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Contract Law and Lease Agreements

Project Three Courtney Thompson BUS-206 Business Law Southern New Hampshire University Amanda Braun February 25, 2024 Contract Law Four elements are necessary for a valid contract to exist: the agreement, the consideration, contractual capacity, and legal object (Kubasek et al, 2020). The original lease agreement between Dave Dawg's deceased father and landlord Lou serves as the offer, which was accepted when both parties signed. The lease specifies a rent amount of $500.00 per month, which Dave has been paying up until recently. This monetary exchange for rental space represents the consideration. At the time the lease was signed both parties were competent to enter into a contract. The original purpose of the lease was to operate a pet supply store, which makes the last element of legality. However, Dave's expansion into selling animals without a lease amendment could potentially breach the terms of the contract. Based on the original terms of the lease, a valid contract did exist between The Friendly Dawg and landlord Lou. Dave's decision to renovate and sell live animals without talking to landlord Lou or amending the lease may result in a breach of contract. Landlord Lou's reaction to the renovations (Very Exciting! Goodluck!) could be interpreted as approval for Dave's expansion, but this does not amend the original contract. Landlord Lou may have the right to demand compliance with the original terms of the lease and may seek remedies for the breach, including potential eviction. The Friendly Dawg, on the other hand, may have defenses based on the landlord's verbal approval of the expansion and may seek a constructive eviction as a remedy related to landlord Lou's refusal to address the air- conditioning issue. Verbal contracts are legally binding, they are more challenging to prove, albeit still legal. Landlord Lou offered Jasmine a space to rent for $300.00 a month, which she accepted. This represents the offer, acceptance, and consideration. Both parties are adults capable of entering into a contract, and renting commercial space for a yoga studio is a lawful purpose. Given these elements a valid verbal contract exists between Sunshine Yoga and landlord Lou. Lou could argue that Jasmine's failure to pay rent constitutes a breach of their verbal agreement. However, enforcing verbal agreements can be challenging due to the lack of written evidence about the terms agreed upon. Lou might also contend that he had no obligation to ensure the premises were free from disturbances caused by The Friendly Dawg, especially if there was no specific provision in their agreement regarding noise or safety related to animals. Jasmine could claim that the presence of dangerous animals and excessive noise from The Friendly Dawg has rendered her rented space unfit for its intended use as a yoga studio, but once again, enforcing verbal agreements can be challenging. Based on the analysis of each party's rights and obligations, landlord Lou may have grounds to evict The Friendly Dawg for breaching the lease terms by expanding the business without explicit permission, as well as cessation