Answer to Question #242627 in Management for Jayjay

Question

Frank wants to open a restaurant in Mary’s shopping centre and enters into a lease with Mary on 01 January. The Monthly rent is N$ 2000 and the lease is to extend until 31 December. The restaurant is very popular and Frank Makes a Monthly net profit of N$25000. On 30 June, Mary sells the shopping centre to Harry. Harry then gives Frank notice that his lease has lapsed as a result of the centre having been sold. Discuss the legal position of the parties

Answer 1

Mary fails to fulfill her duties under the agreement, then she has breached the contract with Frank. Frank has several options for obtaining compensation:

Sue for damages: He may file a lawsuit against the contractor for damages.

Specific performance: He can compel Mary for a refund and the profits to be accrued with the time set in the contract.