Question
Harry Smith owns several commercial buildings that he leases, one of which is a warehouse. In Smith's leases (contracts), Smith requires that his tenants secure
Harry Smith owns several commercial buildings that he leases, one of which is a warehouse.
In Smith's leases (contracts), Smith requires that his tenants secure insurance policies to protect his ownership, but Smith agrees to keep his buildings in good repair.
Stan Ruppert is the lessee of the warehouse and owner of the warehouse business. Stan tells warehouse manager to purchase insurance, but the manager fails to purchase such.
Smith contracts with Joe Powers to perform any necessary maintenance for the buildings. Powers knows that the floor in the warehouse should be repaired, but he fails to so anything.
One day a customer, James Howst, is walking to his storage in the warehouse when he falls through a rotten floor and fractures his ankle. Howst then files suit against Smith, arguing that he is an intended third party beneficiary of the lease provision requiring insurance and thus can sue Smith for failing to enforce the lease (which requires the warehouse to carry insurance).
Using information in the textbook and reliable or credible legal sources from the Internet, answer the following questions:
- Can Smith delegate his duty to maintain the building to Powers? Why or why not?
- Was Howst an intended third party beneficiary of the lease between Smith and Ruppert? Why or why not?
cite your sources.
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