• Explain the components of contract law.

Instructions

Your employer is the owner of a building used for the manufacturing of light industrial equipment. They would like you to create a first draft lease agreement between themselves and another business that would like to lease their building. After you create this first draft, it will be evaluated by outside legal counsel.

Lease Details

• The owner of the building is ABC Property Management
• the lessee of the building will be XYZ Drone Manufacturing
• the building is located at 2346 Industrial Dr. Anytown WI
• the cost is $2000 per month, payable at the beginning of the month
• there is no down payment or safety deposit
• the lessee is responsible for any damage to the structure during the course of their lease
• the lease will be for three years
• the lessee is responsible for the provision of all utilities, including any buildout necessary for their provision
• the lessor is responsible for all routine maintenance
• the lessor has insurance covering the building itself
• the lessee is responsible for any insurance on the contents of the building
• the lessee is responsible for any claims related to activities performed in the building
• the lessee cannot substantially change the type of manufacturing occurring during the term of the lease
• the lessee must not create, use or store any hazardous materials
• the lease will automatically renew at the end of its term without written notice of termination
• the automatic renewal will include an increase in the price of 3%

Find a boilerplate lease agreement that fits this general fact pattern.

Create a first draft of the lease to present to your employer.

Submit

Word Document containing:

• Lease Agreement including the details presented above
• A separate list of comments, concerns or questions that you would ask your employer and outside legal counsel during the initial review of this lease.