pre-termination of contract due to losses....

greetings, i need help.

we are currently leasing a commercial space. in our contract, the term shall be for 2 years, which is supposed to end December of 2013, no pre-termination clause has been placed in the contract.

due to losses being suffered, we could no longer continue with the lease contract. the lessor stated that we should continue paying even if the premises has been vacated and the business has ceased due to losses. he insist that we should pay because the contract states that it is for 2 years.

can we pre-terminate the contract and vacate the place and not pay the remaining months? the reason is losses and not change of address.

please help.

thanks.

ding

you can talk with the lessor and tell him that you are suffering losses, show him your financial statement and your income losses. i think he can understand.
if he objected, then you can bring this to barangay. arrange for settlement with him.

he is unwilling, he wants to collect and even threatened to bring an action in court. even if he knew that there was losses. If he files a case for collection, is there a possibility that we can escape liability because of the losses and there is no way we could pay him.

since he is unwilling. you should obey the contract of lease or suffer the consequence i.e. breach of contract and a case for ejectment and collection of sum of money due to unrealized rent losses.

basis is given below.

unless the contract of lease is grounded on valid pre-termination grounds expressed in the contract, the potential for rent losses in exchange for an early lease termination shall prevail for most cases. the parties to the contract [lease contract] must be presumed to have assumed the risks of unfavorable developments.

thanks.

we want to pre-terminate our 10 year lease contract on the 4th yr.due to financial reverses. We constructed our own building and improve her existing building. After the end of the term, we can recover all our improvements. However, one of the terms is: Item 10. any violation of the terms: any rent unpaid for 3 months or for failure to comply with any of the covenant, agreements, conditions herein stipulated, the contract is automatically terminated, all improvements shall be turned over to the owner as liquidated damages, without prejudices to any other right of action afforded by law to the aggrieved party. We informed her in writing for some amicable settlement like recovery part of the building but she just texted us that she will stick to condition no 10. re: We are willing to turnover the improvements. Query: does it relieve us from any other obligations? Pls reply thanks