Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 10

Mian Afzal leased a gas station from Melvin Pritchett for six years with an option to renew for ten additional years. The rent was $3,500 per month. Two years later, Afzal had to leave the country and orally asked Pritchett to let him sublease the station to an uncle. Pritchett executed a document with the uncle purportedly leasing the station for $3,600 per month for the same duration as Afzal's lease. Three years later, Afzal in writing asked to resume his lease and terminate the sublease. He resumed operation of the station. Before the lease expired, Afzal notified Pritchett that he was exercising the option to renew for ten more years. Pritchett sued to dispossess Afzal, arguing that the lease with the uncle was a novation of the original lease with Afzal. Was there a novation?