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Commercial Leases - warranties and obligations 2022

NZ $35.00
PRICE Stephen STEWART Janine  
Stephen Price
Janine Stewart

Authors: Stephen Price, Janine Stewart
Published: 24 March 2022
Pages: 28


The strategic and financial ramifications of the warranties and obligations contained in commercial leases shape the risk profile of your clients’ businesses, and the rights and liabilities of your clients. In order to provide your clients with robust advice, it is critical to understand the difference between warranties and obligations – and the liabilities, responsibilities and remedies associated with each.

Letting and securing premises for business is a critical step for landlords and business owners respectively. Landlords are under increasing pressure to successfully leverage the booming property market to secure favourable terms that will grant them the flexibility to continue to expand and develop their existing investment portfolio. However now more than ever, tenants are facing major business disruption and reduced cashflow. Each of these factors will place increasing pressure on the lease instrument itself and its ability to deal with ever changing circumstances.


Content outline

  • What constitutes a warranty?
  • What is the difference between a warranty and an obligation?
  • Warranties in sale and purchase agreements
  • Warranties and due diligence obligations
  • Express warranties
  • When is an express warranty a good idea?
  • Implied warranties
  • Fitness for purpose warranties
  • No warranty as to suitability and no implied terms
  • Warranties in an earthquake ratings context
  • Remedy for breach of warranty
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