The Spike v. Rocca decision dealt with two leases of shopping centre premises, each of which contained a covenant of the tenant limiting the use of premises to a particular purpose and a covenant of the landlord not to permit a competing use in the shopping centre. The decision comments that, “the reciprocal restrictive covenants constituted a part of the consideration between landlord and tenant”, and further that, “One of the inducements to become tenant to a mall is the security of the knowledge of non-competition within the development”. The judgment concluded with the following statement: I am therefore of the opinion and so hold that, notwithstanding the fact that there is no direct privity of contract as between [the two tenants], each being individual tenants to a common landlord, the clear intent of each lease is such that it creates a community of interest as between tenants of parallel business operations, and, in consequence an indirect privity of contract giving each a direct interest in the carrying out of the terms of the lease by the other.
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