D leased the premises consisting of a store in the Big N Shopping Plaza for a term of 15 years at an annual rental of $48,450 and also agreed to pay a sum equal to 1% of all gross annual sales in excess of $4,845,000. On September 19, 1972, it notified P that it intended to vacate the leased premises by October 7, 1972, but it would continue to pay the rent until such time as the premises are relet. Its annual gross sales at the store were no more than $1,292,000. It made no profit, and its losses during the two years and seven months that it operated the store amounted to $615,000. The evidence showed that a food store will draw people to a shopping center who will also patronize the other stores, and that while the food store is closed, the business of the other stores will be diminished. There was no reasonable probability that any other tenant would have gross sales in an amount sufficient to require the payment of percentage rentals.

This section contains the nature of the case and procedural background.

The legal issues presented in this case will be displayed here.

The applicable rule of law for this case will be displayed here.

The court's holding and decision will be displayed here.

Legal analysis from Dean's Law Dictionary will be displayed here.