Dona and Eden sign a lease that includes a clause permitting Dona to ex?tend the lease at an amount of rent to be agreed on at the time of the ex?ten?sion. The clause is
A) enforceable, because it is part of a lease.
B) enforceable, if the parties intend the clause to be binding.
C) not enforceable, because it does not include a price term.
D) not enforceable, because it is not in the right form.

Question

Quizplus · Accepted Answer

A clause that permits a tenant to extend a lease at an amount of rent to be agreed on at the time of the extension is enforceable if the parties intend the clause to be binding. As long the parties agree to the extension and any related terms, the clause is considered valid.

Dona and Eden Sign a Lease That Includes a Clause