Salon contract

This is a discussion on Salon contract within the Landlord vs Tenant Issues forum, part of the REAL ESTATE & PROPERTY LAW category; My wife rents a chair in a salon. Her landlord decided to get into the mix of things when 1 ...

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Old Nov 15th, 2008, 02:08 PM   #1
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Default Salon contract

My wife rents a chair in a salon. Her landlord decided to get into the mix of things when 1 of her clients complained about the price my wife charged for a haircut...then he told her to pay the women back, but my wife said she would compensate her with a free shampoo or something. Her land lord said no and she said no also. Long story short...he gave her 30 days to get out.

She signed a 1 year contract 2 years ago...so I heard after the 1st year it goes month to month. In that contract it stated that she will not work within 5 miles of the salon if she leaves.

Is the contract void if he kicks her out? Does she have to work out of the 5 mile radius?
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Old Nov 15th, 2008, 03:39 PM   #2
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Default Re: Salon contract

Normall yes; if it is the owner making her leave for no reason then he cannot enforce the provision unless it was clearly agreed by all that this would apply no matter what the reason.
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Old Nov 15th, 2008, 03:58 PM   #3
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Not so. She signed a contract for non-competition. This is common in commercial rental contracts. She will be unable to compete within that area for at least a period of time after she vacates her chair. How long would be up to your state laws and precedent setting court cases there.

The LL does not have to give her any reason to vacate the area. Since her lease has expired, she became a month to month tenant. No reason is needed to terminate a month to month contract. Either party can terminate at any time without cause.
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Old Nov 16th, 2008, 12:12 AM   #4
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Default Re: Salon contract

does it make any different if she's a sole propriertor?
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Old Nov 16th, 2008, 04:51 PM   #5
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Any difference as to what? The ability to terminate a month to month agreement without reason? No. Anyone (LL or Tenant) can terminate these by giving the state required amount of notice, usually 30 days. The ability to request a non-competition clause in the contract? No, the tenant signed and agreed to it. She could have requested that the clause be removed. Or not sign that contract, and choose another salon to rent a chair in.
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