Commercial leases allow both developers and lawyers to unleash their imagination, and in some cases, even go to the point of delirium.
Commercial leases allow both developers and lawyers to unleash their imagination, sometimes to the point of delirium. Many tenants, unaware of the legal consequences of their actions, neglect to seek advice before signing their leases.
For instance, a tenant, a few months after renting an industrial space, asks the landlord to repair the leased premises' roof after noticing some water leaks. The landlord carries out the necessary repairs. Referring to the duly signed lease, the landlord subsequently demands $125,000 from the tenant as additional rent. The tenant refuses to pay and claims that, upon taking possession of the building, "the roof had hidden defects for which only the owner is responsible."
Although the Court confirms that under the Civil Code of Quebec, the owner's obligation is now one of result and that they are required to deliver the leased property to the tenant in a good state of repair of all kinds and to provide peaceful enjoyment throughout the lease term, it sides with the Landlord. These provisions are not of public order, and the landlord relied on them, while the tenant himself waived their application at the time of signing the lease. Therefore, the landlord can recover this amount as additional rent, amortized over the lease's agreed period, namely 10 years.
The only consolation the tenant can draw from this conflict is the judge's appreciation that: " the wording of the lease closely resembles gibberish, and a cat would probably lose its kittens in it. The authors of this document certainly did not follow Boileau's advice that what is well conceived is clearly expressed, and words come easily to express it!".
While some find nirvana in such agreements, for others, it is hell.
*C.A. Montréal 500-09-017006-065
