Question
Are you able to assist with issues& laws/rules related (IRAC)? Christian has been operating a bakery/coffee business called YumYums 2 U (YY2u) which went well
Are you able to assist with issues& laws/rules related (IRAC)?
Christian has been operating a bakery/coffee business called YumYums 2 U (YY2u) which went well for the first year, slowed down by 20% for the second but hit a major downturn in year 3.
The contract has 2 years, 1 month remaining on a five-year lease.
Business dropped off substantially in March-June 2020 due to COVID-19 restrictions,
Business has picked up a bit in June but it is expected this downturn will run for another two months before things return to normal levels of operation.
Christian discussed this with his landlord, LL, and explained he was concerned he might have to close up shop permanently if business didn't improve. LL responded: 'Not to worry. We can drop your rent by 40% until the end of your lease to make up for the hassles and you can run some specials.
You are a good tenant; I have no desire to see you go out of business or risk losing your tenancy." Christian told LL that was great and he would, as suggested, immediately run a couple of weeks of 2 for 1 product specials.
He proceeded to run the specials and business went back to year 2 levels at the end of June.
Christian received an email (on 10 July 2020) from LL indicating LL intends to put the rent back up in September to the prior level in line with the contract (which still has another 2 years and 1 month to run until the end of its five years). Christian tells LL he does not want to pay the full rent again and is enjoying the extra money in his pocket from the 40% discount LL gave him. LL responds by telling Christian the discount will end in September and LL says he is thinking about claiming back the 40% discount in rent, backdated to June.
Thanks
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