Is a clause in a commercial contract that states that a tenant is liable for future damages for unpaid rent payable before the tenant vacates the leased premises?

Ontario, Canada


The following excerpt is from 1100 Walkers Line v. Elliott Sports Medicine, 2021 ONSC 5067 (CanLII):

In York University v. Healthlink, supra, at para 5, Juriansz J. (as he then was) pointed out, with respect to a similarly drafted clause, that the wording applies to rental arrears, but not to damages for future rental income. Thus, to the extent that the claim encompasses unpaid rent from prior to a tenant’s vacating the leased premises, the interest rate and administrative fee imposed by a clause like this would apply, but to the extent that the claim encompasses unpaid future rent the stipulated interest rate and administrative fee does not apply.

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