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Contracts Keyed to Kuney
Lloyd v. Murphy
Citation:25 Cal.2d 48, 153 P.2d 47 (1944).
Plaintiff owned property on one of the main traffic arteries in Los Angeles County at the corner of Almont Drive and Wilshire Boulevard in Beverly Hills. On August 4, 1941, defendant leased the property from plaintiff “for the sole purpose of conducting thereon the business of displaying and selling new automobiles . . .” except “to make an occasional sale of a used automobile.” Defendant also agreed not to sublease the premises without plaintiff’s written consent. On January 1, 1942, the federal government ordered the sale of new cars to cease. The order was modified on January 8 to permit sales to individuals engaged in military activities and again on January 20 to establish a priority system for such sales.
On March 10, 1942, defendant explained these restrictions to plaintiff and plaintiff waived the restrictions on the use of the leased premises and subleasing. It also offered to reduce the rent. Nonetheless, defendant vacated the premises on March 15, giving notice that it was repudiating the lease.
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