The Sneaky Lease Clause That Could Have Cost My Client Everything

The Sneaky Lease Clause That Could Have Cost My Client Everything

Not long ago, I advised a client who was looking to purchase a local business. Everything seemed straightforward: the Contract of Sale included a lease with a year left to run, plus two further options of five years each. On the surface, it looked like my client would have secure tenure for over a decade.

But contracts often hide surprises. Buried deep in the fine print was a clause that read:

“No commitment has been given or intimation made by the Lessor or anyone on its behalf that the Lessor will give a further lease of the premises after the terminating date.”

This clause directly contradicted the lease’s “options to renew.” If enforced, those options would be worthless. When I raised the issue and requested its removal, the landlord refused.

I advised my client not to proceed with the purchase — after all, who wants to buy a business without guaranteed premises beyond one year? It was a near miss that could have cost them their livelihood.

In my 29 years of legal practice, this remains one of the most underhanded examples of drafting I’ve seen. Sadly, it’s also a stark reminder that contracts are often designed to protect the other party — not you.

The lesson? Always have an experienced solicitor review your contracts before you sign. What looks like a great deal may, in fact, be someone else’s problem waiting to land in your lap.