To develop what you believe is a terrific idea for a video game, you lease 50,000 square feet in an office building from Commercial Property, LLC, under a written five-year lease. Your goal is to put the game on the market within two years. Several months into the term, a competitor unexpectedly releases a new game title featuring play that would make your game appear to be a poorly crafted imitation.
Can you assign the lease to another party? Explain
A lease can be assigned to another if the lease agreement does not restrict such an assignment or with permission from the landlord. The landlord has an incentive to permit such an assignment because it permits the landlord to continue to collect rent. Moreover, the landlord can continue to hold the previous tenant as a guarantor which further gives the landlord additional protections. Additionally, upon assignment, the landlord can require the tenant to provide additional deposits to further guarantee the tenancy and the property. If the lease does have such an assignment restriction, then upon original tenant abandoning the lease, the landlord must still try to mitigate his or her damages by trying to lease it to someone else, which in effect is a form of sublease. In this scenario, the original tenant still has liability for the value lost of the lease to the landlord minus whatever mitigation the landlord was able to accomplish. Additionally, if the llc goes bankrupt, then the company's liability is discharged and the landlord is left with nothing. Therefore, it is best for landlord to permit a sublease when subleasor is a reliable business and original tenant agrees to continue to be responsible for the lease as a guarantor