Was Landlord Estopped from Asserting That No Binding Agreement Was Made?
In March 2021, Odonata Ltd., the tenant/operator of a hair salon, notified its landlord, Baja 137 LLC, that it would be surrendering the leased premises effective July 7, 2021, a month before the lease was due to expire, because it could no longer afford the rent. In response, Baja offered to forgive certain rent and late fees. And Baja advised Odonata that it would consider a third modification to the lease, at a lesser rent and on more favorable terms, stating that Odonata had been a “great” tenant. Odonata replied that it had already found new spaces at lower base rents and that it was prepared to move. And Odonata then presented Baja with a counteroffer of an even lower base rent and other more favorable terms, stating that it was more in line with “generous” offers it had received from other property owners. Baja acknowledged receipt of the counteroffer and advised Odonata that it would provide a “formal reply” to its counteroffer and that it was subject to a lease amendment signed by both parties.
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