Landlord / Tenant: Assignment and Splitting of the Dual Relationship

Submitted by David on Mon, 2008-03-24 14:28.

Hypothetical - This hypothetical assumes that Venable leased a storefront to Schumann for 10 years, reserving a rent of $5,000 per month, which Schumann promised to pay.

Three years later, Schumann sold his store business to Cobbler, assigning the lease to the premises.

(Note: As is the case with most of our hypotheticals regarding Property, the use of visuals greatly enhances the ability to understand the facts and the rules. Please refer to our free Property Advisor course for examples.)

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Question - True or false— Schumann would now have no further obligation to pay rent.

Answer and Explanation - False. Contract duties cannot be assigned, and when they are delegated, the assignor remains liable.

Therefore, Schumann still has his “privity of contract” obligation to pay rent.

The Law School Experience - These and related topics are covered in our tutorials on Property.

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