Don't Accept Ambiguous Definition of 'Merchandise' in Use Clause

Don't Accept Ambiguous Definition of 'Merchandise' in Use Clause



An increasing number of retailers sell both new and “vintage” or consigned merchandise. But if you want a retail tenant’s space to be used solely or primarily for sales of new merchandise, then you’ll need to say this in the lease’s use clause. And be aware that using a term other than “new”—such as “retail”—may backfire, letting the tenant move its new merchandise to another location and keep less profitable, used merchandise at its space in your building or center.

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