Exclusive rights in our lease to sell items in a juice bar
A new restaurant opened around the corner from us that sells food and they have a small bakery in a side space. We have a juice bar and in our lease there's a clause that states we have exclusive rights to sell - juices, smoothies and acai bowls. Turns out they're trying to undercut us by charging less and they added smoothies etc the their menu. 

I don't think the landlord told them about the clause. We called him and he said I'll take care of it. But its been 2 days and they still haven't removed the items from the menu- online etc.

What happens if they refuse to comply? 
Who's liable and how should we confront the issue legally?

Thank you
[{"id": "gzqxf56", "text": "Your attorney would know.", "replies": [], "depth": 1}, {"id": "gzqxopr", "text": "You gave your landlord 2 days???\n\n1) seriously I'm sure you are 1 of 100s of tenants.\n2) depending on the type of tenant it may be a national or it may be a mom and pop, either way it's not going to happen in 2 days\n3) if your LL said hed take care of it give them more than 48hrs.\n\nEdits below:\nI want to point out that I own a bunch of commercial real estate in a downtown area. I have everything from small to large office, retail to restaurants and everything in between. \n\nI pay especially close attention to not only competition between my tenants but also the others around there that are not under my control leasing wise.  If I have a coffee shop in one building nearby and another calls me to rent, I will at an absolute minimum make sure their core business is slightly different aka high end verse dunkin donuts and also talk with the existing tenant to make sure they are okay with it.  \n\nI've hand multiple situations where this has happened and have left money on the table in the short term to make sure my existing tenants do not see unnecessary competition.", "replies": [], "depth": 1}, {"id": "gzr4svp", "text": "The penalty is in the lease. Typically we put in like $50/ day. \n\nLL is potentially liable. Not the other tenant. You don\u2019t have privity with them!", "replies": [{"id": "gzrkjsb", "text": "We don't have penalties in our leases, it could be a breach of lease on the landlord allowing the tenant to walk", "replies": [{"id": "gzrl1xz", "text": "Yes that\u2019s a nuclear option. I would definitely consider it material if it\u2019s a direct competitor", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gzr53tr", "text": "\\*This is a landlord issue and the exclusive use clause in your lease should spell out the limitations for the center and remedy's , which may be limited to termination. Unless specified in this clause there should be a notice and cure period for the entire lease - for instance you have to notify them in writing (do this in any case), they have \"x\" days to remedy the issue, etc. I've seen this combined in a lease with co-tenancy, which is a different issue. \n\n\\*Not providing legal advice, nor should you accept any from random strangers on the internet.", "replies": [], "depth": 1}, {"id": "gzr55a2", "text": "It's just 6 units and there next door.\nI'm not giving the LL 2 days I'm saying they haven't made the changes and it's been 2 days since he told them... if it were me and I was told this I'd make the changes immediately", "replies": [{"id": "gzr706h", "text": "Imagine you're the other tenant, assuming they do not have this restriction in their lease (ie LL messed up). They invested in building out the restaurant, bar etc and now they're being told you have exclusive right to sell these products that they possibly had counted on. They're probably consulting lawyers etc as well.\n\nI would be asking LL if the neighboring lease notes the restrictions.", "replies": [{"id": "gzr909x", "text": "Excellent point. The op's exclusivity clause is not binding on other tenants.", "replies": [{"id": "gzrmuzr", "text": "If the other tenant's lease was entered into after OP's lease, can the landlord give permission to sell those items as part of the other tenant's lease? I would think not.", "replies": [{"id": "gzro2bv", "text": "Right, but the remedy isn't really to stop the new tenant from selling those items (not without damages, at least). The new tenant never agreed to the first tenant's terms (assuming that's the case). \n\nAs others pointed out here: the new tenant doesn't have privity of contract in regards to the first tenant. In other words: the two tenants are only bound by what is in their individual contacts. \n\nIf the landlord failed to note the exclusivity to the second tenant, the landlord is breaking the first contact, not the new one.", "replies": [{"id": "gzrxoh2", "text": "Is it not similar to the landlord renting the same space to more than one tenant? For example, what if the landlord rented exclusive use of an employee bathroom to the first tenant and then gave access to that bathroom to the second tenant? The landlord wasn't allowed to grant access to the second tenant so that part of the second lease would be void. Would the landlord owe damages to the second tenant in that case?\n\nI'm not a lawyer, but I guess it depends on whether you view it as a contractual restriction placed on the second tenant or granting of a right by the landlord to the tenant which was not the landlord's to grant.", "replies": [{"id": "gzryg5c", "text": "The landlord is screwed either way: either he lets the second tenant keep doing what he's doing and, thus, he breaches the first tenant's contract. Or he tells the second tenant to stop what he's doing and, thus, he breaches the second tenant's contract. \n\nSo, yes, it depends on how the landlord handles it.\n\nEdit: what I'm saying is that it's not as easy as the op is making it out to be. It's not simply a matter of telling the second tenant to knock it off because of the first tenant's exclusivity clause. That's because the second tenant isn't bound by that clause.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gzr8133", "text": "\ud83d\udd25 Your attorney needs to send both the tenant and the owner of the plaza a cease and desist letter stating the clause in your lease and what the violation is. Also included in this letter it will say what the daily penalty is and that you are currently owned damages. You will be able to take the damages off your monthly lease payment from the owner of your building. Hope that helps, Azure", "replies": [{"id": "gzs0ljj", "text": "Any specific reason why this response has received so many downvotes?", "replies": [{"id": "gzs2mmg", "text": "No clue, I honestly think it\u2019s hysterical. I have gone through this so many times because I\u2019m a developer and owner of many commercial buildings. I also went to law school \ud83d\ude43", "replies": [], "depth": 3}, {"id": "gzs34v1", "text": "Because its wildly unwise to do this.\n\nIt's been literally no time...  you havent reviewed the leases, your landlord hasnt reviewed the leases yet and, this is a nuclear option...  you dont go to that until you have no other option.  \n\nLet your landlord handle it 1st, then if you dont get results... in more than 48hrs...  talk to a lawyer before you go nuclear.  \n\nThe person who suggested this is a fucking idiot.", "replies": [], "depth": 3}, {"id": "h03sy3m", "text": "Cease and desist to the tenant is very aggressive without knowing if the conflicting use was prohibited in their lease. Also give the LL a little more time to try and sort this out before going legal, IMO.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gzrgj7w", "text": "I'd check in when its been a week.  2 days isn't a lot of time for the folks involved to figure this out.  Your LL may still be reviewing the leases and hasn't even talked to them yet", "replies": [], "depth": 1}, {"id": "h2y1amh", "text": "1. Your landlord is technically in default of the lease. Probably not a issue solved in 2 days.\n\n2. I would think the LL would be consulting the property manger, listing agent &amp; attorney to see how that slipped through the cracks.\n\n3. Use this to your advantage\u2026negotiate something...get your rent lowered.\n\n4. Consult your attorney. See what they say.", "replies": [], "depth": 1}]