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Commercial Lease Settlement Agreement

Also make sure that the warranty is that it will remain in effect even if the lease ends, that the surety is informed of a transaction or compromise agreement, and that the guarantor waives its rights to obtain communications about a transaction or compromise agreement. Ask your lawyer to add this model language to the warranty: For more control over your property and the terms at the end of the rental agreement, you may want to exclude these rights or agree on new ones. However, this requires a formal procedure of communications and explanations for the tenant to understand the rights he is waiving. The facts at Cedar-Fieldstone are familiar and common. The defendant tenant, a capital company, leased commercial real estate to the plaintiff landlord in New Bedford. The tenant`s president provided a detailed and tripartite personal guarantee. The guarantee provided that the president`s liability with the tenant company was “co-extensive” and was limited to a certain amount. The guarantee is also recited: going this far is expensive for all parties, and often landlords and tenants agree on the way. Some landlords offer a financial incentive (e.g. a month without rent) in return for a quick fix. Lease Term: This lease begins on the [original date] (the start date) and, unless terminated prematurely or renewed in accordance with this commercial lease agreement, it expires on the [END DATE] (the “Termination Date”). The latest decision of the Court of Appeal of Cedar-Fieldstone Marketplace, LP v. T.S.

Fitness, Inc., 17-P-791, 2018 Mass. App. LEXIS 30, serves as a clear reminder to commercial tenants and their lawyer of potential collateral commitments that continue to live after the payment of an underlying lease debt. As can be seen, commercial leases are often long contracts, which contain many different clauses that determine the responsibilities and obligations of the contracting parties. Therefore, if you are in a situation where you have to prematurely break a commercial lease, it is in your best interest to consult a well-qualified and competent real estate lawyer near you. When the tenant was late in the rental agreement, the landlord filed a summary action to recover the premises and the cash damages. The summary appeal was decided by the parties who entered into a judgment agreement signed by the president of the tenant/guarantor in his capacity as a company. Subsequently, the landlord brought a separate action against the president in his capacity as guarantor to recover dissatisfied sums from the tenant. .


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