Fonseca v. Smolinisky
Plaintiffs Ismael Lopez, Pedro Vasquez, and Rodolfo Fonseca, who were doing business as Margarita Jones Restaurant, a California general partnership, entered a five-year lease of commercial property with Denmarst, Ltd. (Denmarst), not a party to this appeal. The lease gave plaintiffs the option to extend the lease for a second five year term, and it gave Denmarst the option to terminate the lease during the second five-year term by buying plaintiffs out of the remaining lease term. If Denmarst exercised its buyout option, the buyout payment was to be based on plaintiffs average net annual income during the two (2) years prior to the termination notice.
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