Lulu rents an apartment for $300 a week. After six months, Lulu gives notice to her landlord that she intends to move to a cheaper apartment.

The landlord asks Lulu to stay and offers to reduce her rent to $100 per week, which she accepts. The landlord says not to worry about changing the lease, as he is 'a man of his word'.

After one year of paying the reduced rent, Lulu decides to relocate to another country and gives notice of leaving. The landlord demands outstanding rent over the previous year, which is the difference between the $100 a week she paid, and the amount she would have paid for the $300 a week apartment according to the terms of the lease.

Using IRAC, explain Lulu's legal position, advising whether she needs to pay the difference in rent.

Answer rating: 100% (QA)

Issue The key legal issue is whether Lulu is obligated to pay the difference in rent for the period ... View the full answer