Paralegal Exam Prep

Category - Contracts

Heather signed an apartment lease agreement with Heathrow for a 12-month term. After 3 months, Heather found a better apartment and decided to move. Heather had paid Heathrow rent for the 3 months that she lived in Heathrow's apartment. Heathrow, believing that Heather was responsible for the rent for the remaining 9 months, allowed the apartment to remain empty for the rest of the term of the lease agreement that he had with Heather. When Heather refused to pay for the remaining 9 months, Heathrow sued. How will the court decide this case?
  1. Heather will lose and be required to pay Heathrow for the remaining 9 months because she breached the contract.
  2. Heather will lose, but will be required to pay Heathrow an amount that is less than 9 months, as Heathrow had a duty to mitigate damages.
  3. Heather will win because she paid for the months that she lived in the apartment and is not required to pay any more.
  4. Heather will win and not have to pay for any additional amount because Heathrow should have found another tenant.
  5. Heather will lose because she did not give Heathrow 30 days notice of her intent to leave.
Explanation
Answer: B. The court will decide that Heather will lose, but will be required to pay Heathrow an amount that is less than 9 months, as Heathrow had a duty to mitigate damages. After a breach, the non-breaching party has the duty to mitigate or minimize the damages. In this case, mitigation requires that Heathrow make a reasonable effort to lease the apartment to a new tenant and collect rent. Because Heathrow did not try to find a new tenant, he will be entitled to damages in an amount that is less than 9 months.
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