Contract Law

[Jacqueline Yuen]

Ming runs a small retail store in a large shopping center. She had been experiencing a general downturn in trading and six months ago she told her landlord Wen that she could not renew her lease unless the rent was halved, which Wen agreed to do. Now a new nearby housing development has helped to considerably increase Ming¡¦s trade. On discovering this, Wen has told her the rent is to go back to the original amount and the he wants the back rent, that is, the unpaid half, for the past six months.

Discuss Ming¡¦s legal obligations to Wen.
If Ming had lied to Wen about a downturn in trade six months ago?

 

[JETX]

Unless there was an agreement to recover the negotiated lower rent retroactively, Ming has NO obligation to pay abated rent to Wen.

Wen however is also under NO obligation to extend Mings lease next time.