Giada has negotiated a restaurant lease with Lessor to open her new restaurant. The restaurant has...

 

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Giada has negotiated a restaurant lease with Lessor to open her new restaurant. The restaurant has both gas and electric lines running into it, and at the time the building is leased it has a non-functional and non-repairable gas cooking range. The lease provides: The Lessor shall furnish free to and for the use of the Lessee in connection with the use and occupancy of the premises, herein demised, electric power, electric light, heat, electric light bulbs.... but [Giada] shall pay for all gas or fuel used in the preparation of food. Giada installs a new electric range and various microwave and electric convection ovens. When Lessor gets the electric bill, it refuses to pay for the electricity used in cooking because it is "fuel used in the preparation of food." What are the arguments both parties could raise on interpreting that phrase? Is either side's position stronger than the other's? Giada has negotiated a restaurant lease with Lessor to open her new restaurant. The restaurant has both gas and electric lines running into it, and at the time the building is leased it has a non-functional and non-repairable gas cooking range. The lease provides: The Lessor shall furnish free to and for the use of the Lessee in connection with the use and occupancy of the premises, herein demised, electric power, electric light, heat, electric light bulbs.... but [Giada] shall pay for all gas or fuel used in the preparation of food. Giada installs a new electric range and various microwave and electric convection ovens. When Lessor gets the electric bill, it refuses to pay for the electricity used in cooking because it is "fuel used in the preparation of food." What are the arguments both parties could raise on interpreting that phrase? Is either side's position stronger than the other's?

Answer rating: 100% (QA)

Both parties in this scenario could raise arguments based on their interpretation of the phrase fuel used in the preparation of food Lets explore the ... View the full answer