Moolenaar v. Co-Build Companies, Inc.

MEMORANDUM OPINION AND JUDGMENT

This case involves the proper construction of the renewal clause in a lease. Briefly stated, two issues are presented. First, is a valid and specifically enforceable renewal option created by a clause which leaves the rent for this period to be determined by subsequent agreement between the parties? And secondly, if the clause is valid but the parties are unable to agree on the rent, how is this rental figure to be determined? Here I must decide whether the court must look to fair market value at the time when the option is exercised, or whether the court may…