Confidential

Facts

The plaintiff leased a commercial property owned by the defendant. The lease commenced on Dec. 31, 1998 and
was set to expire on Dec. 31, 2001. The lease contained an "option to purchase" the property. The fee for the
option was $15,000 which was paid by the plaintiff at the outset of the lease. The option required that it be
exercised at any time, in writing, between July 1, 2000 through Dec. 31, 2001.
The plaintiff was required to pay an additional $10,000, with the written exercise of option, and open escrow in
conjunction with that payment. The plaintiff would forfeit the right of option if during the time he attempted to
exercise the option, any rent was unpaid and in the event that the plaintiff had given three or more notices of
separate default, whether or not the defaults were cured, during the 12 months immediately preceding the
exercise of the option.
The plaintiff attempted to exercise the option through his attorney on Aug. 8, 2001. The plaintiff did so, in
writing, and paid the $10,000 as required and opened escrow.
The defendant rejected the plaintiffÆs attempt to exercise the option and returned the
$10,000 payment. The plaintiff then sued for breach of contract, specific performance.
declaratory relief and sought a preliminary injunction to prevent the defendant from evicting the
plaintiff while the case was pending.