Greenwood rented office space to Evergreen forfive years witl1 an option for renewal of three orfive years. In the second year of the lease,Greenwood informed Evergreen that it couldnot comply with its obligations under the leasebeyond the end of the current year; Greenwoodplanned to demolish the building and erect a21-storey office tower. Greenwood offeredEvergreen preferential treatment in the newbuilding when it was completed. Evergreenrefused to move, claiming that the currentbuilding had ardlltectural value and should bepreserved. The lease did not include clausesdealing with demolition or the landlord's rightto resume possession during the term of thelease.57 How does thls situation illustrate rightsof ownership and landlord- tenant relations?How could the dispute be resolved?
Greenwood rented office space to Evergreen for
five years witl1 an option for renewal of three or
five years. In the second year of the lease,
Greenwood informed Evergreen that it could
not comply with its obligations under the lease
beyond the end of the current year; Greenwood
planned to demolish the building and erect a
21-storey office tower. Greenwood offered
Evergreen preferential treatment in the new
building when it was completed. Evergreen
refused to move, claiming that the current
building had ardlltectural value and should be
preserved. The lease did not include clauses
dealing with demolition or the landlord's right
to resume possession during the term of the
lease.57 How does thls situation illustrate rights
of ownership and landlord- tenant relations?
How could the dispute be resolved?
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