Model of precarious lease, derogatory lease or short-term lease

Contract heading

Precarious lease / Derogatory lease / Short-term lease

Between the undersigned :

The Lessor :
Name: [Name of Lessor]
Address: [Full address]
Telephone : [Telephone number]
E-mail: [E-mail address]

And

The Tenant :
Name: [Name of Tenant]
Address: [Full address]
Telephone: [Telephone number]
E-mail: [E-mail address]

Hereinafter collectively referred to as the ” Parties ”

Preamble

The Parties hereby agree to enter into a lease of a precarious, derogatory or short-term nature, in accordance with their express wish not to be subject to the common law commercial lease regime, as provided for in the Civil Code of Québec, in particular articles 1851 to 2000 C.C.Q.

This lease is entered into for a limited and definite term, in a context where the Parties recognize the precariousness of occupancy of the premises and the absence of any right to maintain occupancy at the end of the agreed term.

The Parties also acknowledge that this lease constitutes an agreement distinct from any automatic or tacit renewal applicable to a regular commercial lease, and that it is strictly limited to the term stipulated in the contract, with no possibility of implicit renewal.

THEREFORE, the Parties agree as follows:

Section 2 – Body of the contract

Article 1 – Purpose of the lease

The purpose of the present contract is the temporary provision by the Landlord to the Tenant of a property located at the following address: [full address of the building]. The property is exclusively intended for [commercial/professional/other to be specified] use and may not, under any circumstances, be used for any other purpose without the prior written authorization of the Landlord.

The Tenant acknowledges having visited the rented premises, having found them fit for the agreed use and accepts them as they are, with no possible recourse against the Landlord for any apparent defects. The Lessor may not be held liable for any inconvenience resulting from the initial condition of the premises, the Tenant having expressly acknowledged the suitability of the property for his temporary needs.

Article 2 – Duration of the lease

The present lease is granted for a firm term of [term to be specified: e.g. three (3) months], commencing on [start date] and terminating by operation of law on [end date], without the need for any notice or formality whatsoever.

The Parties expressly agree that this term is non-renewable and that the Tenant waives any claim to continued occupancy at the end of this period. It is also understood that this lease does not constitute a commercial lease within the meaning of the Civil Code of Québec, and that it is a derogatory agreement entered into with full knowledge of the facts by the Parties.

Article 3 – Rent and terms of payment

The rent is fixed at the sum of [amount of rent in figures and letters], payable monthly in advance, on [indicate day] of each month, by [bank transfer, cheque, direct deposit, etc.], to the account indicated by the Landlord.

This amount includes [specify if applicable: charges, taxes, services, etc.]. Any delay in payment shall entail, without prior formal notice, the application of late payment interest of [interest rate] per day of delay, calculated from the day following the due date.

The Tenant acknowledges that the payment of rent is an essential obligation and that any breach of this obligation may result in the immediate termination of this lease, without prejudice to any other remedies available to the Landlord.

Article 4 – Security deposit

Upon signature of this lease, the Tenant shall pay the Landlord a security deposit in the amount of [amount in figures and letters], intended to guarantee full performance of its contractual obligations. This deposit shall not bear interest for the benefit of the Tenant.

The security deposit will be returned within thirty (30) days of the end of the lease, subject to the inventory of fixtures on departure and the absence of any debt or damage. Any sum due to the Lessor may be deducted from this deposit without prior formal notice.

Article 5 – Lessor’s obligations

The Lessor undertakes to provide the Tenant with peaceful enjoyment of the premises throughout the term of the lease, subject to the Tenant’s compliance with its own commitments. The Lessor guarantees that the property complies with the legal and regulatory standards in force at the time of taking possession.

The Landlord remains responsible for major repairs necessary for the preservation of the building, except in the event of fault or negligence on the part of the Tenant. It also undertakes not to disturb the temporary use of the premises by unjustified interventions or non-urgent work during the term of the lease.

Article 6 – Tenant’s obligations

The Tenant undertakes to use the premises in accordance with their intended purpose as specified in Article 1, and not to carry out any illegal, dangerous or public order-breaking activity. The Tenant must maintain the premises in good condition, carry out the usual repairs and ensure the cleanliness of the areas occupied.

The Tenant must also take out civil liability insurance covering rental risks, with proof of insurance provided to the Landlord on entering the premises. The Tenant may not assign or sublet the property without the express written consent of the Landlord.

Article 7 – Non-renewal and waiver clause

The Parties expressly agree that this contract constitutes a lease in derogation of the commercial lease regime, in accordance with the Parties’ common desire to derogate from the rules of the Civil Code of Québec applicable to commercial leases.

The Tenant acknowledges that it does not benefit from any right of renewal at the end of the stipulated term, nor from any commercial tenant status whatsoever. This clause constitutes an essential and determining element of this agreement.

Article 8 – Early termination

The lease may be terminated before its term by either party in the event of a serious breach of any of the contractual obligations, after formal notice has remained without effect for a period of ten (10) days.

The Lessor reserves the right to repossess the premises immediately in the event of non-payment of rent or improper use. Early termination does not exempt the Tenant from payment of sums due up to the effective date of termination.

Article 9 – Condition of the premises

An entry inventory of fixtures will be carried out by both parties on the date of taking possession. This inventory of fixtures must be signed by both Parties and appended to the present contract.

An exit inventory of fixtures will be carried out at the end of the lease. Any damage found and not noted in the entry inventory of fixtures may give rise to repairs at the Tenant’s expense, deducted from the security deposit or invoiced separately.

Article 10 – Miscellaneous provisions

Any notification required under the terms of the present contract must be made in writing and sent to the address appearing at the top of the present contract or to any other address subsequently communicated in writing.

The Parties elect domicile at their respective addresses for the performance of the present contract. If any provision of the lease is held to be invalid, the other provisions shall remain in force. This agreement shall be governed by the laws in force in the Province of Quebec, and any dispute shall be subject to the exclusive jurisdiction of the courts of the judicial district where the building is located.

Section 3 – Signature and formalities

Signature of Parties

Done at [City]on [date] .

The Lessor
Signature preceded by the words “Read and approved

The Tenant
Signature preceded by the words “Read and approved

Contract appendices

• Appendix 1 : Copy of the entry inventory of fixtures
• Appendix 2: Proof of Tenant’s civil liability insurance
• Appendix 3: The Landlord’s bank details for payment of rent
• Appendix 4: Photocopy of an identity document of the Parties

Practical advice for signing the lease

• Check the inventory of fixtures carefully: this document is crucial to avoid disputes at the end of the lease. Take dated photos if necessary.
• Keep a signed copy of the lease for each party. A lease signed electronically is also valid in Quebec, under certain conditions.
• Include a clause specifying how the keys are to be handed over at the end of the lease, whether by hand or by registered mail.

Conclusion

The precarious, derogatory or short-term lease is a flexible contractual solution, adapted to the specific needs of landlords and tenants seeking a temporary rental without the constraints of the classic commercial lease.

As demonstrated in this model, clarity on the respective obligations of the parties, precision on the limited, non-renewable duration, and explicit mention of the desire to derogate from the commercial lease regime are essential for this type of contract to be legally valid.

Key points to remember

• Precarious leases are not automatically renewable. It must have a firm term.
• It is reserved for exceptional or temporary situations (temporary occupation, business test, works).
• The parties must clearly express their intention to depart from the usual commercial lease regime.
• Imprecise wording can lead to the lease being reclassified as a commercial lease, with all the legal consequences that implies.

Practical example

An entrepreneur testing an ephemeral boutique concept for six months in premises on rue Sainte-Catherine can sign a short-term lease, provided the contract clearly stipulates that it is a derogatory lease giving no right to renewal.

Sources and legal references

• Civil Code of Quebec – Articles 1851 to 2000, relating to leases, available on LégisQuébec.
• Régie du logement du Québec (TAL ) – Official information on commercial leases: www.tal.gouv.qc.ca
• Barreau du Québec – Practical guides and advice on commercial leases: www.barreau.qc.ca

Professional tips

When entering into a precarious lease, keep all written exchanges related to the intention to enter into a derogatory lease. In the event of a dispute, these elements can demonstrate the shared intention not to be subject to the classic commercial lease regime.

A well-drafted model protects you as much as a good lawyer – but it doesn’t replace him or her. In case of doubt, don’t hesitate to consult a legal professional to ensure that your contract is in line with your specific situation.