Building Better Leases Series – Termination, Consents, Offer

Building Better Leases

Termination; Merger

Once a Lease is terminated, all subleases or lesser estates in the Premises are also ended. The Lessor may elect to continue any one or all exiting sub tenancies. The sub tenants should be aware of this section before they enter their sublease agreement.


Whenever consent is required, both Parties should respond in a timely manner; in other words, they shouldn’t intentionally withhold or delay their consent. If the Lessee requests consent for something, they are responsible for paying for any of the Lessor’s consulting and/or legal fees that incurred as a result of carry out the task. It’s important to note that just because a Lessor provides consent, it does not mean that no Default or Breach exists. Furthermore, the Lessor can impose reasonable conditions on any consent. In the event that either Party denies consent, upon written request, then the “denying” Party is responsible for providing a detailed explanation as to why they did not approve of the decision within 10 days. Because the Lessee is liable for consulting fees associated with the Lessor’s consent, it is advised that the Lessee reviews their options and considers placing a cap on the potential fees. Lessors also need to ensure that their reasons for denying consent are valid and do not violate anything in the Lease.


An Offer refers to the creation or proposal of a Lease. The Lease is not binding until executed and delivered. Therefore, the Lessor and Lessee should plan accordingly, especially if they have costs related to moving or preparing the building. If the Lessee moves into the Premises without a signed Lease, it allows for a number of potential liabilities for both Parties.