A commercial lease is a binding contract, and like any contract, it only works when both sides hold up their end. When one party falls short, the other may have grounds to pursue a breach claim.
Tenant actions that commonly trigger a breach
Most commercial lease disputes in Texas start with an allegation that the tenant violated one or more provisions of the agreement. While every lease is different, the following types of violations tend to appear in these breach claims:
- Failing to pay rent on time or failing to pay at all
- Using the premises for purposes not permitted under the lease
- Making unauthorized alterations or improvements to the space
A single violation may be enough to support a case if the lease treats it as a material term. Some agreements specifically identify which obligations are material, while others leave that determination to the courts.
Notice and cure provisions that can impact the case
A lease violation does not always lead straight to litigation or termination. Many commercial leases in Texas include a “notice and cure” clause, which requires the non-breaching party to deliver written notice and allow a set period for the other side to correct the problem.
These provisions often play a central role in the outcome of a dispute. If a landlord moves to terminate the lease or files suit without first providing the required notice, a court may find that the landlord failed to follow proper procedure, which can result in the dismissal of an eviction suit or the invalidation of a lease termination.
Cure periods typically range from 10 to 30 days, though the exact timeline depends on what the lease specifies. State courts tend to enforce these clauses as written, which makes the precise language of the agreement critical.
Consequences that follow a commercial lease breach
The financial exposure in a commercial lease dispute can be substantial. A tenant found in breach may face liability for the present value of the remaining rent minus the fair market value of the space for the rest of the term, plus incidental damages.
For landlords, a breach by the tenant does not automatically end the lease or excuse the landlord from its own obligations. Texas courts have recognized a non-waivable statutory duty to mitigate, meaning the landlord must make reasonable efforts to find a replacement tenant if the premises are abandoned.