RESOLVING THE QUESTION OF WHETHER THIS LEASE PROVISION IS VOID AS AGAINST PUBLIC POLICY TURNS ON FAIRLY BALANCING THE PARTIES FREEDOM TO CONTRACT AGAINST THE POLICY OF PROMOTING RESPONSIBILITY FOR DAMAGES CAUSED BY ONE'S OWN NEGLIGENT ACTS. A TENANT CHOICE MAY BE LIMITED .
HE CAN ACCEPT ONE LANDLORD OR GO TO ANOTHER WHO CHARGES THE SAME RENT AND ASKS THE TENANT TO SIGN THE SAME STANDARD FORM LEASE. WE CONCLUDE THE FIVE FACTORS IN FAVOR OF NOT ENFORCING THIS TYPE OF CLAUSE IS RESIDENTIAL LEASES: 1. THE NATURE OF SUBJECT MATTER OF CONTRACT 2. THE STRENGTH OF THE PUBLIC POLICY UNDERLYING THE STATUE 3. THE LIKELIHOOD THAT REFUSAL TO ENFORCE THE BARGAIN OR TERM WILL FURTHER THAT POLICY 4. HOW SERIOUS OR DESERVED WOULD BE THE FORFEITURE SUFFERED BY THE PARTY ATTEMPTING TO ENFORCE THE BARGAIN AND 5. THE PARTIES RELATIVE BARGAINING POWER AND FREEDOM TO CONTRACT.
THE FACT THAT PEOPLE WHO ARE NOT PARTIES TO THE CONTRACTS COULD SUFFER AS A RESULT OF SUCH CLAUSES, AND THE DESIRE TO PROMOTE RESPONSIBLE MAINTENANCE BY LANDLORDS TO AVOID PERSONAL INJURIES BY TENANTS AND THIRD PARTIES, WE FIND THAT THE FACTORS WEIGH IN FAVOR OF PUBLIC POLICY.
CASE QUESTIONS Barbara Richards leased an apartment at a complex owned by Twin Lakes. The Jease...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...
Case: Enron: Questionable Accounting Leads to CollapseIntroductionOnce upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant “E,” slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm laid off 4,000...
CASE 20 Enron: Not Accounting for the Future* INTRODUCTION Once upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant "E" slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm...