John Lewis Published in Commercial Leasing Law & Strategy Newsletter

The December 2006 issue of the ALM Law Journal Newsletter, Commercial Leasing Law & Strategy, carries John's article, "Considerations in Drafting and Negotiating Early Lease Terminations," that highlights for the the leasing practitioner various issues and pitfalls that may be encountered. John writes: "The first impression one may have when preparing to draft an early termination agreement is that such a document should be a simple matter. It is true that simplicity and brevity in drafting are, in most circumstances, admirable qualities, and it is equally true that we frequently draft and negotiate documents that are much more complex than most lease termination agreements. Nevertheless, as with any effort to document a transaction, care must be taken in the preparation and negotiation of such an agreement to avoid overlooking potential risks and to protect the client’s interests." He outlines that among the issues to know are: the purpose of the termination; the method of termination; any contingencies to the effectiveness of the termination; representations and warranties that the landlord and tenant have the requisite power and authority to enter into and to perform their obligations with respect to the termination, without the approval or consent of any other party; a termination of memorandum of the lease; and an agreement that termination of the lease will not change the continuing effect of other agreements between parties. He concludes by stating "The important point is that counsel for the parties must consider carefully the best method of termination for the case at hand, and the best way to address all applicable facts of the particular termination transaction in light of the specific provisions of the underlying lease."