I’m having some cash flow problems and have been advised to either sell the business or at least sub-let space we are not using. Can I do this?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Robert Bailey, Adelaide 5000 SA
- Leases generally require you to obtain your landlord’s consent if you want to assign (transfer) or sublet the premises.
- Your lease agreement or the laws in your state or territory will set out any steps you and the landlord must follow after the sale of your business including your liability for future obligations.
- It is very important that you seek further legal advice before doing anything so you clearly understand your rights and obligations under your particular lease.