U. S. Enterprises, Inc. v. Mikado Custom Tailors

Smith, Justice.

Appellant U. S. Enterprises leased certain premises to appellee Mikado Custom Tailors for a period of one year commencing September 1,1980, and ending August 31,1981.1 A clause of the lease provided: “Lessee has first right of refusal to renew lease at renewal day for a two (2) year period with 10% increase in rental.” On August 31,1981, Mikado remained in possession and tendered a check for the next month’s rent in an amount 10% greater than its monthly rental payment for the previous year. U. S. Enterprises moved to dispossess Mikado, which asserted that it was in lawful…