My husband & I own a small catering business. We recently signed a temporary lease in a food court shopping centre & a permanent lease starting 1st August. The permanent lease requires a bank guarantee for 3 months rent which we haven’t been able to save & due to low turnover are wanting to get out of the permanent lease. If we don’t have the bank guarantee saved which is required in the permanent lease is this enough to get out of the lease. Thanks
QLD Business Lease Contract
- Thread starter ShannonSaunders
- Start date
No. Provision of a bank guarantee will be a condition you're required to satisfy under the lease. Non-compliance will be a breach of the lease by you. The landlord can either accept the breach and keep going with the lease, or terminate the lease.
If they choose to terminate, you'll be up for a range of costs to compensate the landlord for lost rent, legal fees etc. The landlord has a duty to 'mitigate' meaning they have to take reasonable steps to re-let the premises on similar terms in order to limit their losses (and in turn, the costs charged on to you).
If they choose to terminate, you'll be up for a range of costs to compensate the landlord for lost rent, legal fees etc. The landlord has a duty to 'mitigate' meaning they have to take reasonable steps to re-let the premises on similar terms in order to limit their losses (and in turn, the costs charged on to you).
