Commencement Date
A landlord should make sure there is a definitely ascertainable commencement date for the lease, as otherwise a court may determine that without it, the lease is void and of no force or effect.
Notice Re Option to Extend
A landlord should be aware that if it gives the tenant an option to extend its lease, the landlord should stipulate that the tenant must give the landlord notice of its intention to extend the term of the lease not less than 12 and not more than 18 months before the end of the term.
Why?
Because the landlord wants a lot of advance lead time to re-rent the premises if the tenant does not want to extend its lease, but if the tenant does intend to extend, the landlord does not want such notice given so far in advance that it is lost in the landlord's file.
Breach of Corporate Veil
When will a court breach a company's corporate veil to find that the person controlling the corporation is personally liable for the company's act?
In the case of N.M. Davis Corporation Limited v. Ross et al. 2012 ONSC 1697, March 20, 2012, the Ontario Superior Court of Justice held that there are at least three circumstances in which courts will "lift up the corporate veil":
- When the court is construing a statute, contract or other document;
- When the court is satisfied that a company is a "mere façade" concealing the true facts; and
- When it can be established that the company is an authorized agent of its controllers or its members, corporate or human.
More in Arbitration & Mediation, Commercial Leasing
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
