Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Is a Tenant's Option to Purchase Assignable?
Last year, a Missouri appellate court affirmed a lower court's holding that where a lease prohibited a tenant from assigning its interest in the lease without the landlord's consent, the tenant also could not assign an option to purchase the real property the tenant was leasing from the landlord, without the landlord's consent. That court held that a tenant's rights under an option to purchase were a covenant that ran with the land, and that the tenant could not assign those rights without the landlord's consent because the lease limited assignment of the lease generally. Megargel Willbrand & Co., LLC v. Fampat Limited Partnership, No. ED 86570, 2006WL956963 (Mo. Ct. App. Apr. 11, 2006)
The court in the Megargel case treated the lease's limitation on assignment as applying to the option to purchase as well as to the remaining provisions of the lease. In other cases, however, courts have held that an option to purchase is a covenant independent from the lease in which that covenant is contained. See, e.g., Holmes v. Harris, 110 A.2d 329, 334 (N.J. Super. Ct. App. Div. 1954) (citing other cases). In the case of such treatment, even where a lease contained a limitation on assignment that applied to the lease generally, the tenant's rights under an option to purchase contained within that lease could be freely assigned.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.