Case: court acknowledged the validity of cancellation based on 2 months’ non-payment

Summary

  • Tokyo District Court acknowledged the validity of cancellation of building lease contract based on 2 months’ non-payment.

Parties of the Case

  • CTK Co., Ltd.(lender) vs. a Resident (tenant) and its joint sureties

Claims

  • Claim to surrender building based on cancellation of building lease contract

Location and Purpose of Use of the Building

  • A residence in Ota-ku, Tokyo

Rent

  • 158,000 yen per month

Circumstances

  • The tenant never paid the rent by the due date.
  • The joint surety paid the rent for 14 months upon demands from the lender, but he declared that he will not pay the rent anymore.
  • The lender cancelled the lease contract based on two months’ non-payment.
  • The court judged that particular circumstance does not exist that the non-payment does not dissolve the relationship of mutual trust between the parties of the lease agreement.

Comment

  • This is one of the cases that cancellation of building lease contract based on two months’ non-payment was acknowledged.