1. State whether you conclude the Amended Warehouse Lease is enforceable by Guettinger, or alternatively, whether the Amended Warehouse Lease is null and void, and Smith, therefore, does not have to pay the full lease amounts.
I conclude that the Amended Warehouse Lease is not enforceable by Guettinger and thus renders it to be null and void. Also, Mr. Smith does not have to pay the full amounts specified in the amended warehouse lease contract.
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2. Discuss what facts were critical and what legal principles you applied in reaching your decision on Question 1.
When the initial long-term Warehouse Lease was affected in the September of 2016, it was conclusively stated and signed by both parties that the lease would become null and void unless the landlord obtained a $1 million by the 15th of October, 2016. However, the landlord did not abide by those terms of the lease agreement, nor did he bother to inform his client that he violated the agreement. According to the contract discharge regulations, a contract is only enforceable by complete/strict performance, and an anticipatory repudiation of the contract by either of the party allows for immediate sue for a breach of contract by the other party. Instead, Guettinger proceeded to purchase the insurance policy and continue with the contract under the assumption that the client would not know, thereby acting in bad faith. Therefore, the earlier warehouse contract became null and void on the 15th of October 2016.
The second part regarding the payment of the full lease amounts is not enforceable. According to the contract amendment regulations, a null and void contract cannot be amended or changed to make it enforceable. Such a contract, as observed in the case of Guettinger vs. Smith, must be vacated completely. Mr. Smith can sue for compensation from Guettinger due to breach of contract under the Discharge of Contract law, or both parties can seek an out-of-court settlement by agreeing on a mutually benefiting contract.
References
Chapter Summary: Contract Performance, Breach, and Remedies. Contract Discharge.
