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Understanding Lease Transfer Consents and Reasonableness Requirements in Commercial Law

This guide provides essential insights into the complexities of lease transfer consents within commercial law, focusing on the reasonableness requirement that landlords must adhere to. We explore cases that address whether a landlord can unreasonably withhold consent and the implications of political affiliations on these decisions. Special emphasis is given to key legal principles surrounding easements, discrimination, and case studies that illustrate potential discriminatory and non-discriminatory reasons for lease denial, providing a comprehensive understanding of the topic.

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Understanding Lease Transfer Consents and Reasonableness Requirements in Commercial Law

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  1. LOGISTICS • On Course Page: General Final Exam Info, Office Hours, Review Session Times, etc. • Registration: • Remember to Check System Before Registration Time for Seats Remaining in Courses • More Business Associations Seats Being Added • I’ll Be Here Today Until 6pm & Tomorrow from 8am • Boston

  2. Review Problem 6F(S152)Opinion/Dissent • State Supreme Court in Prior Case: • Where Commercial Lease Required Landlord’s Consent to Transfer, the Landlord could not withhold consent Unreasonably; • Did not rule on whether T could expressly waive this reasonableness requirement • Lease Here: “Tenant may not transfer its interest in this lease without permission of the Landlord, which permission maybe withheld for any reason at all.”

  3. Review Problem 6F(S152)Opinion/Dissent Two Issues: • Is Reasonableness Requirement Waivable? (DENALI Today) • If Not, Were L’s Reasons for Denying Consent Reasonable (EVERGLADES Tomorrow)

  4. DENALI: Rev.Prob.6F(A): Is Reasonableness Requirement re Consent to Transfer Waivable? Denali Caribou

  5. EVERGLADES: Rev.Prob.6F(B): Were L’s Reasons for Denying Consent Reasonable? EGRET IN MANGROVE SWAMP

  6. EVERGLADES: Rev.Prob.6F(B): Were L’s Reasons for Denying Consent Reasonable? • L refuses T attempt to transfer lease rights to PP; “no problem” w financial credentials BUT: • CEO of PP was “outspoken public advocate” of political positions L “sharply disagreed with” • 5 years earlier, had denied same lease to PP • Task: Should provide substantive arguments for and against each of the two reasons at issue • Could choose to follow cases we read, (e.g., Funk limiting to economic Qs) but need to defend choice • Could try to craft new general rules, then follow

  7. EVERGLADES: Rev.Prob.6F(B): Were L’s Reasons for Denying Consent Reasonable: Political Differences • L refuses T attempt to transfer lease rights to PP; “no problem” w financial credentials BUT: • CEO of PP was “outspoken public advocate” of political positions L “sharply disagreed with” • 5 years earlier, had denied same lease to PP

  8. EVERGLADES: Rev.Prob.6F(B): Were L’s Reasons for Denying Consent Reasonable: Prior Rejection • L refuses T attempt to transfer lease rights to PP; “no problem” w financial credentials BUT: • CEO of PP was “outspoken public advocate” of political positions L “sharply disagreed with” • 5 years earlier, L had denied same lease to PP

  9. Rev.Prob.6F(B) & Reasonableness: Note on Yeshiva Univ. (Note 3 P706) • L wanted to exclude Planned Parenthood b/c of religious concerns re providing contraception • Language from case (“must be relevant to any Landlord”) suggests religious concerns not OK. • BUT also issue of inconsistent application by L • Birth control courses taught in Hospital run by L • So doesn’t look like bona fide religious concern • Asked if hospital courses were embarassment to L, official replied, “Well, they're in the Bronx."

  10. GLACIER: Rev.Prob.6G: Evidence of Discrimination Glacier Mountain Lion

  11. GLACIER: Rev.Prob.6G: Evidence of Discrimination • Possible Discriminatory Reasons for Rejection • Religion (Not Jewish Enough) • Inter-Racial or Inter-Faith Relationship • Israeli • Possible Non-Discriminatory Reasons? • Significance of SpecificFacts? • Rebecca Regularly wears Star of David • Chris wears an earring in the shape of a cross • Ben says “Black, Red, Green, Whatever. No Problem.” • Rebecca says “Part of the reason I left Israel is so I don’t have rabbis watching everything I do.”

  12. GLACIER: Rev.Prob.6G: Evidence of Discrimination • Other Evidence Supporting Discriminatory Reasons? • Other Evidence Supporting Non-Discriminatory Reasons? • Stronger Position Overall?Because?

  13. Chapter 7: Easements • Overview & Terminology • Interpreting Language • Easement v. Fee • Scope of Express Easements • Implied Easements • By Estoppel • By Prescription • By Implication and/or Necessity

  14. Chapter 7: Easements Overview & Terminology • Easement = Right to Use Land Owned by Someone Else for Specific Purpose (e.g., Right of Way) • Basic Background Info in Readings • Key Vocabulary: • Express v. Implied Easements • Positive v. Negative Easements • Appurtenant v. In Gross • Dominant Tenement (Holding) v. Servient Tenement

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