Stop & Shot, Inc. v. Ganem

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Stop & Shot, Inc. v. Ganem
Court Supreme Court of Massachusetts
Citation 347 Mass. 697
200 N.E.2d 248 (1964)
Date decided 1964

Facts

Plaintiff leased a building from defendant for a grocery store, and promised to pay a flat rent plus percentage of sales rent. Then plaintiff opened another competing store within ½ mile, and another one within a mile, and no longer had to pay percentage rent because of the diversion of business.

Procedural History

Defendant sought declaratory relief. Judgment for plaintiff.

Issues

Whether there is in a lease an implied covenant to continue operations and not to open a competing store when the rent is based on income.

Holding

Claim dismissed, and judgment for plaintiff.

Reasons

An apparently substantial minimum rent in a complete written lease gives ground for the inference that fixed rent and the lessee’s self-interest in producing sales is all that the lessor requires.