After all, it doesn't take a genius to realize that John's pious harrumphing about the 'waste' of a legal system that takes time to make decisions instead of being sensible, efficient and railroading people based on stereotypes he's too stupid and craven to question clearly indicates that he wanted to get his own home free and clear because he wanted to do what he wanted to his dwelling space without some bossy outsider telling him no merely because he happened to own the building. With a stupid, solipsistic child-man squealing about the horror of having to consider other people's needs in their corner, it's no wonder Mike and Liz are stupid about contract law.
As for Elly and her fear of consequences that inconvenience her, she's no help either. This is a woman who expected that if she spoke sincerely enough, Farley would obey her because the alternative is that she was a subpar pet owner witlessly screwing up her dog. This is a woman who thought that six-month old children who barely registered the fact that they themselves existed had a complex agenda to ruin her because the alternative is that there was nothing she could do. This is a woman who realized that having to live her dream means having to deal with boring stuff too. Having to deal with contract law means that she has to deal with bad things if she doesn't pull her weight despite having the best of intentions. She's going to make a stupid joke about how lease and leash sound alike for a reason and leave the world idiot children who can't cope with reality.