What should I do after defaulting on a commercial lease?

Full question:

I have defaulted in a commercial Lease with 7 months remaining,I have been contacted by an attorney from the Landlord, the balance remaining was $3,593, I just return keys on 11/2/09 and they offered me a settlement for the whole amount, but I feel that they would lease the office again in no more than 3 mos,I will pay $125 for 6 months and after that $150, so It will take me until Dec, 2011 to pay all of it, there is this on the agreement that I don't like and it is the following:In the event of Default, OSP shall be entitled to file a lawsuit against DEBTORS and shall be entitled to obtain a Final Summary Judgment in that lawsuit in its favor and against DEBTORS, solely based upon this Settlement Stipulation, for the full principal sum of $3,549.33, less any payments received, plus pre-judgment interest at the statutory rate allowable by law, per annum, since the date of the original default which gave rise to this Stipulation, as well as all costs involved in the filing of the suit and reasonable attorney's fees to be determined by the Court. What should I do, would they file a judgment if I don't agree, would I have a better chance to pay less, I leased it under an LLC and sign a personal guarantee, do I have any rights, obviously I did not pay because there was no business, please advice

• Category: Landlord Tenant
• Subcategory: Lease Termination
• Date: 04/07/2025
• State: Florida

Answer:

Your situation depends on various factors, including whether you can prove the landlord breached their obligations and how quickly they might re-rent the space to reduce their losses. Generally, landlords must make reasonable efforts to relet the premises after a tenant defaults, which means they should advertise and show the property to potential tenants. Courts will evaluate if the landlord made sufficient attempts to re-rent based on the circumstances.

If your lease does not allow for early termination, you may be liable for the remaining rent unless you can show that the landlord breached the lease. If you choose to go to court, consider the potential costs involved in legal action.

Contracts, including leases, are legally enforceable agreements that create obligations. A breach occurs when one party fails to fulfill their contractual duties, causing harm to the other party. Remedies for breach can include monetary damages, restitution, or even specific performance, depending on the situation.

In your case, if you do not agree to the settlement, the landlord may file a lawsuit against you for the full amount owed, plus interest and legal fees. Since you signed a personal guarantee under your LLC, you may be personally liable for the debt. It's important to assess your options carefully and consider consulting with a legal professional for tailored advice.