In: Operations Management
Aron, a college student, signs 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 landlord’s consent. In late May, Aron decides not to go to summer school and assigns the balance of the lease (three months) to a close friend, Erica. The landlord objects to the assignment and denies Erica access to the apartment. Aron claims that Erica is financially sound and should be allowed the full rights and privileges of an assignee. Discuss fully whether the landlord or Aron is correct
Fact of the case :
Aron, leases an apartment for a one year period during which he is not allowed to lease it to another person without landlord's consent. When Aron decides to go to summer school he tried to assign the apartment to Erica but landlord denies access of Erica into the apartment.
In this case, Landlord is correct due to the following reasons :
a. Agreement to lease clearly states that apartment cannot be assigned to another person during one year period of time without the consent of landlord.
b. For the use of asset that is apartment Aron the lessee and Landlord the lessor had an agreement where Aron will pay him the rent which has formed a legal contract between them hence according to the terms of contract it cannot be reassigned to Erica.
c. As Aron tried to assign apartment to Erica in May that is for the remaining 3 months of agreement, in this case Landlord can consider Erica to rent an apartment as it will be beneficial for him financially, but if landlord denies Aron does not have any legal rights to assign apartment to Erica.