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:
Additions, Alterations and Re-construction
This month we will be looking at the Pollution Clause
Q.1. What does the Pollution Clause look like?
A.1. See Clause below as taken from lease document.
At its own and expense to provide on the said Lands adequate anti-pollution facilities for all gases, fumes, liquids, dust and other pollution and where necessary safe and sanitary receptacles for the safe storage of those gases, fumes, liquids, dust and any other pollutants as the same shall be required by Statute for the time being in force.
Q.2. Why is the Pollution Clause important?
A.2. This clause is important because it ensures that the leased premises are safe and comply with OSH Act and guidelines as well as EMA guidelines. These are statutory requirements and are important to both e Teck as Landlord as well as the Tenant. Where there is pollution as defined in the section on the Tenant’s premises, 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.
Q.3. What happens if the law is breached?
A.3. 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.4. What steps should be taken if the law is breached?
A.4. Where there is a breach of this clause the Tenant is required to ensure that the premises are cleaned, and steps taken to reduce/minimize and eliminate the cause of the pollution immediately. A follow up visit will be conducted by the Property Officer to ensure compliance.
Look out next week for information on the Sanitation Clause.