Jamal bought a bakery business located in the west end of the city. The previous owner owed the landlord $ 4,500.00 in overdue rent. Jamal, the landlord, and the seller of the business agreed that Jamal was not responsible for the arrears of rent owed by the previous owner. The landlord was unwilling to enter into a lease longer than 18 months in case Jamal was not successful in turning the business around. Jamal’s efforts over the 18 months paid off and the bakery became extremely successful. When it came time to renew the lease, the landlord offered a three years term but would sign only if Jamal agreed to be responsible for the previous tenant’s rent arrears. There were no appropriate rental properties available in the west end, which would require Jamal to relocate his bakery to the other side of the city where his bakery was not known. With one week to go until the current lease expired, Jamal, under protest, signed the lease agreeing to be responsible for the previous tenant’s arrears $ 4,500.00. When the landlord demanded payment of the arrears, Jamal refused to pay, telling him to look somewhere else for his dough. Questions : 1. On what grounds could the landlord bring a legal action against Jamal for $ 4,500.00 arrears owed by the previous tenants? 2. Briefly explain whether Jamal has a defence if sued by the landlord for the outstanding arrears of $ 4,500.00? 3. In your opinion, if Jamal is paying the monthly rental fee but does not pay the arrears, should the landlord be able to terminate the lease?



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