For Commercial Lease Contracts from Landlord/Lessor to Tenant/Lessee
Normally stated in the Renew Terms Clause (...., Tenant has the option of extending this Lease for Two (2) consecutive 5 year terms. Tenant must provided written notice within so many days etc...)
If the contract clause is so generalized, will the Landlord/Lessor be forced into continuing the lease contract if Landlord decides not to continue with extention even if Tenant/Lessee request in writting that Tenant would like to continue?
So is an extension a must?
The short answer is, yes. If the Tenant has the right to extend the term in the contract, the tenant has the right to the extend the term so long as all of the prerequisites are met (e.g., written notice and not in default (or some leases provide for never having been in default) and possible other requirements). There is often still the contingency of applicable rent to be agreed upon during the extension term, but the extension term still applies. If the Landlord does not want to be required to extend the term, then the extension provisions need to not be in the contract.
Generally speaking, the answer to your question lies in the lease you signed. If the lease only provides an option to the Tenant and the Tenant exercises that option in a timely fashion and meets all the other criteria required by the lease (usually the Tenant must be in good standing, etc) then the Landlord is required to renew the lease under the terms specified in the lease if they are specified. If the Landlord decides not to renew even though Tenant has met all of the requirements in the lease for renewal, Landlord can be sued for breach of contract under the terms of the lease.
This response does not create an attorney-client relationship and is not intended to provide legal advice for your specific situation.
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