Can someone arrested, charged with a felony and in jail collect money for a lease?

Question Details: We are a company who signed a 6 month lease with an individual who owns a billboard off of a local freeway. We are currently occupying the billboard with an ad for our business. Recently, the property owner was arrested and charged with murder. Is the contract binding and do we need to continue to make the monthly lease payment or can we remove our add and discontinue business with this person?

Asked 11/4/2009 under Business | 201 View(s) | More Legal Topics

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Business Law Answers

Unless there's some language in the contract that you can use, that makes his arrest a breach of the contract on his part, you still have to pay the rent for the 6 month lease.  Or, if there's something he's obligated to do on his side, during the six months, that he doesn't get done, again you can walk away if he's in breach of contract.

Even if he were convicted, that probably wouldn't be grounds for breaking the contract.  And right now, until proven guilty, he's still innocent.

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