Lock-in period
spandhan
(Querist) 09 February 2011
This query is : Resolved
hi freinds, i am in search for the basic concept and origin of "lock-in period" in the lease of a commercial properties and where can i get the principle for it. Can you please help me in finding solution for my problem...?
Advocate. Arunagiri
(Expert) 09 February 2011
Lock in period in the lease of commercial properties mean that during that period you can not vacate the premises. It is a legally valid clause.
Amit Minocha
(Expert) 10 February 2011
agree with ADV Mr Arunagiri
spandhan
(Querist) 10 February 2011
thanks for your replies for my query. but i want its origin. do we any principles or such which speak about the Lock in period.
Advocate. Arunagiri
(Expert) 10 February 2011
Lock in period is the condition imposed by the parties to the agreement. No principle is followed. Only the practice followed by the parties.
Mallik Karra
(Expert) 14 February 2011
@ Author
Minimum Lock-in period concept evolved as a result of economic downfall and surplus availability of the spaces.
the concept can be said to protect the interest of lessor as the initial Loc-in norms was one sided
Eg: The lesse cannot vacate the premises with-in 2 years of the leasehold agreement or to pay damages
This would imply that the lessor if he feels can ask the lessee to vacate the premises.
later the parties have started entering into the clause saying that neither party can come out the ageemeent with-in the minimum lock in period, this safeguards both parties interests and if both the parties want to come ot of it mutually that can be done.
The principle you are looking for is embibed in contract act, specific performance act etc. please refer the same
