Legal Question in Business Law in Colorado

Non Compete Verbal Agreement

I have rented a retail space for three years in a small town. Our landlord has always said that they would not put any competing businesses in that would compete with the existing tenents. They have told all the businesses this. Well...we were not the lucky ones. They rented to another retailer (right next to us) that directly competes with me, same items. Our landlord said the new tenents were not truthful on what they were bringing into their shop, but the landlord did not get anything in writing from them...and we did not get anything in writing from our landlord, we just always relied on their word, that they would not bring in direct competition.

I feel the landlord breached our agreement..do I have grounds to get out of our lease?


Asked on 10/22/08, 4:51 pm

2 Answers from Attorneys
Robert Murillo Pivotal Legal Ltd.

Re: Non Compete Verbal Agreement

Sorry for the problems. As to if this verbal promise is binding and to determine your rights and options would require a review of the lease and more information. Contact an attorney for assistance.

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Answered on 10/22/08, 5:46 pm
Mark Cohen The Cohen Law Group, A Professional Corporation

Re: Non Compete Verbal Agreement

Robert, I believe you certainly have a good argument. Your case would be stronger if the landlord had made that promise in writing, but an oral promise is enforceable if you can show you relied on it. Do you really want to break your lease, or might the landlord's breach of the promise be a way for you to try to negotiate a lower rental rate? Litigation can be expensive. Your lease may have a mandatory arbitration clause in it. If you think the new tenant is really hurting your business, you should consult an attorney so you can provide more information and discuss what options are open to you.

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Answered on 10/22/08, 6:49 pm


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