Legal Question in Business Law in California
I am the owner of a small business that sells primarily through farmer's markets. We currently work with a company that runs several of these farmer's markets, some more profitable than others. We were hoping to get out of one of these markets (where we are losing money) while still maintaining our status in the others, but were told that we would lose those other spots if we were to drop off out of the loser. The rental agreement signed states only that we may be in violation for failing to maintain payment, insurance, maintenance, etc. Barring that do they have the grounds to lord this failing market over our heads?
3 Answers from Attorneys
If you want to consult to review all the documents, facts and issues in order to get an actual informed opinion of your rights and obligations under your contract[s], feel free to contact me. You can then make decisions on what to do.
It will depend on what your contract states. A good place to start would be the provisions stating what you are obligated to and stating what the company is obligated to. An attorney can help you determine what your options are based on your contract.
I too think this is a matter of contract interpretation. If I rent four rooms at the motel, but my guests are only going to use three of them, the issue seemingly would be whether I have to pay for three, or for four, not whether we get kicked out altogether. On the other hand, a football player will get cut if he only plays hard for three quarters. I guess it depends upon whether full participation is a part of the market operator's expectations under the contract. His position is probably that farmers markets depend on a critical mass of sellers in order to induce customers to show up and shop. Hopefully the contract is well enough written so a lawyer can get an idea of what the parties had in mind on this issue. If the contract is vague and open to two or more interpretations on this question, you are both at the mercy of a judge or jury.