Recent D.C. Opinion on Lease and Option

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 lesseeā€™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.