This is an agreement entered into between a commercial tenant and a commercial
property owner to cancel a current lease. For this agreement to be valid, both parties
must voluntarily consent to the cancelation. The agreement contains essential
provisions, such as the security deposit, terms of the termination, and ongoing liabilities.
This document should be used by commercial property owners or commercial tenants
who want to cancel an ongoing lease agreement.
Mutual Cancellation of Commercial Lease
For good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, ____ [Instruction: Insert Tenantâ€™s name.], a ___ [Instruction: Insert
jurisdiction and type of business entity.] as Tenant and ___ [Instruction: Insert Landlordâ€™s
name.] a ___ [Instruction: Insert jurisdiction and type of business entity.], as Landlord do
hereby agree to the following terms and conditions to mutually terminate that certain lease dated
___ [Instruction and Comment: Insert original lease date. If the Lease has been extended,
modified or amended or if the Tenant is an assignee of an original tenant, also include those
recitals here.] entered into by and between Tenant and Landlord for the premises located at
____ [Instruction: Insert property municipal address, including suite number if any.] and
known as _______ [Instruction: Insert legal description.] and which lease is presently in force.
The parties hereto agree the new Lease termination date shall be _____ [Instruction: Insert new
termination date.] (the â€œNew Termination Dateâ€). The parties hereto further agree that upon
the satisfaction of the conditions and obligations set forth herein, the Lease shall thereafter be
deemed terminated and no further rights and obligations shall remain as between the parties,
other than those which by its terms survive the lease, and those set forth herein.
1. The parties hereto agree to the disposition of the security deposit as set forth in the Lease.
The Tenant surrenders and releases to the Landlord all his/her interest in the Premises
[Comment: If the Lease defines the leased property as something other than the
Premises, revise the name throughout this document to conform to the defined term in
the Lease.] with vacant possession and the Landlord accepts this surrender.
2. [Instruction: Please choose one of the following release methods and delete
The Landlord confirms that all rent and other amounts due under the Lease to date have been
paid and that no further payments, whether in respect of rent or otherwise, are due.
Both parties release and discharge each other from all liabilities arising under the
Lease EXCEPT the obligation on the part of Tenant to pay the rent reserved
in the tenancy (but only up to the date of this agreement).
3. The Tenant shall surrender possession of the Premises on the New Termination Date, in the
condition and manner set forth in the Lease. Upon the surrender of the Premises by the
Tenant, the Landlord shall release the Tenant from his/her continuing obligation under the
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Lease to pay rent.
4. Each of the parties shall be responsible for all obligations, including but not limited to the
payment of any utilities, fines, fees or any other such payments set forth in the Lease and the
maintenance of any applicable insurance, until and through the new termination date.
5. The parties hereto agree that this agreement shall be deemed notice pursuant to the required
termination notice provided in the Lease, and no further notice shall be required. Neither
party shall incur any liability for any failure to provide such notice as set forth in the Lease.
6. Any and all improvements, renovations and/or fixtures (trade or otherwise) installed by the
Tenant shall be retained by the party set forth in any and all applicable Lease provisions.
[Instruction: In the event the Lease did not speak to the installation of any
improvements, renovations or fixtures (trade or otherwise), parties should set forth the
applicable agreement regarding same here, and delete the current language.] Tenant
shall be liable for any damage, beyond normal wear and tear, caused as a result of the
removal of any and all such improvements, renovations and/or fixtures.
7. Tenant and Landlord represent and warrant to each other and agree as follows: the Lease has
not been modified or amended except as set forth herein; there are no other agreements,
understandings, contracts, or commitments of any kind by, between or among such party to
this agreement and any third party with respect to the Lease or the Premises except as
expressly provided in the Lease; such party has not assigned, transferred, sublet or
hypothecated its rights, obligations or interests (or any portion thereof) under the Lease; and
to the best of such partyâ€™s knowledge, neither party is in default under the Lease nor is there
any condition or event which has occurred, which, with the passage of time or the giving of
notice or both, would constitute a default or breach under the Lease.
8. The provisions of this agreement (other than those contained in this clause) shall not
have any effect until this agreement has been dated.
9. This agreement shall be binding upon both parties, their successors, assigns and personal
10. Any term used herein which is not defined herein shall have the meaning set forth in the
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