ContractsIntermediateArizona Exam

An Arizona commercial lease with a 'right to expand' clause gives the tenant:

AThe automatic right to take additional space at any time
BThe contractual right to lease additional adjacent space when it becomes available, under specified conditionsCorrect
CThe right to add partners or employees without landlord approval
DPriority over other potential tenants for any available space in the building

Why The contractual right to lease additional adjacent space when it becomes available, under specified conditions Is Correct

Answer B: The contractual right to lease additional adjacent space when it becomes available, under specified conditions

A right to expand (or expansion option) gives the tenant the right to lease additional space (often a specific suite or floor) when it becomes available, usually under specified conditions regarding notice, timing, and rental rate.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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