Acceptance of Surrender Eliminates Right to Collect Rent
Facts: In 2005, a tenant and an owner entered into a five-year lease. In May 2007, after the tenant failed to pay its rent and placed a “Store Closing” sign in its window, the owner began looking for a replacement tenant.
The owner signed a lease with a new tenant for a period of five years and two months, with a start date of June 1, 2007. As part of the agreement, the new tenant was given possession of the premises on June 1, 2007, rent free for two months; the first rent payment was due Aug. 1, 2007.