Commercial tenant's exercise of purchase option after expiration of final renewal period in lease held invalid.

Decision and Order holding exercise of purchase option by commercial tenant invalid.


A 1973 commercial lease contained a purchase option, which could be exercised at any time during any term of the lease. After the initial renewal term, the tenant invoked its three renewal options. Prior to the expiration of the third lease renewal period, the parties entered into a "lease modification agreement" which contained a similar purchase otion provision. In a declaratory judgment action commenced by Landlord, the court held that the purchase option could not be validly exercised after the term of the original lease; that the holdover provision did not permit such an exercise and that the lease modification agreement did not satisfy the stature of frauds.

LOADING PDF: If there are any problems, click here to download the file.

Reference Info:Decision | State, 2nd Circuit, New York | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reuben Ortenberg, Woods Oviatt Gilman, LLP | Attorney Advertising

Written by:


Woods Oviatt Gilman, LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.