The client is the cuckoo clock storeowner. The store is located in a strip mall.

Question

The client is the cuckoo clock storeowner. The store is located in a strip mall. The mall has a sign out front that lists all the stores inside the strip mall for passing drivers to see. Your client claims the landlord of the store property has failed to provide the signage specified in the lease and therefore it is difficult for customers to find his store. The lease states that the landlord receives $2,000 in rent per month plus 5% of the monthly profits from the store. There is no mention in the contract of any adjustments if one of the parties breaches the lease. The landlord contends that they are not required to provide the signage because your client (the store owner) does not open the business in a prompt and timely manner (at noon 6 days a week), therefore limiting the amount of money the landlord can make from his share of the monthly profits.

For each of Mediation, Arbitration, and Litigation provide in your recommendation any details of a particular method (such as if you recommend Arbitration, would you recommend an informal procedure or a formal, litigation-like procedure). WHY would you make these recommendations? There are many different options within Mediation and Arbitration so be thorough in your analysis. Think of all the advantages / disadvantages for all three resolution options as you compare and decide which you would recommend and EXPLAIN WHY.

Explanation / Answer

I would recommend mediation. I recommend mediation because there is no mention of such signage in the contract. Therefore owner is not legally bound to put a signage for Cuckoo clock store. However, it is to be check whether this clause is there in the contract of other shop owners whose signage is there. Also claim by the owner that client doesnot open the shop at the req time limiting his profits in his sale, is not valid as there is no such mention in the contract regarding quantum of profit. Hence third party can settle the case and help them in reach a concensus.

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