Preferably a tenancy will be defined by the parties in a written lease or rental agreement. Careful consideration should be given to the rent provisions.

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In a recent opinion the Chancery Court of the District of Columbia considered what it characterized as an “unusual” and even “bizarre” question:

Does the contract law of the District of Columbia require the owner of a building to accept a lease that no reasonable lessor would ever sign simply to facilitate the lessee’s exercise of a contractual option to purchase the building?

The option holder sought specific enforcement of an option contract.  The owner argued that to exercise the option the option holder had presented a lease that no reasonable lessor would ever sign.  The owner counterclaimed for an alleged lost opportunity to sell the property to a third person.

The court denied both parties requested relief. 

A lease may be formed by a meeting of the minds as to the essential terms even in the absence of a formal, signed lease document.[1]

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