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Home » Topics » Commercial Lease Law Insider » Owner Wins

Owner Wins
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Owner Made Reasonable Efforts to Minimize Damages

Feb 1, 2008

Facts: A tenant signed a commercial lease with a three-year term. Before the three years expired, the tenant and owner had agreed to extend the lease for another three years. After the extension, the tenant assigned the extended lease to a new tenant. The original tenant and the new tenant's agreement extended the original lease for yet another three years, but the new tenant defaulted on the lease before the second extended term was up.

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Owner Not Required to Accept Lump Sum When Tenant Defaults

Jan 1, 2008

Facts: Tenants, a marketing firm and its representatives, entered into a lease granting them use of almost 3,000 square feet of commercial space. The tenants subsequently sold the business and stopped paying rent on the property. The owner notified the tenants that their nonpayment had violated the lease's terms. The tenants offered to settle for a lump sum that was less than the total amount owed under the lease, but the owner refused the offer.


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