A lease for use of commercial property is imperative to protect both parties from issues arising. In the case of Tufail v. Midwest Hospitality, the importance of a contract for both parties is represented through the court proceedings. The initial ruling was in the favor of the Lessor (Tufail) but after an appeal decided in favor of the Lessee (Midwest Hospitality) and the case was then reviewed by the Wisconsin Supreme Court which upheld the circuit court’s decision. Some background on the case begins with Tufail owning property in Milwaukee, where he had operated a restaurant called “New York Chicken.” In 2000, He had received a zoning permit to run a fast-food restaurant on the site for ten years. In 2007 he closed his restaurant and Midwest Hospitality decided to lease…show more content… Midwest created a lease and they began the five-year lease in 2008("COURT OF APPEALS DECISION", 2012). However, in the City of Milwaukee a special use permit is required for a restaurant with a drive-through. In order for the city to grant the permit the city limited the hours of operation to 9 p.m. causing Midwest to decide it was not profitable to operate at the leased location, and stopped paying rent, claiming that Tufail misrepresented the fact that no other restrictions would affect the use of the property as a Church’s Chicken. ("COURT OF APPEALS DECISION", 2012)
The Initial ruling by the circuit court decided in favor of Tufail finding that he did not make false representations about the use of the property and in turn did not breach the contract because not all Church’s Chicken restaurants have a drive-thru meaning that the property is still capable of being used as intended. The leased stated the intended use as: “Tenant may use and occupy the Premise for any lawful purposes, including, but not limited to, the retail sales, consumption, and delivery of food and beverages which shall include, but not be
