You plan on starting a business and\nyou visit commercial buildings where you could set up shop. During a visit, you\ncome across a place that is not ideal but that could work, and the price is\ngood. The owner tells you that a potential tenant is strongly interested and\nthat the space may not be available for long. Afraid of losing this\nopportunity, you agree on the rental price and the occupancy date and you\nindicate that you will take the space. You shake hands and the landlord tells\nyou that his lawyer will send you a draft lease to sign.<\/p>\n\n\n\n
In the following days, you continue\nto shop for a space because, after all, you still haven’t signed anything. You\nfinally find a rare gem: unbeatable price, perfect location and there is almost\nno work to do. So you hasten to negotiate a lease for this location and tell\nthe owner of the previous location that you are no longer interested. However,\nhe tells you that he no longer has a tenant and threatens to seek reparation\nfor the months of rent lost and all the damage caused. You find it\nunbelievable, you are sure that since you have not signed the proposed lease,\nyou are not responsible for anything. <\/p>\n\n\n\n
Who is right?<\/p>\n\n\n\n
When you indicate that you are going\nto take the space starting from such date and you agree on the rental price, an\nagreement is reached. This agreement cannot be regarded as a lease. It is\nrather the equivalent of a preliminary contract: you agree to negotiate in good\nfaith the terms of a commercial lease for the intended location. So you cannot\njust change your mind and refuse to sign for no reason. The situation is\ndifferent if during the negotiations you realize that the landlord insists on\nclauses that are unfavourable to you and you cannot reach an agreement. In that\ncase, you may legitimately refuse to sign the proposed lease. But anyone who\nrefuses to sign a proposed contract without a valid excuse risks having to\ncompensate the other party for the damage suffered, which can sometimes be\nsubstantial.<\/p>\n\n\n\n