Alex leases property from Sandra for business. Alex opens a hardware repair shop in this property. He affixes welding equipment to the property. After a period of time, Alex decides to move his business to a different location. Which of the following statements is true of this scenario?
A) Alex may not move the welding equipment, as it is now Sandra's property.
B) Alex may move the welding equipment only if a written agreement states that the parties will treat the welding equipment as his personal property.
C) Alex may not move the welding equipment, as it is essential to the functioning of the structure.
D) Alex may move the welding equipment, as the welding equipment is a trade fixture.

Question

Quizplus · Accepted Answer

The welding equipment is considered a trade fixture, which is personal property that is affixed to leased property for business purposes. Trade fixtures may be removed by the tenant before the lease ends, as long as they do not cause damage to the property and any damage caused by their removal is repaired. Therefore, Alex may remove the welding equipment when he moves his business to a new location.

Alex Leases Property from Sandra for Business