Question 1Josh operated a restaurant in Welland. Josh rented the premises from Stefon. The Lease for the restaurantpremises included a provision that the Tenant would complete all maintenance and repairs to the buildingand allowed the Landlord to complete periodic inspections. If an inspection revealed that any repairs wererequired the Tenant was required to correct any deficiencies within 60 days.The initial 5 year term of the Lease expired on September 30. The Lease included an option for the Tenantto renew the Lease for an additional 5 year term provided that notice exercising the option to renew wasgiven to the Landlord by May 31.On April 1, Stefon completed an inspection and provided a list of deficiencies to Josh together with a noticethat all deficiencies were to be corrected within 60 days.On April 10, Stefon advised Josh that he was listing the property for sale. Josh indicated that he wasinterested in purchasing the property and asked if the time for completing the repairs could be extendedsince he might make more extensive renovations if he owned the property. Stefon agreed and said that hewould allow Josh to match any offer he received.On June 1, Stefon told Josh that he had received and accepted an offer to sell the property for $3,000,000.00and that the Buyer required vacant possession. He also delivered notice to Josh terminating the Lease sinceJosh had breached the Lease by not completing the repairs within 60 days.On April 10, Stefon advised Josh that he was listing the property for sale. Josh indicated that he wasinterested in purchasing the property and asked if the time for completing the repairs could be extendedsince he might make more extensive renovations if he owned the property. Stefon agreed and said that hewould allow Josh to match any offer he received.On June 1, Stefon told Josh that he had received and accepted an offer to sell the property for $3,000,000.00and that the Buyer required vacant possession. He also delivered notice to Josh terminating the Lease sinceJosh had breached the Lease by not completing the repairs within 60 days.Josh said that:(i)he would commence and complete the repairs within 60 days;(ii)he was exercising his right to renew the Lease;(iii)he would match the offer to purchase for $3,000,000.00.Stefon said it was too late and that Josh did not have a legal right to do any of those things, nor did Stefonhave any further legal obligations to Josh.Josh comes to you for advice.Required:to the facts of this case and the positions taken by the parties. What is the likely result of any legal action?Explain in detail the applicable legal principles and provide an analysis of how they apply

Here in this context the issues which are pertaining with both Tenant and landlord relating to the…

Answered: Josh operated a restaurant in Welland.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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