Cyro-Tech, Inc. v. JKC Bend, LLC.

Oregon subscribes to the objective theory of contracts. That means that the lease’s meaning is determined based on the parties’ objective manifestations of intent to agree to the same express terms. Dalton v. Robert Jahn Corp., 209 Or App 120, 132, 146 P3d 399 (2006), rev den, 342 Or 416 (2007).

Landlord appealed a limited judgment for the tenant on a declaratory judgment claim in which the trial court declared that under the parties’ lease the landlord was required to deliver “Landlord Improvements” that were free in accordance to the construction contract in the lease. Tenant argued that the lease provisions do not place on tenant responsibility for the repairs. Tenant’s argument primarily focused on landlord’s general obligation under the lease to make the Landlord Improvements. Oregon subscribes to the objective theory of contracts. That means that the lease’s meaning is determined based on the parties’ objective manifestations of intent to agree to the same express terms. Dalton v. Robert Jahn Corp., 209 Or App 120, 132, 146 P3d 399 (2006), rev den, 342 Or 416 (2007). The Court ruled that there was no such obligation based on the lease that the landlord had an obligation to make repairs or warrant conditions of the Landlord Improvements. The provisions of the lease cited by the tenant do not require the landlord to repair construction defects. Reversed and remanded for entry of limited judgment for landlord on declaratory judgment.