Drafting Options To Renew Leases

A recent mediation that I conducted involved the rights of a tenant to renew under an option that provided that the renewal or extension was to be on the same terms as the original lease excluding a right of further renewal and "rent was to be negotiated and agreed on." The tenant claimed that there was a history of past dealings under earlier leases that required the landlord to negotiate in good faith to establish a renewal rent. Other arguments were made based on some real estate cases that once a contract is made, there is a requirement to act in good faith to conclude finality to the transaction. The landlord wanted to demolish the property and there was no demolition clause in the lease. The Landlord took the position that an agreement to agree is no agreement at all and good faith does not come into it at all.