Legal Question in Business Law in California

Re: Agreement of mututal consideration between parties working together

First, the term 'consideration' in the law of contracts refers to what is given by a party to a contract in exchange for the promises of the other. For example, X agrees to paint Y's house within two weeks for $1,000 to be paid upon completion. X's promised performance (painting) is the consideration he gives, while Y's promise to pay is his consideration.

'Consideration' is thus not a synonym for 'respect' or 'due regard,' as it might be in ordinary conversation.

I assume you meant the ordinary meaning, and not the technical contract-law meaning.

What you seem to be describing might be an 'implied covenant' of the agreement under which you are a tenant in the craft barn. In addition to the terms and covenants in a lease or other contract, there usually are implied terms or covenants that would be given weight in court even though not written into the contract. For example, noted judges have stated that in every contract there is an implied covenant of good faith and fair dealing.

Whether a covenant not to lease to closely competing businesses can be implied in a commercial lease (such as you seem to have) is a tough question to answer without seeing the writing itself and knowing the facts and circumstances. Many commercial leases have such clauses written in, and the failure to include such a clause could be construed as intentional, so perhaps no covenant not to lease to competitors of existing tenants could be inferred. The theory would be that if the parties had intended such a restriction, they would have expressed it in the lease.

Again, the result in court cannot be predicted without more information. Sorry that your new manager is a bozo.

Re: Agreement of mututal consideration between parties working together

may be the word you are looking for is "exclusive right"