QUESTION
Changes to a Commercial lease
Asked on Mar 06th, 2013 on Commercial Litigation - California
More details to this question:
My partner and I signed a lease for a commercial property in Davis, CA. We have not moved in yet, but recently the landlord convinced my partner to add extra charges to the leas. My partner signed, but I disagree with the changes. Is the modified lease that I have not signed binding?
1 ANSWER
In most cases, general partners (as opposed to limited partners) have authority to bind the partnership. Even if, in this particular case, your partnership agreement provided that your partner did not have authority to agree to the modifications, your remedy will probably lie against your partner, not the landlord, as the landlord will almost certainly be able to rely on what is known as the "apparent authority" of your partner to bind the partnership. Apparent authority means that when you have given someone the indicia of authority other people are entitled to rely on it. Since your partner is a partner, he or she would generally have authority to make decisions for the partnership, so unless you specifically told the landlord that your partner did not have that authority, the landlord is entitled to treat your partner as if he or she was authorized to modify the lease.
Answered on Mar 06th, 2013 at 5:09 PM