STOP & SHOP, INC. V. GANEM
347 Mass. 697 (1964)
NATURE OF THE CASE: This action was taken for declaratory relief of a contract provision
in a lease. Ganem (D), landlords, challenged the decision in favor of Stop (P), tenant,
ruling that the parties' lease did not expressly or impliedly require P to use the demised
premises for any particular purpose, keep the premises open, or engage in the supermarket
business on those premises. Ds argued that the lease included an implied covenant to
continue the supermarket operations.
FACTS: Stop & Shop, Inc. (P) leased a supermarket from Ganem (D). The minimum rent was
$22,000 a year plus 1.25% of all gross sales above $1,269,230.60 made each year if total
sales exceeded $3,000,000 that year. The lease term was for 13 years. P had operated the
market for ten years and the percentage rent clause was paid on only two occasions. P
desired to discontinue its supermarket on the premises, but fully intended to continue
paying the fixed rent rate until the end of the lease. P sought declaratory relief so that
it could close its premises.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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