Owner Couldn't Prove that Tenant Renewed Leas

April 1, 2002

A lease required the tenant to exercise its renewal option by sending notice to the owner at least six months before the initial term expired. The tenant moved out of the space at the end of the initial term. The owner sued the tenant, claiming that it exercised the renewal option by a letter, dated four months before the initial term expired. The owner claimed that the letter was timely because it “verbally waived” the renewal notice deadline. The tenant argued that the letter was not a formal renewal notice.

A lease required the tenant to exercise its renewal option by sending notice to the owner at least six months before the initial term expired. The tenant moved out of the space at the end of the initial term. The owner sued the tenant, claiming that it exercised the renewal option by a letter, dated four months before the initial term expired. The owner claimed that the letter was timely because it “verbally waived” the renewal notice deadline. The tenant argued that the letter was not a formal renewal notice.

A Connecticut court ruled that the tenant didn't exercise the lease renewal. The court pointed out that the owner's verbal waiver of the renewal notice deadline was invalid. The lease clearly required that any waiver of its terms be in writing. Plus the court said that there was no “meeting of the minds” by the parties regarding the exercise of the renewal option. The tenant's letter only informed the owner that it wanted to change essential lease terms—such as the amount of rent—if the lease was to be renewed. But the parties never agreed on those terms for the renewal period [Cromwell Sq. Partners LP v. Nunes].

More like this