Early termination of commercial lease agreement?
Discussion
Hi all,
I've inherited a couple of relatively minor lease agreements for in vehicle tracking and telemetry kit due to us acquiring another company.
The system is inferior to the one we use on the rest of the fleet so I want to migrate over as soon as possible so my fleet manager has everythign in one place. The lessor isn't being particularly flexible or thinking of the bigger picture (that I am likely to need to lease hardware again at some point) and are insisting on us paying the remaining rentals.
Rather than just close down the acquired company and let tell the lessor to shove it I'm trying to find a reasonable and pragmatic solution but any thoughts considered.
thanks in advance
I've inherited a couple of relatively minor lease agreements for in vehicle tracking and telemetry kit due to us acquiring another company.
The system is inferior to the one we use on the rest of the fleet so I want to migrate over as soon as possible so my fleet manager has everythign in one place. The lessor isn't being particularly flexible or thinking of the bigger picture (that I am likely to need to lease hardware again at some point) and are insisting on us paying the remaining rentals.
Rather than just close down the acquired company and let tell the lessor to shove it I'm trying to find a reasonable and pragmatic solution but any thoughts considered.
thanks in advance
I didn't do the acquisition negotiation on the new company so don't have the exact details and it's not worth involving legal as it's a relatively low value. I'm sure it will have covered A&L as mentioned.
The new company will be closing anyway and the lease agreement expressly prohibits us assigning or novating without agreement of all parties (obviously the new company doesn't).
The cost isn't the issue it's just the total inflexibility of the leasing market to pragmatically resolve changes in circumstances. This clearly isn't the first time this scenario has arisen nor will it be the last. What irks me the most is paying almost double the cost of our other system which is superior.
@Realstic. Yes, in a black and white world a deal is a deal is a deal but in the real world things change. I'm trying to agree a realistic termination with the lessor as a responsible lessee rather than just take the hard line and close the old co.
The new company will be closing anyway and the lease agreement expressly prohibits us assigning or novating without agreement of all parties (obviously the new company doesn't).
The cost isn't the issue it's just the total inflexibility of the leasing market to pragmatically resolve changes in circumstances. This clearly isn't the first time this scenario has arisen nor will it be the last. What irks me the most is paying almost double the cost of our other system which is superior.
@Realstic. Yes, in a black and white world a deal is a deal is a deal but in the real world things change. I'm trying to agree a realistic termination with the lessor as a responsible lessee rather than just take the hard line and close the old co.
Well thanks all for your learned advice. "Omnes grato propriam sententiam" is clearly the message being demonstrated here.
How many of you have any form of legal training...? I have and like to look for a creative solution to a situation instead of the obvious and was simply looking for options from a wider audience.
Let's just consider this one closed then.
How many of you have any form of legal training...? I have and like to look for a creative solution to a situation instead of the obvious and was simply looking for options from a wider audience.
Let's just consider this one closed then.
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