Minimarket Grocers is in a one year lease of a bay in a strip mall that is subject to a periodic tenancy.The one year period will be completed in three months.What will happen if Minimarket allows the three months to pass without taking any further steps?
A) Minimarket will be in breach of the terms of the lease.
B) The lease will expire and Minimarket will have to vacate the premises.
C) The lease will automatically renew for another year.
D) The lease will renew for an additional one month period.

Question

Quizplus · Accepted Answer

The lease will automatically renew for another year if Minimarket allows the three months to pass without taking any further steps. This is because a periodic tenancy is a tenancy that continues for successive periods of time until either the landlord or the tenant gives notice to terminate the tenancy. In this case, Minimarket has not given notice to terminate the tenancy, so the lease will automatically renew for another year.

Minimarket Grocers Is in a One Year Lease of a Bay