You might think…

“I’ll just send them an email saying I’m done – and that’s it.”
Not so fast. Commercial leases follow different rules than residential ones. It’s not enough to just “announce” it – you must comply with the form, deadlines, and conditions set by the contract and the law.

Clients often ask me…

“Can I leave immediately if I don’t like the conditions?”
“What if the landlord breaches the contract – can I terminate right away?”
“Will I face a penalty if I leave early?”

I explain that business leases are more flexible than residential ones, but they have firm rules. It doesn’t just matter whether the lease is fixed-term or open-ended – the key is the termination provisions, handover arrangements, and any contractual penalties.

What the law says

Leases of premises for business purposes (§ 2302 et seq. of the Czech Civil Code) have different rules than residential leases:

• Indefinite term: Can be terminated with six months’ notice, unless the contract states otherwise.

• Fixed term: Can only be terminated for reasons set out in the contract or by law (e.g., material breach of obligations, inability to use the premises).

• Immediate termination: Possible in cases of gross breach of contract by the other party or if the premises become unusable for the agreed purpose.

• Form: Termination must be in writing and delivered – ideally with proof.

Common risks and mistakes

• Not reading the contract – notice periods and termination grounds may differ.

• Early termination without legal grounds – can lead to a claim for lost profits or contractual penalties.

• No handover protocol – without it, disputes may arise about the condition of the premises and the return of the deposit.

• Failure to comply with form requirements – oral or unprovable notices are risky.

Step-by-step procedure

1. Review the contract – especially the termination, notice, and penalty clauses.

2. Assess the reason for termination – whether it’s a legal/contractual reason or just regular notice.

3. Prepare a written notice – clearly stating the reason (if required) and the termination date.

4. Deliver it with proof – in person with acknowledgment or by registered mail.

5. Arrange the handover – sign a protocol, document the condition of the premises.

6. Settle all obligations – rent, utilities, services, any repairs.

Real-life example

A client ran a café under a three-year contract. After one year, they wanted to leave due to declining foot traffic. The contract allowed termination only for landlord breaches. After review, we found provable electrical faults that the landlord refused to fix. We issued an immediate termination – no penalty, and the full deposit was returned.

Why not to do a “DIY termination”

A casually written notice without legal support can result in the lease not ending while you stop paying – creating debt, interest, and possible legal action. Professional drafting can save you tens of thousands.

Lawyer’s recommendations – checklist

✅ Always review the contract before giving notice
✅ Ensure you have legal grounds (for fixed-term leases)
✅ Always write and deliver notice with proof
✅ Document everything during handover
✅ Settle all obligations and claim your deposit back

FAQ

Can I terminate a commercial lease without giving a reason?
Yes, for indefinite-term leases with the statutory notice period – unless the contract states otherwise.

What if the landlord breaches the contract?
You can terminate immediately if it’s a material breach.

Can the landlord charge a penalty for early termination?
Yes, if the contract allows – which is why reviewing it is essential.