Ambassador Hotel Corp. v. Lee

The complaint in this action was for the recovery of unpaid rent. Defendant interposed an answer and counterclaim in which it was alleged that, at the time the lease mentioned in the complaint was entered into, “the plaintiff represented to defendant and agreed as part of the consideration for the defendant entering into” the lease “the plaintiff would not lease any of the premises” in which the demised quarters were located “to any other person . . . in the business of exhibiting or selling automobiles, but would at all times during the life of said lease give unto the defendant the exclusive right and privilege of exhibiting and selling .automobiles on said . . . premises”; that defendant believed the representations and relied upon them, and would not have entered into the lease but for them; that when plaintiff made the representations it had no intention of performing them and made them solely to induce defendant to enter into the lease and to deceive and defraud him; that soon after the lease was entered into plaintiff leased a part of its premises to another person engaged in the automobile business; that thereupon defendant in writing notified plaintiff that he rescinded…