Twyla works at a local caf, called Nesters. Mabel, who owns Nesters, wants to sell the caf
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goodwill, the name 'Nesters' and the café's fixtures and fittings. Mabel accepts this offer. It is also agreed that Twyla will lease the café premises from Mabel as Mabel owns the
building in which the café is located. The agreed rental is $1200 per month. When the two parties signed the agreement in December 2022, it was agreed that Twyla would take over the café (and pay the $220,000) on 1 March 2022. Also, it was agreed that Twyla would start paying the rental from this date. After Twyla took over the café and paid the first two months' rental, in mid-May 2022 she had an accident and could not work for a number of months. Unfortunately, Twyla had not gotten around to organising loss of income insurance, and although she was eventually able to hire someone to cover for her, Twyla quickly realised that she would not be in a position to pay the full monthly rent going forward. Accordingly, in June 2022,Twyla contacted Mabel and advised her of this fact and indicated that Twyla is looking to sell Nesters as soon as possible. Mabel responded by email advising that as Twyla is a friend of hers, she is willing to drop the monthly rental to $500 per month for 12 months until July 2023.
On the basis of this assurance, Twyla decided not to sell the café business. Twyla does manage to pay the $500 per month until June 2023. However, Nesters is losing money and has accrued some other debts and Twyla wishes she had sold it in June 2022. To make matters worse for Twyla, in July 2023 she received a letter from Mabel's lawyer advising
that she was $8400 in default in rental payments and requesting that she pay this amount plus interest as a matter of urgency.
Advise Twyla of any legal arguments she may be able to make to enforce the arrangement with Mabel to pay only $500 monthly rent.
Related Book For
Introduction To Materials Management
ISBN: 978-9386873248
8th edition
Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen
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