Must the lessee renounce to compensation? | ScriptaLegal
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Frequently asked questions > Commercial lease > The rights and obligations of each > Must the lessee renounce to compensation?

Must the lessee renounce to compensation?

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Yes. A commercial lease may include a clause whereby the tenant waives, to the extent permitted by law, the right to claim set-off to reduce certain amounts owed to the landlord.

Compensation is a mechanism provided for in the Civil Code of Quebec which can allow two persons who are reciprocally debtors and creditors of each other to extinguish their debts up to the amount of the lesser.

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In a commercial lease, the landlord may want the rent and other amounts due to be paid without the tenant being able to reduce them by claiming an amount owed by the landlord. The lease may therefore contain a clause limiting or excluding, under certain circumstances, the possibility of invoking set-off.

Such a clause does not necessarily mean that the tenant waives any claim they may have against the landlord. Rather, it may prevent them from asserting that claim as a set-off under the circumstances stipulated in the lease.

It is therefore important to check the scope of the clause in order to determine the rights that the tenant is waiving and the consequences of this waiver.

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