June 10, 2025
Does your commercial lease contain an option to renew?
THE ISSUE
If so, do you need to strictly comply with formal requirements of the option, or is it good enough to communicate the essence of your intention to renew?
THE CASE
In Garlicky Mediterranean Grill Inc. v. 2715762 Ontario Inc. the Ontario Court of Appeal ruled that an informal exchange of emails was not a valid exercise of the option to renew where the landlord did not treat it as enough to exercise the renewal.
TAKEAWAYS
- Formalities still count
- We may live in an era when the internet has made informal communication common, but
- If a commercial lease requires a certain means of renewal, you need to use that method.
- Failure to comply may leave you out in the cold
WHAT WEILERS LLP CAN DO TO HELP YOU
Whether you are entering into a lease or exercising an option our team of commercial and real estate lawyers will give you common sense advice which recognizes the necessary formalities to make your intention effective.
If you are a landlord or a tenant, give us a call before you have a problem. We might be the right lawyers for you.