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 new job in another city and asks the landlord for permission to sublet the apartment to a qualified individual. The landlord, without giving a reason, refuses consent. In a jurisdiction following the modern view, what is the landlord's likely legal position?
- AThe landlord can refuse consent only if the lease explicitly states they can do so arbitrarily.
- BThe tenancy is terminated due to the tenant's new job, making the clause irrelevant.
- CThe landlord has an absolute right to refuse consent for any reason.
- DThe landlord must consent if the proposed subtenant is commercially reasonable.
Show answer & explanationAnswer & explanation
Correct answer: D. The landlord must consent if the proposed subtenant is commercially reasonable.
Under the modern view (majority rule), a landlord's consent to assign or sublet, when required by the lease, cannot be unreasonably withheld. The landlord must have a commercially reasonable objection to the proposed assignee/subtenant. Refusing without a reason is generally considered unreasonable.
Why the other options are wrong
- A. While some jurisdictions allow arbitrary refusal if explicitly stated, the modern trend (absent such explicit language) imposes a reasonableness standard.
- B. The tenant's new job does not automatically terminate the lease; the tenant remains bound by the lease terms, including the subletting clause.
- C. This represents the traditional (minority) view, which is generally disfavored in modern contract and property law for being an unreasonable restraint on alienation.
Landlord's Consent to Sublet/Assign (Modern View)
When a lease requires a landlord's consent for assignment or subletting, the modern (majority) view holds that the landlord cannot unreasonably withhold consent. Refusal must be based on commercially reasonable grounds (e.g., financial instability of proposed subtenant, unsuitability for property).
- Applies when lease requires landlord's consent.
- Landlord cannot unreasonably withhold consent.
- Refusal must be based on commercially reasonable grounds.
- Implied covenant of good faith and fair dealing.
Memory trick: Leases connect tenants and landlords, and consent clauses are their gates.