Wilson Hum leased a commercial property to Frank Mosher for use as a pizzeria. The parties' agreement
Question:
Wilson Hum leased a commercial property to Frank Mosher for use as a pizzeria. The parties' agreement contained three important provisions:
- During the term of the lease, the tenant shall not sell, assign, or sublet or part with possession of the said premises or any part thereof without the written consent of the landlord. Such consent shall not be unreasonably withheld.
- During the term of this lease, the tenant shall keep the premises in good repair, both interior and exterior. Damage by fire or other circumstances beyond the tenant's control is excepted.
- This lease shall be for a fixed term of five years. Annual rent of $30 000 shall be paid in equal monthly instalments.
Frank operated the pizzeria for two years, but he soon tired of the business. However, his friend Janine Gallant indicated that she would be willing to take control of the business for the three years remaining under the lease. Frank wrote to Wilson to seek consent for an assignment of the lease. At the same time, he provided documentation that established that Janine had good credit and was experienced in the food sales industry. Although Wilson simply ignored the request, Frank proceeded to assign his interest under the original lease to Janine. Unfortunately, for reasons that were completely unforeseeable at the time of the assignment, Janine's personal life fell into turmoil. As a result, she totally lost interest in the pizzeria. She failed to pay the rent and she allowed the property to fall into very poor condition. By the time that Wilson discovered that state of affairs, Janine had become destitute. She had no assets and was clearly not worth suing. Wilson therefore insists that Frank is responsible for paying the overdue rent and for the cost of repairing the premises. Do paragraphs (b) and (c) of the lease still apply to Frank? Explain your answer.
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