Business Law: Amanda Jones owns several commercial buildings that she leases to
ID: 352679 • Letter: B
Question
Business Law:
Amanda Jones owns several commercial buildings that she leases to businesses, one of which is a restaurant. The lease states that tenants are responsible for securing all necessary insurance policies but the land lord is obligated to keep the buildings in good repair. The owner of the restaurant, Joe Ash, tells his restaurant manager to purchase insurance, but the manager never does so. Jones tells her son-in-law, Rob Delbruck, to perform any necessary maintenance for the buildings. Delbruck knows that the ceiling in the restaurant needs repair, but fails to do anything about it.
One day a customer, Ray Skeat, is dining in the restaurant when a chunk of the ceiling falls on his head and fractures his skull. Skeat files suit against the restaurant and discovers that there is no insurance policy in effect. Skeat then files suit against Jones, arguing that he is an intended third party beneficiary of the lease provision requiring insurance and thus can sue Jones for failing to enforce the lease (which requires the restaurant to carry insurance).
Answer the following questions in one to two paragraphs each.
1. Can Jones delegate her duty to maintain the buildings to Delbruck? Why or why not?
2. Who is liable for Delbruck’s failure to fix the ceiling, Jones or Delbruck? Why?
3. Was Skeat an intended third party beneficiary of the lease between Jones and Ash? Why or why not?
4. Suppose that Jones tells Dan Patterson, a local builder to whom she owes $50,000, that he can collect the rents from the buildings’ tenants until the debt is satisfied. Is this a valid assignment? Why or why not?
Answer the following questions in one to two paragraphs each.
1. Can Jones delegate her duty to maintain the buildings to Delbruck? Why or why not?
2. Who is liable for Delbruck’s failure to fix the ceiling, Jones or Delbruck? Why?
3. Was Skeat an intended third party beneficiary of the lease between Jones and Ash? Why or why not?
4. Suppose that Jones tells Dan Patterson, a local builder to whom she owes $50,000, that he can collect the rents from the buildings’ tenants until the debt is satisfied. Is this a valid assignment? Why or why not?
Explanation / Answer
1. Can Jones delegate her duty to maintain the buildings to Delbruck? Why or why not?
Yes, Jones can delegate the duty but that needs to be documented and made a contract or else the validity of the thing will not at all be justified and Jones will be held liable for any issue or loss.
2. Who is liable for Delbruck’s failure to fix the ceiling, Jones or Delbruck? Why?
Jones is liable because Jones is the owner and she is responsible in maintaining the building which she delegated to Delbruck verbally which does not count.
3. Was Skeat an intended third party beneficiary of the lease between Jones and Ash? Why or why not?
Yes, Skeat is an intended third party beneficiary of the lease between Jones and Ash because the necessary insurance policies of the restaurant is applied on Skeat as he is injured while dining.
4. Suppose that Jones tells Dan Patterson, a local builder to whom she owes $50,000, that he can collect the rents from the buildings’ tenants until the debt is satisfied. Is this a valid assignment? Why or why not?
Yes, this is a valid assignment where Dan can actually be assigned rights to collect rent from the tenants but this needs to be contracted and the powers should be transferred to Dan so that the tenants are convinced to pay the rent to him.
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