Legal Question in Business Law in California

business

I have an ice cream store, with a 5year lease and a 5 year option. I also have another business that I`ve had for 30 years that I`m heavily involved in . I also own my own home and 2 cars that are paid for, I`ve already evercised 1 year of my lease with the ice cream store, my ? is this,, the ice cream store is very demanding and I just don`t have time for it and it is getting very busy. I`m not making enough x-tra cash flow to hire help w/ workmans comp and so on. what would I be facing if I was to walk away and sell my equip. ? I currently have it listed for sale but my expence is comig faster than the business coming in ? . HELP


Asked on 6/15/07, 3:29 pm

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: business

You face being sued for the remaining lease payments if you walk, less whatever the landlord is able to get re-renting it. You'd better talk to the landlord and work out a deal to have him find a replacement tenant and let you out.

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Answered on 6/15/07, 5:41 pm
Gregg Gittler GITTLER & BRADFORD

Re: business

You appear to be between a rock and a hard place: You have potential liability for the remainder of your lease, and you have other assets which your landlord could go after. However, as a practical matter, your landlord may be willing to work something out with you, depending on the rental market for your space. The Landlord may be happy to let you out of the lease so he can bump the rent up. There may also be opportunities to assign your lease.

Naturally, we don't have all of the facts and have not examined your lease, so you should not consider this response to be "legal advice". You should consult with an attorney to determine what your rights and obligations are and to come up with a strategy to extricate yourself from your lease.

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Answered on 6/15/07, 6:36 pm


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