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    Contract Question

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    Real Estate Investments, Inc., owns and manages an office building. Se­cure Insurance Company agrees to lease the building for five years. Un­der the lease, Secure is obligated to pay all of the utility costs. Two years into the term, Secure asks Real Estate to modify the lease to provide that the utility costs be split equally between them. Real Estate agrees, but later decides it does not want to share the costs and refuses to pay. Is the landlord bound to its agreement to share the utility costs? Why or why not?

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    Solution Preview

    Real Estate is bound by the contract law. An offer (even if it was a modification of a prior agreement) was made and accepted. It was done with the ability of both parties to enter into the contract and there was not any illegality to the contract. ...

    Solution Summary

    When a contract is modified and then breached are the parties still bound to the new agreement? A short discussion on the contract law and how it may apply. Example of one case precedent thoughts.