Three Sixty Five Club v. Shostak

AGEE, J. pro tem.

On August 29, 1941, the then owner, Bligh, of the four-story building located at the southeast corner of Market and Fremont Streets in San Francisco leased the second, third and fourth floors thereof to plaintiff’s predecessors in interest for the purpose of conducting a night club. Clause 3 of the lease provided: ‘1 The Lessees hereby grant to the Lessor the option of leasing the second floor of said premises at any time during the term mentioned herein at a monthly rental that will not be in excess of one-third of the entire rental being paid by Lessees at the time said…