Sub-Lease Agreement
Help
Download our Sub-Lease Agreement template in Word format. This document is located in the Commercial Leases chapter of Edilex's catalogue of Contract Templates.
Introduction
Sections 1870 to 1876 of the Civil Code of Quebec, enforces rules governing the transfer of rights pursuant to a lease, and the heading of this part of the Code is unequivocal: “Sublease of property and assignment of lease.”
The "sublease" agreement is a new lease between the tenant and the sub-tenant. It is completely subject to the provisions of the prior lease between the lessor and the tenant. This superposition of leases for the same premises can cause difficulties for the parties involved. This document establishes the principal terms of such an operation.
The sub-lease does not cause novation, unless the lessor indicates its express intention. (See Châtillon Anjou inc. c. Ville d'Anjou (1975) CS 1002).
Description
The Sublease Agreement is the legal instrument by which a person, called the LESSEE, subleases to a third person, called the subtenant, in whole or in part, the rental space that is already subject to a lease between the lessee and the lessor, after giving prior notice to the latter and having obtained the latter’s consent.
Use
When a tenant wishes to terminate his lease, in whole or in part, before the end of the latter’s planned duration, he is limited by the right of the LESSOR to require the substantial or complete performance of the LESSEE’s obligations pursuant to the lease, including the financial obligations. This is usually prohibitive for the LESSEE, which is why the latter usually seeks alternative solutions for the total or partial transfer of the rental space it occupies.
The most common solution to this problem is the sub-lease of all or part of the rental space in question. This can be done with varying degrees of formality, subject however to compliance with the lease in this regard (See sections 5.10 and 5.11 of documents E02.200 and E03.300 of the Business Precedents respectively). We generally recommend using the sublease agreement to avoid the numerous pitfalls which this kind of tripartite relationship can cause.
