Disadvantageous Clauses for the Lessee

Posted: August 25th, 2021

Disadvantageous Clauses for the Lessee

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Disadvantageous Clauses for the Lessee

Clause 5

The lessee is required to finish the stationary asset of the premises. At the termination of the lease agreement, the assets are returned to the lessor in their original state. The lessee pays for the extra cost for the essential safety equipment of the leased premises. Since the premises are for office duties, the lessee is to install a telephone landline at his/her expense. The clause is disadvantageous to the lessee since he/she is not compensated for the changes done on the premises.

Clause 7

It restricts the lessee from accessing any other property that is not part of the leased premises. He/she is responsible for the damage that maybe caused by third parties on the premises. The lessee is accountable for the financial cost to cover the damage caused by his/her customers.

Clause 10

The lessee shall only make structural alterations on the leased premises with permission from the lessor. Upon the lessee carrying out the alteration with consent from the lessor, he/she is to cater for the expenses. During the making of the changes to the premises, strict supervision is carried out by an architect. The lessee must be careful to maintain the uniformity of the premises when carrying out the structural alterations. This limits him/her from altering the premises to suit his/her business (Dhaval, 2016).

Clause 14

The lessee is not permitted to assign a title of his/her own preference to the leased premises. He/she is also restricted from conducting any other business since the leased premises are exclusively for office duties. This limits the willingness of the lessee to carry out other businesses that maybe more profitable when compared to the office duties.

Suggestions

A fair terms and conditions agreement should bear words or language that is lenient to both the lessor and the lessee.  

To ensure clause 5 is not disadvantageous to the lessee, the words“return the premises in their original condition” should be replaced with “return the assets in the current condition.” For the benefit of the lessee, the words“venture into other parts of the premises” as stated in clause 7 should be replaced with “permitted to venture.” To avoid exploiting the lessee, the words“shall not effect alterations” should be replaced with “permitted to alter” in clause 10. To ensure clause 14 is not disadvantageous to the lessee, the word “precluded” should be replaced with “allow.”

References

Dhaval, S. (2016, June 28). Advantages and disadvantages of leasing for the lessee. Retrieved July 28, 2019, from http://www.businessmanagementideas.com/financial-management/leasing/advantages-and-disadvantages-of-leasing-for-the-lessee/4269