Legal Question in Real Estate Law in Minnesota
Mistakes made on Leases. Binding or not?
Our rental company made an error on our lease in the monthly rent area. The mistake was $40 less per month per person than the three bedroom apartment that we signed on rented for. The rental agent stated that even though all three residents that were moving into the apartment signed the lease and so did she that the lease was not executed due to non-payment of first months rent at the time of signing. We were not asked to pay rent when we signed. The rental agent then asked us to intitial the change on the lease, we refused and asked for a new lease which we have yet to sign. The old lease was ripped up. Is the original lease still a binding contract even with the mistake because all parties involved agreed to that lease?
1 Answer from Attorneys
Re: Mistakes made on Leases. Binding or not?
I wish we were face to face so I could ask you a few questions about exactly what happened. From what you say it sounds as if there is no dispute that the written document did not correctly state the amount which everyone had agreed on verbally.
A lease is a contract. One of the basic defenses to a contract is mutual mistake. If the parties are mistaken as to a fact which is the basis of the contract (such as what is specifies as the amount of rent), that mistake is a defense to the contract. If one of the parties wants out, they're out with no obligation.
If the mistake wasn't mutual, but one party knew about it and stood there and let the other party make the mistake - that's a defense too, because the party who knew is not acting in good faith.
A contract requires a meeting of the minds, even if it's in writing. When everyone knows it's a mistake, it's not a valid contract. I therefore don't think you can hold the landlord to it.
This response if for general information purposes only and does not create an attorney-client relationship.
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