Cross v. Commercial Real Estate Co.

Citations

• 16 Ohio N.P. (n.s.) 97

Syllabus

<p>Covenants — -Forfeitures—Leases—Sub-lease Executed Before Termination of Original Lease Containing an Option of Purchase — Knowledge of Sub-lessee’s Violation of Terms of Original Lease is a Necessary Prerequisite to Forfeiture for Unlawful Occupation — Statutory Forfeiture for Unlawftil Sale of Intoxicating Liquors — Section 6207.</p> <p>1. Where a lease for a term of years contains an option of purchase on the last day of the term and also a clause of non-assignment without the written consent of the lessor, a new lease made by the lessee for a term extending beyond that of the original lease will not be treated as a ground of forfeiture for assignment without written consent but rather as a sub-lease, where it appears that the lessee acted with the intention in good faith of obtaining the fee on the last day of the term, and' of treating the new lease as a. sub-lease and not as an assignment, and a proper tender of . purchase was in fact made at the stipulated time, and the conditions of the new lease as to rental reserved, building conditions, insurance and right of re-entry are different from those in the original lease.</p> <p>2. Forfeiture of a lease for breach of covenant “to permit no unlawful occupation” will not be declared unless the lessee has knowledge of the proscribed use; and where a lessee realty company sublets the premises under a like condition against such use, the covenant will not be held to have been violated by the maintenance of a house of ill-fame and the unlawful sale of liquor on the premises, where the company was without knowledge that such use of the premises had been made or was intended.</p> <p>3. Neither can such a forfeiture be declared under the statute for the unlawful sale of intoxicating liquors by a sub-lessee, where the lessee company was without knowledge that such sales were, being made or were contemplated.</p>