Early termination of a lease agreement by judicial means

The law allows a lease agreement to be terminated either by mutual consent or through court proceedings.

If the parties voluntarily agree to end the lease early, this usually does not create any complications. However, in practice, disputes often arise.

Grounds for Early Termination Through Court

• The tenant uses the property in material breach of the contract terms or the intended purpose of the property, or repeatedly violates those terms.
• The tenant significantly worsens the condition of the property.
• The tenant fails to pay rent more than twice in a row after the payment deadline set out in the contract.
• The tenant fails to carry out major repairs within the time limits established by the lease agreement, when such repairs are the tenant’s responsibility under the contract.
• The landlord fails to provide the property for the tenant’s use or creates obstacles to its use in accordance with the agreement or the purpose of the property.
• The leased property has defects that prevent its use, and these defects were not disclosed by the landlord when the contract was concluded, were not known to the tenant in advance, and could not reasonably have been discovered during inspection or verification of the property’s condition.
• The landlord fails to carry out major repairs within the time limits established by the lease agreement, when such repairs are the landlord’s responsibility.
• The property becomes unusable due to circumstances beyond the tenant’s control.

In all of the above cases, the lease agreement may be terminated early by court order.

Why the Lease Agreement Matters

It is important to remember that the relationship between tenant and landlord is governed primarily by the lease agreement. That is why it is essential to consult a lawyer from the very beginning when drafting the document.

Signing a proposed contract without carefully reviewing it is a mistake. Even if some terms seem unfair, the commercial court will usually take them into account when resolving the dispute. The court will reasonably assume that, by signing even an unfavorable contract, the business owner understood the possible consequences.

Need Help With a Lease Agreement?

We can help draft a lease agreement or review an existing one. Contact us now at law@pravoislovo.ru.

If you are facing a lease-related dispute in arbitration court, you may also find this useful: Arbitration Disputes: How to Win the Case.

For professional support in commercial disputes, see our service page: Arbitration Lawyer.