The tenant (the business occupying the space) who signs a commercial lease agreement is generally expected to be a more savvy, sophisticated, and informed tenant (also known as a lessee) than a tenant in a residential lease, and the law usually does not provide a commercial tenant with the same protections as residential tenant receives.

Because the law does not provide a commercial tenant with many protections, it is up to the commercial tenant to read, understand, and negotiate protections in a proposed lease agreement before signing it, as most every paragraph in a commercial lease agreement can have a significant impact on a business’s operations and financial stability.

Laws vary from state to state, but a commercial landlord’s ability to shut off a tenant’s utilities is usually determined by the terms of the lease agreement and the state’s contract law—to determine, for example, if any breach of the lease agreement by the tenant was a material breach that might justify an extreme measure such as shutting off the utilities.

Contract law in most states recognizes an implied duty of good faith and fair dealing between parties to a contract, and a commercial landlord who shuts off a tenant’s utilities because the tenant is a few days late paying the rent may be in breach of the landlord’s implied duty of good faith and fair dealing.

In Montana, commercial tenants are indeed considered more sophisticated than residential tenants and are thus afforded fewer legal protections. The expectation is that a commercial tenant will thoroughly review and negotiate the terms of a lease agreement to secure their own interests. Unlike residential leases, which are heavily regulated to protect individual tenants, commercial leases are largely governed by the lease agreement itself and general contract law. In Montana, the landlord's ability to shut off utilities for a commercial tenant would typically be dictated by the lease agreement. If the lease does not explicitly allow for such action, doing so may be considered a breach of the implied covenant of good faith and fair dealing that exists in all contracts. This means that a landlord who takes such an extreme step without a material breach of the lease by the tenant (such as being a few days late on rent) could potentially be found in violation of this duty. Commercial tenants should seek the advice of an attorney to understand their rights and obligations under a commercial lease agreement in Montana.