Legal Question in Business Law in California

breaking commercial lease responsibility

My daughter owned a restaurant for four yrs. We, her parents, co-signed on her lease. She was in an auto accident and is pregnant with second child. She was unable to continue operating because of health. Owner was notified and agreed to breaking lease in three months, but refused to sign anything until last months's rent was paid. He still has her deposit which is $400 less the months rent.

He then told her to be out before next month's rent, and if she left all her equipment, he would call it even.

He is now trying to operate and sell her business. She did not agree to give him business, just equipment. He now wants the last months rent and her business name and the equipment.

He refused to sign anything, and claims that if we don't pay he will seek the six months rent.

What can she do, and are we also responsible?


Asked on 9/17/02, 2:27 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: breaking commercial lease responsibility

The facts are bordering on the bizarre here; there is either a serious mis-communication among the parties or the landlord is sadly mistaken about his rights and remedies. My view is that if you can't work things out with one or two more negotiating sessions, don't further hesitate to get a real-estate or business lawyer involved on your side. I don't expect this situation will end up in court but you may need to have someone shore up your position and explain the law to this landlord.

Read more
Answered on 9/17/02, 2:42 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: breaking commercial lease responsibility

While I would need more facts before I can give you a firm opinion on most of the scenario, if you signed as a co-payer, you could be responsible if things go the wrong way for you.

Let me know if I can help.

Read more
Answered on 9/17/02, 5:34 pm


Related Questions & Answers

More Business Law questions and answers in California