Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 17

Mountain Restaurant Corporation (Mountain) leased commercial space in the ParkCenter Mall to operate a restaurant called Zac's Grill. The lease specified that the lessee shall ''at all times have a nonexclusive and nonrevocable right, together with the other tenants and occupants of … the shopping center, to use the parking area … for itself, its customers and employees.'' Zac's Grill was to be a fastfood restaurant where tables were anticipated to ''turn over'' twice during lunch. Zac's operated successfully until parking close to the restaurant became restricted. Two other restaurants opened and began competing for parking spaces, and the parking lot would become full between 12:00 and 12:30 P.M. Parking, however, was always available at other areas of the mall. Business declined for Zac's, which fell behind on the rent due to ParkCenter until finally the restaurant closed. Mountain claims that it was discharged from its obligations under the lease because of material breach. Is Mountain correct? Explain