A-81042, NOVEMBER 3, 1936, 16 COMP. GEN. 463

A-81042: Nov 3, 1936

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LEASES - RENT - SUPPLEMENTAL AGREEMENTS RETROACTIVELY EFFECTIVE A LEASE AGREEMENT PURPORTING TO BE RETROACTIVELY EFFECTIVE OVER A PERIOD DURING WHICH AN EXTENSION AGREEMENT AT A LOWER RENTAL RATE WAS IN FULL FORCE AND EFFECT IS VOID. PAYMENTS IN EXCESS OF THE EXTENSION AGREEMENT RATE FOR THE PERIOD OF OCCUPANCY UNDER THE EXTENSION AGREEMENT ARE UNAUTHORIZED. THESE PREMISES WERE OCCUPIED UNDER LEASE DATED FEBRUARY 6. OR UNTIL THE POST OFFICE IS MOVED INTO OTHER QUARTERS. WHICH PROPOSAL WAS ACCEPTED BY THE FOURTH ASSISTANT POSTMASTER GENERAL. AS FOLLOWS: YOU ARE ADVISED THAT THE NEW RATE WAS MADE EFFECTIVE OCTOBER 16. BECAUSE THE ACCEPTED OFFER WAS BASED ON THE AMORTIZATION WITHIN A PERIOD OF TWO YEARS FROM THAT DATE OF THE COST OF NEEDED IMPROVEMENTS AND ADDITIONS.

A-81042, NOVEMBER 3, 1936, 16 COMP. GEN. 463

LEASES - RENT - SUPPLEMENTAL AGREEMENTS RETROACTIVELY EFFECTIVE A LEASE AGREEMENT PURPORTING TO BE RETROACTIVELY EFFECTIVE OVER A PERIOD DURING WHICH AN EXTENSION AGREEMENT AT A LOWER RENTAL RATE WAS IN FULL FORCE AND EFFECT IS VOID, AND PAYMENTS IN EXCESS OF THE EXTENSION AGREEMENT RATE FOR THE PERIOD OF OCCUPANCY UNDER THE EXTENSION AGREEMENT ARE UNAUTHORIZED.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE POSTMASTER GENERAL, NOVEMBER 3, 1936:

THERE HAS BEEN BROUGHT TO MY ATTENTION LEASE AGREEMENT DATED AUGUST 1, 1936, PURPORTING TO COVER RENTAL OF PREMISES FOR USE AS POST OFFICE QUARTERS AT ROCHESTER, MICH., FOR THE TERM OF 2 YEARS, BEGINNING OCTOBER 16, 1935, AT THE RENTAL RATE OF $780 PER ANNUM, THE LESSOR BEING THE ROCHESTER BUILDING ASSOCIATION, ROCHESTER, MICH.

THESE PREMISES WERE OCCUPIED UNDER LEASE DATED FEBRUARY 6, 1926, WITH THE SAME LESSOR, DURING THE 10-YEAR TERM ENDED OCTOBER 15, 1935, AT THE RENTAL RATE OF $652 PER ANNUM. UPON EXPIRATION OF THE TERM OF THE SAID LEASE, THE LESSOR EXECUTED, UNDER DATE OF OCTOBER 16, 1935, A PROPOSAL TO EXTEND THE TERMS OF THE LEASE,"ON A MONTH-TO-MONTH BASIS, UNTIL A NEW LEASE CAN BE MADE, OR UNTIL THE POST OFFICE IS MOVED INTO OTHER QUARTERS," AT THE SAME RATE OF RENT, NAMELY, $652 PER ANNUM, WHICH PROPOSAL WAS ACCEPTED BY THE FOURTH ASSISTANT POSTMASTER GENERAL, DIVISION OF POST OFFICE QUARTERS, UNDER DATE OF JANUARY 3, 1936.

IN RESPONSE TO A REQUEST FOR AN EXPLANATION AS TO WHY THE LEASE OF AUGUST 1, 1936, PURPORTED TO PROVIDE FOR RENTAL AT THE HIGHER RATE FOR THE PERIOD FROM OCTOBER 16, 1935, TO JULY 31, 1936, SPECIFICALLY COVERED BY THE MONTH -TO-MONTH EXTENSIONS AT THE LOWER RATE, THE FOURTH ASSISTANT POSTMASTER GENERAL, BY LETTER DATED SEPTEMBER 14, 1936, REPLIED, IN PERTINENT PART, AS FOLLOWS:

YOU ARE ADVISED THAT THE NEW RATE WAS MADE EFFECTIVE OCTOBER 16, 1935, BECAUSE THE ACCEPTED OFFER WAS BASED ON THE AMORTIZATION WITHIN A PERIOD OF TWO YEARS FROM THAT DATE OF THE COST OF NEEDED IMPROVEMENTS AND ADDITIONS, THE ESTIMATED EXPENSE OF WHICH WAS FROM $250 TO $300.

UNDER THE AGREEMENT OF OCTOBER 16, 1935, PROVIDING FOR AN EXTENSION OF THE TERMS OF THE ORIGINAL LEASE "ON A MONTH-TO-MONTH BASIS UNTIL A NEW LEASE CAN BE MADE, OR UNTIL THE POST OFFICE IS MOVED INTO OTHER QUARTERS," THE UNITED STATES ACQUIRED RIGHTS WHICH NO OFFICER OF THE GOVERNMENT IS AUTHORIZED TO WAIVE OR SURRENDER WITHOUT ADEQUATE CONSIDERATION AND AUTHORITY OF LAW, AND RENTAL FOR THE PERIOD THE PREMISES WERE OCCUPIED THEREUNDER MAY ONLY BE PAID IN ACCORDANCE WITH THE STIPULATIONS THEREOF AND NOT UNDER ANY SUBSEQUENT LEASE OR AGREEMENT. SEE PACIFIC HARDWARE COMPANY V. UNITED STATES, 49 CT.CLS. 327, 335, AND 337.

THE EXTENSION AGREEMENT WAS IN FULL FORCE AND EFFECT UNTIL THE LEASE OF AUGUST 1, 1936, WAS EXECUTED AND THE ATTEMPT UNDER THE LEASE OF AUGUST 1, 1936, TO MODIFY THE TERMS OF THE EXTENSION AGREEMENT, SUPRA, OR TO OBLIGATE THE GOVERNMENT TO PAY RENTALS IN EXCESS OF THAT STIPULATED THEREIN FOR THE PERIOD OF OCCUPANCY THEREUNDER IS VOID AND OF NO EFFECT. ACCOUNTS COVERING PAYMENT OF RENTAL FOR THE PREMISES WILL BE AUDITED ACCORDINGLY.