If a commercial lease dispute arises, are cancellation and termination of the contract possible?

When a commercial lease dispute arises, cancellation or termination of the lease contract may be possible.

However, cancellation or termination of the contract varies depending on the contract and the relevant statutes, and in order to proceed with it, certain legal requirements must be satisfied.

Cancellation has the legal effect of undoing the contract when the obligation of the contract that arose after its conclusion is unilaterally not performed.

In other words, it becomes as if the contract had never existed from the beginning, and for the parts already performed, return or compensation may be necessary.

Termination is an act that ends the contract, and it is a situation in which there is no longer any need to perform the contractual obligations thereafter.

Termination usually concerns a problem that arises during the performance of the contract, and although the contract ends, the parts already performed remain in effect.

The cases in which cancellation or termination is possible when a commercial lease dispute arises are as follows.

1. Where a private rental housing unit was leased by false or other improper means

2. Where the tenant did not move in within the fixed period without any fault on the part of the rental business operator

3. Where the monthly rent was in arrears continuously for three months or more

4. Where the private rental housing unit and its incidental facilities were reconstructed, extended, or altered, or used for a purpose other than their original purpose, without the consent of the rental business operator

5. Where the private rental housing unit and its incidental facilities were intentionally damaged or destroyed

6. Where a tenant of publicly supported private rental housing has assets or income exceeding the eligibility requirements, or where there are circumstances such as owning another house during the lease term

7. Where it is confirmed that the tenant has moved into or contracted for publicly supported private rental housing or public rental housing on a duplicate basis

8. Where the obligations under the standard lease agreement were violated

When a commercial lease dispute arises, both the lessor and the tenant can demand cancellation or termination of the contract.

For this, the legal requirements must be satisfied, and the provisions of the contract and the Commercial Building Lease Protection Act must be considered.

If you are having difficulty resolving a commercial lease dispute, we recommend that you seek the assistance of a real estate attorney at our firm.