2023-07-13T11:26:43+00:00

Lease Analysis - Agro-Chem with Lonestar

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Lease Analysis - Agro-Chem with Lonestar

Hello, i need help solving problem wo, attached is the case.

10.
There is a possibility that Agro-Chem will move to its new production facility earlier than anticipated, and hence prior to the expiration of the lease. Thus, Audrey is considering asking Lonestar to include a cancellation clause in the lease contract. What impact would a cancellation clause have on the riskiness of the lease to Agro-Chem? How would it affect the risk to Lonestar? If you were Lonestar`s leasing manager, would you change the lease terms if a cancellation clause were added? If so, what changes might be made?


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