Contracts

A Mississippi commercial lease has a 'co-tenancy' clause allowing a retail tenant to reduce rent or terminate the lease if an anchor tenant vacates. When the anchor department store closes, the smaller tenant:

AMust continue paying full rent regardless of the clause
BMay invoke the co-tenancy clause to exercise their contractual right to reduced rent or lease termination based on the anchor's departure✓ Correct
CMust obtain court approval before exercising the clause
DMust find a replacement anchor tenant

Explanation

Co-tenancy clauses are contractual provisions common in retail leases that protect tenants from anchor departure by allowing rent reduction or lease termination. When the triggering condition (anchor vacancy) occurs, the tenant may exercise their contractual right.

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