Questions & Answers
Early termination of a tenancy contract with a notice period
Dear sir/madam,
My tenancy contract expires on 17.07. 2020. On 22.12.2019, I emailed the owner with a termination of the contract to be on 31.03.2020.
The contract says:
The Lessee may terminate Contract and vacate Premises following the Labor's written consent and upon Lessee agreeing the following:
(a) Provide at least two months written notice to the Lessor prior to the expiry of the Term of its intention to vacate the Premises where such notice once served cannot be retracted unless the Lessor provides its written consent;
(b) Settlement of the Lessors administration fee currently in force for breaking the Contract prior to the expiry of the Term, subject to the Lessor's approval. The Lessor is not obliged to refund to the Lessee any difference in rent in case of an early break of the Contract.
The owner says that this notice period is applicable only to non-renewal, not early termination so either to pay penalty or complete till 16.07.2020.
Is this true? Is there a limit to the penalty to 2 or 3 months or can they ask for more?
Hello,
The notice period and penalty should be specified in the contract. The law does not regulate the penalty amount. In the absence of an early contract termination clause in the contract, the parties may agree amicably.
Alternatively, you may file a complaint in RDC, if you can not reach an amicable settlement with the landlord.
Generally, a party cannot terminate a contract unilaterally. As such, both parties must agree to the termination and its terms, including applicable penalties, if any.
My legal podcast, LAWGICAL WITH LYLAW, maybe a good starting point for you.
Here is a link to all the episodes, which you can search and categorize by topic.
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