A poorly drafted contract can be a negative sentence for your business. In Nicaragua, notarial errors are more common than you think and can cost you thousands of dollars in losses, relocations or legal disputes.
The 5 most common mistakes in lease agreements and promises of sale are:
❌ Open-ended renewal clauses: The landlord can change the terms without limit, affecting the stability of your operations.
❌ No specification of improvements: Investments in the property may not be recognized or compensated.
❌ Omission of grounds for termination: Any minor breach can be used to terminate the contract.
❌ Inconsistencies in identifying the parties: If the person signing is not the legal owner, the contract may be declared void.
❌ Lack of notarial formalization: Without a public deed, the contract cannot be enforced against third parties.
📋 A real case
A company with 5 years of operations in leased premises faced a 40% increase in rent at renewal. The contract did not establish a clear review mechanism. The company could not negotiate. They had to relocate their operations, with losses exceeding $10,000 in moving, fit-out and advertising.
⚖️ At D'IMPACTO, S.A.
We advise business owners, merchants and the general public on drafting, reviewing and validating lease agreements and promises of sale, ensuring every clause protects your interests and meets Nicaragua's legal requirements.
Need professional advice?
At D´IMPACTO, S.A. we support you with tailored solutions. Contact us at +505 8645 4114 | +505 2772 4953 or write to us at atencionalcliente@dimpacto.com.ni.
