Question: 1.

The distinction between a commercial and a residential lease is that the residential leases are for
properties in the neighbourhoods that residential codes apply to the appearance and maintenance of
homes and properties while the commercial leases are for properties in areas zoned for the commercial
use and looser codes apply. Also, residential leases have a typical assumption that the property is for
individual house while commercial leases are for the specific portion of premises occupied with clauses
defining what is allowed in the property unlike the residential premises (Usinger, 2017). Lastly,
residential leases are sold as they are with changes done upon request by the tenant while commercial
leases are fixed to suit the tenants needs thus shared responsibility in making changes.In a commercial
lease agreement, the law does not practically protect the tenant in the arrangement with the landlord.
The inhabitant is more like an LLC or enterprise. Where the occupant is an entity the landlord will expect
an individual assurance from the tenant in case they neglect making regular scheduled instalments. This
is such that in any agreement entered into it is expected that each party fulfils whatever he/she signed
for in it.

Question: 2.

The commercial lease has stipulated that the tenant is responsible for all the repairs or remodelling or
improvements that are to be made at the expense of the tenant. It is however upon the parties to agree
further whether the cost of alterations and the improvements made are covered by the tenant or they
will in other cases be covered by the commercial tenant. This is except where the obligation of the
tenant are limited in respect to wear and tear and the landlord is as such accountable for such structural
repairs. However, the repairing and improvements should be reasonable such that it is appropriate from
the point of view of the tenant and this will depend on a number of factors such as the length of the
lease or the type and age of the property and more so the negotiable positions as between the landlord
and the tenant on what repairs ought to be reasonably done and which are to be exempted. This is
especially important because in any case of termination of lease it is risk to the landlord unless the
circumstances are compelling as the courts will most times grant relief to the tenant for forfeiture and
award damages to the tenant if lease was terminated with no sufficient cause (Lexology.com).

Question: 3

The duty to mitigate operates in denial of the recovery of any part of the damages which could be
reasonably avoided and this implies the things a reasonable person could do on under a similar situation
such that an innocent party is not expected to put in so much efforts to avoid losses from the breach of
an agreement. Thus, it can be explained such that the landlord has the duty to mitigate the damages
where the tenant breaches the lease, for example, the landlord could possibly find another tenant to
occupy the property rather than letting it idle for several years while suing the old tenant. The best
practice that the landlords should adopt is relying less on the lease agreement and more on the
screening skills upon the tenant such that they make it a priority to ensure the tenants have a good
rental history so that there is no or minimal possibility of default. Fulfilling the duty to mitigate can be
achieved through the landlord making reasonable effort in mitigating the damages which would
probably include the advertisement of the availability or engaging services of a broker whose efforts are
shown to the breaching tenant of the failure.

Question: 4.
Both the landlord and the tenant have their rights when it comes to the aspect of security deposits that
comes with the rental agreement and which might be refundable or non-refundable. The rights tend to
favour the landlord since they protect the party in situations where the tenant has broken or violated
the terms of the lease or rental agreement. This amount serves to cover for the damage to the property,
or also in cleaning, back rent or key replacement. It is somehow appropriate since it seeks to protect the
landlord from the damages that may be suffered from the tenant while in occupation. However, the
tenant’s security deposit cannot be used in payment of the last month’s rent not unless the landlord has
agreed to it and allows it. More so, there are limits that are used in regulating the amount of security
deposit and this depends on the various landlords and the nature of the property. The cases for return
of security deposit can be pursued and which cannot be generally be dealt with in cases of eviction or
when possession of property is still an issue. In case the deposit is non-refundable the landlord has the
right to explain to the tenant why it has to be so or if there have to be deductions.

Question: 5.

There are so many advantages and select few disadvantages associated with having the provision of
mediation and arbitration in place of litigation. First, it is notable that the processes compared to
litigation take less time to come up with solution. It is also evident that the mediation and arbitration
processes require minimal costs and there is flexibility when it comes to making choices in the rules that
are to be applied during the dispute depending on the circumstance. Arbitration also operates such that
the arbitrator is a person who has expertise in the relevant field as opposed to in a trial where the judge
cannot understand the technical issues addressed and has to seek expert advice before making a
determination (ccbjournal.com). The disadvantage is that there are limited opportunities for the judicial
review of the decision made by the arbitrator or the mediator

Selection of the mediators or the arbitrators usually depends on the agreement such that it provides on
how they will be selected and the provisions must be followed. Both parties must agree to the arbitrator
or mediator to run the process or each side may be allowed to appoint one from their side and the two
may select a third person so as to form a panel (Reid & Limbrick, 2016). The mediator or arbitrator are
expected to have some legal background and may be law experts for convenience, and the choice is a
duty which can be handled by any court system.

Question: 6.

Most times the making of a lease agreement in establishing a contract tends to be in such a way that to
oppresses the tenant. The leverage is more typically structured to be with the landlord. This is
commonly seen with the residential leases, despite the fact that it may also be seen to be applicable in
the commercial leases as well. The tenant in a business is not in any position which may hold the power
more often and then puts him/her in a situation that one can be taken advantage of most times whether
intentionally or it may occur unintentionally. A biblical worldview guide would direct the agreement
such that the landlord would be expected to make sure that the lease is carried out fairly and in a level
manner. This can be addressed by moderating areas such as when it comes to the price and the modes
of payment in timely manner which can take a biblical culture which will ensure that the tenant will
receive fair wording which was the intention in accordance to the ethical practices. This is such as we
see in the Bible where God shows generosity to his people, grace and also fairness where necessary. The
landlord should also be lenient in situations where the tenant has breached or is unable to meet the
requirements.