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Landlord and Tenant, sec. 141 (1995). It appears that Nebraska
recognizes such a distinction. In Mauzy v. Elliott, 22 N.W.2d
142, 147 (Neb. 1946), the Supreme Court of Nebraska quoting 35
C.J., Landlord and Tenant, sec. 178 at 1037, stated that “each
renewed lease is a new lease, and the taking of it operates as a
surrender of the old one.” The court further noted that the
original lease could be considered to be continued only for the
protection of certain “legal interests carved out of it, which,
once created, the law will not permit to be destroyed”. Id.; see
also Bishop Cafeteria Co. v. Ford, 129 N.W.2d 581, 588-589 (Neb.
1964).
The use of the words “renewal” or “extension” in a lease,
however, may not be conclusive as to whether a lease grants a
covenant to renew or an agreement to extend. See 51C C.J.S.,
Landlord and Tenant, sec. 54b at 165 (1968); 49 Am.Jur.2d,
Landlord and Tenant, sec. 143 (1995). Instead, the terms of the
lease and the parties’ conduct may indicate that the parties
intended to continue for a subsequent term under the original
lease. See 51C C.J.S., Landlord and Tenant, sec. 54b at 165
(1968); 49 Am.Jur.2d, Landlord and Tenant, sec. 143 (1995).
With respect to the 1986 lease agreement between the PC and
the 1203 Partnership, the automatic nature of the renewal
provision suggests that the parties intended that the lease be
extended rather than renewed in subsequent years. The fact that
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