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Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 2 months ago

I operate a small business in a shopping center and have been there for 7 years.  The landlord signed an exclusive use lease with another?

Tenant that indicates they are the only ones allowed to sell cosmetics in the complex, which is about 50% of our sales. 

Selling cosmetics doesn't violate my lease at all and we have 2 and a half years left on our current lease.  Our lease was signed first.

The other store tried to sue us and the landlord, but their case against us was dismissed due to lack of privity. 

The landlord however lost his case and is demanding we move out because we continue to sell cosmetics. 

Our lease includes a right to renewal indicating we have the option at the end to extend it another 3 years.  The lease does not appear to give him the right to modify it at that point. 

If the commercial lease gives us the right to renew, would the landlord be legally allowed to modify the lease in a manner that would make it impossible for us to renew and operate the business?

The lease uses the language that we havd the right to "extend" the lease, which to me doesn't mean a new lease with dramatically different terms.

9 Answers

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  • 1 month ago

    Sounds like you need to ask your lawyer to review your lease and explain to the landlord that it's not your fault they granted someone else "exclusive rights" than cannot possibly (legally) supersede what they already gave YOU.  As a general rule, they cannot "sell" what they don't "own", including the rights they already gave you.

    It might only cost the attorney twenty minutes and a phone call to straighten this out.

  • 1 month ago

    I would strongly recommend that you contact an attorney on this matter as most of us here on Yahoo Talks are not experts in the field. However, the wording of your lease is the key here. Without delving through it, I'd say you're good here and the landlord has made an error in giving the other firm an exclusive where he had no right to do so. As far as the option to renew goes, you're probably good there too. You do, however, need to have a competent attorney review the lease. Again, my gut feeling is that the landlord screwed up in giving the other firm an exclusive when he had no legal right to do so.

  • Maxi
    Lv 7
    1 month ago

    You need to go and book an appointment with a solicitor take your contract with you and ask them for legal advice about your commercial contract...no one can advise you even if they were legal professionals without reading and understanding the contract you have

  • 1 month ago

    Consult a lawyer - because you are asking for legal advice.  The landlord is a slimy idiot.  Stand your ground.  If he is sued, it's his problem, not yours.

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  • 1 month ago

    Unless the lease specifically says it can't be modified on renewal, then it probably can.  You'd better talk to a lawyer on this one, but it might be a losing cause. Still, we haven't actually seen the lease so how do we know what it says. Anyhow, you need to talk to a lawyer on this one.

  • Judy
    Lv 7
    1 month ago

    Talk to a lawyer.

  • 2 months ago

    The other store can sue the LL all they want, they have no suit against you.  This is an issue between the LL and the other tenant.  He cannot restrict your sales, and he cannot force you out.  

  • Anonymous
    2 months ago

    I actually heard of this happening before.  I don't remember the details though.  the only way you could have potentially been sued is if you came AFTER the other tenant...and knew there was an exclusivity clause (and they could prove it).

    If the landlord wants you to move out, he needs to pay...enough for you to set up elsewhere (all expenses and loss of business during the transition) and a penalty for early termination.

    as far as the renewal, you really need to consult a lawyer.  I would think a significant alternation in terms would violate your right to renew.

    realize the new tenant may take business away from you.  when you talk to the lawyer, seriously consider proposing a lease buy out to your landlord.

    what i don't get is how the new tenant didn't know you were selling cosmetics, it seems they were partially at fault,  If i were opening a business, i would go in every store in the complex and see what their business is like.

  • Tavy
    Lv 7
    2 months ago

    You really need professional advice from a Lawyer, no one here can see your lease or give you legal advice.

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