NAMES OF THE PARTIES - Understanding Commercial Leases - Part 2

This is Part 2 of a Multi-Part series on Understanding Commercial Leases

Names of the Parties

It is EXTREMELY important, especially on a commercial lease, that you get the names of the parties correct. I can't tell you how many times I've seen landlords lease their property to a LLC or Corporation that doesn't even exist, or that is in inactive because of a default in its filings with the state of formation.

ACCURACY - special care should be taken to make sure the names are accurate

WHAT CAPACITY? - Is the tenant signing as an individual, a business, a corporation, LLC, or a partnership ? Be sure to state that in the lease.

CO-TENANTS - If there is more than one tenant, who has the right to do what ?

LANDLORD'S INTEREST - Accuracy, getting names of individuals and companies correct, in an attempt to get both the company and the people behind the company on the hook for the lease

TENANT'S INTEREST - Ambiguity, inaccuracy, putting only company name on lease. These all lessen the possibility of being sued and lessen the possibility of the individuals behind the company being on the hook for the lease