Termination of a Commercial Sublease Agreement and Claim for Surrender of the Building

1. The Client's Situation

The client was a customer operating its business by leasing the 3rd and 4th floors of a commercial building through a sublease contract. However, the sublessee failed to perform its contractual obligations, defaulted on rent, and ceased operations. Accordingly, the client came to consider terminating the contract and requested legal advice in order to demand the surrender of the building, which was the subject of the sublease, and the payment of unpaid rent. The client wished to accurately understand the procedures for terminating the sublease contract, returning the building, and claiming the overdue rent.

Your Legal Team analyzed the clear termination conditions within the sublease contract and confirmed that the client met the grounds for terminating the contract. After confirming that the rent default had continued for more than three months and that the sublessee had ceased operations, providing grounds to claim termination of the contract and the return of the building, we began preparing the lawsuit. For the litigation, Your Legal Team sent the client a certified letter (content-certified mail) stating the termination of the sublease contract on the grounds of rent default and cessation of business, and subsequently drafted the complaint based on this. The complaint included claims for termination of the sublease contract, surrender of the building, and payment of unpaid rent, and set clear standards for the point at which the contract termination and building surrender would take legal effect. In addition, we prepared a claim for the return of unjust enrichment related to the rent default, and devised an additional strategy so that any penalty for breach (penalty fee) arising in the future could also be claimed.

With the assistance of Your Legal Team, the client was able to file the complaint and successfully proceed with the legal procedures. The complaint clearly set forth claims for termination of the sublease contract, surrender of the building, and payment of unpaid rent, enabling the court to handle the case promptly. In addition, the client was able to complete preparations to respond, on a legal basis, to the return of unjust enrichment and the penalty for breach that may arise in the future. This case serves as an example of effectively preparing for and proceeding with the legal procedures related to the termination of a commercial sublease contract, and became an important milestone in firmly protecting the client's rights.