Question
Essay QuestionReal Property Oscar owned a two-story building, and lived on the second floor. On January 1, Oscar leased the bottom floor of the building
Essay QuestionReal Property Oscar owned a two-story building, and lived on the second floor. On January 1, Oscar leased the bottom floor of the building to Tom, who intended to use it to operate a greeting card store. The lease was for a three-year term at a rental rate of $24,000 per year, payable in monthly installments of $2,000 per month. The lease contained a provision that subleases were not permitted"without the written consent of Oscar." Business at the greeting card store was not what Tom had hoped it would be, and so in July of the first year, Tom told Sally that he would sublease the premises to her. Tom and Sally signed an agreement whereby Sally would lease the space from Tom for the remaining period of the lease and for the same amount that Tom was paying to Oscar.Sally removed all of Tom's furnishings from the bottom floor and, at considerable expense, outfitted the property so that she could operate a bakery. Neither Tom nor Sally consulted Oscar about this arrangement or obtained his written consent. However, because he was living upstairs from the business, Oscar was aware of what was going on. As was the case with Tom, sales at Sally's bakery were not what she had hopedfor, and that October, Sally closed her bakery and abandoned the premises. While all rent had been paid up to that point, beginning November 1, neither Sally nor Tom paid any rent to Oscar. At the end of December, Oscar filed suit against Tom and Sally for the unpaid rent?
Who, if anyone, is liable to Oscar for the unpaid rent? Discuss.
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