Igor Cvokic purchased Lorenzo's Pizza for $40 000. The purchase price included a lease of the premises
Question:
Igor Cvokic purchased Lorenzo's Pizza for $40 000. The purchase price included a lease of the premises for three years. The landlord was John Belisario. Unfortunately, Cvokic and Belisario did not get along, largely because of the unreasonable nature of the lease. (The lease, for example, did not provide the tenant with parking or storage space.) Following a series of disagreements, Cvokic (i) began an action against Belisario, alleging several breaches of contract, and (ii) advertised the business for sale. A potential buyer offered to purchase Lorenzo's Pizza for $27 000, but that sale was conditional upon the landlord's consent to an assignment of the lease. Belisario, however, refused to consent to the assignment unless Cvokic terminated his lawsuit. Because Cvokic refused to do so, the condition was not satisfied, and the potential buyer refused to complete the sale. Has Belisario done anything wrong? Identify and explain a common lease clause that would help Cvokic in this instance.
Step by Step Answer:
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0133847154
5th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer