Down Country Mall Ltd. owns a small shopping mall that consists of eight small, leased shops…

Down Country Mall Ltd. owns a small shopping mall that
consists of eight small, leased shops offering various products and services to
the public, and one large shop that it had leased to Mini Department Store Ltd.
The lease to Mini Department Store Ltd. was for a ten-year term, with no
provision for termination or notice. Mini Department Store Ltd. initially found
business at the location to be good, but after a few years, it noticed that the
suburban neighbourhood was becoming more affluent, and less interested in its
array of goods. Sales were gradually declining during this period, and
»

Down Country Mall Ltd. owns a small shopping mall that
consists of eight small, leased shops offering various products and services to
the public, and one large shop that it had leased to Mini Department Store Ltd.
The lease to Mini Department Store Ltd. was for a ten-year term, with no
provision for termination or notice. Mini Department Store Ltd. initially found
business at the location to be good, but after a few years, it noticed that the
suburban neighbourhood was becoming more affluent, and less interested in its
array of goods. Sales were gradually declining during this period, and by the
end of the sixth year, the store experienced a loss. Revival of sales appeared
to be unlikely, and Mini Department Store Ltd. vacated the premises without
giving notice of its departure to Down Country Mall Ltd. Down Country Mall Ltd.
immediately set out to find a new tenant, but was largely unsuccessful.
Eventually, after much searching, it found a new tenant, but at a rental that
was 30% less than the rent amount paid by Mini Department Store Ltd. The lease
with the new tenant was for a five-year term. Down Country Mall Ltd. has
decided to take action against Mini Department Store Ltd. for breach of its
lease, and seeks damages for its loss. It also claims for the rent owing for
the four remaining years of the lease. Discuss the position and arguments of
each party. Render a decision.

»

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