Legal Question in Business Law in California

Cancel a non cancellable commercial lease agrrement?

I am in a partnership, and my partner signed a non cancellable lease agreement with a company. The company does CC processing, and were ''stuck'' in this lease until another year and a half. What can we do? What can i do? My partner was the one who signed the paperwork, can they still go after me if we just quite on them? They are in business in Massachuesetts, i am in California.

I tried the ''were going out of business'' line, and they said my partner would still have to keep paying until the end of the lease, or ''buyout'' the lease. It's a significant amount, and would like to get the heck out of this thing.

Any ideas?


Asked on 4/23/02, 12:32 am

3 Answers from Attorneys
James Burns R. Zebulon Law & Associates

Re: Cancel a non cancellable commercial lease agrrement?

Hire competent counsel immediately this is not a do it yourself project and it takes too long to write and their are probably more facts to be dicussed. Purchase someones time to get a good opinion on it, it's worth it.

Read more
Answered on 4/23/02, 12:45 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Cancel a non cancellable commercial lease agrrement?

Assuming it is a general partnership, you will be personally liable to the landlord on the lease. The advisability of taking the buy-out provision or forcing the landlord to take legal action to establish the amount of damages is an issue that requires examination of the documents and the local real-estate market by an attorney who has local real-estate knowledge and also knows the proclivity of local courts to apply mitigation requirements.

You should also obtain legal advice as to whether your partner(s) have somehow breached the partnership agreement and are therefore liable to you for any consequences of their action in entering into this lease. If they violated the partnership agreement you can look to them to indemnify you for the consequences -- this is no help against the third-party creditor (landlord) but if your partners have deep pockets and violated the partnership agreement you should be looking to them to make you whole.

Read more
Answered on 4/23/02, 2:56 pm
D. Alexander Floum, Esq.

Re: Cancel a non cancellable commercial lease agrrement?

Generally, the partnership is responsible for any partner's acts. However, you can always try to negotiate a deal with the lessor.

Feel free to contact me if I can be of further assistance.

Read more
Answered on 4/23/02, 2:57 pm


Related Questions & Answers

More Business Law questions and answers in California