Question

Landlord owns several leased buildings in the same block near downtown. Landlord leases an entire building to TC, for his restaurant “TC’s Café”. Among the standard terms negotiated in the lease are the following provisions:Tenant’s Duties: Tenant agrees to maintain a policy of hazard insurance sufficient to repair or replace the Property in event of damage resulting from flood, weather events, fire, or tenant use.Landlord’s Duties: Landlord agrees to keep the Property in good repair for Tenant’s use in.-Landlord hires her son-in-law Dunn to perform her maintenance duties on her leased buildings. Dunn is aware that several tin ceiling tiles need to be replaced in the restaurant, but doesn’t do it.-TC tells his restaurant manager to obtain hazard insurance, but the manager forgets to do it.-Fleming is enjoying chicken fried steak at TC’s Café when a ceiling tile falls on his head and he sustains a fracture and requires ten stitches.

a.Who can be held liable for breach of the contract duty to keep the building in good repair? Landlord ? Dunn ? Why?

b.Does Fleming have any rights to recover as a third party beneficiary of the lease agreement:

(1) For failure to maintain good repair? Why or why not?

(2) For failure to obtain hazard insurance? Why or why not?

Answer 1

Solution

a.

Landlord will be held liable for breach of contract duties because even though Dunn did not do he maintenance part which was assigned to him but the agreement was in the name of the landlord hence landlord will be responsible  for it.

b

(1) Yes fleming has all the rights to recover as a third party beneficiary because he is the one who is suffered and got a head fracture due to irresponsibility of landlord and dunn hence fleming will get the recovery.

(2) Yes fleming will get the recovery from the hazard insurance because hazard insurance is a must duty of any tenant before they open their business and due to this policy's breach he will get the recovery.