Wednesday, May 10, 2006


The light bulb just went on with respect to the Edinburg Road Runners and the newly formed Coyotes. One of the lessons I learned about breach of contract in Business Law, such as a lease, is that the lessor is obligated to mitigate the damages. That is to say, since Edinburg Road Runners failed to honor their part of the contract, the City of Edinburg had a duty, not only to evict, but to seek another organization to reduce the amount of damages caused by the breach of contract. A court would not look favorably upon a landlord who fails to make a reasonable effort to lease the property again and sues to collect on the remainder of the lease.

If Edinburg failed to seek a replacement team or other leasing party, they would stand to lose any damages sought from the Road Runners. I think none of this matters anymore. I don't have any knowledge about what's going on over there; it just occurred to me as a real-life example of a lesson. I'm having flashbacks from the semester.

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