Review the below with the following criteria; How realistic is your assessment of the issue and the advice given? Has the legal issue(s) been correctly identified, including with reference to the relevant facts? Is the advice given in an easy-to-understand, practical manner, with clear action items and recommendations that the board can act on? Would the advice solve the problem at hand?

FACTS

You are the CEO of a large commercial real estate company, VAN Co., which is based in Vancouver, BC. VAN Co. buys and builds commercial real estate, but most of their business involves leasing office and retail space. VAN Co. has completed more than 30,000 leasing transactions since its incorporation in 2003.

THE DIVIDE INC.

The Divide Inc. ("The Divide") operates a retail clothing store from leased premises at 555 Waterfront Street in downtown Vancouver. The original lease for the store was entered into in 2004 between The Divide and VAN Co. The most recent lease agreement was entered into on December 1, 2014. The lease term ends on December 1, 2024. One of VAN Co.'s employees, Ashley Jansen, is the property manager for 555 Waterfront Street.

THE RIOT

On October 10, 2023, a riot broke out following a particularly disappointing loss for the Vancouver Whitecaps. The riot spread across downtown Vancouver with rioters overturning vehicles, setting fire to garbage cans, smashing storefront windows, looting, etc. The riot zone included Waterfront Street. The Divide's windows were smashed, and the external walls of the building as well as inside the store were vandalized. Rioters looted the store and caused significant damage to its display furniture and products.

As a result of the riot, The Divide shut down its Waterfront Street store. It anticipates being able to reopen the store in about one month. They have not paid rent for the months of November 2023 to March 2024. The Divide's arrears of rent total $500,000. The Divide says that they should not have to pay the arrears because of the riot. The damage from the riot significantly impeded their ability to operate their business to the point where it was no longer commercially viable for them to do so.

The most recent lease agreement between The Divide and VAN Co. contains the following term:

The Premises may be used for any retail purpose or purposes. The Tenant shall have no obligation to operate any business nor conduct any business nor conduct any use in the premises either initially or at any time during the terms of this lease. ...

The CEO of The Divide has asked for a meeting with Ashley to talk about the arrears of rent. Ashley has told you all the facts and would like your advice on what she should do.

FOR THIS ASSIGNMENT

Compose an email as the CEO of VAN Co. to Ashley setting out what you think the overall issues and risks are and the approach to take in the meeting with The Divide. Your email should answer the following questions at a minimum:

Will VAN Co. be successful if it sues The Divide for payment of the arrears of rent?

How should Ashley approach the meeting with the CEO of the Divide?

Is there anything VAN Co. should do to prevent something similar from happening in the future?