A business that leases real estate and improvements (buildings, etc.) in the form of space for offices, a warehouse, a restaurant, a nail or hair salon, a clothing store, a coffee shop, or other commercial (nonresidential) space will usually be required to sign a written contract known as a commercial lease agreement.

If the tenant (the business occupying the space) who signs a commercial lease agreement fails to pay the rent on time, the landlord may have the right to charge late fees, terminate the lease, and lock the commercial tenant out of the space by changing the locks.

A commercial landlord’s ability to charge late fees generally depends on the specific language in the written lease agreement and the state's contract law.

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 charges late fees because the tenant is an hour late paying the rent may be in breach of the landlord’s implied duty of good faith and fair dealing—unless, for example, the lease agreement specifies an hour (12:00 p.m.) of the day by which rent is due and states that time is of the essence.

In South Carolina, a business that leases commercial space such as offices, warehouses, or retail stores will typically enter into a commercial lease agreement. This written contract outlines the terms and conditions of the lease, including the payment of rent. If a tenant fails to pay rent on time, the landlord may impose late fees, terminate the lease, or even lock the tenant out, depending on the provisions of the lease agreement. South Carolina law allows landlords to charge late fees as long as they are reasonable and stipulated in the lease. The state's contract law also includes an implied duty of good faith and fair dealing, which requires both parties to act honestly and fairly in the execution of the contract. A landlord who excessively charges late fees or acts in a manner that violates this duty may be found in breach of contract. It is important for both landlords and tenants to understand the specific terms of their lease agreement and to seek advice from an attorney if there are any disputes or uncertainties regarding their rights and obligations.