Legal Question in Business Law in Utah

Lease agreement in question?

I own a business in Northern Utah and we have been operating since September of 2001. Our sales had been good and we had been making monthly profits. Recently, our landlord allowed another business to lease part of the building to sale a product that is nearly identical to ours and has since hurt our business. The product we offer is very rare and is not like food or clothing. We were not consulted in any way before this agreement was made and we found ourselves at the mercy of the landlords decision. Is there any way we can opt out of the lease agreement? Can we receive retribution from the landlord for our decline in business due to the competition in the same building? What can be done on our part? I don't believe our lease agreement discusses this issue. Any help would be greatly appreciated!! Thank you!!


Asked on 12/25/02, 12:44 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Lease agreement in question?

The only way to tell whether you have any options is to have an attorney read the lease. You are welcome to fax a copy of the lease (801-876-4411) along with information on how to contact you. I will read the lease and provide my opinion - without cost to you.

There is a principle of law called the Covenant of Good Faith and Fair Dealing, which requires the parties to a contact to take reasonable steps to bring th goal of a contract into fruition and to not take any action which would frustrate that goal. This covenant attaches to all contracts whether stated in the contract or not. It can be argued that the landlord breached the contract by allowing a competitor to lease in the same building.

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Answered on 12/25/02, 12:52 am


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