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MCM leased premises from Rushing on which to operate a restaurant. The term was for two years: January 1, 1997, to December 31, 1998. The lease agreement stated in part that MCM “shall have a continuing option for a period of eight (8) consecutive years to renew this lease.” MCM did nothing to renew the lease before it expired but, after it expired on December 31, 1998, made monthly rent payments in the same amount as before in January and February 1999. Then, on February 28, 1999, MCM notified Rushing by mail that it wanted to exercise its option to renew the lease. Rushing refused to renew the lease, contending that MCM had forfeited the option by not exercising it prior to the expiration of the lease agreement in which the option had been given. Discuss fully whether MCM still had a right to exercise the lease renewal option as late as February 28, 1999.
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