Question
I lease a shop space in a shopping complex, because I joined the complex later than the other shop owners, my contract runs until the end of next March. The other owners? contracts expire this month and the landlord has said he will not be renewing them. He is now trying to cancel my lease as well.

A couple of months back I spent a lot of money upgrading my shop and asked the landlord if that was OK, he said yes. Now he is trying to get me out early and the rest of the complex will be deserted for the high season even if I do get to stay. What are my options?

Answer
Firstly, is the landlord really the owner of the shop space or is he just a sub-lessor i.e. he leases the shop space from an owner and sub-leases the space to you thereafter?

If the ?landlord? is really just a sub-lessor, find out who the real owner of the shop space is and contact the owner to lease the shop space (After your lease has been terminated by the ?landlord?).

If the landlord is really the owner of the shop space, peruse the lease contract that you
entered into with the landlord carefully on the following issues:

(1) When does the lease period end? Does it really end on March 30, 2010? If it is provided in the lease contract that the lease period ends on March 30, 2010, then
you should issue a written notice to inform the landlord that he is breaching the lease
contract by ending it earlier.

If the landlord persists in ending the lease early, you have the right to claim against the landlord in court. The amount of money used for upgrading the shop can be included as
part of the damages claimed.

(2) Are there any covenants or promises made by the landlord on letting a shop space
in a shopping complex with other shops being leased out? Please note that if your
lease contract is not made in a written form and signed by the landlord or you, the contract will not be enforceable in court. If the lease period is more than 3 years, the contract must be in writing, signed by the landlord and you and the lease is registered by an official of the Land Office. If the lease is not registered, it is enforceable in court for only 3 years.

Your options are:
(a) If, as according to your lease contract, the lease period ends on March 30, 2010, issue a written notice to the landlord as stated in (1) above.

If the lease contract was made verbally, this is still a valid lease contract. Therefore,
issue the written notice to the landlord and hope that he adheres to the agreed upon
lease period.

(b) Lease another better location and perhaps this may help to recover your losses.

David Tan is a Lecturer of Business Law at Asian University and author of the book - A Primer of Thai Business Law (Second Edition), available online at www.chulabook.com.

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