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    The Ramifications of Tenant Contracts

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    Hayden Tompkin leased commercial property to a car rental company, Cars the Limit, Inc., for a ten-year term. After two years, Cars the Limit's original shareholder, Tom Brody, sold his shares to Erika Taylor and Taylor's bookkeeper, Sandy Connors. Tompkin visited the property in the ninth year of the lease and found many problems with the condition of the property. He claimed that the lease required the tenant to make necessary repairs. Tompkin sued Cars the Limit, Inc., and Erika Taylor and Sandy Connors individually for breach of the lease contract. Taylor and Connors maintain they are not liable for the debt of the corporation. Are Taylor and Connors correct?

    © BrainMass Inc. brainmass.com December 24, 2021, 10:33 pm ad1c9bdddf
    https://brainmass.com/business/business-law/ramifications-tenant-contracts-488019

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    Due to the fact that this was what is known as a stock purchase, Erica Taylor and Sandy Connors will be liable for breach of the lease contract, due to the fact that the legal ramifications of a stock purchase include the fact that the purchaser in this situation assumes any obligations etc., of the seller of the stock in their entirety. In this case, the lease between Hayden Tompkin and the previous owner of Cars the Limits, requires that the tenant make necessary repairs on the property, and Thompkins found that there were problems with the condition of the property, which would result in a breach of contract, which is now the responsibility of Erica Taylor and Sandy Connors to remedy. Due to the situational and legal factors involved in this case, Taylor and Connors would be liable for the debts of the Corporation, and would in all probability lose in a civil suit against Mr. Tomkin.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 10:33 pm ad1c9bdddf>
    https://brainmass.com/business/business-law/ramifications-tenant-contracts-488019

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