Landlord & Tenant Law

In tenant's action for breach of contract, specific performance, and promissory estoppel, tenant appealed from Supreme Court's grant of landlord's motion to dismiss. The Appellate Division affirmed, holding that the parties had not entered into a binding contract and that tenant had not reasonably relied on a lease agreement that landlord had not signed.

In March 2021, tenant, the operator of a hair salon, informed landlord that it would surrender the leased premises in July 2021, a month before the lease expired. In response, landlord offered to forgive certain rent and late fees. Tenant rejected landlord's offer and presented landlord with an offer of even lower rent and other more favorable terms. Landlord acknowledged receipt and said it would provide a former reply, indicating that the counteroffer was subject to a lease amendment signed by both parties. The parties entered into negotiations and exchanged redlined drafts. Tenant signed a clean copy and sent it to the landlord. After two weeks, tenant asked landlord about the status of the agreement. Landlord ultimately indicated that it had rejected the proposed amended lease. Tenant nevertheless sent landlord a rent check, which landlord returned, informing tenant that the parties had not reached an agreement. Tenant then brought this action.