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

Exercise 15

A landlord entered into a lease (contract) with a tenant. A clause in the lease stated that the tenant would use the premises only for a gasoline station, car wash, and related activities. The landlord sued to terminate the lease, claiming that the tenant had violated an oral agreement, which was made at the time the lease was drawn up, not to add a convenience store to the gas station. Was this oral agreement binding on the tenant? (Snow v. Win, 607 P.2d 678)