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Commercial Lease Agreement

Are you looking at entering or renewing a long-term lease in respect of commercial property?

Speak to us first.

Commercial Lease Agreement

With the massive decline in the South African economy, the past year has not been an easy one on businesses. Businesses have seen themselves unable to afford the most basic operational costs- rental being one of them.

We have more often than not had to answer the question whether lessees of office spaces are entitled to exit a lease agreement as provided by the Consumer Protection Act (“CPA”) and why the lessors feel so strongly that they can refuse early cancellation when the CPA provides that early termination of a lease agreement is allowed, and despite the most legitimate reason for the request for early termination.

Generally, the option to prematurely cancel a lease agreement in the commercial space is available in terms of the CPA. However, because commercial leases are ordinarily between two companies, the CPA finds no application. (For further clarification whether the CPA applies to your agreements or not, feel free to contact us on the contact details provided at the end of this article.) In the event that we find no joy from the CPA, an alternative to this would be South African Contract Law. Unfortunately, South African Contract Law also does not make provision for early termination of the lease agreement.

Hearing the above leaves lessees hopeless and in despair. However, we have found that lessees who have negotiated for the inclusion of an early termination clause in the agreement end up in a much more favourable position than those who have had to remain bound to the agreement, despite being unable to do so financially, because the agreement makes no provision for an early termination.

Therefore, if you are just about to sign that 10-year lease agreement in respect of commercial work space, contact Myers Attorneys for interpretation of what the terms of the commercial lease agreement imply should the financial and ownership status of your business change. Let us negotiate more favourable terms with the lessor to suit your kind of business.

For more detailed advice freely contact Myers Attorneys on 011 346 2422 or email us at You can also visit our website

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