Contracts Keyed to Knapp
Walker v. Keith
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
Plaintiff leased a small lot from Defendant for a ten year term. The lease agreement between the parties provided an option to renew for an additional ten years. The option included the same terms as the original lease, but did not set an amount for rent. The lease option provided that the rent would be set “in such amount as shall actually be agreed upon by the lessors and the lessee with the monthly rental fixed on the comparative basis of rental values as of the date of renewal with rental values at this time reflected by the comparative business conditions of the two periods.” Plaintiff gave proper notice of renewal, but the parties were unable to reach an agreement as to the amount of rent. The trial court enforced the option and set rent at $125 per month.
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