Beckenheimer's, Inc. v. Alameda Assocs. Ltd. P'ship, 327 Md. 536, 611 A.2d 105 (1992) involved a sublease that included a term giving the sublessee, Beckenheimer's, the option to renew the sublease "for five additional terms of five years each." Id. at 539. To exercise its option to renew, the sublease required that Beckenheimer's give 120 days' notice, not be in default, and have a net worth equal at least to its net worth at the time of execution of the sublease. Beckenheimer's gave a timely notice of renewal, but it was written on the letterhead of Beckenheimer's' parent company and did not include a statement of Beckenheimer's' net worth. The sublessor, Acme, informed Beckenheimer's that, because its notice did not comply with the requirements of the sublease, it considered the sublease to have expired. Finding that Beckenheimer's had failed to validly renew the sublease, the circuit court granted summary judgment. On appeal, the Court of Appeals explained that the case did not involve an untimely attempt at renewal, but rather, a timely notice of renewal that failed to meet other required conditions: Beckenheimer's did not cause Acme to have in hand on or before May 4, 1989, a notice of renewal that strictly complied with the Sublease's renewal provisions. To determine whether Maryland equity can assist Beckenheimer's we must first determine precisely what deficiencies taint the attempted renewal. The appellees say that Beckenheimer's did not act within the time required by the Sublease. This argument, more precisely, is that the letter of April 26 should not be considered to have any effect, not because it was untimely, but because it did not comply with certain conditions for renewal, other than timeliness. Id. at 545-46. The Court noted that there were three alleged defects in Beckenheimer's renewal attempt, the first of which was that the letter of renewal was from the parent company, rather than Beckenheimer's. Acme based its argument on the fact that the notice of renewal was written on the parent company's letterhead due to Beckenheimer's mistaken belief that the parent company held the sublease. The Court "tested" Acme's argument by considering whether Acme could have enforced a renewal based on the letter: Appellees' argument can be tested by reversing the direction of the action. Assume that, after receipt by Acme of the April 26 letter, Beckenheimer's vacated the premises, and Acme was suing Beckenheimer's to enforce an allegedly renewed lease. Further assume that Beckenheimer's moves for summary judgment on the ground that it thought that the parent company held the sublease and that an attempted renewal by the parent company was of no legal effect. Summary judgment for Beckenheimer's would be denied. The renewal letter identifies the sublease being renewed by its date and by the parties to it . . . . Were a trier of fact to find, in the hypothetical, that a reasonable person in the position of Acme objectively would conclude that it was Beckenheimer's that was renewing by the April 26 letter, there would be sufficient evidence to support that conclusion. Id. at 547. The Court stated that "the exercise of the option to renew should be viewed much like the formation of a contract. The option is a continuing offer by Acme which may be accepted by complying with the conditions of the offer." Id. at 546. Thus, the letter was an effective, timely notice of renewal because it "clearly manifests an intent to accept that offer." Id. In Beckenheimer's, one of the defects in the sublessee's renewal attempt was that it failed to include a statement of net worth. Beckenheimer's provided the statement fifteen days after the deadline for renewal. It argued on appeal that "equity would enforce the renewal covenant . . . because, under the renewal provisions of the Sublease, time is not of the essence in furnishing the certified financial statement." Beckenheimer's, 327 Md. at 550. The Court noted that the provision of a certified statement of net worth, along with the notice of renewal, was for Acme's convenience. Its purpose was to assist Acme in determining whether Beckenheimer's was actually of sufficient net worth. The Court concluded, based on general principles of equity, that this term of the sublease need not be strictly enforced: Equity would not give the requirement for including a certified financial statement with the notice of renewal a narrow and technical construction. Under the facts here, equity would not view the timing of receipt of that statement as of the essence, just as a tender of price is not always of the essence in exercising an option. Phrased another way, under the facts here, equity, in its discretion, could grant specific performance of the option to renew. Id. at 553. Next, the Court determined that the requirement that Beckenheimer's be of sufficient net worth at the time of the notice was a condition of renewal. On the other hand, the requirement that it submit a certified financial statement along with the notice was merely a covenant. The Court concluded: The foregoing discussion has been in terms of the power of equity, because that is the way in which Beckenheimer's has argued its position. A more modern expression of the concepts relied upon above is that the particular provision for including a certified financial statement with the notice of renewal is a covenant and not a condition. . . . The breach by Beckenheimer's of the covenant to include a financial statement with the notice of renewal is not a material breach. Seemingly, only nominal damages are involved as compensation for the breach. Inasmuch as the three express conditions precedent to Acme's contractual duty to renew have been fulfilled, equity could specifically enforce the covenant to renew. Id. at 553, 555-56.