In this conference, Me René Gauthier discusses assignment, subleasing, and default clauses in commercial leases. He focuses on a single clause found in commercial leases: the assignment and subleasing clause.

First, Me Gauthier explains the principles of assignment and subleasing in commercial leases. The essential element he highlights is the number of contracts involved, since assignment involves one contract while subleasing involves two.

Second, the speaker addresses the differences between an assignment agreement and a sublease. Among these differences are the release of the principal tenant in the case of an assignment, accepted grounds for refusal, and the direct legal relationship between the parties.

He then explains the terms of consent, including each party’s responsibilities, rent collection, profit, remedies between the parties, the exercise of special rights, compliance with the lease, and insurance.

He also discusses the specific rights of hypothecary creditors.

Me Gauthier continues the conference by discussing the content of a commercial lease default clause, the important elements it contains, and those that deserve to be negotiated and modified.

He also provides several examples of case law, automatic termination upon notice, and damages. Regarding automatic termination, the lawyer mentions the case of Place Fleur de Lys v. Tag’s Kiosque. In addition, he specifies that the automatic termination of a commercial lease upon notice may occur within a reasonable delay or immediately. However, its application is difficult to implement in practice. Me Gauthier provides concrete examples and proposes a few alternatives.

At the end of this conference, you will be able to better understand the assignment and subleasing clause of a commercial lease.