Bay View State Bank v. Liber

The original lease executed by the Libers as lessors and the Kanters as lessees did not contain any provision for the return of the rental deposit in the event the lease was in effect until the expiration date. Under these circumstances there is an implied contract to refund the deposit. An implied contract is essentially based on the surrounding facts and circumstances. Clearly, here the parties intended the deposit would be returned if the relationship of landlord-tenant had to be terminated for some unforeseen reason. Here we have an implied covenant by Josephine Liber to return the $1,500…