I signed a one year lease to purchase contract made out by an individual and after being in the house 9 months, I lost my job and could not stay in the house. The lessor is sueing me in small claims court for the remainder of the lease. I have discovered from Chase Bank that the house was under a lease modification program and could not be leased or rented. Is this now a breach of contract due to the fact that the bank was not informed and he could not legally lease or rent the property? Response: No, it would not be breach of contract as far as your arrangement with the individual is concerned. However, it would be a defense to the individual's breach of contract suit against you. That is, the individual did not have the right to enter into a lease with you in the first place. So, the individual cannot sue you for breach of lease that should not have existed in the first place. Also, unclean hands doctrine would come into effect here. The individual has unclean hands because he/she entered into a lease with you when he should not have done so in the first place—you would cite unclean hands doctrine to the Court.
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