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Maverick
Maverick, Lawyer
Category: Real Estate Law
Satisfied Customers: 5766
Experience:  20 years professional experience
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I own an apartment building in California and we purchased

Customer Question

I own an apartment building in California and we purchased the building which had a laundry lease for laundry machine service within the premises. The lease contains an automatic renewal clause which states "It is further understood and agreed by and between the parties here to that this lease be extended for an additional period of ten years from the date of its expiration unless Lessee gives to Lessor notice in writing by United States Registered or Certified Mail at least ninety days prior of the of the end of the term herein of the Lessee's intention not to extend this lease. At the expiration of the original term and additional term herein, this lease shall continue for an additional ten year terms unless terminated by either Leasee or Leasor by a notice in writing by United State Registered or Certified Mail, one to the other, ninety days prior of any other subsequent terms herein."
I sent notice upon expiration of the first term 8/11/99 and they responded that only the Lessee could terminate the contract. I failed to notify then 90 days prior to the second term in 2014. Can use the first letter send to them in 2004 as official notice to terminate? On the first term by them being the only one to cancel would that be considered illegal as a unilateral contract? allowing only one party to cancel? Can anyone help.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Maverick replied 1 year ago.
Welcome! My name is Maverick. I very much enjoy what I do and I hope that you will benefit from this information.
1. I sent notice upon expiration of the first term 8/11/99 and they responded that only the Lessee could terminate the contract.
They are correct based on the language you have quoted that only the lessee could have terminated the contract at that point in time because your right to terminate does not arise until the expiration of the original term + one additional term.
2. I failed to notify them 90 days prior to the second term in 2014.
I am not sure where you are getting this second term of 2014. It would appear to me that you could have prevented the automatic renewal to the 10 year term set to began on 8/11/09 by giving 90 days notice before that date.
3. Can use the first letter send to them in 2004 as official notice to terminate?
Need clarification on where you are getting 2004 in this fact scenario???
4. On the first term by them being the only one to cancel would that be considered illegal as a unilateral contract? allowing only one party to cancel?
No, you have a bilateral contract here. Plus, unilateral contracts are not illegal. For example, reward offers are unilateral contracts. The party offering the reward cannot force anyone to fulfill the reward offer. However, an offeree can sue for breach of contract, if the offeror does not provide the reward after the offeree has fulfilled the contract's requirements.
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