Contract Types
Commercial Leases
A commercial lease determines much more than monthly rent. It allocates the cost of operating, maintaining, insuring, improving, and leaving business premises. Review should connect the legal terms with the tenant's intended use, buildout, budget, and plans for growth or sale.
What This Contract Is
The lease may include a base document, exhibits, building rules, a guaranty, and later amendments. A business tenant should understand the complete occupancy cost, not just the advertised rent. A landlord should ensure that use, maintenance, insurance, and remedies are workable for the property and relationship.
When It's Commonly Used
- •Opening or relocating a business location
- •Renewing or expanding existing space
- •Taking over leased premises as part of a business purchase
How the Agreement Is Generally Structured
Premises and use
Identify the space, permitted activities, access, required approvals, and delivery condition.
Occupancy costs
Coordinate base rent, increases, operating charges, deposits, insurance, and repair responsibilities.
Changes and exit
Address buildout, renewals, assignment, default, restoration, and any personal guaranty.
Clauses Commonly Found in This Contract
Operating expenses
Define pass-through charges and any review rights.
Assignment
Consider landlord consent when ownership or operations change.
Default
Read cure periods and remedies alongside notices and guaranties.
What Stewart Law Looks For
- ✓Whether the intended business use is allowed and practical
- ✓Whether repair, buildout, and pass-through costs fit the budget
- ✓Whether renewal, transfer, and guaranty terms support the owner's plans
Areas That May Deserve Closer Attention
- ⚑Unclear responsibility for major systems or pre-existing conditions
- ⚑A personal guaranty assumed to end automatically when the tenant leaves
- ⚑A lease transfer restriction overlooked during a business sale
Related Contract University Terms
When to Have an Attorney Review It
Seek review before signing, renewing, or changing the agreement, particularly when the transaction carries personal liability, important ownership rights, or obligations that continue after exit. Explain your objectives and provide the complete document set. Stewart Law confirms conflicts, scope, and a written quote before an engagement begins.
Frequently Asked Questions
Is rent the whole cost?
Often there are additional obligations such as operating charges, insurance, taxes, repairs, or utilities. Read the lease and budget for the costs it allocates.
Can I transfer the lease when selling the business?
It depends on the lease and transaction. Assignment and change-of-control provisions may require consent or impose conditions. Review them early in succession or sale planning.
Put the agreement in context
Drafting begins with your objectives, responsibilities, fees, and exit plans. A review of an existing form may identify where those decisions need clearer wording. General education does not replace advice on your agreement.
Have a Contract Using These Provisions?
Contract language operates as part of the agreement as a whole.
Contract Review by a Licensed Attorney — Starting at $150
Upload Your Contract & Get a Quote