mardi 27 mars 2018

Commercial Lease Contract

My question involves business law in the state of: New Jersey

I have a letter of intent and signed commercial lease. I believe the lease is invalid for the following reasons:

1) Since there was no Certificate of Occupancy (CO), I have been informed by the city that any lease would be illegal and unenforceable (the municipal code states the same) Prior to learning of this, we did make a few monthly rental payments;

2) Later, in Landlord/Tenant court, the judge informed me that the lease was unenforceable, no rents were due until the CO was issued;

3) Contracts require consideration to be enforceable. After the CO was finally issued, no rent was paid, so no consideration.

4) The building had unauthorized expansion of square footage. No permits or inspections. The unauthorized expansion was around 40% of the total area.

Assuming the lease was unenforceable, all we have is the signed LOI. I believe the terms of the LOI to be enforceable, especially given the fact that I relied on the LOI to start working on the project.

Would you confirm the enforceability of leases without a CO or consideration? Would payments before getting a CO constitute consideration?

Also, would the LOI be binding? There was no disclaimer saying it was non binding, and I relied on the LOI by starting renovation.

What about the misrepresented square footage?

Thanks


Commercial Lease Contract

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