SQE Daily.

Specific performance of a covenant to keep a business open (Co-operative Insurance v Argyll)

Brackley Retail Park Ltd let the largest unit on its retail park in England to Pulse Fitness Ltd for 25 years. The lease contains a covenant by Pulse "to keep the premises open as a gym during normal trading hours". The gym has been losing money and Pulse has closed it, in deliberate breach of covenant, while it looks for someone to take over the lease. Brackley says the closure is reducing visitor numbers to other shops on the park and seeks an order compelling Pulse to reopen and run the gym.

Which of the following best describes how the court is likely to respond?

Choose one answer to see the reasoning.

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