Donald Trump Breach of Contract News-Part 3
Following up on our post about a recent Donald Trump breach of contract lawsuit, here’s another interesting Donald Trump breach of contract law issue for Orlando, no matter how you might feel about the recent presidential election. Billionaire President-elect Trump has various business and real estate interests in America and abroad; however, his interest in a Washington, D.C. area hotel may cause him to breach a contract. Trump recently opened the Trump International Hotel in downtown Washington, D.C., just blocks from the White House. Trump’s company leases the hotel property from the General Services Administration (GSA). A provision in the lease with the GSA states that:
“No…elected official of the Government of the United States or the Government of the District of Columbia, shall be admitted to any share or part of this Lease, or any benefit that may arise therefrom.”
House Democrats, in a formal letter, interpret this contract provision to mean that Trump would be in breach of the contract from the moment he takes office, as he would be an elected official who shares or benefits from the lease. Therefore, Trump is required to divest himself completely of any relation to the lessee company to prevent a breach of contract.
The GSA itself has taken no position on this potential breach of contract issue, saying it will wait to fully evaluate the situation until after President-elect Trump is sworn into office. The GSA is a government agency, which may effectively make Trump the landlord and tenant, since the President is in control of all government agencies, and he would appoint the head of the GSA after he comes into office.
Trump and his lawyers state that Trump will be turning over the lessor company to his adult children when he takes office; however, immediate relatives as well as members of Trump’s official transition team are unclear whether this would completely cure any conflict of interest. It will be interesting to see how this important breach of contract issue plays out in the coming months for Orlando residents. You can follow the link to read more about President-elect Trump’s potential breach of contract.