When Can a Commercial Lease Be Voided?

When Can a Commercial Lease Be Voided?Leasing agreements can be voided if they contain illegitimate terms. A void contract is considered invalid “on its face,” meaning it cannot be enforced by anyone. A voided lease is treated by the court as though it never existed and automatically terminates for both parties. Some factors that can cause a lease to be void include:

Unlawful Behavior

A lease is void if it involves or requires criminal behavior. Additionally, if the leased property is used for illegal activities, such as the sale of illegal substances, the lease becomes null and void.

Tenant’s Competence

A lease is void if a person is not legally competent to enter into a contract. This includes cases where a minor is a party to the lease or if someone signs a lease while intoxicated or under the influence of drugs.

Discrimination

A lease that violates public policy, such as one involving discrimination, is void. For example, a commercial lease that prohibits the tenant from providing services to members of a particular religion or racial minority group is invalid.

Inadequate Disclosure of Information

A lease is voidable if one party did not fully understand all the terms before signing. If a party is a victim of fraud, they may withdraw from the contract. For instance, if a tenant was not informed of existing property damage, they can reject the lease upon discovering the issue.

Threats or Duress

A lease is void if a party was threatened or forced into signing it. This includes coercion, intimidation, or threats of physical harm.

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