Anderson's Business Law and the Legal Environment 20th Edition by David Twomey,Marianne Jennings

Exercise 2

Fedun rented a building to Gomer, who did business under the name of Mike's Cafe. Later, Gomer was about to sell the business to Brown and requested Fedun to release him from his liability under the lease. Fedun agreed to do so. Brown sold the business shortly thereafter. The balance of the rent due by Gomer under the original lease agreement was not paid, and Fedun sued Gomer on the rent claim. Could he collect after having released Gomer? [Fedun v Mike's Cafe, 204 A2d 776 (Pa Super)]