Your firm represents Flowers Factory Outlet.

Flowers Factory Outlet entered into a lease with ARD Developers for space located in the warehouse district of the city. Th e lease was for 10 years. In the lease, the following clause was present: “Flowers Factory Outlet may assign the lease to a subsidiary and at the time of the assignment, the tenant herein named shall have no further responsibility under the terms of the lease.” With ARD’s knowledge, Flowers assigned the lease to Discount Flowers in year fi ve of the lease. In year six, a dispute arose between Discount and ARD causing Discount to stop paying its rent on the lease. Now, ARD wants to sue both Flowers and Discount. Your fi rm represents Flowers Factory Outlet. Prepare a memorandum discussing the legal issues that Flowers can raise in its defense. (Be thorough in your analysis and discuss both sides of the argument.)

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