Question
The Flying Saucer Company owns a large commercial building that they lease to Total Corp.Total Corp. then sublets the space to a tenant.In this case,
The Flying Saucer Company owns a large commercial building that they lease to Total Corp.Total Corp. then sublets the space to a tenant.In this case, Ted Wear Ltd is the tenant. Ted Wear Ltd was subleasing the space for only a few months when they vacated without paying any rent. Total Corp did not pay the Flying Saucer Company either.Flying Saucer Company wanted their rent and so started legal proceedings against Total Corp.to get compensation as per the lease. Shortly it was discovered that Total Corp. had no assets and could not pay. In response, Flying Saucer Company then tried to obtain the rent that was owed by looking to the only shareholder of Total Corp. namely Mrs. Meehan. Ms. Meehan refused to pay the unpaid rent, so the Flying Saucer Company then started legal proceedings against her personally for full payment.
- What is the main legal issue?
- Explain if Flying Saucer Company will be successful in its legal proceedings against Ms. Meehan.
- Will Flying Saucer Company be able to look to Ms. Meehan for payment?
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