Powers and obligations of the lessee

Powers and obligations of the lessee

June 14, 2022 Off By Quentin

As with any other form of leasing, the tenant has the task of having to deliver the company to the tenant in the conditions that allow him to continue the company production as it was previously Rent a Factory.

The company must be absolutely usable and must maintain the same fees for which the company is intended and conceived.

The tenant also has the right and the power to check the tenant’s work, in order to verify that the company is operating efficiently and according to the fees for which it was conceived. If the tenant becomes aware that the tenant does not fulfill the obligations imparted to him, he can request the termination of the contract.

Company lease protected by the prohibition of competition

As anticipated, obligations of various kinds arise for the lessee, including the prohibition of competition. The entrepreneur who decides to partially or totally lease his economic activity to third parties is bound by the non-competition agreement which requires him not to be able to start a similar company. Those who rent a company cannot create competition either directly or indirectly, by starting an activity that has some characteristics similar to the company that he has leased. In the event of non-fulfillment of the obligations assumed by the company lease agreement, the lessor could also request the solution of the same agreement signed to conduct the business and request compensation for damage.

The business rent is not a commercial lease

Due to linguistic assonances, company leasing and commercial leasing are often confused. They are two completely different agreements. In fact, in the business lease or business branch lease, it is the entire economic activity that is leased, while in the commercial lease it is only the concession of the use for remuneration of a real estate or other types of assets. In summary, an entrepreneur who rents a business becomes the tenant of the business and pays to run it, an entrepreneur who rents a commercial space becomes the tenant of the commercial space.

Accounting aspects of the company lease agreement

After examining the rules of the rental contract, we now focus on the accounting aspects connected to it.