I'm new to Australia, so have no any experience in business and lease contract.
Last November I bought a convenience shop in Adelaide, and my neighbor shop is a lunch bar. so there states "not to carry on activities that compete with the coffee shop within the same group of shops" on my lease contract.
First I didn't care these matters, because I thought the landlord restricted me and also restricted other shops as well. And on my contract from my previous owner there states "the lessor agreed not to allow other shops in the centre to sell supermarket grocery items & vegetables"
But after I took over the shop, I found the lunch bar can sell everything, kinds of milk ,iced coffee, drinks, ice cream, confectionaries, snacks and so on. Every item with high-profits sold in my shop also can sold in the lunch bar.
we are in a small shopping centre, all customers shopping here want to save time and convenience. For example, a customer goes to our shopping centre to have a lunch. The lunch bar sells both hot food and drinks, but I'm not allowed to sell hot food. The customer will not specifically come to my shop to buy drinks, because the lunch bar sells drinks as well.
I discussed with my landlord but he said there is no provision in my lease for me to impose conditions on other businesses in the shopping centre. The comments restricting other shops were written on the lease, by previous owner, not landlord, are not binding and have no effect.
Later, I found the landlord and the owner of the lunch bar are old friends.I consulted The Eastside BEC Team, responsible for managing small business. The stuff sent a member of South Australian Lease Management to my shop. He looked at my lease contract, said no problem, the reason is that I agreed with the contract.
The lease contract was signed by my previous owner, I only read the contract from him, I don't konw it's different from landlord's. And I also thought the conveyancer should have the responsibility to check my contract,but not.Because of my poor english, it's much harder to me to deal with the issues.
But I still think it is unfair that the landlord only restricts me, don't restrict other shops. In the whole, are all the acts are legal? Is there no fair competition in Australia?
Now it is very difficult to me to run the store, so only the extension of trading hours. Unsafe at night, last month, the store was robbed. I need help, who can give me viable suggestions, how can I do? Thanks a lot.
Added:
My convenience store opened first, with 20 years of history, the lunch bar opened 3 years ago .When the previous owner renewed the lease contract, the landlord required to add restrictions terms into the contract. At that time Australia's good economic development, the previous owner did not care. But now the poor economy, the retail downturn, such a unfair terms, my convenience store is even more difficult.
I am not saying of the lunch bar can not sell those things, I only ask for fair, we can be fair competition.
In some countries, limit the scope of business of the stores within the same shopping center is very common, but mutual, not just limit one shop. Such terms of the contract is invalid, because it is not fair. Not all mutually agreed contracts are legal, the contract clearly contrary to the principle of fairness is not valid.The tenant can ask the court to cancel or modify the contract. The landlord should compensate the loss of tenant.
I just want to know this case is whether legal in Australia, in the case of legal, it is as a lesson.I just want to understand this point.
Last November I bought a convenience shop in Adelaide, and my neighbor shop is a lunch bar. so there states "not to carry on activities that compete with the coffee shop within the same group of shops" on my lease contract.
First I didn't care these matters, because I thought the landlord restricted me and also restricted other shops as well. And on my contract from my previous owner there states "the lessor agreed not to allow other shops in the centre to sell supermarket grocery items & vegetables"
But after I took over the shop, I found the lunch bar can sell everything, kinds of milk ,iced coffee, drinks, ice cream, confectionaries, snacks and so on. Every item with high-profits sold in my shop also can sold in the lunch bar.
we are in a small shopping centre, all customers shopping here want to save time and convenience. For example, a customer goes to our shopping centre to have a lunch. The lunch bar sells both hot food and drinks, but I'm not allowed to sell hot food. The customer will not specifically come to my shop to buy drinks, because the lunch bar sells drinks as well.
I discussed with my landlord but he said there is no provision in my lease for me to impose conditions on other businesses in the shopping centre. The comments restricting other shops were written on the lease, by previous owner, not landlord, are not binding and have no effect.
Later, I found the landlord and the owner of the lunch bar are old friends.I consulted The Eastside BEC Team, responsible for managing small business. The stuff sent a member of South Australian Lease Management to my shop. He looked at my lease contract, said no problem, the reason is that I agreed with the contract.
The lease contract was signed by my previous owner, I only read the contract from him, I don't konw it's different from landlord's. And I also thought the conveyancer should have the responsibility to check my contract,but not.Because of my poor english, it's much harder to me to deal with the issues.
But I still think it is unfair that the landlord only restricts me, don't restrict other shops. In the whole, are all the acts are legal? Is there no fair competition in Australia?
Now it is very difficult to me to run the store, so only the extension of trading hours. Unsafe at night, last month, the store was robbed. I need help, who can give me viable suggestions, how can I do? Thanks a lot.
Added:
My convenience store opened first, with 20 years of history, the lunch bar opened 3 years ago .When the previous owner renewed the lease contract, the landlord required to add restrictions terms into the contract. At that time Australia's good economic development, the previous owner did not care. But now the poor economy, the retail downturn, such a unfair terms, my convenience store is even more difficult.
I am not saying of the lunch bar can not sell those things, I only ask for fair, we can be fair competition.
In some countries, limit the scope of business of the stores within the same shopping center is very common, but mutual, not just limit one shop. Such terms of the contract is invalid, because it is not fair. Not all mutually agreed contracts are legal, the contract clearly contrary to the principle of fairness is not valid.The tenant can ask the court to cancel or modify the contract. The landlord should compensate the loss of tenant.
I just want to know this case is whether legal in Australia, in the case of legal, it is as a lesson.I just want to understand this point.
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