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Read this contractual provision appearing in a lease agreement between the owner of a mall and a restaurant renting space at that mall: The mall
Read this contractual provision appearing in a lease agreement between the owner of a mall and a restaurant renting space at that mall:
The mall agrees not to enter into a lease, occupancy agreement, or license affecting space in the mall permitting the establishment of a restaurant reasonably expected to have annual sales of sandwiches greater than ten percent of its total sales.
This contractual provision favors the restaurant because, with this provision, the restaurant is trying to avoid competition. The provision essentially prohibits the mall from renting space to new restaurants serving sandwiches. Would a restaurant serving burritos be allowed to open according to the language of the contractual provision? What is the basis of your answer?
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