Case008: court denied the validity of cancellation based on 2 months’ non-payment but acknowledged that based on 3 months’ non-payment

Summary

  • Tokyo District Court denied the validity of cancellation of building lease contract based on 2 months’ non-payment but acknowledged that based on 3 months’ non-payment.

Parties of the Case

  • Housing Supply Corporation (lender) vs. an individual tenant (tenant)

Claims

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

Location and Purpose of Use of the Building

  • One room of a building for dwelling in Tokyo

Rent

  • Uncertain

Circumstances

  • As the tenant did not pay the rent for two months, the lender demanded to pay two-months’ unpaid rent within 11 day. As the tenant did not pay them, the lender cancelled the lease agreement.
  • As the tenant did not pay the rent for another one month, the lender cancelled the lease agreement based on a clause of the lease agreement that allows the lender to cancel the contract based on three months’ non-payment without demanding the unpaid rent.
  • The court judged that 2 months’ arrearage is not enough to dissolve the relationship of mutual trust between the lessor and the tenant and denied the validity of cancellation based on 2 months’ non-payment.
  • However, the court acknowledged the validity of cancellation based on 3 months’ non-payment.

Comment

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