Type: Process Essays
Sample donated: Maria Black
Last updated: October 3, 2019
Commercial agreements are typically a contract writtenbetween two business entities. They can be found across a broad range of thebusiness community including the corporate sector, retail & industry. I chose this contract because in the nearfuture I would want to open up a business. Therefore, I want to learn and getto know the various aspect required when getting into a commercial leaseagreement with an owner of a space.
Going through this process I will be ableto make better decisions to prevent any misunderstandings between me and theowner. I will also be able to decide and notice irregularities in the agreementbefore signing the contract. Also, it will help me consider whether to actuallysign a lease agreement or buy my own place when taking into account long-termstrategies. Moving on, when analyzing the commercial lease agreement, the firstthing I will check is whether the basic terms for the lease have been correctlystated. I will also make sure to check for the following information: the dateof the agreement, names of the parties involved, the description of the placebeen leased, the term, rent amount, conditions of the premises and landlord’swork, parking space, renovation and alteration rights, payment of brokers (ifany is involved), and other rights and personal guaranty obligations. Furthermore,my priority and concerns will be to make sure that the tenant is not beentrapped into unexpected and significant liabilities. This is because a leasemay levy tenant maintenance, repair, construction, and remediation obligationsthat do not correspond with the given contract. Also, whilegoing through the commercial lease agreement I obtained, I realized that it wasvery difficult to read the words.
Therefore, I asked myself how the tenant wasable to sign the lease? You could tell that he just went through the basicinformation and signed the leased. He did not take his time to actually readthrough the agreement to make sure everything was clearly understood. Also,there were many places on the agreement that was left black.
This tells me thathe was in a hurry to secure the location. Furthermore, agreement did not statethe when the offer will be irrevocable. That section was left blank. There werealso mistakes within the agreement. In comparison to the shareholder agreement discussed inclass, I will say the commercial lease agreement was clear. And straight to thepoint.
One disadvantage is the fact that the terms were not stated or attachedto the agreement. This can be a problem especially if the tenant finds it hadto determine what each condition or section is trying to imply. Inconclusion, what I was able to discover from this commercial agreement is thefact that if I ever go into a lease agreement, I will make sure to take my timeand revise everything. I will also get a lawyer to help me find the loopholesand the other conditions which may affect me in the long-run before I sign acontract.