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 Oregon, commercial tenants are indeed considered more sophisticated than residential tenants and are thus afforded fewer legal protections under the law. The expectation is that a commercial tenant will thoroughly review and negotiate the terms of a commercial lease agreement to secure their own protections, as the lease can significantly affect their business operations and financial health. Oregon's contract law, which includes the implied duty of good faith and fair dealing, applies to commercial leases. This means that while a commercial landlord's ability to shut off a tenant's utilities for breach of the lease is typically governed by the lease terms, such actions must align with the duty of good faith and fair dealing. If a landlord were to shut off utilities for a minor lease violation, such as being a few days late on rent, this could potentially be seen as a breach of that duty. Commercial tenants facing such issues may need to consult with an attorney to explore their legal options.