1. What is the distinction between a “commercial” and a “residential” lease? How do the differences in use of the leased property impact the terms of the lease? In a commercial lease agreement, should the law seek to protect the interests of the commercial tenant more than the interests of the commercial landlord? Why or why not?
2. Sections 5 and 6, respectively, impose on the commercial tenant the obligation of making repairs to the leased property, and of making alterations and improvements to the leased property. Should the lease impose these obligations on the tenant, or should such obligations be legally imposed on the commercial landlord? Explain your answer.
3. In the default provisions of Section 15, what is the landlord’s duty to “mitigate” damages? Should the landlord be required by law to mitigate? Explain.
4. Sections 2 and 19 discuss the creation of, and the parties’ rights in, the security deposit. Do these rights favor the landlord or the tenant? Is that appropriate? Why or why not?
5. Section 29 requires mediation, followed by arbitration, in lieu of litigation, to resolve disputes. What are the advantages and disadvantages of such a provision? How should mediators and arbitrators be selected?
6. As a businessperson guided by a Biblical worldview, what changes would you make in this lease to make the terms comport more closely to Script?
The law does not seek to protect the interests of either the commercial tenant or the commercial landlord more than the other. Instead, the law seeks to balance the interests of both parties. However, there are some cases where the law may give more weight to the interests of one party over the other. For example, the law may be more likely to protect the interests of a commercial tenant if the tenant is a small business or if the lease is for a long term.
The law does not specifically address whether the lease should impose these obligations on the tenant or on the landlord. However, the law does require that both parties act in good faith and that they comply with the terms of the lease. If the lease does not specify who is responsible for making repairs or improvements, then the parties may need to negotiate an agreement.
The landlord is required by law to mitigate damages because it is unfair to allow the landlord to profit from its own breach of the lease. If the landlord does not take steps to mitigate damages, the tenant may be able to recover more damages from the landlord.
Here are some additional thoughts on these questions: