Question
In the fall of 2001, Freddy town Property Management Co. rented a small office building in downtown Fredericton to Baker. The lease was for five
In the fall of 2001, Freddy town Property Management Co. rented a small office building in downtown Fredericton to Baker. The lease was for five years at a monthly rent of $3,000. In the spring of 2002, many buildings in the downtown of Fredericton had to be evacuated. The winter had been one of unusually heavy snowfall. As the snow melted, the water level of the river had risen to unexpectedly high levels. There was serious flooding in the downtown area. Although Baker's building was not yet flooded, it appeared to be only a matter of time.
In view of the risk of flooding, Freddytown Property Management Co. offered in writing to reduce Baker's rent to $2,000 per month. Baker agreed to stay in possession. Fortunately, the building did not flood and the river water eventually subsided. All of the buildings in the downtown were reoccupied.
In the summer of 2002, Freddytown Property Management Co. claimed arrears of rent of $1,000 for each of the months in which the rent was reduced.
Is the claim by Freddytown Property Management Co. likely to be successful? Explain.
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