Material Breach Of Rental Agreement

Recently, the Los Angeles County Supreme Court heard a case in which the landlord, NIVO 1 LLC, attempted to evict tenant Amiteria Antunez. The tenant was given 3 days` notice that the tenant was “in breach of paragraph 17 of your lease… Paragraph 17 of the rental agreement states: “Insurance: the tenant must have personal insurance to cover losses on the tenant`s personal property or vehicle. It doesn`t matter if you hate your tenant or are best friends. If these services are not adequately provided, the lessor is placed in a material breach. California`s Second District Court of Appeals overturned the trial court`s decisions and ruled that a lease could only be terminated due to a material breach of the lease agreement. The Court has found that, in previous cases, it has been found that a substantial period of time must be breached before a lease can be terminated. It referred to previous cases where it was found that a minor default was not sufficient to terminate a lease. The Court found that, even though this case was different because of the forfeiture clause, the Court refused the execution of the forfeiture clause in that case because it was contrary to public policy and had to be interpreted restrictively. The Court found that the principles of the free market are applicable only to a limited extent in housing rental contracts, since landlords have a disproportionate power over tenants in these agreements.

Therefore, the courts generally prefer tenants because they have less bargaining power and landlords respect a higher level. Some owners may be upset by this judgment and the case law behind it. How can a landlord – or tenant – know if a breach of a given agreement is considered essential? Some suggested that it might be useful to identify some of the most important leasing obligations as “essential” and explain why they are. Simply saying that all the provisions are essential would probably not go very far. If a lease is concluded and signed, the conditions are mandatory for all parties. If the injuring party does not resolve the violation, action can be taken. You need to give your landlord reasonable time to resolve the issue. If you find that the owner or agent doesn`t take your concerns seriously, the Council`s environmental health team may be able to help if the violation on As an owner, here are some common ways, as you might be in trouble with a material violation.

The Arizona Supreme Court, Foundation Development Corp. v. Loehmann`s Inc., 163 Ariz. 438, 788 p.2d 1189 (1990), held that a material breach in a commercial lease agreement could result in loss of ownership. If a party fulfills the essence of the contract but nevertheless violates it in a significant way, a commercial lease cannot be terminated, but the lessor can bring an action for damages. Id. The Loehmann`s court applied a multi-factor test to determine whether the offense is essential or not: There are many more situations where owners may knowingly or unstnowingly have a substantial offense…