Question
China Doll Restaurant, Inc., leased premises from Schweiger. China Doll agreed to pay a base rent of $600 per month and an amount equal to
China Doll Restaurant, Inc., leased premises from Schweiger. China Doll agreed to pay a base rent of $600 per month and an amount equal to 5% of the restaurant's first $288,000 of gross sales. The owners of China Doll had considerable experience in operating a Chinese restaurant. The lease also contained a provision in which the lessee agreed to use the premises "for conducting and operating a restaurant business." Before the expiration of the lease, China Doll moved to new and larger premises. At that time, the owners stated that they intended to open a restaurant at the former China Doll location. Little was done to accomplish this, but they continued to pay the base rent of $600 per month. During this period, the premises were unoccupied. Has China Doll violated the terms of lease? Explain
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