Bridget Is the Tenant in an Apartment in New York

question 47

Multiple Choice

Bridget is the tenant in an apartment in New York, and her lease expires in three months. She expects and wants to renew the lease once it expires. Her employer has assigned her to a two-month assignment in Hawaii. She doesn't want to lose the apartment, so she checks and finds that the lease does not prohibit an assignment of the lease or a sublet of the lease. She is worried that if she assigns or sublets and the person who moves in doesn't pay, she may suffer consequences.

• A) If she assigns the lease, she will not be liable for payment if the assignee doesn't pay but she would be liable on a sublease should the subleasee not pay.
• B) If she subleases, she will not be liable for payment should the subleasee not pay but she would be liable on an assignment should the assignee not pay.
• C) She will be liable whether she assigns or subleases should the assignee or subleasee not pay.
• D) She will not be liable whether she assigns or subleases should the assignee or subleasee not pay.

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Definitions:

Note Receivable

A written promise for amounts to be received by one party from another, typically including the terms for repayment.

Maturity Date

The specified date on a financial instrument when the principal is due to be paid back in full to the lender.

Cash Received

Funds that are taken in by a business, representing inflow from sales, investments, financing, and other sources.

Notes Receivable

Written promises for amounts to be received, typically noting interest, by a debtor in favor of the creditor.