Board Resolution for Cancellation of Lease Agreement: Everything You Need to Know

A board resolution is a written statement passed by the board of a company or organization to document a decision-making process. A board resolution for the cancellation of a lease agreement is a formal document that is used to terminate an existing lease agreement between the landlord and tenant. Although this process can be complex and challenging, it is critical to have an accurate and well-crafted resolution to avoid any legal and financial problems.

This article will guide you through the essential steps involved in creating a board resolution for the cancellation of a lease agreement.

1. Review the lease agreement.

The first step you need to take before cancelling a lease agreement is to review the terms and conditions of the lease agreement. This will help you to understand the rights and obligations of both the landlord and tenant and whether there is a clause that allows for early termination. If there is no such clause, you may need to negotiate with the tenant or seek legal advice.

2. Schedule a board meeting.

Once you have reviewed the lease agreement and determined that there is a need to cancel it, you need to schedule a board meeting. The board meeting is where you will present the proposal to cancel the lease agreement, and the board members will vote on it.

3. Draft the board resolution.

The board resolution should be drafted in writing and presented at the board meeting. It should detail the reason for the cancellation and any pertinent details. It should also include the names of the board members who support the resolution. The resolution should be clear, concise, and in formal language that is easy to understand.

4. Vote on the board resolution.

At the board meeting, you will present the board resolution and the board members will vote on it. A simple majority vote is required to pass the resolution. Once it is passed, the board resolution is final, and you can proceed with the cancellation of the lease agreement.

5. Notify the tenant.

After the board resolution has been passed, you need to notify the tenant of the cancellation. You should provide a copy of the board resolution and inform the tenant of any other steps they need to take.

6. Negotiate the terms of the cancellation.

If the tenant is willing to negotiate the cancellation of the lease agreement, you should discuss the terms and conditions with them. This could include a payment for early termination or other considerations.

7. Cancel the lease agreement.

Once the terms of the cancellation have been agreed upon, you can cancel the lease agreement. This usually involves the tenant returning the property, and the landlord returning any security deposit.


A board resolution for the cancellation of a lease agreement is an essential document that outlines the decision-making process and ensures that the rights and obligations of both parties are respected. By following the steps above, you can create a well-crafted and professional board resolution that will help you to manage any legal and financial concerns that may arise. Remember to always seek legal advice if you are unsure of any aspect of the process.