Question 10 (2 points) Saved Abigail sublets her apartment to her friend Becky who fails to pay rent, Abigail is Responsible for the unpaid rent Not responsible for the unpaid rent Responsible only for the first month Responsible for half of the unpaid rent
Added by Toni J.
Close
Step 1
Subletting means renting out a property that you are already renting. Show more…
Show all steps
Your feedback will help us improve your experience
Akash M and 92 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
The Case of Left Holding the Lease Erica has a problem. She and her friend Shira found a two-bedroom apartment to share, only Erica signed the lease. Consequently, Erica is legally responsible for fulfilling the terms of the lease. In the spring of her first year of college, they paid the security deposit on the apartment. However, now, only two weeks before the start of the fall term, Shira has told Erica that she can't afford the rent and has decided to live with her parents. Erica is simultaneously furious with Shira and panicky at the thought of having to pay the rent by herself. How is she going to deal with the problem?
Akash M.
Wab had a basement apartment in his house that was vacant. On August 5, Domenica and Wab signed a two-year lease for the apartment to start September 1, at a monthly rental rate that was within Domenica’s budget and very low for the neighbourhood. Domenica paid the first month’s rate as a deposit. The location was ideal for Domenica because it was a 10-minute walk to the college campus, and Wab was agreeable to the rate as Domenica had excellent references from her previous two landlords. On August 15, the town passed a by-law that prohibited the rental of basement apartments in residential neighbourhood but allowed those apartments already occupied to continue being used until the existing lease expired. The by-law came into force immediately. Wab contacted Domenica to let her know about the town’s new by-law and that he would not be able to honour the lease they had signed. Domenica replied that she could not find an equivalent apartment in the neighbourhood at that rate and refused to accept Wab’s termination of the lease. Domenica told him she had paid her deposit and would be moving in on September 1 as agreed in the lease, or she would be suing Wab for damages. a. Is Domenica able to enforce the lease agreement? If not, would she be successful if she sues Wab? b. What defence, if any, could Wab use in this situation? Was there anything that could have been added to the lease to address this possibility? c. What would be the result if Domenica suggested Wab change the lease to start August 1?
T. L.
please box answer.
Jenny W.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD