Legal Consequences of Over Contract in Commercial Property Lease Agreements and Third-Party Protection
Abstract
Over contract practices in commercial property lease agreements create legal uncertainty when a tenant transfers control of a leased shophouse to a third party without the owner's consent. This study analyzes the legal consequences for the tenant and the legal protection available to the third party. Its contribution lies in integrating lease breach, unauthorized lease transfer, and third-party protection, which are often treated separately in commercial property disputes. This study applies an empirical juridical method with statutory, conceptual, and case approaches. Primary data were obtained through interviews with the owner, tenant, and notary, while secondary data were collected from legislation, legal doctrines, and relevant literature. The findings show that over contract constitutes a breach of contract because the tenant was unable to pay rent independently and later used funds obtained from a third-party transaction and transferred lease rights without permission. Financial difficulty cannot be classified as force majeure because it is a business risk. The owner may terminate the agreement and claim damages. Although the third party has no direct legal relationship with the owner under the original lease, legal protection may be pursued through non-litigation settlement, direct negotiation, and a new notarized lease agreement. Thus, over contract requires clearer clauses, due diligence, and formal legal documentation.
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References
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