- 1 Marks
BCL – L1 – SA – Q31 – Contract Law
Question
Patricia rented an apartment to David for $500 per month. Patricia and David signed a one-year lease, to be effective beginning January 1st. After three months, David decided that he did not like the apartment. He gave Patricia a 30-day written notice, stating that he would vacate the rental unit at the end of the thirty days, which was April 30th. Upon receipt of David’s notice, Patricia made reasonable efforts to find a new tenant. Nevertheless, the apartment remained vacant from May 1st through June 30th. Patricia re-rented the apartment beginning July 1st for one year. Patricia sues David in small claims court. What is the likely outcome?
A. Patricia is entitled to the balance of the lease, or $4,000, because David did not have a valid reason to breach the contract.
B. Patricia is entitled to nothing because David gave Patricia thirty-days written notice.
C. Patricia is entitled to $1,000, because she tried to find another tenant immediately upon learning of David’s intent to breach the contract but was unable to re-lease the apartment until July 1st.
D. Patricia is entitled to $500, which represents one- month’s rent.
Answer
C
Explanation:
In contract law, when a tenant breaches a lease by vacating early, the landlord is entitled to damages but has a duty to mitigate losses by making reasonable efforts to re-rent the property. Here, David breached the one-year lease after three months, and Patricia made reasonable efforts to find a new tenant but could not re-rent until July 1st. The apartment was vacant for two months (May and June), equating to $1,000 ($500/month × 2). Since Patricia mitigated her losses and the vacancy period is the direct result of David’s breach, she is entitled to $1,000, as stated in option C. Option A is incorrect because Patricia’s mitigation reduces the claim to actual losses. Option B is incorrect because the 30-day notice does not absolve David of liability for the breach. Option D underestimates the damages, as the vacancy lasted two months.
- Tags: Breach of Contract, Damages, Lease Agreement, Mitigation
- Level: Level 1
- Topic: Contract Law
- Uploader: Samuel Duah