The main rule and condition for terminating a contractual relationship is that there is a breach of the contract, but breach is not necessarily enough to invoke the right to terminate. Terminating a contractual relationship is usually a very intrusive action (especially in rental relationships), which is why a materiality requirement applies.
Since there are many statutory conditions that can give rise to termination, it is obvious to use the example in tenancy legislation, where there is statutory authority to terminate the relationship, for example in the event of default on payment, cf. section 93, subsection 1, letter a of the Tenancy Act. It is clear that default occurs when the tenant does not pay his rent. In other words, a clear basis for termination if the conditions are otherwise met, cf. section 93, subsection 2.5 – In addition, there is the aforementioned materiality requirement, as a supplement to the statutory termination power, namely section 94, subsection 1 of the Tenancy Act. If the tenant's default is of an insignificant nature, the landlord cannot terminate the lease agreement.
Taken together, this creates some problems in determining when the materiality requirement is met, since the assessment is left to discretion, e.g. in section 94(1) of the Tenancy Act. We have seen case law that a tenant could not be terminated because the non-payment of rent constituted a sufficiently small part of the rent due.
As a rule, it is relatively simple to terminate tenants who are in arrears with rent, but there are still formal requirements that must be met before this can be done. For example, the conditions in section 92, subsection 2 of the Tenancy Act must be met to the letter with a written demand, and also documentation that the demand has reached the tenant.
It is therefore a good idea to contact us, if you are in doubt about the procedure for terminating tenants who do not pay their rent, or perhaps only pay some of it, as it can be a slow process that can lead to large losses in rental revenue along the way. Therefore, contact lawyer (H) SContact Vasegaard Andreasen if you have problems with your tenant.
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