Legal Effect of a Stipulated Agreement on a Lease
A stipulated agreement is simply an agreement reached between two parties by mutual consent. A lease agreement, for example, generally consists of a series of stipulated agreements. Once either party to a lease agreement has accepted the terms of the lease, he is legally bound to comply with the terms or face civil penalties for breaching the terms of the lease.
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What Is A Lease?
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At its most basic, a lease agreement is a contract between the lessor, or owner of the property, and the lessee, or the person wishing to occupy the property. As a result, leases are governed by the principles of contract law. In addition, however, many states have specific laws or statutes that provide additional protection for landlords or renters.
Contract Formation
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Contract law requires that there be an offer, acceptance and consideration in order for a valid contract to be formed. In a lease, the offer is generally the rental of the property. Acceptance occurs when the parties both agree to the lease of the property and consideration is usually the monthly or annual rental amount.
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Stipulated Agreements
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Along with the basic elements required to form a valid contract, or lease agreement, additional stipulated agreements may be included in the lease. As long as the parties do not agree to anything illegal or unconscionable, the parties are generally free to agree to any terms they choose. Typical agreements found in a lease agreement may include sections addressing who will be responsible for maintenance of the property, who may reside at the property and what actions, or omissions, constitute default under the agreement.
Breach
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Failure to comply with any of the agreed upon terms of a lease, by either the lessor or lessee, can constitute a breach of the lease agreement. When a party breaches a lease agreement, the other party has the option to file a lawsuit for damages caused as a result of the breach in the appropriate civil court. State law will determine what damages are available to the aggrieved party and what must be proved to be entitled to a damages award. Although a lease is basically a contract, most states provide for an accelerated litigation process for lease disputes.
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