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Tenant Required to Prove that It Terminated Lease

Earlier this week the Appeals Court decided that a tenant has the burden of proving that it properly exercised its option to terminate a written lease.  The commercial lease in Patriot Power, LLC v. New Rounder, LLC,  provided that it would renew automatically each  year unless one of the parties timely notified the other that it wished to exercise a termination option in the lease.  Importantly, the lease contained standard language that notices “shall be in writing and shall be sent by” specified means and “shall be effective when received, or if delivery is refused, upon first refusal.”

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