When does a commercial lease get voided?
Leasing agreements may be void simply due to illegitimate terms. A contract that has been voided is said to be void “on its face,” which means that no one can enforce it. A voided lease is treated as though it never existed by the court. A voided lease automatically terminates for both parties. It is inherently void under the law. Some elements of a lease that could cause it to be void include:
Unlawful behavior
A lease is void if it calls for or involves criminal behavior. Or the lease is null and void if a leased property is used for criminal activity, including the sale of illegal substances.
Tenant’s fitness
The lease is void if a person is not deemed competent by the law to enter into a contract. When a minor is a party to a lease, that lease may also be voidable. Similar to this, it is likely voidable if someone signs a lease while obviously intoxicated or under the influence of drugs.
Discrimination
If a lease violates public policy, it is void. The lease is null and void if discrimination takes place there. For instance, a commercial lease that specifies that the tenant must not provide services to members of a particular religion or racial minority group is void.
Inadequate disclosure of information
If one of the parties didn’t understand the whole nature of all the terms before signing, the lease is also voidable. A party who has been the victim of fraud may withdraw from the contract in any circumstance. For instance, if a tenant was not informed of any existing property damage. Upon becoming aware of the circumstances, that party may reject the agreement.
Threats or duress
A lease is void if a party is threatened or otherwise forced into signing it. This could involve coercion, intimidation, or threats of physical harm.
