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COMMERCIAL LEASES QUIZ 1 YES. Generally speaking, an estimate is just an estimate, and the lease may even say so. A tenant is, in the normal course, required to pay all amounts set out in the lease. However, if the tenant can demonstrate det- rimental reliance on the estimate, it may be able to argue successfully that it is not required to pay the full amount, especially when it reaches a significant the statement relates: if the year to which the statement relates is too long ago, the landlord's claim may be statute barred. 2 3 NO. Even when a lease contains a "net lease" clause, making it clear that the tenant is responsible for all costs of the tenancy, the Denninger case provides that such a cost is a "cost of operation" to be borne by the landlord — if the fee in the past, you may, by your conduct, have waived your right to refuse to pay it in the future. NO. sublease gives a lesser interest "under" the tenancy to another entity. A sale of the shares of your company is a "change of control," which does not the absence of language in the lease prohibiting a "change of control," or other language buried in the lease that prohibits a change of this nature, you do not may catch a transfer of interest through a sale of shares in the tenant.) NO. Even if the lease provides that the filing of the notice of intention is a default, the Bankruptcy and Insolvency Act prevents the landlord from enforcing under its lease, unless it deals with the bankruptcy trustee. 4 5 6 FALSE. you as the tenant are liable to fulfill your obligations under the lease for the entire space, unless the lease provides otherwise. It may be that there are other reasons why your lease may be terminable (ie. fundamental breach), but not just on account of your desire to downsize. NO. You are technically in breach of your lease, although there is a lim- ited argument that if the landlord has, in the past, accepted your insurance without the waiver, it has by conduct waived the requirement. You may be able insured on the insurance policy, it enjoys protection under your insurance policy, and thus no waiver of subrogation is required. YOUR RANKING? Two or fewer correct: Time to hit the books. Three or four correct: Nicely done. Five or six correct: You're moving on up. CANADIAN LEGAL NEWSWIRE it's weekly e-news! it's fresh. it's free. Sign up today at www.canadianlawyermag.com FROM THE EDITORS OF CANADIAN LAWYER AND LAW TIMES 32 APRIL 2008 C ANADIAN Lawyer INHOUSE ANSWERS