 on Business Litigation - California
More details to this question:
I signed a 2 year commercial lease contract but the business fell through and I needed to terminate. The landlord told me no because the lease was a legal binding contract. Finally they agreed but with 6 months rent upfront and I had to forfeit the security deposit. Well, now they are telling me that I owe more than they originally stated because they miscalculated things. I only have enough money to pay off the balance of the first amount, not the new amount which is over $4,000 more. I don't see anything in the contract that states I can terminate or that I cannot terminate so I don't know what my rights are and can they sue me for the remaining balance even though the numbers differ. All of this is in email, no binding contracts other than the lease itself. Any help would be appreciated.
1 ANSWER
First, if the lease was for two years, you can't terminate for two years unless the landlord materially breaches the lease, or the lease provides conditions on which you can terminate. Second, there is no reason why emails can't create a binding contract, but without seeing all the emails (and maybe not even then) I couldn't tell you for sure whether they did in this case or did not - it is quite possible that the situation is not that clear, and may need a court to resolve. Assuming you had a binding contract to pay 6 month's rent and your security deposit in full settlement of all your obligations under the lease, that is all you are obligated to pay; if however you never reached a binding agreement on those terms, your obligations under the original 2 year lease continue.
Answered on Oct 10th, 2013 at 12:26 PM