A contract clause I ignored cost me $4,800 in Detroit last spring
I do commercial lease reviews for small retail tenants, and last March I had a client in Detroit who was about to sign a 5 year lease. The landlord's lawyer included a clause about 'continuous operation' that basically said my client had to keep the store open during all business hours, even if sales tanked. I told my client it was standard, so we didn't fight it. Six months later, a road construction project cut off the block for 3 months, and my client wanted to close on Tuesdays to save on labor. The landlord sent a cease and desist via email, then took the full month's rent as a penalty under that clause. That one sentence in paragraph 14 cost them $4,800 and nearly killed the business. Has anyone else seen these 'continuous operation' clauses used as a weapon by landlords, and how do you get them softened without killing the deal?