Legal Question in Business Law in Washington

Building Lease/Business Failure

Can a building lease be terminated, without penalty by the lessor, if the business fails before the lease expires?


Asked on 2/21/08, 10:52 pm

1 Answer from Attorneys

Susan Beecher Susan L. Beecher, Atty at Law

Re: Building Lease/Business Failure

It really depends upon what the lease says. However, if there is no provision for early termination if the business fails, then the landlord need not permit early termination without penalty.

If only the business signed the lease, and the business is now failing, it may really be a moot point. However, commercial landlords often insist upon a personal guarantee for the lease. In that case, they will go after the personal guarantor. Commercial tenants do not have the protections that residential tenants have.

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Answered on 2/21/08, 11:09 pm


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