Janet, a commercial tenant in Toronto, holds a lease for a retail unit that explicitly states, 'The tenant shall not assign or sublet the whole or any part of the leased premises without the prior written consent of the landlord, which consent may be arbitrarily withheld.' Janet wants to sublet a portion of her space to a new startup. What is the landlord's position regarding Janet's request?

Question: Janet, a commercial tenant in Toronto, holds a lease for a retail unit that explicitly states, 'The tenant shall not assign or sublet the whole or any part of the leased premises without the prior written consent of the landlord, which consent may be arbitrarily withheld.' Janet wants to sublet a portion of her space to a new startup. What is the landlord's position regarding Janet's request?

Answer options:

• The landlord cannot unreasonably withhold consent, despite the clause. ✅ The landlord can refuse consent for any reason, even if arbitrary.
• The landlord must consent if the new startup meets standard tenant criteria.
• The Residential Tenancies Act, 2006, allows Janet to sublet without consent after 30 days notice.

Correct answer: The landlord can refuse consent for any reason, even if arbitrary.

Explanation: In a commercial lease, if the clause explicitly states that consent to assign or sublet may be arbitrarily withheld, the landlord has the right to refuse for any reason, unlike residential tenancies or commercial leases without such a specific arbitrary clause.