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At the very least, a commercial lease should identify the parties to the lease, state who is the landlord and who is the tenant, give the address of the property, and include the amount of the rent. It should also include a start date and an allocation of any other costs. Both parties should sign the lease.
Consideration ? Consideration, in legal contracts, refers to an exchange of value. For a lease agreement, consideration is made in the form of rental payments.
A valid business lease will include the time period of the contract, information regarding how to renew the lease, and specific provisions on how either party may be able to stop the lease early.
*To be valid, a lease must meet the same essential elements as any other contract: capacity to contract, legal objective, offer and acceptance, and consideration.
California's Statute of Frauds requires a lease to be in writing if it either: 1. has a term longer than one year; or 2. has a term less than one year which expires more than one year after the agreement is reached. actually be maintained for thirteen months.
When you sign a lease, you are contractually required to pay the total amount of rent. For example, if you start a lease in January but want to break your lease in March, you are still on the hook for nine more months of rent.