Amy rented her apartment to Ben for $5,000 per month in January 2015. However, they both agreed to execute the agreement for $10,000 per month, because Ben’s employers provided her with a housing allowance of $10,000 per month, as stated in the terms and condition of her employment. At the end of every month, Ben will receive $10,000 from his employers for housing but will pocket $5,000 for himself and pay Amy the other $5,000 per month as rent. They both enjoyed a harmonious relationship for 2 years. However, in 2017 because of a gambling problem, Ben had cash flow issues and failed to pay his rent for 4 months. He avoided Amy at all times and refused to accept Amy’s phone calls in respect to the payment of the outstanding rent. Amy is now seeking to enforce the payment of rent by Ben and is claiming $40,000 in outstanding rent for the last 4 months. Using the IRAC method, advise Amy on whether or not he can bring an action against Ben, bearing in mind what they had agreed upon initially.
Amy rented her apartment to Ben for $5,000 per month in January 2015. However, they both agreed to execute the agreement for $10,000 per month, because Ben’s employers provided her with a housing allowance of $10,000 per month, as stated in the terms and condition of her employment.
At the end of every month, Ben will receive $10,000 from his employers for housing but will pocket $5,000 for himself and pay Amy the other $5,000 per month as rent. They both enjoyed a harmonious relationship for 2 years.
However, in 2017 because of a gambling problem, Ben had
Amy is now seeking to enforce the payment of rent by Ben and is claiming $40,000 in outstanding rent for the last 4 months.
Using the IRAC method, advise Amy on whether or not he can bring an action against Ben, bearing in mind what they had agreed upon initially.
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