Commercial Lease – Options for Commercial Landlord with Defaulting Tenant

If you are entering into or negotiating a commercial lease, the terms of the lease matter. For example, as a commercial landlord, if you want to accelerate rent of a defaulting tenant, you need to have an acceleration provision in the commercial lease. When you accelerate rent of a defaulting tenant, you are demanding the tenant pay the lease payments for the unexpired and unaccrued portion of the lease, i.e., the remainder of the lease term. This was the issue in a recent commercial landlord and commercial tenant dispute – Hourglass Entertainment, LLC v. NRG Investments, Inc., 50 Fla.L.Weekly D1538a (Fla....

21 July

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Fraudulent Inducement Renders Contract Voidable, but Induced Party can Still Ratify Contract

Posted by David Adelstein

in Trial Perspectives

Here’s an interesting tidbit when it comes to fraudulent inducement of a contract: the inducement renders a contract voidable (not void). See Buyer’s Choice Auto Sales, LLC v. Palm Beach Motors, LLC, 49 Fla. L. Weekly D1512a (Fla. 4th DCA 2024) (citation omitted). This means if a party claims they were fraudulently induced into entering a contract, and elects to sue for damages on the contract, even a contract procured by fraud, the election to sue for damages on the contract “ratifies the contract and ensures that a party who accepts the proceeds and benefits of a contract remains subject...

14 May

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Contract Interpretation; Force Majeure; Impossibility; Impracticability; Frustration of Purpose — All in One Case

Posted by David Adelstein

in Trial Perspectives

Covid-19 created a number of hardships to businesses. No doubt about it. The case of Fitness International, LLC v. 93 FLRPT, LLC, 48 Fla.L.Weekly D947a (Fla. 2d DCA 2023) exemplifies one such hardship. The issue in this case was how “government-ordered restrictions related to the COVID-19 pandemic impact[ed] the parties’ obligations under a commercial real estate lease.” In essence, a gym--tenant--had a commercial lease. The gym sought a refund for a fifteen-week period that it was required to close or operate below full capacity due to government-imposed restrictions. Unfortunately for the gym, it lost its arguments under all theories from breach...

19 April

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Properly Exercising the Right of First Refusal

Posted by David Adelstein

in Trial Perspectives

It is common for commercial leases or certain real estate transactions to include a right of first refusal. The right of first refusal can be a valuable option for a party to hold and a worthy option for a party to bargain for and ultimately exercise. But, if a party exercises the right of first refusal, it does not mean that the third party that lost the transaction will be happy about it. Many times, they are not happy because it is perceived as a lost deal. When it comes to a right of first refusal: It is true that “[a] right...

commercial lease Tag

Commercial Lease – Options for Commercial Landlord with Defaulting Tenant

Fraudulent Inducement Renders Contract Voidable, but Induced Party can Still Ratify Contract

Contract Interpretation; Force Majeure; Impossibility; Impracticability; Frustration of Purpose — All in One Case

Properly Exercising the Right of First Refusal