Know Your Clause
“Tenants, do you know that understanding the clauses stated in your lease document is critical to your thriving businesses at the parks? Your lease is an agreement that guides the relationship between you – the tenants; and e TecK- the landlord, therefore operating within these terms and conditions means less stress for both parties. Many times tenants may not be even aware that they are in breach because they have not reviewed their lease documents in detail; intimate knowledge of your lease document is key. Unfortunately, a breach can lead to the forfeiture of your lease but this can be avoided if the correct procedure is followed.”
“Know Your Clause” is a new segment to promote greater awareness and understanding of critical clauses found in tenants’ lease documents. Over the next few months, we will be highlighting clauses such as: – User, Additions, Alterations and Reconstruction, Assignment, Use of the Common Area and many more. We have already focused on the following:
This month we focus on the Safety Clause.
Q.1. Why is the Safety Clause important?
A.2. This Clause is important for the safety of the tenant and for the protection of all other neighbouring tenants. It ensures that the tenant complies with the necessary statutory obligations. These statutory requirements are important to both e Teck as Landlord as well as the Tenant. It can give rise to health, safety and environmental concerns for the Tenant, its employees as well as other Tenants and/or residents who are located in close proximity to the premises.
The safety clause in the lease is important as the Landlord has a duty of care to ensure that the activities of all tenants are in compliance with the OSH Act. In instances of safety breaches on the part of the tenants, the Landlord has the recourse of initiating action against the tenant to ensure that all tenants have quiet enjoyment of property and minimal disturbance.
Q.2. What happens if this Clause is breached?
A.2. Where this clause is breached the Tenant is given a notice and asked to remedy the breach within a reasonable time to minimize any of the harmful effects raised above. If the Tenant fails to remedy this breach, because of the effect a breach may have on Third Parties, he may be required to forfeit his lease.
It is important to note that a breach of this clause can have the effect of subjecting both the landlord and the tenant to liability. Because in some instances it involves a breach of statute, where liability is strict, e TecK may also become liable as landlord.
Q.3 What steps should be taken if this Clause is breached?
A.3. Where there is a breach of this clause the Tenant is required to ensure that the breach is remedied in the shortest possible time. This would include installing adequate safety devices, or removing the offending ones, or providing maintenance to ensure the necessary devices are in good working order.