Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 4

MacDonald Group is the managing general partner of Fresno Fashion Square, a shopping mall in Fresno, California. The regional mall has several major tenants as well as smaller stores such as Edmond's of Fresno, a jeweler. Edmond's signed lease with MacDonald stated that not more than two jewelry stores could be located in the mall. Nevertheless, MacDonald, after expanding the mall, gave notice to Edmond that it intended to rent space to other jewelry stores. The lease, however, did not state anything about additional jewelry stores being allowed in the new part of the mall. Edmond's sued MacDonald, claiming that the lease also applied to mall additions. Was Edmond's correct? (Edmond's of Fresno v. MacDonald Group, Ltd., 171 Cal. App.3d 598)