Abandonment, Vacancy, Default – How Are These Related?

PrintDoes a tenant have a duty to occupy the leased space? No, not unless the lease requires it to do so. So, what should a lease say in that regard? We begin by contrasting two terms, vacate and abandon. What does it mean to “abandon” leased premises? To abandon the leased space is for a tenant to relinquish its right or interest in the space with the intention of never claiming it again.  Normally that requires an understanding of the tenant’s subjective intent, a very difficult “state of mind.”  In some cases, however, that state of mind can be determined, such as when an entity tenant vacates the leased premises and is dissolved.  Mere passage of time during a cessation of active use does not constitute abandonment.  Although length of time is a factor to be considered, it is not the sole factor.  Some discontinued uses are more readily revivable than others, and the passage of time must be considered in conjunction…

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