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Commercial lease - breach of contract

Las Vegas, NV |

Hello i have the following questions

1) I have breached my contract with my landlord (commercial lease) the shopping center turned into dead shopping center and there was nobody coming into the store so I surrender the property to them. can they come after me and collect the rest of amount on the contract?

2) I have not heard from them and its been over 6 months? how long they have before they statute expires?

3) if they collect are they able to collect on the entire amount?

4) if I personally guaranteed the lease would they able to come after my asset even though they are under a LLC?

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Attorney answers 3


1. Yes, you (presumably) agreed to pay rent for the entire term. The only way to stop the accrual of rent would be to establish an uncured breach by the landlord.

2. The statute of limitations for enforcement of a contract in Nevada is six years (NRS 11.190(1)(b))

3. The landlord generally has a duty to mitigate its damages by attempting to relet the premises. But if the landlord acts reasonably and can't get the space leased up, you could be liable for the whole amount plus the cost of reletting. The landlord could also re-lease the space for less (as long as the rent is at the current "market" rate), and you could be liable for the gap between what you were supposed to pay per month and what the new tenant pays.

4. If you personally guaranteed the lease the landlord could pursue you individually and pursue your assets after getting a judgment against you. There are certain assets which are exempt from execution in Nevada. (See NRS 21.090 for the whole list).

The information provided herein is for informational purposes only. This communication does not constitute legal advice, and you and I have not formed an attorney-client relationship. You are advised to address your particular situation with an attorney.


Not only do landlords have the right to pursue the entire amount of the balance of the contract, they can also pursue attorneys’fees, costs, and interest on the amount owing. Generally, the statute expires 6 years from the date of the breach. No matter whether the asset is under an LLC, they can still come after you, regardless of your personal guarantee.

Disclaimer: The information contained in this answer is designed to enable you to learn more about the services that Black & LoBello offers to its clients. This information does not, and is not intended to, constitute legal advice, nor is it intended as a source of advertising or solicitation. Your use of this information does not create or constitute an attorney-client relationship. You should not consider this answer to be an invitation for an attorney-client relationship. Further, you should not rely on the information provided within this answer without first obtaining separate legal advice You should seek the assistance of an attorney to provide you legal advice based on the specific facts and circumstances of your particular situation.


1. The tenant is generally responsible to pay rent for the entire term of the lease, unless: (1) the Landlord's breach caused the tenant's breach; (2) some other agreement is worked out between the landlord & tenant; (3) the landlord re-rents the premises, in which case the tenant is only responsible to pay for the difference between what the tenant would have paid under the contract and what the landlord receives from the new tenant.

2. There is a 6 year statute of limitations on breach of contract claims. However, unless the Landlord actually terminated the contract, there is an argument that your contract has a continual monthly obligation and therefore that statute resets it self each month when a new amount is due and not paid. Therefore, the statute does not completely run until 6 years after the end of the contract term.

3. In order to collect, the landlord must first file a court complaint against the tenant. Since the Landlord has a duty to try and re-rent the space, courts are hesitant to award the entire amount owed under the full term of the lease until the lease term has expired and the landlord can prove it was unable to re-rent the space. That being said, the landlord has the right to collect the full amount if the space cannot be re-rented.

4. A personally guaranty means that the landlord may go after any asset personally owned (or jointly owned) by the guarantor. If the guarantor owns nothing then the guaranty is basically worthless. The creditor can argue that the guarantor is the alter ego of the entities which really own the assets and if successful will be able to access those assets.

If you found this information helpful, please click the up arrow below. Please note I am only licensed to practice law in Nevada and remember that my response is simply a comment to your the law related question. My comments and postings are NOT legal advice or opinions. Additionally, my comments and postings to your question and/or my follow up comments and postings do NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because: (1) I do not have all of the information or facts which are needed to advise you or render an opinion; and (2) my comments are not legal advise and are not meant to be acted upon as legal advise. If you would like to obtain legal advice from me, then you need to hire me as your attorney. Thereafter, then we would review documents, evidence, and facts, in order to provide you with legal advice.

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