Lease Renewal Provision In Colorado
In Bechmann v. Taylor, 80 Colo. 68, 249 P. 262 (1926) a lease contained the following renewal provision: "And at the end of five years, the tenant may have the option of the building at what the rent will be worth at that time." 249 P. at 262. the court concluded that this constituted a valid renewal provision notwithstanding the indefiniteness of the provision as to the rental rate.
The court stated:
The objection to its validity is that it is uncertain as to the term and the rent on renewal; but in such cases, it is universally held that the term is the same as the original; and as to the rent, the clause is clear and plain that the rent was to be the fair market rate - i.e., the reasonable rate at the date of renewal. 249 P. at 262-63.