North Gate Corp. v. National Food Stores, Inc.

The sole issue debated by the parties is whether, the lessor being a corporation, the words “its beneficiaries” in paragraph Fifth of the lease, mean or include “its shareholders.” National takes the position that North Gate, the lessor, warranted that its shareholders would not permit the use of land owned by them individually, if within a mile, for a retail food store.

The critical portion of paragraph Fifth reads: “. . . neither Lessor nor his heirs or legal representatives, or its beneficiaries, subsidiaries, affiliates, successors, or assigns, or any entity in which they or any of them…