McKenna leases ten thousand square feet of space in Midtown Lofts to Home Gallery, an interior design
Question:
McKenna leases ten thousand square feet of space in Midtown Lofts to Home Gallery, an interior design firm, for a five-year term. Less than two years into the term, Home Gallery ceases doing business. Without McKenna’s consent, Home Gallery assigns its lease to Cloud Cover, a small server farm. Cloud Cover pays rent to McKenna, who accepts it. With eight months left in the original lease term, Cloud Cover abandons the premises. Before the term expires, McKenna unsuccessfully attempts to re-lease the premises.
Can McKenna recover the unpaid rent from Home Gallery? Yes. The tenant’s transfer of the entire interest in the leased property to a third party is an assignment of the lease. Many leases require that an assignment have the landlord’s ______________, and without it, the assignment can be ______________. But a landlord who knowingly accepts rent from the assignee will be held to have waived the requirement. A tenant’s ______________ on a lease do not end on an assignment. If the assignee fails to pay the rent, the ______________ ______________ is required to pay it. In some jurisdictions, the landlord is required to mitigate the damages on a tenant’s abandonment of the leased premises. McKenna made the attempt, but it proved to be unsuccessful.
Step by Step Answer:
Business Law Text And Exercises
ISBN: 9780357717417
10th Edition
Authors: Roger LeRoy Miller, William E. Hollowell