A landlord let an office unit to a tenant for two years at RMB 11,000 per month, payable quarterly in advance, with a deposit of one month’s rent. The inventory annexes were left blank, and the tenant took possession and the keys.

Issues

Whether the landlord delivered the premises and equipment in the condition required; whether the tenant’s withholding of rent was justified; and the treatment of the deposit on termination.

Outcome

Luo Mengxuan acted for the landlord. The court held that the tenant had accepted the premises and could not rely on the blank inventory to resist payment, ordered the arrears and confirmed the landlord’s right to retain the deposit for breach.

Note

Blank annexes are the most common defect in Chinese commercial leases. Completing the inventory at handover protects both sides.