Contract Negotiation & Documentation Flashcards

An applicant signs a lease, but the co-applicant listed on the application never signs. Who is bound by the lease terms?

Answer: Only the party who signed

Generally only parties who sign the contract are bound by its terms.

What does a 'joint and several liability' clause mean for roommates on one lease?

Answer: The landlord can pursue any one roommate for the full amount owed

Joint and several liability allows the landlord to collect the entire obligation from any co-tenant.

Which document best protects both parties regarding the unit's condition at move-in?

Answer: A signed move-in inspection checklist with photos

A signed, dated condition report with photos is key evidence for security deposit disputes.

A tenant wants to sublet. The lease says subletting requires landlord consent 'not to be unreasonably withheld.' What does this mean?

Answer: The landlord must have a legitimate business reason to refuse

This standard requires objective, legitimate grounds such as poor credit or insufficient income to deny consent.

Which clause allows the landlord to recover attorney fees if litigation arises from the lease?

Answer: Attorney's fees clause

An attorney's fees clause shifts legal costs, and some states make such clauses reciprocal for tenants.

A severability clause in a lease serves to:

Answer: Keep the remaining lease provisions valid if one provision is found unenforceable

Severability preserves the rest of the contract if a court strikes one clause.

During negotiation, an agent tells a prospect a unit has 'no history of pest problems' while knowing of recent bedbug treatments. This is:

Answer: Misrepresentation

Knowingly false statements about material facts constitute misrepresentation and may void the contract or create liability.