Review Case Problems

Chapter 19

1.         A landlord leased a trailer park to a tenant.  At the time, sewage was disposed of by a septic tank system that was not connected with the public sewage system.  The tenant knew this, and the lease declared that the tenant had examined the premises and that the landlord made no representation or guarantee as to the condition of the premises.  Some time thereafter, the septic system stopped working properly, and the county health department notified the tenant that he was required to connect the septic tank system with the public sewage system or else the department would close the trailer park.  The tenant claimed that he was released from the lease and was entitled to a refund of the deposit that he had made.  Was he correct?

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2.         The Metropolitan Park District of Tucson gave Grant a concession to run the district’s parks.  The agreement gave the right to occupy the parks and use any improvements found therein.  The district later wished to set this agreement aside because it was making insufficient money from the transaction.  While it was seeking to set the agreement aside, a boathouse and a gift shop in one of the parks were destroyed by fire.  The district then claimed that the concession contract with Grant was discharged by impossibility of performance.  Was it correct?