Radius Restriction Is Reasonable Restraint on Tenant’s Business

Radius Restriction Is Reasonable Restraint on Tenant’s Business



Facts: A commercial developer sought an anchor tenant for the mall it was building. As an inducement to attract a certain national big-box retailer, the developer signed a purchase and sale agreement with the tenant. Under the agreement, the developer agreed to sell 27 acres to the tenant for $10 and pay the company $5 million in cash. In return, the tenant would build and open a store, operate it for at least 12 years, and refrain from building a competing store in western Washington for five years.

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