Renewal in state lease contracts for commercial

Renewal of State Commercial Lease Agreements

Abstract

The possibility of applying the right of renewal in the state lease contract for commercial premises has been debated, by virtue of the regulatory integration provided for in the General Contracting Statute of the Public Administration, where the tenant is guaranteed with continuity of use and enjoyment of the leased commercial premises, as long as the requirements established in current regulations are met. The Council of State has maintained two theses that are disjunctive, on the one hand, the possibility of applying the renewal right provided for in the Colombian Commercial Code and, on the other, excluding said application due to oppose the planning principle.

 With the purpose of providing clarity regarding the application of the right of renewal in the terms previously stated, this article identifies some normative provisions, part of the jurisprudence of the Council of State and recent doctrine that deal with the right of renewal in the commercial premises lease contract, analyze the legal feasibility of applying it and its effects and, propose a series of criteria that allow defining whether renewal is applicable or not when the lessee party is a state entity subject to the General Statute of Public Administration Contracting.