Legal Updates

‎‎‎A lessee may be obligated by a lease even if unable to obtain a business permit

July 4, 2016
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A lessee of a property sought to cancel the lease agreement after the city refused to renew the business permits due to building deviations, claiming that the lessor cannot force it to manage a business without a permit.

The Court held that from the interrogation of the witnesses it was revealed that the lessee knew of the building deviations prior and decided to sign the lease nevertheless.  If the lessee decided to enter the lease knowing the full details as to it legal status it cannot argue that it is forced by the lease to manage a business without a permit and thus the claim was dismissed.