lease

How Poor Lease Documentation Cost a Landlord Millions – And How You Can Avoid the Same Mistake

When Mr. Ade rented out his three-bedroom apartment in Lekki to Lekan Olunade. He trusted his tenant’s word over a formal lease agreement. A simple handshake sealed the deal—no formal Tenancy agreement, no written terms, just a verbal understanding.

Fast forward two years, and he found himself locked in a legal battle. The tenant refused to vacate, claimed he had “rights” to the property, and because there was no solid lease document, Mr. Ade had no legal ground to stand on. The case dragged on for months, costing him lost rent and legal fees running into millions.

Don’t be like Mr. Ade. Properly documenting a property lease isn’t just paperwork—it’s your financial security. Here’s how to do it right.

Get Everything in Writing – No Assumptions

A lease agreement isn’t just a formality—it’s a contract that defines your rights and protects your property. Ensure it covers:
✅ Who the parties are (full legal names)
✅ Property details (address, condition, and permitted use)
✅ Rent structure (amount, due date, payment terms)
✅ Security deposit (amount, conditions for deductions and refunds)
✅ Exit strategy (lease renewal, termination, eviction process)

Verify Before You Sign the Lease

A bad tenant can cost you more than an empty property. Always:
✔️ Request valid ID and proof of income
✔️ Check rental history and references
✔️ Conduct a background check

Document the Property’s Condition before the Transaction

Before handing over the keys, take clear photos and have both parties sign a checklist of the property’s state—this protects you from disputes over damages.

Sign, Seal, and Store the Tenancy agreement properly

Have both parties sign and keep copies of the lease. If required by law, get it notarized or registered. Also, store all payment receipts and communication records—these could save you in court.

Make It Legal, Make It Foolproof

A handshake won’t hold up in court, but a well-drafted lease agreement will. Protect your property, your finances, and your peace of mind—document your lease the right way.

Want a rock-solid lease agreement? Talk to us today.

duress

Economic Duress

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Duress can be described as an illegal threat or intimidation that induces another person to perform actions that he would otherwise not perform.

Initially, the doctrine of duress was limited to actual or imminent violence. Over the years, this theory has grown to include different types of hardship. These include economic hardship, the threat to seize or detain goods, the threat to land, and the threat to trade or industry.

Generally, a contract can be voided by one of the parties on grounds of Duress, undue, influence and unconscionable dealing. This is because his/her consent was obtained by conduct which the law considers unacceptable. As a result, the law presumes that there is no valid consensus, which would form a valid contract.

Economic Duress

Economic duress in contracts occurs where a party to a contract threatens to cancel a contract unless the other party agrees to their demands. This usually happens when the other party is stuck, and has no other practical options but to agree to the new terms of the contract. If you can prove you were forced into a contract through economic pressure, you can claim that you did not enter the contract on your free will.

 It is an established law that economic pressure can in law amount to duress. This duress, if proved, does not only render the transaction voidable. It may also be actionable as a tort, if it causes damage or loss. In other words, you are under duress when you have no choice, forcing you to agree to another party’s terms.

In Pao On v. Lau Yiu Long, the courts observed that the basis of duress does not merely depend upon the absence of consent. It requires the combination of pressure and absence of practical choice. In this context, two questions become all-important. The first is whether the pressure or threat is legitimate; and secondly, its effect on the victim.

To establish economic duress, you need to prove two universally accepted elements. These are, the exertion of illegitimate pressure by one party on the other; and significant causation i.e. a significant cause compelling or pressurizing the other party to act as he did.

A History of Insolvency Law

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Early insolvency law was dominated by punitive approaches and it was not until the early eighteenth century that notions of rehabilitation gained force. Insolvency was seen as an offence little less criminal than a felony and was punishable by detention in person at the creditor’s pleasure in debtors prisons. The prevalent view was that it was not justifiable for any person other than a trader to ‘encumber himself with debts of any considerable value’

Prior to this revolution, common law offered no collective procedure for administering an insolvent’s estate. A creditor could seize either the body of a debtor or his effects – but not both. Creditors, moreover, had to act individually, there being no machinery for sharing expenses.

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The idea that creditors might act collectively was recognised in 1542 with the enactment of the first English Bankruptcy Act which dealt with absconding debtors and empowered any aggrieved party to seize the debtor’s property, sell it and distribute the proceeds among other creditors ‘according to the quantity of their debts.

During the 19th century, attitudes towards trade credit and risk of default changed. This was due to the rise of joint stock companies and the resulting de-personalisation of business and credit.

The key statute was the Joint Stock Companies Act 1844 which established the company as a distinct legal entity, although it retained unlimited liability for the shareholders. the modern limited liability company emerged in 1855, to be followed seven years later by the first modern company law statute containing detailed winding-up provisions.

The House of Lords in Salomon’s case confirmed that a duly formed company was a separate legal person from its members and that consequently even a one-man company’s debts were self contained and distinct. However, every insolvent business went into liquidation or receivership automatically. It was the kiss of death for them and the creator of unemployment.

Plunging into Bankruptcy - Financial Speedometer

An insolvency system was later created to administer the range of new procedures be introduced as alternatives to outright bankruptcy or winding up, which would deal with individual cases on their merits. These involved recommendations that private insolvency practitioners should be professionally regulated to ensure adequate standards of competence and integrity; that creditors be given a greater voice in the choice of the liquidator; and that new penalties and constraints be placed on errant directors. This represented a movement towards stricter control of errant directors but also in favour of an increasing emphasis on rehabilitation of the company.

The rationale behind the culture of business rescues was expressed by Sir Kenneth Cork as follows: “When a business becomes insolvent it provides an occasion for a change of ownership from incompetent hands to people who not only have the wherewithal but also hopefully the competence, the imagination and the energy to save the business”.

The current attitude towards insolvency is to carry out much more work on corporate problems before any insolvency procedure is entered into. This places a new emphasis on managing insolvency risks proactively rather than after troubles have become crises.

In this series, we will explore the life cycle of insolvency from financial distress and default, to corporate failure and business rescue. We will also investigate different approaches to managing insolvency, along with their strengths and weaknesses.