GCC Business Law Residential House Lease Discussion

Please review the detailed information given in the first Module – How to Navigate this Course.

The contracts you will be using are in the Contracts Module.

There are two questions for this Contract A. I am looking for the ability to read and comprehend the contract so the appropriate contract clause can be applied to the questions connected with each contract. In order to answer the contract fact scenario, you will also need to be able to identify the legal concept that is applicable to the situation described. This is an analysis so please treat it as such. Your personal opinion is not appropriate.

There are correct answers for each question. If a student discusses a different legal theory for answering the questions, partial points will be given. In cases of complete or partial answers, text references are mandatory to support the remedy proposed by the student. A text reference that has no bearing on the remedy or legal arguments will be counted as “no text”. For example, if any contract has an issue of risk of loss, referencing the text on contract formation will not meet the requirement. The sections of the text that you have read contain all the information you need for this analysis.

Please remember to reference the applicable parts of the contract that you are using to answer each question.

A student will be given 3 points for the text reference, 3 points for the contract reference, with 11 points for the analysis itself.

The remaining 3 points will be given as a spelling/grammar score. Following is the prompt.

Residential House Lease

The following question is based on the Residential House Lease found in the Contracts Module. Please reference the Lease by clause number as you answer the questions.

• Essay (2 complete paragraphs with text references to support your answers)

Alecia, the landlord, refuses to fix a small leak in the roof that was there prior to the current tenant. Joe, the current tenant, has just discovered the leak after a heavy rain. The consequence is that black mold has been forming in the attic for quite some time. Joe still has significant time remaining on his lease. Joe has notified Alecia in writing by email of the mold and leak issue but has received no response. He is concerned about the premises becoming unsafe to live in. It has been 14 days since he emailed her his notification.

What are all of Joe’s options if Alecia declines to do the repairs?

Please discuss all remedies Joe may seek. Please remember to reference the lease and text to support your analysis.

RESIDENTIAL HOUSE LEASE AGREEMENT
This Residential House Lease Agreement (“Lease”) is made and effective this [Date] by and
between [Landlord] (“Landlord”) and [Tenant One] and [Tenant Two] (“Tenant,” whether one
or more). This Lease creates joint and several liability in the case of multiple Tenants.
1. PREMISES.
Landlord hereby rents to Tenant and Tenant accepts in its present condition the house at
following address: [Complete Address of House] (the “House”).
2. TERM.
The term of this Lease shall start on January 1, 2019 and end on January 1, 2020. In the event
that Landlord is unable to provide the House on the exact start date, then Landlord shall provide
the House as soon as possible, and Tenant’s obligation to pay rent shall abate during such period.
Tenant shall not be entitled to any other remedy for any delay in providing the House.
3. RENT.
Tenant agrees to pay, without demand, to Landlord as rent for the House the sum of $1,700.00
per month in advance on the first day of each calendar month, at [Address for Rent Payments],
or at such other place as Landlord may designate. Landlord may impose a late payment charge
of $5.00 per day for any amount that is more than five (5) days late. Rent will be prorated if the
term does not start on the first day of the month or for any other partial month of the term.
4. SECURITY DEPOSIT.
Upon execution of this Lease, Tenant deposits with Landlord $1,700.00, as security for the
performance by Tenant of the terms of this Lease to be returned to Tenant without interest,
following the full and faithful performance by Tenant of this Lease. In the event of damage to
the House caused by Tenant or Tenant’s family, agents or visitors, Landlord may use funds from
the deposit to repair, but is not limited to this fund and Tenant remains liable.
5. QUIET ENJOYMENT.
Landlord agrees that if Tenant timely pays the rent and performs the other obligations in this
Lease, Landlord will not interfere with Tenant’s peaceful use and enjoyment of the House.
6. USE OF PREMISES.
A. The House shall be used and occupied by Tenant exclusively as a private single-family
residence. Neither the House nor any part of the House or yard shall be used at any time during
the term of this Lease for the purpose of carrying on any business, profession, or trade of any
kind, or for any purpose other than as a private single-family residence.
B. Tenant shall comply with all the health and sanitary laws, ordinances, rules, and orders of
appropriate governmental authorities and homes associations, if any, with respect to the House.
-1-
7. NUMBER OF OCCUPANTS.
Tenant agrees that the House shall be occupied by no more than [Total Number of Occupants]
persons, including no more than [Maximum Number of Children] under the age of eighteen
(18) years, without the prior written consent of Landlord.
8. CONDITION OF PREMISES.
A. Tenant agrees that Tenant has examined the interior living space of the house and that it is, at
the time of this Lease, in good order, good repair, safe, clean, and tenantable condition.
B. Landlord and Tenant agree that a copy of the “Joint Inspection,” the original of which is
maintained by Landlord and a copy provided to Tenant, attached hereto reflects the condition of
the House at the commencement of Tenant’s occupancy.
9. ASSIGNMENT AND SUBLETTING.
A. Tenant shall not assign this Lease,or sublet or grant any concession or license to use the
House or any part of the House without Landlord’s prior written consent.
B. Any assignment, subletting, concession, or license without the prior written consent of
Landlord, or an assignment or subletting by operation of law, shall be void and, at Landlord’s
option, terminate this Lease.
10. ALTERATIONS AND IMPROVEMENTS.
A. Tenant shall make no alterations to the House or construct any building or make other
improvements without the prior written consent of Landlord.
B. All alterations, changes, and improvements built, constructed, or placed on or around the
House by Tenant, with the exception of fixtures properly removable without damage to the
House and movable personal property, shall, unless otherwise provided by written agreement
between Landlord and Tenant, be the property of Landlord and remain at the expiration or earlier
termination of this Lease.
11. DAMAGE TO PREMISES.
If the House, or any part of the House, shall be partially damaged by fire or other casualty not
due to Tenant’s negligence or willful act, or that of Tenant’s family, agent, or visitor, there shall
be an abatement of rent corresponding with the time during which, and the extent to which, the
House is untenantable. If Landlord shall decide not to rebuild or repair, the term of this Lease
shall end and the rent shall be prorated up to the time of the damage.
12. DANGEROUS MATERIALS.
Tenant shall not keep or have on or around the House any article or thing of a dangerous,
inflammable, or explosive character that might unreasonably increase the danger of fire on or
around the House or that might be considered hazardous.
-2-
13. UTILITIES.
Tenant shall be responsible for arranging and paying for all utility services required on the
premises, except Landlord will provide: water. Tenant shall not default on any obligation to a
utility provider for utility services at the House.
14. MAINTENANCE AND REPAIR.
A. Tenant will, at Tenant’s sole expense, keep and maintain the House and appurtenances in
good and sanitary condition and repair during the term of this Lease. In particular, Tenant shall
keep the fixtures in the House in good order and repair; keep the furnace clean; and keep the
walks free from dirt and debris. Tenant shall, at Tenant’s sole expense, make all required repairs
to the plumbing, range, oven heating apparatus, electric and gas fixtures, other mechanical
devices and systems, and appliances, floors, ceilings and walls whenever damage to such items
shall have resulted from Tenant’s misuse, waste, or neglect, or that of the Tenant’s family, agent,
or visitor.
B. Tenant agrees that no signs shall be placed or painting done on or about the House by Tenant
without the prior written consent of Landlord.
C. Tenant agrees to promptly notify Landlord in the event of any damage, defect or destruction
of the House, or the failure of any of Landlord’s appliances or mechanical systems, and except
for repairs or replacements that are the obligation of Tenant pursuant to Subsection A above,
Landlord shall use its best efforts to repair or replace such damaged or defective area, appliance
or mechanical system.
15. ANIMALS.
Tenant shall keep no domestic or other animals in or about the House without the prior written
consent of Landlord.
16. RIGHT OF INSPECTION.
Landlord and Landlord’s agents shall have the right at all reasonable times during the term of this
Lease and any renewal of this Lease to enter the House for the purpose of inspecting the
premises and/or making any repairs to the premises or other item as required under this Lease.
17. DISPLAY OF SIGNS.
During the last thirty (30) days of this Lease, Landlord or Landlord’s agent may display “For
Sale” or “For Rent” or “Vacancy” or similar signs on or about the House and enter to show the
House to prospective purchasers or tenants.
18. HOLDOVER BY TENANT.
Should Tenant remain in possession of the House with the consent of Landlord after the
expiration of the Term of this Lease, a new tenancy from month to month shall be created which
shall be subject to all the terms and conditions of this Lease, but shall be terminable on thirty
-3-
(30) days by either party or longer notice if required by law. If Tenant holds over without
Landlord’s consent, Landlord is entitled to double rent, pro-rated per each day of the holdover,
lasting until Tenant leaves the House.
19. SURRENDER OF PREMISES.
At the expiration of the Lease, Tenant shall quit and surrender the House in as good a condition
as it was at the commencement of this Lease, reasonable wear and tear and damages by the
elements excepted.
20. FORFEITURE OF SECURITY DEPOSIT – DEFAULT.
It is understood and agreed that Tenant shall not attempt to apply or deduct any portion of any
security deposit from the last or any month’s rent or use or apply any such security deposit at any
time in lieu of payment of rent. If Tenant fails to comply, such security deposit shall be forfeited
and Landlord may recover the rent due as if any such deposit had not been applied or deducted
from the rent due. For the purposes of this paragraph, it shall be conclusively presumed that a
Tenant leaving the Premises while owing rent is making an attempted deduction of deposits.
Furthermore, any deposit shall be held as a guarantee that Tenant shall perform the obligations of
the Lease and shall be forfeited by the Tenant should Tenant breach any of the terms and
conditions of this Lease. In the event of default, by Tenant, of any obligation in this Lease which
is not cured by Tenant within fifteen (15) days notice from Landlord, then in addition to
forfeiture of the Security Deposit, Landlord may pursue any other remedy available at law,
equity or otherwise.
21. ABANDONMENT.
If at any time during the term of this Lease, Tenant abandons the House or any of Tenant’s
personal property in or about the House, Landlord shall have the following rights: Landlord may,
at Landlord’s option, enter the House by any means without liability to Tenant for damages and
may relet the House, for the whole or any part of the then unexpired term, and may receive and
collect all rent payable by virtue of such reletting; Also, at Landlord’s option, Landlord may hold
Tenant liable for any difference between the rent that would have been payable under this Lease
during the balance of the unexpired term, if this Lease had continued in force, and the net rent for
such period realized by Landlord by means of such reletting. Landlord may also dispose of any
of Tenant’s abandoned personal property as Landlord deems appropriate, without liability to
Tenant. Landlord is entitled to presume that Tenant has abandoned the House if Tenant removes
substantially all of Tenant’s furnishings from the House, if the House is unoccupied for a period
of two (2) consecutive weeks, or if it would otherwise be reasonable for Landlord to presume
under the circumstances that the Tenant has abandoned the House.
22. SECURITY.
Tenant acknowledges that Landlord does not provide a security alarm system or any security for
the House or for Tenant and that any such alarm system or security service, if provided, is not
represented or warranted to be complete in all respects or to protect Tenant from all
harm. Tenant hereby releases Landlord from any loss, suit, claim, charge, damage or injury
resulting from lack of security or failure of security.
-4-
23. SEVERABILITY.
If any part or parts of this Lease shall be held unenforceable for any reason, the remainder of this
Agreement shall continue in full force and effect.
24. INSURANCE.
Tenant acknowledges that Landlord will not provide insurance coverage for Tenant’s property,
nor shall Landlord be responsible for any loss of Tenant’s property, whether by theft, fire, acts of
God, or otherwise.
25. BINDING EFFECT.
The covenants and conditions contained in the Lease shall apply to and bind the heirs, legal
representatives, and permitted assigns of the parties.
26. GOVERNING LAW.
It is agreed that this Lease shall be governed by, construed, and enforced in accordance with the
laws of the State of California.
27. ENTIRE AGREEMENT.
This Lease shall constitute the entire agreement between the parties. Any prior understanding or
representation of any kind preceding the date of this Lease is hereby superseded. This Lease
may be modified only by a writing signed by both Landlord and Tenant.
28. NOTICES.
Any notice required or otherwise given pursuant to this Lease shall be either by email as supplied
by each party, in writing; hand delivered, mailed certified return receipt requested, postage
prepaid, or delivered by overnight delivery service, if to Tenant, at the House and if to Landlord,
at the address for payment of rent. An email with a return receipt is acceptable.
IN WITNESS WHEREOF, the parties have caused this Lease to be executed the day and year
first above written.
[Signature]
-5-
JOINT INSPECTION
THIS INSPECTION SHOULD BE COMPLETED PROMPTLY FOLLOWING INITIAL
OCCUPANCY OR UPON DELIVERY OF POSSESSION
LANDLORD: [Landlord]
TENANT: [Tenant]
TENANT: [Tenant]
PREMISES: [Complete Address of House]
DATE OF POSSESSION: [Move-in Date]
CONDITION OF PREMISES: INDICATE WITH A CHECK OF EITHER “YES” OR “NO”
IF THE FEATURE IS CLEAN AND UNDAMAGED. IF “NO”, PROVIDE AN
EXPLANATION IN THE “NOTES”, OR IF “NOT APPLICABLE” INDICATE WITH “NA”.
Yes
No
Notes
LIVING ROOM
Walls & Baseboard
Carpet
Drapes, Rods, Hooks
Door & Lock
Coat Closet
DINING AREA
Walls & Baseboard
Carpet
Light Fixture
Windows & Screens
KITCHEN
Walls & Baseboards
Light Fixture
Stove
Drip Pans
Oven
Broiler Pan
Hood, Fan & Light
Refrigerator
Defrosted
Ice Trays
Hydrator Cover
Dishwasher
Cupboards
Drawers
Counter
Sink
Disposal & Stopper
Floor
HALL
Walls & Baseboards
Carpet/Floor
-6-
Light Fixture
Linen Closet
BATHROOM – 1
Walls & Baseboard & Sink
Counter
Cabinets/Mirror
Toilet
Bath Tub/Shower
Light Fixture
Floor
Tissue Holder/Towel Bars
BATHROOM – 2
Walls & Baseboard & Sink
Counter
Cabinets/Mirror
Toilet
Bath Tub/Shower
Light Fixture
Floor
Tissue Holder/Towel Bars
BEDROOM – 1
Walls & Baseboard
Windows & Screens
Drapes, Rods & Hooks
Light Fixtures
Carpet
Closet
Floor
BEDROOM – 2
Walls & Baseboard
Windows & Screens
Drapes, Rods & Hooks
Light Fixtures
Carpet
Closet
Floor
DEN or BEDROOM – 3
Walls & Baseboard
Windows & Screens
Drapes, Rods & Hooks
Light Fixtures
Carpet
Closet
Floor
BASEMENT/FURNACE ROOM
Furnace
Washer & Dryer
Water Storage Tank
MISCELLANEOUS
-7-
Balcony/Patio
Storage Area
Garage
Mailbox
OTHER
FURNITURE INVENTORY (If the furniture is provided by Landlord)
Item
LIVING ROOM
Couch
Chairs
Lamps
Coffee Table
End Table
Nbr
Item
Nbr
BEDROOM 1
Beds
Dressers
Mirror
Nightstands
Lamps
DINING AREA
Table
Chairs
Hutch
BEDROOM 2
Beds
Dressers
Mirror
Nightstands
Lamps
KITCHEN
Stove
Oven
Refrigerator
Dishwasher
Table
Chairs
BEDROOM 3
Beds
Dressers
Mirror
Nightstands
Lamps
LAUNDRY/UTILITY ROOM
Washer
Dryer
DEN / STUDY
Desk
Chairs
Tables
Bookcases
Lamps
OTHER
The parties acknowledge that the above inspection was made on ___________________, and
that the conditions of the premises and the inventory of furnishings and appliances is as shown
above. The parties further agree that a copy of this Joint Inspection was provided to Tenant.
[Signature]
-8-
UCC SALES CONTRACT
This contract for the sale of goods is between Donald, an LLC organized under the laws of the State of
CA, the “Buyer, and Tome Jones, a sole proprietor, organized under the laws of the State of Deliah, the
“Seller ”.
The parties agree as follows:
1. The Seller shall sell to the Buyer and the Buyer shall purchase from the Seller the goods set forth on
Exhibit A in the quantities and at the prices stated Goods in Exhibit A.
2. Unless otherwise stated in Exhibit A, payment for the Goods is due within 30 days of the date of the
Seller’s invoice, which date will not be before the date of the Seller’s delivery of the Goods
3. The Seller shall deliver the Goods to the Buyer’s facility in Pussycat Alley, City of Deliah, and title to
and risk of loss of the Goods will pass to the Buyer upon such delivery by the Seller. Any stated delivery
dates are approximate. The Seller will not be liable for any losses, damages, penalties, or expenses for
failure to meet any delivery date.
4. The Seller disclaims all warranties of quality, whether express or implied, including the warranties of
merchantability and fitness for particular purpose. The Buyer acknowledges that it has not been induced
by any statements or representations of any person with respect to the quality or condition of the
Goods and that no such statements or representations have been made. The Buyer acknowledges that it
has relied solely on the investigations, examinations, and inspections as the Buyer has chosen to make
upon delivery and that the Seller has afforded the Buyer the opportunity for full and complete
investigations, examinations, and inspections.
5. The Seller will not be liable for any indirect, special, consequential, or punitive damages (including lost
profits) arising out of or relating to this agreement or the transactions it contemplates whether for
breach of contract, tort, negligence, or other form of action and irrespective of whether the Seller has
been advised of the possibility of any such damage. In no event will the Seller’s liability exceed the price
the Buyer paid to the Seller for the specific Goods provided by the Seller giving rise to the claim or cause
of action.
6. No action arising out of or relating to this agreement or the transactions it contemplates may be
commenced against the Seller more than 12 months after the basis for such claim could reasonably have
been discovered.
7. The Buyer hereby grants to the Seller a security interest in the Goods sold to the Buyer under this
agreement and any proceeds therefrom (including accounts receivable), until payment in full for the
Goods has been received by the Seller. The Buyer shall sign and deliver to the Seller any document to
perfect this security interest that the Seller reasonably requests.
8. (a) The laws of the CA shall govern all matters arising out of or relating to this agreement and the
transactions it contemplates, including, without limitation, its interpretation, construction, validity,
performance (including the details of performance), and enforcement.
(b) A party bringing a legal action or proceeding against the other party arising out of or relating to this
agreement or the transactions it contemplates must bring the legal action or proceeding in any court of
the CA. Each party to this agreement consents to the exclusive jurisdiction of the courts of the State of
CA.
9. The Seller will not be liable for delays in performance or for non-performance due to unforeseen
circumstances or causes beyond the Seller’s reasonable control.
10. The Buyer may not assign any of its rights under this agreement or delegate any performance under
this agreement, except with the prior written consent of the Seller. Any purported assignment of rights
or delegation of performance in violation of this section is void.
11. In any adversarial proceedings between the parties arising out of this agreement or the transactions
it contemplates, the prevailing party will be entitled to recover from the other party, in addition to any
other relief awarded, all expenses that the prevailing party incurs, including legal fees and expenses.
12. This agreement constitutes the entire agreement between the parties with respect to the subject
matter of this agreement and supersedes all other agreements, whether written or oral, between the
parties.
13. No amendment to this agreement will be effective unless it is in writing and signed by both parties.
14. This agreement will become effective when both parties have signed it. The date this agreement is
signed by the last party to sign it (as indicated by the date associated with that party’s signature) will be
deemed the date of this agreement.
15. This agreement may be signed in one or more counterparts, which together will form a single
agreement. This agreement may be signed electronically.
Each party is signing this agreement on the date stated opposite that party’s signature.
Donald, LLC (e-signature)
Date: 1/1/2020
Tome Jones (e-signature)
Date: 1/2/2020
EXHIBIT A
Product Ordered – Scooters
Quantity Ordered – 50
Price per Unit – $200.00 US per Razor Scooter
Total Contract Price for Scooters – $10,000 USD
Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 8 INTRODUCTION TO CONTRACTS
Learning Outcomes
LO1
LO2
LO3
LO4
List the four requirements of a
contract.
Contrast express and limited
contracts.
Distinguish valid, voidable,
unenforceable, and void contracts.
Understand the plain meaning rule.
© 2019 Cengage. All rights reserved.
2
The Definition of a Contract (1)
▪ An agreement that can be
enforced in a court. It is
formed by two or more parties
who agree to perform, or
refrain from performing, some
act now or in the future.
© 2019 Cengage. All rights reserved.
3
The Definition of a Contract (2)
▪ The Objective Theory of
Contracts.
–The view that the intent to
contract should be determined by
outward, objective facts.
© 2019 Cengage. All rights reserved.
4
The Basic Requirements
of a Contract (1)
LO1
▪ Agreement.
▪ Consideration.
▪ Capacity.
▪ Legality.
© 2019 Cengage. All rights reserved.
5
The Basic Requirements
of a Contract (2)
▪ Defenses to Enforceability.
–Voluntary consent.
–Form.
© 2019 Cengage. All rights reserved.
6
Types of Contracts (1)
▪ Bilateral versus Unilateral
Contracts.
–Offeror: A person who makes an
offer. The offeror always promises
to do something; also a promisor.
–Offeree: A person to whom an
offer is made.
© 2019 Cengage. All rights reserved.
7
Types of Contracts (2)
LO2
▪ Express versus Implied Contracts.
–Express: A contract that is stated in
words, oral and/or written (as
opposed to an implied contract).
–Implied: A contract formed in whole
or in part from the conduct of the
parties (as opposed to an express
contract).
© 2019 Cengage. All rights reserved.
8
Types of Contracts (3)
▪ Quasi Contracts.
–Contracts implied in law.
–A fictional contract imposed by law
to prevent unjust enrichment.
© 2019 Cengage. All rights reserved.
9
Types of Contracts (4)
▪ Formal vs. Informal Contracts.
–Formal: An agreement or contract
that by law requires for its validity a
specific form, such as execution under
seal.
–Informal: A contract that does not
require a specified form or formality
for its validity.
© 2019 Cengage. All rights reserved.
10
Types of Contracts (5)
▪ Executed vs. Executory Contracts.
–Executed: A contract that has been
completely performed by both
parties.
–Executory: A contract that has not
yet been fully performed.
© 2019 Cengage. All rights reserved.
11
Types of Contracts (6)
▪ Valid, Voidable, Unenforceable, and
Void Contracts.
–Valid: A properly constituted contract
having legal strength or force.
–Voidable: A contract that may be
legally annulled at the option of one
of the parties.
© 2019 Cengage. All rights reserved.
12
Types of Contracts (7)
▪ Valid, Voidable, Unenforceable,
and Void Contracts.
–Unenforceable: A valid contract
having no legal effect or force in a
court action.
–Void: A contract having no legal
force or binding effect.
© 2019 Cengage. All rights reserved.
13
Types of Contracts (8)
▪ E-Contracts.
–Contracts entered into online.
–Require the same four
requirements as valid paper
contracts.
© 2019 Cengage. All rights reserved.
14
Enforceable, Voidable,
Unenforceable, and Void Contracts
LO3
© 2019 Cengage. All rights reserved.
LO3
15
Interpretation of Contracts (1)
LO4
▪ The Plain Meaning Rule.
–If language of contract is clear, the
court will enforce the contract
according to obvious and ordinary
meaning of terms.
© 2019 Cengage. All rights reserved.
16
Interpretation of Contracts (2)
▪ Ambiguity and Outside Evidence.
–If language is ambiguous, court will
consider outside (extrinsic) evidence
when:
• Intent of parties is not clear.
• Contract lacks a provision on a disputed
issue.
© 2019 Cengage. All rights reserved.
17
Interpretation of Contracts (3)
▪ Ambiguity and Outside Evidence.
–If language is ambiguous, court will
consider outside (extrinsic) evidence
when:
• Contract can be interpreted in more than
one way.
• Uncertainty about a provision.
© 2019 Cengage. All rights reserved.
18
Interpretation of Contracts (4)
▪ Ambiguity and Outside Evidence.
–To interpret contract, court will
consider:
• Oral testimony.
• Other agreements or communications
between the parties.
• Court will interpret contract against
party drafting it.
© 2019 Cengage. All rights reserved.
19
Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 8 INTRODUCTION TO CONTRACTS
Learning Outcomes
LO1
LO2
LO3
LO4
List the four requirements of a
contract.
Contrast express and limited
contracts.
Distinguish valid, voidable,
unenforceable, and void contracts.
Understand the plain meaning rule.
© 2019 Cengage. All rights reserved.
2
The Definition of a Contract (1)
▪ An agreement that can be
enforced in a court. It is
formed by two or more parties
who agree to perform, or
refrain from performing, some
act now or in the future.
© 2019 Cengage. All rights reserved.
3
The Definition of a Contract (2)
▪ The Objective Theory of
Contracts.
–The view that the intent to
contract should be determined by
outward, objective facts.
© 2019 Cengage. All rights reserved.
4
The Basic Requirements
of a Contract (1)
LO1
▪ Agreement.
▪ Consideration.
▪ Capacity.
▪ Legality.
© 2019 Cengage. All rights reserved.
5
The Basic Requirements
of a Contract (2)
▪ Defenses to Enforceability.
–Voluntary consent.
–Form.
© 2019 Cengage. All rights reserved.
6
Types of Contracts (1)
▪ Bilateral versus Unilateral
Contracts.
–Offeror: A person who makes an
offer. The offeror always promises
to do something; also a promisor.
–Offeree: A person to whom an
offer is made.
© 2019 Cengage. All rights reserved.
7
Types of Contracts (2)
LO2
▪ Express versus Implied Contracts.
–Express: A contract that is stated in
words, oral and/or written (as
opposed to an implied contract).
–Implied: A contract formed in whole
or in part from the conduct of the
parties (as opposed to an express
contract).
© 2019 Cengage. All rights reserved.
8
Types of Contracts (3)
▪ Quasi Contracts.
–Contracts implied in law.
–A fictional contract imposed by law
to prevent unjust enrichment.
© 2019 Cengage. All rights reserved.
9
Types of Contracts (4)
▪ Formal vs. Informal Contracts.
–Formal: An agreement or contract
that by law requires for its validity a
specific form, such as execution under
seal.
–Informal: A contract that does not
require a specified form or formality
for its validity.
© 2019 Cengage. All rights reserved.
10
Types of Contracts (5)
▪ Executed vs. Executory Contracts.
–Executed: A contract that has been
completely performed by both
parties.
–Executory: A contract that has not
yet been fully performed.
© 2019 Cengage. All rights reserved.
11
Types of Contracts (6)
▪ Valid, Voidable, Unenforceable, and
Void Contracts.
–Valid: A properly constituted contract
having legal strength or force.
–Voidable: A contract that may be
legally annulled at the option of one
of the parties.
© 2019 Cengage. All rights reserved.
12
Types of Contracts (7)
▪ Valid, Voidable, Unenforceable,
and Void Contracts.
–Unenforceable: A valid contract
having no legal effect or force in a
court action.
–Void: A contract having no legal
force or binding effect.
© 2019 Cengage. All rights reserved.
13
Types of Contracts (8)
▪ E-Contracts.
–Contracts entered into online.
–Require the same four
requirements as valid paper
contracts.
© 2019 Cengage. All rights reserved.
14
Enforceable, Voidable,
Unenforceable, and Void Contracts
LO3
© 2019 Cengage. All rights reserved.
LO3
15
Interpretation of Contracts (1)
LO4
▪ The Plain Meaning Rule.
–If language of contract is clear, the
court will enforce the contract
according to obvious and ordinary
meaning of terms.
© 2019 Cengage. All rights reserved.
16
Interpretation of Contracts (2)
▪ Ambiguity and Outside Evidence.
–If language is ambiguous, court will
consider outside (extrinsic) evidence
when:
• Intent of parties is not clear.
• Contract lacks a provision on a disputed
issue.
© 2019 Cengage. All rights reserved.
17
Interpretation of Contracts (3)
▪ Ambiguity and Outside Evidence.
–If language is ambiguous, court will
consider outside (extrinsic) evidence
when:
• Contract can be interpreted in more than
one way.
• Uncertainty about a provision.
© 2019 Cengage. All rights reserved.
18
Interpretation of Contracts (4)
▪ Ambiguity and Outside Evidence.
–To interpret contract, court will
consider:
• Oral testimony.
• Other agreements or communications
between the parties.
• Court will interpret contract against
party drafting it.
© 2019 Cengage. All rights reserved.
19
Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 9 OFFER AND ACCEPTANCE
Learning Outcomes
LO1
Identify the elements of an offer.
LO2
Recognize a counteroffer.
Identify the elements of a valid
acceptance.
LO4
Describe a click-on agreement.
LO3
© 2019 Cengage. All rights reserved.
2
LO1
LO1
Requirements of the Offer (1)
▪ An offer is a promise, or a
commitment to perform (or not
perform), some act in the future.
▪ The party making the offer is the
offeror; the party to whom the
promise is made is the offeree.
© 2019 Cengage. All rights reserved.
3
LO1
LO1
Requirements of the Offer (2)
▪ Three elements are necessary
for the offer to be effective:
1. Intention.
2. Definiteness of terms.
3. Communication.
© 2019 Cengage. All rights reserved.
4
LO1
LO1
Requirements of the Offer (3)
▪ Intention.
– Requires serious intention on the
part of the offeror must exist.
– Intention must be objectively
clear to third parties. Offers made
in jest or anger are not
acceptable.
© 2019 Cengage. All rights reserved.
5
LO1
LO1
Requirements of the Offer (4)
▪ Intention.
– Expressions of Opinion: not offers.
– Preliminary Negotiations: not
offers.
– Advertisements: not offers.
© 2019 Cengage. All rights reserved.
6
LO1
LO1
Requirements of the Offer (5)
▪ Intention.
– Auctions: not offers for purposes
of a contract, unless the
auctioneer specifies that the
auction is without reserve.
– Online auctions: not offers; an
invitation to negotiate.
© 2019 Cengage. All rights reserved.
7
LO1
LO1
Requirements of the Offer (6)
▪ Definiteness of Terms.
– An offer must have reasonably
definite (determined or fixed)
terms so that a court can
determine if a breach has
occurred and give an appropriate
remedy.
© 2019 Cengage. All rights reserved.
8
LO1
LO1
Requirements of the Offer (7)
▪ Communication.
–Offeree must have knowledge of
the offer.
–Communication to offeree gives
her power to transform the offer
into a binding legal obligation
(contract).
© 2019 Cengage. All rights reserved.
9
Termination of the Offer (1)
▪ The communication of an
effective offer to an offeree
gives the offeree the power to
transform the offer into a
binding, legal obligation (a
contract).
© 2019 Cengage. All rights reserved.
10
Termination of the Offer (2)
▪ This power of acceptance can
be terminated by action of the
parties or by operation of law.
© 2019 Cengage. All rights reserved.
11
Termination of the Offer (3)
▪ Termination by Action of the
Parties.
– Revocation of the Offer.
• The withdrawal of an offer by an
offeror.
• Revocation is effective upon receipt
by offeree.
© 2019 Cengage. All rights reserved.
12
Termination of the Offer (4)
▪ Termination by Action of the
Parties.
– Rejection of the Offer.
• Rejection by offeree effective only
when it is actually received by the
offeror or the offeror’s agent.
• Inquiry as to the firmness of the
offer is not rejection.
© 2019 Cengage. All rights reserved.
13
Termination of the Offer (5)
▪ Termination by Action of the
Parties.
LO2
– Counteroffer.
• A rejection of the original offer and
the simultaneous making of a new
offer, giving the original offeror
(now the offeree) the power of
acceptance.
© 2019 Cengage. All rights reserved.
14
Termination of the Offer (6)
▪ Termination by Action of the
Parties.
LO2
– Counteroffer.
• Mirror image rule: at common law,
the offeree’s acceptance must
match the offeror’s offer.
© 2019 Cengage. All rights reserved.
15
Termination of the Offer (7)
▪ Termination by Operation of Law.
– Lapse of Time.
– Destruction or Death.
– Supervening Illegality.
© 2019 Cengage. All rights reserved.
16
Acceptance (1)
LO3
▪ A voluntary act with three
requirements:
1. An offer must be accepted by the
offeree, not by a third person.
2. The acceptance must be unequivocal.
3. In most cases, the acceptance must
be communicated to the offeror.
© 2019 Cengage. All rights reserved.
17
Acceptance (2)
LO3
▪ Offeree Acceptance Only.
– Person to whom the offer is made (or
that person’s agent).
– No third party.
▪ Unequivocal Acceptance.
– No change in terms.
▪ Communication of Acceptance.
– Depends upon the nature of the
contract.
© 2019 Cengage. All rights reserved.
18
Acceptance (3)
▪ The Mailbox Rule.
– A rule providing that an acceptance
of an offer becomes effective on
dispatch.
– Generally, acceptance occurs at the
time the communication is sent via
the mode authorized by the offeror.
© 2019 Cengage. All rights reserved.
19
Acceptance (4)
▪ The Mailbox Rule.
–Does NOT apply to instantaneous
forms of communication (face-toface, telephone, chat, facsimile).
–E-mail acceptance is effective when
the e-mail is sent.
© 2019 Cengage. All rights reserved.
20
Acceptance (5)
▪ Authorized Means of Acceptance.
–If offeror specifies mode,
acceptance is made when that
mode is used. But offeree is
authorized to use faster means for
acceptance than the offeror.
© 2019 Cengage. All rights reserved.
21
Acceptance (6)
▪ Authorized Means of Acceptance.
–If no means is authorized, then
acceptance can be made by any
reasonable means.
© 2019 Cengage. All rights reserved.
22
Acceptance (7)
▪ Substitute Methods of Acceptance.
–If an offeror specifies a particular
method and the offeree chooses
another, substitute method of
acceptance will be effective upon receipt
by offeror. (Example: offer specifies
FedEx but offeree accepts by U.S. mail,
the acceptance upon receipt.)
© 2019 Cengage. All rights reserved.
23
E-Contracts–
Offer and Acceptance (1)
▪ Online Offers.
–Should be obvious and easy to
read, such as a link to a separate
page containing contract’s full
details.
© 2019 Cengage. All rights reserved.
24
E-Contracts–
Offer and Acceptance (2)
▪ Online Aceptances.
LO4
–Must show offeree voluntarily agreed
to the offer’s terms.
–Click-on agreement: an agreement
entered into online when a buyer
indicates his or her acceptance of an
offer by clicking on a button that
reads “I agree.”
© 2019 Cengage. All rights reserved.
25
E-Contracts–
Offer and Acceptance (3)
▪ The Uniform Electronic
Transactions Act. (UETA)
–Supports the application of existing
contract rules to electronic
transactions.
–Does not create new rules.
© 2019 Cengage. All rights reserved.
26
Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 10 CONSIDERATION
Learning Outcomes
LO1
List the elements of consideration.
LO2
State the preexisting duty rule.
LO3
Name two ways to settle a legal
claim.
Understand the concept of
promissory estoppel.
LO4
© 2019 Cengage. All rights reserved.
2
LO1
LO1
Elements of Consideration (1)
1. Something of legally
sufficient value must be
given in exchange for
promise.
2. There must be a bargainedfor exchange.
© 2019 Cengage. All rights reserved.
3
LO1
LO1
Elements of Consideration (2)
▪ Legally Sufficient Value.
–Legal sufficiency:
• Consideration must be something of
value in the eyes of the law.
© 2019 Cengage. All rights reserved.
4
LO1
LO1
Elements of Consideration (3)
▪ Legally Sufficient Value.
–May consist of any of the following:
• A promise to do something, no legal
duty.
• The performance of an action, no
obligation.
• The refraining from an action, legal
right to undertake–forebearance.
© 2019 Cengage. All rights reserved.
5
LO1
LO1
Elements of Consideration (4)
▪ Legally Sufficient Value.
–Adequacy of consideration:
• The fairness of the bargain.
© 2019 Cengage. All rights reserved.
6
LO1
LO1
Elements of Consideration (5)
▪ Bargained-for Exchange.
–Item of value must be given or
promised by the promisor (offeror).
–The promisee must make a promise
or perform.
© 2019 Cengage. All rights reserved.
7
The Lack of Consideration (1)
▪ One of the parties (or both
parties) think consideration has
been given when it has not.
–Preexisting duty.
–Past consideration.
–Illusory promises.
© 2019 Cengage. All rights reserved.
8
The Lack of Consideration (2)
▪ Preexisting Duty.
LO2
–Preexisting duty rule: a promise
made after what one already has a
legal duty to do is not legally
sufficient consideration, because
no legal detriment or benefit has
been incurred.
© 2019 Cengage. All rights reserved.
9
The Lack of Consideration (3)
▪ Preexisting Duty.
–Exceptions:
• Unforeseen Difficulties.
• Rescission and New Contract:
–The unmaking of an executory contract
so as to return the parties to the
positions they occupied before the
contract was made.
© 2019 Cengage. All rights reserved.
10
The Lack of Consideration (4)
▪ Past Consideration.
–Promises made in return for actions or
events that have already taken place
are unenforceable.
–One cannot bargain for something that
has already taken place.
© 2019 Cengage. All rights reserved.
11
The Lack of Consideration (5)
▪ Illusory Promises.
–Terms of the contract express such
uncertainty of performance that the
promisor has not definitely promised
to do anything.
© 2019 Cengage. All rights reserved.
12
The Lack of Consideration (6)
13
Settlement of Claims (1)
LO3
▪ Contracts to settle legal claims.
1. Accord and satisfaction.
2. Release.
© 2019 Cengage. All rights reserved.
14
Settlement of Claims (2)
▪ Accord and Satisfaction.
–Settling a claim by the debtor
offering to pay less than the
creditor claims to be owed.
© 2019 Cengage. All rights reserved.
15
Settlement of Claims (3)
▪ Release.
–An agreement in which one party
gives up the right to pursue a legal
claim against another party.
© 2019 Cengage. All rights reserved.
16
LO4
LO4
Promissory Estoppel (1)
▪ Certain promises are enforceable
without consideration (detrimental
reliance).
▪ When this doctrine is applied, the
promisor is estopped from revoking
the promise.
© 2019 Cengage. All rights reserved.
17
LO4
LO4
Promissory Estoppel (2)
▪ Requirements:
1. There must be a clear and definite promise.
2. The promisee must justifiably rely on the
promise.
3. The reliance normally must be of a
substantial and definite character.
4. Justice will be better served by the
enforcement of the promise.
© 2019 Cengage. All rights reserved.
18
Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 11 CAPACITY
Learning Outcomes
LO1
LO2
LO3
LO4
Understand a minor’s right to
disaffirm a contract.
Identify obligations that minors
cannot avoid.
Explain how intoxication can affect a
contract.
Discuss how mental incompetence
can affect a contract.
© 2019 Cengage. All rights reserved.
2
Introduction
▪ The capacity required by the law for
a party who enters into a contract
to be bound by that contract.
▪ In this chapter, we look at the
effects of youth, intoxication, and
mental incompetenceon contractual
capacity.
© 2019 Cengage. All rights reserved.
3
Minors
▪ The age of majority (when a person
is no longer a minor) is 18 for both
genders.
▪ Some states provide for termination
of minority on marriage.
▪ Some contracts entered into by a
minor are voidable by the minor.
© 2019 Cengage. All rights reserved.
4
LO1
LO1
Minors: Disaffirmance (1)
▪ General Rule: minor can enter into
any contract an adult can, provided
that the contract is not one
prohibited by law for minors.
▪ Disaffirmance: the legal avoidance,
or setting aside, of a contractual
obligation.
© 2019 Cengage. All rights reserved.
5
LO1
LO1
Minors: Disaffirmance (2)
▪ To disaffirm, a minor need only
show an intention not to be bound
by a contract.
▪ Words or conduct may show intent.
© 2019 Cengage. All rights reserved.
6
LO1
LO1
Minors: Disaffirmance (3)
▪ Disaffirmance within a Reasonable Time.
▪ A Minor’s Obligations on Disaffirmance.
–Restitution: remedy under which a person
is restored to his or her original position
prior to the formation of a contract.
© 2019 Cengage. All rights reserved.
7
LO1
LO1
Minors: Disaffirmance (4)
▪ Disaffirmance and Misrepresentation
of Age.
–Ordinarily, the minor can disaffirm the
contract.
–Some jurisdictions allow for minors to
be bound under contract.
© 2019 Cengage. All rights reserved.
8
LO1
LO1
Minors: Disaffirmance (5)
▪ Disaffirmance and Misrepresentation
of Age.
• Minors cannot disaffirm executed
contracts without returning consideration
received.
• Contract may be able to be disaffirmed,
but the minor is held liable for damages.
© 2019 Cengage. All rights reserved.
9
LO2
LO2
Minors: Liabilities (1)
▪ Disaffirmance and Necessaries.
–May disaffirm but remains liable for
reasonable value of the goods.
–Necessaries: necessities required for a
standard of living, such as food and
shelter.
• Dependent upon the minors’ customary
living standard.
© 2019 Cengage. All rights reserved.
10
LO2
LO2
Minors: Liabilities (2)
▪ Disaffirmance and Business Contracts.
–In many states, certain business
contracts cannot be disaffirmed.
–If a minor does business in the manner
of adult, the related contracts are fully
enforceable.
© 2019 Cengage. All rights reserved.
11
LO2
Minors: Ratification
▪ Ratification.
–The approval or validation of a previous
action. In contract law, the confirmation
of avoidable act (that is, an act that,
without ratification, would not be an
enforceable contractual obligation).
© 2019 Cengage. All rights reserved.
12
LO2
Minors: Parents’ Liability
▪ As a general rule, parents are not
liable for the contracts made by their
minor children acting on their own.
▪ Generally, a minor is held personally
liable for the torts he or she commits.
© 2019 Cengage. All rights reserved.
13
LO2
Minors: Emancipation
▪ Emancipation.
–In regard to minors, the act of being
freed from parental control. The parents
renounce parental duties and surrender
the right to the custody and earnings of
the minor.
© 2019 Cengage. All rights reserved.
14
LO3
LO3
Intoxicated Persons
▪ A contract entered into by an intoxicated
person can be either voidable or valid.
– If the person was sufficiently intoxicated to
lack mental capacity, the transaction is
voidable at the option of the intoxicated
person.
© 2019 Cengage. All rights reserved.
15
LO4
LO4
Mentally Incompetent
Persons (1)
▪ Contracts made by mentally
incompetent persons can be either
void, voidable, or valid.
© 2019 Cengage. All rights reserved.
16
LO4
LO4
Mentally Incompetent
Persons (2)
▪ When a Contract is Void.
–Signed contract after court has adjudged
a person incompetent.
–Guardian can enter into binding legal
duty on person’s behalf.
© 2019 Cengage. All rights reserved.
17
LO4
LO4
Mentally Incompetent
Persons (3)
▪ When a Contract is Voidable.
–Mentally incompetent persons who
have not been adjudged incompetent by
a court.
–May be disaffirmed or ratified.
© 2019 Cengage. All rights reserved.
18
LO4
LO4
Mentally Incompetent
Persons (4)
▪ When a Contract is Valid.
–Person understands nature and effect of
a certain contract, but lacks capacity to
engage in other activities.
© 2019 Cengage. All rights reserved.
19
Business Law
Text & Exercises
Ninth Edition
Roger LeRoy Miller
William Eric Hollowell
CHAPTER 12 THE LEGALITY OF AGREEMENTS
Learning Outcomes
LO1
LO2
LO3
LO4
Identify contracts contrary to
statute.
Describe an enforceable covenant to
not compete.
Identify contracts contrary to public
policy.
Explain the consequences of an
illegal agreement.
© 2019 Cengage. All rights reserved.
2
LO1
LO1
Contracts Contrary
to Statute (1)
▪ Contracts to Commit a Crime.
▪ Usury.
–Charging an illegal rate of interest.
▪ Gambling.
–Even in states that allow certain
types of gambling, courts often
find gambling contracts illegal.
© 2019 Cengage. All rights reserved.
3
LO1
LO1
Contracts Contrary
to Statute (2)
▪ Licensing Statutes.
–If a person enters into a contract with
an unlicensed professional, the
contract may still be enforceable.
–However, if purpose of statute is to
protect the public, contract is illegal
and unenforceable.
© 2019 Cengage. All rights reserved.
4
LO1
LO1
Contracts Contrary
to Statute (3)
▪ Contracts in Restraint of Trade.
–Exception is recognized when
restraint is reasonable and integral
to contract.
–Covenant not to compete.
• A promise to refrain from competing
in business with another.
© 2019 Cengage. All rights reserved.
5
LO1
LO1
Contracts Contrary
to Statute (4)
▪ Contracts in Restraint of Trade.
–Covenants Not to Compete and the
Sale of an Ongoing Business.
• Reasonable and integral part of
contract.
• Enable sale and purchase of the
reputation of an ongoing business.
© 2019 Cengage. All rights reserved.
6
LO1
LO1
Contracts Contrary
to Statute (5)
▪ Contracts in Restraint of Trade.
LO2
–Covenants Not to Compete in
Employment Contracts.
• Specified period of time and
geographical restraint must be
reasonable.
© 2019 Cengage. All rights reserved.
7
LO1
LO1
Contracts Contrary
to Statute (6)
▪ Contracts in Restraint of Trade.
–Covenants Not to Compete and
Reformation.
• Reformation: a court-ordered
correction of a written contract to
reflect the parties’ true intentions.
© 2019 Cengage. All rights reserved.
8
LO3
LO3
Contracts Contrary
to Public Policy (1)
▪ Even though contracts involve
private parties, they may have a
negative effect on society.
–Unconscionable Contracts or
Clauses.
–Exculpatory Clauses.
© 2019 Cengage. All rights reserved.
9
LO3
LO3
Contracts Contrary
to Public Policy (2)
▪ Unconscionable Contracts or
Clauses.
– Void on the basis of public policy because
one party, as a result of his or her inferior
bargaining power, is forced to accept terms
that are unfairly burdensome and that
unfairly benefit the dominating party.
© 2019 Cengage. All rights reserved.
10
LO3
LO3
Contracts Contrary
to Public Policy (3)
▪ Unconscionable Contracts or
Clauses.
–Procedural Unconscionability.
–Substantive Unconscionability:
adhesion contracts.
© 2019 Cengage. All rights reserved.
11
LO3
LO3
Contracts Contrary
to Public Policy (4)
12
LO3
LO3
Contracts Contrary
to Public Policy (5)
▪ Exculpatory Clauses.
–Clauses that releases a party to a
contract from liability for his or her
wrongful acts.
–Often held to be enforceable.
© 2019 Cengage. All rights reserved.
13
LO4
LO4
The Effect of Illegality (1)
▪ In general, an illegal contract is void.
▪ If a contract is executory (not yet
fulfilled), neither party can enforce it.
▪ In most illegal contracts, both parties
are considered to be equally at fault.
© 2019 Cengage. All rights reserved.
14
LO4
LO4
The Effect of Illegality (2)
▪ Some persons are excluded from the
general rule that neither party to an
illegal bargain can sue for breach or
recover for performance rendured.
1. Justifiable Ignorance of the Facts.
2. Members of Protected Classes.
3. Withdrawal From an Illegal Agreement.
© 2019 Cengage. All rights reserved.
15
LO4
LO4
The Effect of Illegality (3)
▪ Justifiable Ignorance of the Facts.
–When one of the parties is relatively
innocent, that party can often obtain
restitution in a partially executed
contract.
© 2019 Cengage. All rights reserved.
16
LO4
LO4
The Effect of Illegality (4)
▪ Members of Protected Classes.
–When a statute protects a certain class
of people, a member of that class can
enforce an illegal contract even though
the other party cannot.
© 2019 Cengage. All rights reserved.
17
LO4
LO4
The Effect of Illegality (5)
▪ Withdrawal from an Illegal
Agreement.
–Party tendering performance can
withdraw from the bargain and recover
the performance or its value.
© 2019 Cengage. All rights reserved.
18
Name: Mina Ibraheem
Class: Bus 125
Date:2/22/2022
Residential House Lease
In such a case, the landlord has refused to fix the minor leak on the roof that existed
before the current tenant. Having discovered the leak, Joe, the current tenant, may seek the
following remedies. To begin with, according to the Residential House Lease clause number 11
(Damage to premises), any partial damage by any casualty that is not as a result of the negligence
of the tenant to the extent that the house is not safe for the tenant, the tenant can always end the
term of the lease and prorate rent to the time of the damage if the landlord does not decide to
repair the damage. Therefore, if Alecia, the landlord, disagrees with repairing the roof, Joe can
right away terminate the lease with no further actions from any side.
The other remedy that Joe may take is following Residential House Lease clause number 14
(Maintenance and Repair) part C that allows the tenant to notify the landlord in the event of any
damage, destruction, or defect of the house and expect repairs. However, the landlord, Joe,
announced the damage by writing an email, which means that Alecia replaced or repaired the
roof. Additionally, the tenant can always let the landlord know that they have to repair any
damage by notifying them in writing and giving them ample time to fix it. Having now taken 14
days since Joe wrote the notification email on the damaged roof without the landlord taking up
the responsibility she is supposed to, Alecia has ignored her duty as a landlord.
Joe is concerned about the premises becoming unsafe for him to live in as it has developed black
mold making it inhabitable and may be a risk to his health. However, Residential House Lease
clause number 22 (Security), the tenant can release the landlord from any damage, loss, or suit
that may result from failed security if the tenant acknowledges that the landlord does not ensure
enough safety. If Joe fears that the house is unsafe for him to live he can take it that Alecia does
not provide enough protection to the tenant, for she has taken long to respond on repairing the
roof. In addition to that, Residential House Lease clause number 23 (Severability), the tenant is
given a chance on reminding the landlord of any agreement of any part of the lease that may be
held unenforceable, a reminder that will help the deal to be considered and continue in full force.
This means that Joe has the opportunity to remind the landlord on the repair of the damaged roof
an agreement on Residential House Lease clause number 14 (Maintenance and Repair) part C.