Legal Term

commercial sublease landlord consent unreasonable

Legal Definition

A legal doctrine derived from the implied covenant of good faith and fair dealing, and often codified in state commercial landlord-tenant statutes, which prohibits a landlord from arbitrarily or capriciously withholding consent to a proposed commercial sublease when the primary lease requires such consent but does not grant the landlord sole discretion. The landlord's decision must be based on objectively reasonable, commercially relevant criteria related to the subtenant's financial viability, business use, or potential impact on the property, not on personal preference, desire to re-lease the space directly, or unrelated animus.

In Plain English

If your lease says you need your landlord's OK to sublet your space, the landlord can't just say 'no' for no good reason. They must have a fair, business-related excuse, like the subtenant being a bad credit risk or planning an illegal use.

Example in a Contract
TENANT SUBLETTING. Tenant shall not voluntarily or by operation of law assign, mortgage, pledge, or encumber this Lease, or sublet the Premises or any part thereof, without the prior written consent of Landlord in each instance. Landlord's consent shall not be unreasonably withheld, conditioned, or delayed. A proposed Subtenant's financial condition, proposed use of the Premises, and compliance with all laws and the terms of this Lease shall be the sole grounds upon which Landlord may reasonably object to a subletting. Any purported subletting without Landlord's prior written consent shall be a material default hereunder.

This content is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney for legal matters.