Mutual Life Insurance Co. of New York v. Tailored Woman
From wikilawschool.net. Wiki Law School does not provide legal advice. For educational purposes only.
| Mutual Life Insurance Co. of New York v. Tailored Woman | |
| Court | Court of Appeals of New York |
|---|---|
| Citation | 309 N.Y. 248, 128 N.E.2d 4001 (1955) |
| Date decided | 1955 |
Facts
Plaintiff leased to defendant the basement, 1st, 2nd, and 3rd floors of a building to sell women’s clothes, and charged a profit percentage based on the sales of the plaintiff. Under a new contract, the plaintiff leased the 5th floor as well, which did not charge bases on sales. Defendant then moved the fur department to the 5th floor, and made most of the high sales from there.
Issues
- Whether breach of contract is considered in liability for additional rent imposed by the contract in regards to another issue?
- Whether a party diverging business to another location to lessen the rent owed violates express or implied covenants.
Holding/Decision
Judgment for defendant, except sales directed from the other floors to the 5th floor.
Reasoning
As long as it did not divert from the contracts formulated by both parties, defendant can carry on its business in the way that suited it.
