It is legal to unlawfully cancel a contract?!

[Silverlf]

Jurisdiction

New Mexico

Here is what happened to me: I have a commercial lease for an office space. A new owner came in, we had a disagreement and he told me my lease was cancelled.

I tried to get into the building to access my office, he physically blocked the door. I called the police and they said it was a civil issue and they would do nothing.

I called a lawyer and was told that a lease was a contract and that any party to a contract may terminate it at any time. Of course I can take the landlord to court and damages would be awarded for wrongful termination, but that is besides the point.

The point is, can it really be true that it is illegal for a person holding a valid lease (paid up and without having violated any terms) to enter their office simply by the landlord stating that the lease was terminated?

If that it true then I do not understand the world any more. If yes, why would anyone ever trust a contract or a lease if it can be terminated without court process or notice? If a landlord has a grudge as in my case (or much money and does not care about paying damages) you are done for, if your office work is pivotal to your life.

I hate to rant, but if this is true, who are the warped people who would allow a contract termination without due process?

And in my case, I cannot move (for new-agey sounding reasons, relating to the exact coordinates of the office) and my work for the last 18 years would be destroyed but no court would ever award me damages as my claims would be dismissed as new-agey mumbo jumbo and the damages are not measurable in money.


Thank you for chiming in

 

[Silverlf]

If you lease a commercial office from a landlord and the lease is somehow illegal (like to provide usage to the tenant which is illegal or the building is not zoned or permitted for) it is pretty obvious that then trouble arises that the tenant has recourse to hold the landlord liable for the trouble (like being shut down). Like fraud in the inducement, lack of disclosure and maybe other.

However, if a person purchases a building with commercial tenants in place, does this purchase void liability for the content of the leases? In other words, could the new landlord also be held liable arguing that the lease was entered in bad faith and that the new owner is fully responsible for having "issued" (purchased) a lease which is illegal or impossible to execute.

Or has the new tenant any legal recourse stating that he did not issue the leases therefore cannot be held responsible for errors or legality?

Also, does anyone know any case law on the matter?

Thank you kindly for your help

 

[army judge]

I hate to rant, but if this is true, who are the warped people who would allow a contract termination without due process?

The warped people who allowed a contract termination are the very same people who entered into the contract by affixing their signatures thereto and exchanging cash for keys and access to the leased premises!!!

 

[welkin]

I called a lawyer and was told that a lease was a contract and that any party to a contract may terminate it at any time.

I would find a different lawyer because what you were told is true in certain employment law situations but not in contract lease law unless the contract termination clause says that. And even then notice would have to be given in writing.

Is your contract in writing?

 

[Tax Counsel]

The point is, can it really be true that it is illegal for a person holding a valid lease (paid up and without having violated any terms) to enter their office simply by the landlord stating that the lease was terminated?

The new landlord may have violated the lease by doing that. You could sue for any direct damages that occurred as a result. At the very least the landlord likely had to provide you with sufficient written notice of the lease termination.

How in the world would the lease termination "destroy" 18 years of work? And why is this the only place in the world that you can have your office? I find either of those claims to highly untenable. And if you suffered no legally recognized damages from it, then there is nothing for which to sue anyway.

 

[Silverlf]

Hi. Sorry if this is a duplicate. Seems like my posts keep disappearing

If you lease a commercial office from a landlord and the lease is somehow illegal (like to provide usage to the tenant which is illegal or the building is not zoned or permitted for, etc.) it is obvious that you can hold the landlord liable for having tricked you into signing a lease without disclosing that you will not be able to use your lease because your business activities are not legal or otherwise possible. I believe that's called fraud in the inducement.

However, if a person purchases a building, does this purchase void liability for the content of the tenant's leases? In other words, could the new landlord also be held liable, arguing that the lease was entered in bad faith and that the new owner is fully responsible for having "issued" (purchased) a lease which is illegal or impossible to execute.

Or has the new tenant any legal recourse stating that he did not issue the leases therefore cannot be held responsible for their content or errors or legality?


Thank you kindly for your help

 

[Tax Counsel]

Hi. Sorry if this is a duplicate. Seems like my posts keep disappearing

If you lease a commercial office from a landlord and the lease is somehow illegal (like to provide usage to the tenant which is illegal or the building is not zoned or permitted for, etc.) it is obvious that you can hold the landlord liable for having tricked you into signing a lease without disclosing that you will not be able to use your lease because your business activities are not legal or otherwise possible. I believe that's called fraud in the inducement.

Commercial leases are treated differently than residential leases. Both parties to a commercial lease are presumed to be knowledgeable about their business and thus the law does not provide the same protections for a commercial tenant as it does for a residential tenant. Unless the landlord actually misrepresented what uses were allowed for the property there is almost certainly no fraud. In other words, the landlord has no affirmative duty to tell you what uses may be made of the property. That's something that a prospective tenant would need to verify before committing to the lease.

However, if a person purchases a building, does this purchase void liability for the content of the tenant's leases? In other words, could the new landlord also be held liable, arguing that the lease was entered in bad faith and that the new owner is fully responsible for having "issued" (purchased) a lease which is illegal or impossible to execute.

The new landlord is not liable for the acts of the prior landlord. That the old landlord let you conduct activities on the property that the law does not allow does not obligate the new landlord to do that. That's particularly true when the problem is that the prior landlord allowed the tenant to operate in a manner that violates the law. Indeed, the new landlord would want to take prompt action to clear the nonconforming use to avoid fines or other penalties.

The details of the lease are extremely important here. You'll need to have that lease reviewed by a lawyer to tell you how this is likely to go should you take it to court. Note that if the tenant on the lease is not you but instead a business entity like a corporation, LLC, etc the organization will need a lawyer to represent it in court anyway. You can only represent yourself if you are not a lawyer.

 

[adjusterjack]

we had a disagreement

About what?

I cannot move (for new-agey sounding reasons, relating to the exact coordinates of the office)

Is there a confluence of ley lines there?

my work for the last 18 years would be destroyed

What work?

How would it be destroyed?

no court would ever award me damages as my claims would be dismissed as new-agey mumbo jumbo and the damages are not measurable in money.

You're probably right about that.

the lease is somehow illega

Just how is your lease illegal? Were you conducting an illegal business?