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Contract Knowledge Centre · Property
An agreement granting the use of premises for a term, on stated rent and conditions.
Premises costs are usually fixed for years, and the obligations attached to them - repair, use, assignment - can be more expensive than the rent.
What each clause is for, and what to look at in the wording you have been given.
Term and renewal
Sets how long you are committed.
What to check: Any break right, and what notice is needed to exercise it.
Rent and review
Fixes cost over the term.
What to check: How and when rent can be increased, and by what mechanism.
Permitted use
Limits what the premises may be used for.
What to check: That it covers what your business actually does, and plans to do.
Repair and condition
Allocates responsibility for the state of the premises.
What to check: What condition you must return them in - this is where unexpected cost concentrates.
Assignment and subletting
Governs whether you can exit by transferring.
What to check: Whether transfer is permitted at all, and on what conditions.
Title and authority to let
Confirms the landlord can grant what they are granting.
What to check: Evidence of title or authority. In Nigeria, land interests sit under the Land Use Act 1978 framework.
Any one of these can have an innocent explanation. Ask for it before you sign.
When to speak to a lawyer