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Contracts Keyed to Summers
J.N.A. Realty Corp. v. Cross Bay Chelsea, Inc.
Citation:42 N.Y.2d 392, 366 N.E.2d 1313
A restaurant leased a building owned by J.N.A. Realty Corporation (hereinafter “J.N.A.”) (plaintiff) for a 10-year term. The contract provided the restaurant with an option to renew its lease for another 10-year term provided it gave timely, written notice to J.N.A. The restaurant later assigned its lease to Cross Bay Chelsea, Inc. (hereinafter “Chelsea”) (plaintiff), under the condition that the option to renew would be modified to a 24-year term. J.N.A. consented to the assignment and modified the option to renew provision. Chelsea made improvements on the premises that cost $40,000 at the time of the purchase. Chelsea invested an additional $15,000 during the tenancy on making improvements to the premises. When the deadline passed to exercise the renewal option, J.N.A. sent a letter requesting that Chelsea vacate the premises. When Chelsea sent a written notice of its intention to renew the lease, J.N.A. refused to honor it. J.N.A. sued Chelsea recover possession of the premises.
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