Use Indemnity Agreement to Ensure Tenant's Viability

Performing due diligence on a prospective tenant is one way to try to determine whether the tenant is financially viable. But what if you end up leasing to a tenant that proves to be a risk, no matter how careful you thought you were when researching it? One example of a risky tenant is one that’s merely a “shell” company—that is, a company that serves as a vehicle for business transactions without itself having any significant assets or operations.

Full Article Access:

Full access to complete articles from Commercial Lease Law Insider is for subscribers only.

Not yet ready to subscribe?