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Assume that Smith and Jones attained the age of majority and signed a written lease agreement for a two-year term with the same monthly rental with the partnership. Would the written agreement be a legally-enforceable contract if it contained a cancellation clause that permitted the partnership to terminate the lease “immediately upon non-payment of rent due or a material breach by the tenants, or upon thirty days notice to the tenant in the event that the landlord partnership receives a written offer to rent the same leased premises to a third party at a higher rental” amount? Why or why not?

The agreement would likely be legally enforceable because Smith and Jones are adults and have the power to sign a contract even if the terms seem unfair. What could stop the agreement from being legally enforceable is if Smith and Jones lived in a place that regulated rent increases or prohibited immediate evictions.

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If Smith and Jones signed the agreement, then, hypothetically, it's legally enforceable. They consented to the terms of the contract even if others would consider them disadvantageous. Smith and Jones are of legal age, which means they can make legally binding choices, like signing a rent agreement.

Of course, states...

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If Smith and Jones signed the agreement, then, hypothetically, it's legally enforceable. They consented to the terms of the contract even if others would consider them disadvantageous. Smith and Jones are of legal age, which means they can make legally binding choices, like signing a rent agreement.

Of course, states and jurisdictions tend to have varied and rather complex laws about lease agreements. For example, if Smith and Jones signed this agreement in New York, then the contract would have to be modified. Landlord Partnership could not “terminate” the lease right away; they would have to give Smith and Jones 14 days to pay the rent or 10 days to correct the applicable breach. If Smith and Jones didn't fix the breach or pay rent within the respective time frames, only then could Landlord Partnership start eviction proceedings.

The right to kick out Smith and Jones if they receive a higher offer for the premise is an addendum. It turns the fixed-term lease into a tenancy at will (a month-to-month lease) because each month Smith and Jones face the prospect that they’ll have to leave if Landlord Partnership can find someone who’ll rent the premises for more money. While the addendum might strike some as exploitive, unless Smith and Jones live in a place with rent regulation, rent stabilization, or a set of tenant protection laws, it’s probably legal.

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