Commercial Property Solicitors

Delays at ports are one.

We have to hope that places like Felixstowe have thought this through. Any delays at ports would mean supply chain disruption. Deliveries could be delayed, contractual delivery commitments may not be met. Do those commitments perhaps need to be reconsidered? Does a business need look at its service level commitments, or perhaps stipulate longer times?

Conversely if your business is relying on other businesses delivering supplies to you, think about what happens if they are not able to continue to deliver in the way they have in past? Or indeed, if they go bust?

We may well see delivery costs go up. If there are duties and tariffs then those will be direct costs. Changes to regulatory regimes and compliance processes may take up increasing administrative time which may also involve increased cost spent on administration.

So how are these cost going to be borne? How can a business prepare for this?

Businesses really need to think not only of themselves but also about their customers and suppliers. How will these be affected, and how will this impact on you?

Many of the solutions, (some of them perhaps only partial solutions) are going to involve looking again at the terms of on which you do business. They are the businesses offer, and as ever they need to reflect what they can do, avoid making commitments which the business cannot keep, and manage the business risk.

There’s not a lot of time left, but part of it is planning: identifying what the risks are and working out how to mitigate them as best you can.

If you require assistance in reviewing your contractual commitments and negotiating new terms, please do contact me Adrian Chaffey at [email protected] or telephone Ipswich 01473 213311 or Colchester 01206 584584 where I will be happy to speak with you.

Click here to find out more information in relation to a Property Dispute.

A break clause in a commercial lease is a contractual right typically for a tenant to terminate the lease before the expiry of the initial contractual fixed term. Break clauses can also be exercised for Landlord and in some cases for both landlord and tenant.

Any conditions to a break clause need to be strictly adhered to, so it always recommended that legal advice is sought before agreeing to a break clause in a lease, as often when the time comes to exercise a break clause it is too late to correct the error or ensure you have complied with the conditions.

Click here to find out more information in relation to our Buying / Selling a Business.

Click here to find out how we can also help you with a range of Commercial and Residential Construction Law related matters.

If you are you may wish to consider the following:-

1. Who is the proposed Tenant? Is the Lease going to be granted to an individual or to an existing company?
2. Is there going to be a Guarantor guaranteeing the terms of the Lease?
3. How long is the Lease going to be?
4. Is the Lease going to be inside the 1954 Act, i.e. at the end of the term do you want to be able to renew the Lease.
5. Have you agreed a break clause with the Landlord?
6. Have you agreed a rent free period with the Landlord? This will also need to be taken into account and included in the Lease.
7. Are providing a rent deposit to the Landlord? If so, how much is the rent deposit?
8. Do you want to be able to assign or underlet the property? Alienation clauses will need to be provided and put into the Lease.
9. Are you planning to carry out any works before the business is up and running. If you are then these works need to be approved by the Landlord while the Lease is being negotiated.
10. Details of your business and intended use.
11. Do you require searches and due diligence carried out?
12. Have you agreed a Covid-19 concession?

If you are you may wish to consider the following:-

1. Who is the proposed Tenant? Is the Lease going to be granted to an individual or to an existing company?
2. Is there going to be a Guarantor guaranteeing the terms of the Lease?
3. How long is the Lease going to be?
4. Is the Lease going to be inside the 1954 Act, i.e. at the end of the term do you want the tenant to be able to renew the Lease.
5. Have you agreed a break clause?
6. Have you agreed a rent free period? This will also need to be taken into account and included in the Lease.
7. Do you require a rent deposit? If so, how much is the rent deposit?
8. Do you want the tenant to be able to assign or underlet the property? Alienation clauses will need to be provided and put into the Lease.
9. Is the tenant planning to carry out any works before the business is up and running?
10. Information on tenant’s intended use.