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Contracts Keyed to Farnsworth
Toys, Inc. v. F.M. Burlington Company
Citation:582 A.2d 123
F.M. Burlington Company (“Burlington”) (defendant) entered into a five-year lease agreement with Toys, Inc. (“Toys”) (plaintiff). The agreement provided that Toys had the option to renew their lease for an additional five years, so long as Toys gave Burlington a one-year notice before the lease expired. The agreement also provided that the rental rate would be “renegotiated to the then prevailing rate within the mall.” When Toys attempted to renew their lease, Burlington quoted them the renewal rate which corresponded with the then prevailing rate within the mall. Toys believed that the new rate to be substantially different from their understanding of the prevailing rate. The parties engaged in negotiations for the next ten months to no avail. When Burlington relisted the space formerly occupied by Toys for rent, Toys sued for breach of contract.
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