Leasing Terms - Tenancy Agreement

retail-preneur

Hello fellow retail entrepreneurs

I am now into my 3rd month of my 6 month lease agreement for the rental of a kiosk space in a major shopping mall.

Business is %$&#% and I wanted to terminate my contract earlier but I was told to either:

1) find another vendor to to replace me;
2) pay up the balance (siao!)

It was not stated in the contract that I need to pay up the balance and neither was there any mention of having to find a replacement.

In fact, there wasn't any mention of the terms that I can terminate the agreement.

What is your experience with this kind of thing?

Any help deeply appreciated....

Thanks!

pokerface

usually when you terminate a contract early, you would have to compensate the other party. at least the management allows you to find another vendor to take over..

btw, just out of curiosity, which major mall is it? (can pm me )

__________________

"My hands are the tools that God blessed me with so I may work creatively"

retail-preneur

Yeah but they have a clause whereby they can terminate me giving 1 month's notice, but there is no mention of how I can terminate them, or anything saying I cannot terminate.

Can't they simply state clearly that I cannot terminate, or that I need to find replacement? Why so ambiguous?

Had it been clearly stated, I got nothing to say...

But nevermind, fortunately I managed to find a replacement.

The mall in question is very Asian...

Pushcarter

Is it Chinatown Point?

pokerface

...... Asia Malls? lol

__________________

"My hands are the tools that God blessed me with so I may work creatively"

lawrence

you are lucky that the term is only 6 month term. i am in your shoe as well, i was at one of the lousy mall as well, but mine is 2 yrs term. i run away in one yrs.

I have check with the lawyer, the mall weather will take action got 4 ways.
they will send lawyer letter, then ganish (frezzse)the company acc (pte Ltd, LLP). then sue to wind up company then sue personal acc (garnish it) then sue for bankrupcy.

My incident happen last year and to date they only sue still ganish account. Have yet to sue winding up company.

All in all, legel fee is already 20k. the amount is added with the rest of the tenacy say 5k per month left with 1 yr lease therefore will be 5k x 12 month= 60k plus the legel fee of 20k, amounting to 80k.

unless you have private property asset, then the chances for them to sue is high, if you have nothing, then most prob they will do nothing. cos this time is ecomocy down turn. there might be more retail closing down.

in other have to see weather your acc with the mall is a sole proprite or a pte ltd.

Pushcarter

Looks like it is much better to be pte ltd. They can go ahead and sue an empty shell company

lawrence

even they sue the emty shell, be extra careful for the personal garantor agreement.

noeclue

lawrence,

I thought Marina Square is very crowded, isnt it?

Jeannlie

usually big companies will make you sign a personal garantor agreement if you're a small and new pte ltd company... die die they wanna win...