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New Zealand Herald, Volume LXVII, Issue 20508, 8 March 1930, Page 3 (Supplement)

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41 A GENTLEMAN'S - AGREEMENT."

VERBAL LEASE RUNS 40 YEARS*

A ■ story .of a verbal lease that ran for nearly 40 years- without the loss of a single penny or.a word of dispute comes from Philadelphia. Mr. D. V. Brown, who was in the optical business, looked around Philadelphia nearly 40 years ago for a place to conduct his establishment and found what suited him. He looked up the owner and found that the property belonged •to Mr. F. W. Ayer. Mr- Brown asked Mr. Ayer how much he wanted.for the rental of the building. Mr. Ayer told him. " All right," said Mr. Brown, " I will move in." That verbal agreement was all the lease there was. The optical business has since passed into the hands of Mr. Andrew V. - Brown and the property has passed into the hands of Mr. Wilfred W. Fry, son-in-law of Mr. Ayer,. who now represents the Ayer estate, but there has never been any lease except that verbally entered into between the "elder Brown and the elder Ayer, almost 40 years ago. These facts ■ came to light recently when announcement was made "that the 'building was to be' torn down-, to make •way for-ainew structure to-be occupied by the. jewellery, trade, and the " gentleman's agreement" is regarded as all-'the. more J extraotdinary in view /of the fact that during: the .40-year, period several other tenants in the building were I required "to" adhere '• to the oral agreement complied faithfully., On several"occasions the rent has been raised. The first time was in 1916. Mr.. Ayer went: to' Mr. Brown . and reminded him, that taxes, and general expenses incidental to the maintenance of property had increased and. asked if he did ;not think it-would be; fair to increase the rent. Mr. Brown agreed that it would be; fair and wa.ited to hear what Mr. Ayer would want as an increase. " How much do you think it should be?" Mr. Ayer asked his tenant. "I should'say a 25 per cent., rise would be about right," answered Mr. Brown, ,

• "All right-," answered Mr. Ayer, " 25 per cent, it is," and that is all there was to. that agreement. Subsequent agreements relative, to rent increases and collection of rents from other tenants in the building were carried out the same way. There was not even a slip of paper to record the fact that Mr. Brown was tenant and Mr. Ayer was landlord and that' the rent was so much and so much. And in 40 years there has never been a penny lost on the transaction.