Multistate Bar Examination Practice Question

Under the modern majority rule, landlords are required to mitigate damages by making reasonable efforts to re-lease a property after the tenant breaches the lease early. Failing to do so limits their ability to recover the full unpaid rent from the tenant, as it is unreasonable to shift the burden entirely to the breaching party when mitigation was possible. In this case, the landlord’s decision not to seek a new tenant significantly impacts their recovery. As a result, the tenant would owe unpaid rent reduced by the amount the landlord would have reasonably earned had they attempted to re-lease the property.

The first answer fails to account for the landlord’s duty to mitigate damages, overstating the tenant’s liability. The third answer mischaracterizes the landlord's failure to mitigate as a complete negation of the tenant's liability, which does not align with legal principles. The fourth answer introduces the security deposit as a factor, but the facts do not provide evidence of a security deposit, making this argument baseless.