Sunday, March 6, 2011
Voiding a rental contract?
Our non-profit theatre company (chartered under Indiana Law as a corporation) has signed 3 contracts with a performing arts venue in town. One contract has been successfully completed, with 2 upcoming. They are basically a short term "lease" of sorts - giving us access to the venue to perform our shows. However, we caused about $10,000 in damages resulting from the performance (scratches on a hardwood floor) under the first contract. The contract stated that we had to pay for any damages caused, which we have agreed to do. However, I was told today that because of the damage we caused, they are voiding our other two agreements and requesting a $10,000 damage deposit to secure each of the dates. The original amount of the deposits in the contracts we signed for those dates where $300. Do they have the right to simply void our valid and executed agreements and demand we pay a large damage to deposit to get those contracts back? We have not violated ANY of the terms of the first agreement, nor the other two. We agreed to pay for the damages caused under the first contract, which meet that contracts demand. Should I start looking for a lawyer and pursue legal action if they choose not too let us continue with the agreements? Thanks.
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