When one party fails to comply with an obligation under the commercial lease or by law, the other party may have various remedies depending on the nature and severity of the default and the provisions of the lease.
A tenant's default may include, in particular, non-payment of rent or other sums due, use of the premises contrary to their intended purpose, failure to comply with certain maintenance or insurance obligations, or violation of another obligation stipulated in the lease.
The landlord may then exercise the remedies provided by law and, where applicable, the measures provided for in the lease. Depending on the circumstances, these remedies may include, in particular, the enforcement of the obligation, the claim for damages, or the termination of the lease.
However, lease termination does not necessarily result from every breach. The Civil Code of Québec stipulates, in particular, that the non-performance of an obligation may justify requesting termination of the lease when it causes serious harm .
The commercial lease may also include a procedure to be followed in case of default, such as sending a notice, a deadline for remedying the default, or specific consequences. It is therefore important to review the lease provisions before determining available remedies.
The landlord may also be in default of fulfilling their obligations. Depending on the circumstances, the tenant may then have various legal remedies, including obtaining performance of the obligation, damages, a rent reduction, or termination of the lease when the conditions stipulated by law are met.
The consequences of a default must therefore be assessed according to the obligation concerned, the seriousness of the non-performance, the resulting damage and the provisions of the lease.