Question

A five-year lease of a 10,000-square-foot warehouse prohibits assignment. After two years the tenant is unable to continue with the full rent payments and arranges with another tenant to take over one half of the space and pay one half of the rent for the remaining term. This arrangement is:

a. a violation of the terms of the lease.
b. a sublease
c. in violation of statute 83
d. illegal

Answer 1

The arrangement made by the tenant to have another tenant take over half of the space and pay half of the rent for the remaining term of the lease is considered a sublease.

Step-by-step explanation:

The arrangement made by the tenant to have another tenant take over half of the space and pay half of the rent for the remaining term of the lease is considered a sublease.

Subleasing is a common practice when a tenant cannot fulfill the terms of the lease and seeks to transfer some or all of the lease obligations to another party. However, it is important to check the terms of the original lease agreement to ensure that subleasing is allowed. In this case, the lease prohibits assignment, but it does not explicitly prohibit subleasing.