Awg Novation Agreement

If the leasing process is taken a closer look at the lessee`s point of view, lessors of course recognise that it is often necessary for the lessee to order external legal assistance and generally undertake to reimburse these costs to the lessee, both in the transfer provisions of the lease and at the beginning of the novation process, after approval of an offer from the chosen law firm. During the lease negotiation phase, some tenants require that they receive an administrative fee for any lease changes to cover these internal costs. Many owners usually disagree and it is submitted that such an agreement is not the best way to deal with the problem. What do „fees” buy? Does the tenant charge the same fees to each landlord? If this is not the case, and the lessee is faced with several leasing novations, can lessors who pay a fee jump to the top of the queue and have their novations processed as a priority? The answer is probably „no”, because it is not possible from a commercial point of view. A better approach, if the transfer provisions of the lease allow the lessee to do so, is that the lessee requires that reasonable costs be reimbursed and, as long as these can be properly documented, the lessee could find ways to reimburse its internal time and management costs. For example, there may be part-time workers who are waiting to assist ad hoc with novation, whereas, to avoid a challenge from a lessor, there should be some time to maintain a system that proves how much of its time is spent on the corresponding leasing renovation. The question of whether a lessor would be willing to reimburse such costs to the lessee for commercial reasons is obviously on the agenda. The third principle is, especially when the parties to the transaction are represented by an external lawyer, to ensure that legal and commercial thinking are linked. The legal team`s knowledge of economic issues, such as.B. An airline`s legal department is undoubtedly a busy place even in the quietest times of the year: negotiations on new financing and leasing contracts, delivery of new aircraft, management of airport agreements, resolution of passenger rights, management of regulatory issues and choice of employment relationships. .

. .