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In January 2005, J&M, Inc. leased a building to Jiffy Repairs for five years. The lease provided that Jiffy Repairs could extend the lease for an additional five years if it gave written notice of its intention to do so by sending a certified or registered letter at least six months prior to the expiration of the term of the lease, or no later than August 1, 2009. On July 29, 2009, Meredith Williams, vice president of Jiffy Repairs, prepared a letter exercising the option to renew the lease. She prepared and sealed an envelope with the letter in it, affixing the proper postage and certified mail sticker on the envelope, and had her secretary deliver the envelope to the Postal Service annex located on the ground floor of the building.
The letter to J&M, the landlords, was lost in the mail. The landlords refused to renew the lease. Do the parties have an agreement to extend the lease for another five years? Explain fully. Would your decision change if the lease had instead said that the lease would be extended when J&M received a certified or registered notice of the lease extension at least six months prior to the expiration of the term of the lease?
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