Case Scenario:
You are a designer of children’s clothing and decide to open a children’s clothing store. You find a nice space in a local mall and agree to sign a one-year lease agreement that runs from September 1 to August 31. The lease agreement specifies that the lease cannot be assigned without the mall’s consent. In late May, you decide that this space is not attracting enough customers, so you decide to assign the balance of your lease to Priscilla, who owns a candle shop. The mall objects to the assignment and denies Priscilla access to the space. You are certain that Priscilla is financially sound and should be allowed the full rights and privileges of an assignee. Discuss fully whether or not you or the mall is correct.
- Discuss fully the elements of assignment.
- Examine whether or not rights can be assigned if prohibited in a lease contract.
- Analyze the distinctions between commercial assignments and residential assignments.