Question
Landlord and Tenant have a lease agreement stating that Tenant will pay $8,000 per month to lease Landlord's commercial space for five years. Tenant is
Landlord and Tenant have a lease agreement stating that Tenant will pay $8,000 per month to lease Landlord's commercial space for five years. Tenant is a restaurant, who struggles financially during the first year of business. Tenant wants to move locations but would breach the contract with Landlord by moving. Instead, Tenant renegotiates with the Landlord for a lower rental rate. Landlord agrees to accept $5,000 instead because he has had difficulty finding a business to fill the commercial space in the past and Tenant has made timely payments in the past. For the remaining four years of the lease, the parties perform according to the agreement. This is an example of which of the following?
Group of answer choices
This is a novation because the parties have created a new contract.
This is an example of rescission because the parties have mutually agreed to rescind the old contract.
This is an example of accord and satisfaction because the parties agreed to new terms.
This is an example of discharge by operation of law because Tenant was forced to avoid breaking the law by breaching.
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