If a commercial lease dispute occurs, can the contract be canceled or terminated?

When a commercial lease dispute arises, cancellation or termination of the lease contract may be possible.

However, contract cancellation or termination depends on the contract and relevant laws, and certain legal requirements must be met to proceed.

Cancellation has the legal effect of reversing the contract when the cause of the contract concluded thereafter is unilaterally not performed.

In other words, it is as if the contract had never existed from the beginning, and refunds or compensation may be necessary for parts that have already been performed.

Termination is an act that ends the contract, after which there is no longer a need to perform the contractual obligations.

Termination usually arises from problems occurring during the performance of the contract, and although the contract ends, the performed parts continue to exist.

The cases in which cancellation/termination is possible when a commercial lease dispute occurs are as follows.

1. Where private rental housing is rented through false or other improper means

2. Where the tenant fails to move in within the prescribed period without fault attributable to the rental business operator

3. Where monthly rent has been overdue for 3 or more consecutive months

4. Where private rental housing and its ancillary facilities have been remodeled, expanded, or modified without the rental business operator's consent, or used for a purpose other than the original purpose

5. Where private rental housing and its ancillary facilities have been intentionally damaged or destroyed

6. Where the tenant of public-supported private rental housing has assets or income exceeding the qualification requirements, or owns another house during the lease period

7. Where the tenant is confirmed to have moved into or contracted for public-supported private rental housing or public rental housing in duplicate

8. Where the obligations under the standard lease contract have been violated

When a commercial lease dispute occurs, both the lessor and the lessee can demand contract cancellation or termination.

To do this, legal requirements must be met, and the contract and the regulations under the Commercial Lease Act must be considered.

If you are having difficulty resolving a commercial lease dispute, please seek the assistance of our firm's real estate specialist attorney.