Pregunta
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Question #3 of 23
Tenant Teresa and landlord Lester enter into a written contract for Teresa to rent Lester’s commercial property. Teresa starts out selling cigars and cigarettes but goes
health kick and decides to change it into a cross-training studio without notifying Lester. Can Lester sue Terri for breach of contract?
A) No, if there is no limitation on use of the premises
B) Yes, because the contract is not subject to the statute of frauds.
C) No, as long as Teresa does not alter the property
D) Yes, because Teresa is violating the terms of use in the contract.

Ask by Powell Pritchard. in the United States
Mar 24,2025

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Lester can sue Teresa because she changed the business without permission, which violates the contract terms.

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The Deep Dive

The situation at hand typically revolves around the specific terms in the lease agreement that Teresa signed with Lester. If the contract includes a clause that restricts the use of the property to selling tobacco products, then changing to a cross-training studio could indeed be considered a breach of contract. In general, landlords and tenants need to be crystal clear about allowable uses of the premises to avoid disputes down the line.
In the world of commercial leases, it’s common for landlords to maintain control over what types of businesses can operate on their property. This means that if Lester specifically outlined the permitted use of the premises in their contract, then Teresa’s decision to switch to a completely different business without notifying Lester could lead to significant legal repercussions, potentially allowing Lester to initiate a lawsuit against her for breach of contract. Always read those fine print clauses!

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