Back

The right to renew a lease on the same terms except for rental rate does not create an enforceable obligation other than an obligation on the landlord to negotiate in good faith

Ontario

,

Canada

In Narwhal International Limited v. Teda International Realty Inc., 2021 ONCA 659 a tenant sought a declaration that it was entitled to renew a commercial lease and an order setting the rent for the renewal period.

The application judge held that a right to renew a lease on the same terms except for the rental rate does not create an enforceable legal obligation, other than an obligation on the landlord to negotiate in good faith (para. 6).

April 14, 2022
Narwhal International Limited v. Teda International Realty Inc., 2021 ONCA 659