Landlord v. Tenant: Breach of Lease Covenant to Operate Business

A building owner who was leasing commercial premises sought to terminate the lease, claiming the tenant had violated a clause requiring them to operate the business from the premises, when in fact the tenant had merely sublet the premises to a third party who was conducting the intended business activity. The court of appeal upheld the termination, finding the sublease constituted a breach of the obligation to operate the business personally. The highest court, however, quashed the decision, reasoning that the mere subletting of the premises, where the intended commercial activity continued to be performed by the subtenant, did not violate the clause requiring the original tenant to operate the business, as the clause only obligated the tenant to ensure the activity occurred, not necessarily that they personally carry it out.