Onerous contract

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January 26, 2021 at 1:28 pm #608099
Noah098
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sir how can a tenant have an onerous rental contract?
January 26, 2021 at 2:02 pm #608111
John Moffat
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Any conditions in the contract might prove onerous.
For instance, the contract may forbid certain types of working to be carried out in the building. If the tenant is a company and wants to carry out the kind of working forbidden, then this will be onerous for them.
January 26, 2021 at 5:04 pm #608137
Noah098
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i totally get you sir. But somehow am a little flustered still. I don’t if its because i encountered this thing sometime in some past paper or what, but i have always thought of onerous contract as a loss making contract. So, is this anyway different from that? Or that my earlier belief was only wrong?
January 27, 2021 at 9:15 am #608200
John Moffat
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Onerous means troublesome. That does not mean loss-making – all sorts of conditions in the contract could be troublesome without necessarily resulting in losing money.
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