Murray Realty Co. v. Regal Shoe Co.

Real property was leased by plaintiff, appellant, to Truly Warner, Inc., and the latter assigned the lease to Truly Warner Co., Inc. A portion of the premises had been sublet by the first lessee to defendant, respondent. The overlease contains certain “ covenants ” by the lessee “ as part consideration for this letting,” one of which is the following: “ That an adjudication that the lessee is bankrupt shall ipso facto end and terminate this lease and any rights thereunder.”

The .lease also contains this paragraph: “ The lessor at its option may rescind and terminate this agreement upon * * *…