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Supreme Court of California - 132 P.2d 457, 21 Cal. 2d 411
Tags: Property, Restrictive covenants, Landlords, Tenants, Lease
tl;dr:
A lease is subject to the interpretive rules of contract law as well as landlord/tenant law under the property regime.Video Summary
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The plaintiff sued the defendant for unpaid rent, electricity charge, and renovation expenses, but the court ruled in favor of the defendant due to the plaintiff's breach of a restrictive covenant in the lease. The court held that covenants in leases are independent or dependent based on the language and circumstances of the lease. The plaintiff is appealing the judgment, but the lower court did not err. The court found that the plaintiff breached the restrictive covenant by leasing a portion of the building for the prohibited purpose of maintaining a drug store, which constituted competition. The covenant was vital to the protection of the lessee's business and went to the whole consideration of the lease. The lessee has the right to vacate the premises without further liability for payment of rent upon the lessor's breach of the restrictive covenant "not to lease."
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