California First-Year Law Students' Exam (Baby Bar) — MCContractsHard
A tenant signs a one-year lease agreement for an apartment. The lease includes a clause stating, 'Tenant shall not assign this lease or sublet the premises without the prior written consent of the Landlord.' Six months into the lease, the tenant finds a suitable sublessee and requests the landlord's consent. The landlord refuses, stating, 'I just don't like the look of them.' In a jurisdiction that follows the modern view regarding such clauses, what is the landlord's refusal most likely considered?
- AA request for renegotiation of the lease terms.
- BAn unreasonable refusal, potentially breaching the lease.
- CA valid exercise of the landlord's absolute right to refuse.
- DA valid refusal if the landlord provides any reason, however arbitrary.
Show answer & explanationAnswer & explanation
Correct answer: B. An unreasonable refusal, potentially breaching the lease.
Under the modern view (which is becoming the majority rule), a landlord's consent to assign or sublet, when required by the lease, cannot be unreasonably withheld. Reasons based on personal dislike, arbitrary whim, or discriminatory motives are generally considered unreasonable. Reasonable reasons include financial instability of the proposed sublessee, unsuitability for the premises, or illegal use.
Why the other options are wrong
- A. The landlord's statement is a refusal, not an invitation to renegotiate.
- C. The traditional view held this, but the modern view requires reasonableness.
- D. The modern view requires a *reasonable* reason, not just 'any' reason.
Landlord Consent to Assign/Sublet (Modern View)
Under the modern view, when a lease requires landlord consent for assignment or subletting, such consent cannot be unreasonably withheld.
- Shift from traditional 'absolute right' of landlord.
- Reasons for refusal must be commercially reasonable (e.g., financial stability, suitability of use).
- Arbitrary, discriminatory, or personal dislike reasons are unreasonable.
Memory trick: Modern Landlords Can't Just Say No to Sublets Without Reason.