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Good morning, I need to cancel lease agreement because I cannot continue with the business and I have no more money

Port Elizabeth, NJ |

Contract till end of October 2013, I want to be out end of July. What do I do.

Attorney Answers 4

Posted

You talk to your landlord to work out some options. A lease is a binding contract and you are responsible for paying rent through the end of its term. Some landlords will allow you to pay an early termination fee or will allow you to sublease. If you break the lease, they are obligated to mitigate damages, but there is no guaranty that they will find another tenant soon.

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Asker

Posted

Thank you so much, will try the talk advise and see what happens.

Frank A. Natoli

Frank A. Natoli

Posted

Ms. Smith, in NJ LLs routinely include a provision in the commercial lease that does not require them to mitigate their damages. So I would never just conclude that.

Cheryl Rivera Smith

Cheryl Rivera Smith

Posted

Thanks!

Posted

Dear New Jersey Commercial Tenant:

I am an attorney licensed to practice law in New York. I do not practice law in New Jersey.

You must examine the lease to discover if the landlord's duty to mitigate damages is waived. A commercial landlord and tenant may agree that the landlord is not required to mitigate damages in the event of a breach of lease by the tenant.

You also need to know whether the lease is with an individual person, a corporation or other type of limited liability company, and if so, is there a personal guaranty made by an individual or not.

Perhaps you may begin with the attorney you engaged to negotiate the terns of the current lease to assist you in trying to avoid liability through the end of the term.

You may want to read:

http://www.foxrothschild.com/newspubs/newspubsArticle.aspx?id=15632

Good luck.

The answer provided to you is in the nature of general information. The general proposition being that you should try to avoid a bad outcome if you can.

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Posted

I agree with Mr. Smollens here. Make sure the LL has not provided a relief from his duty to mitigate his damages here first.

As noted, you can always negotiate something with him. Breaking leases is common and sometimes necessary for a variety of reasons. It should mean that you are now facing financial ruin. A compromise should be worked out.

It might make sense to discuss with a LL/tenant lawyer in your area so to create a strategy moving forward.

Best regards,
Frank
Natoli-Lapin, LLC
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Frank A. Natoli

Frank A. Natoli

Posted

I meant to say "it should NOT mean that you are facing financial ruin." Sorry.

Posted

You can try to negotiate it with your landlord. If that doesn't work, contact an experienced attorney in your area to review the lease and negotiate on your behalf. Many lawyers, such as myself, offer free 30 minute consultations. Good luck.

The above is general information only and is not legal advice. The information provided does not form an attorney-client relationship, and should not be relied upon to take or refrain from taking any action. I am not your attorney until we sign a retainer agreement.

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