Lloyd v. Murphy

Murphy (defendant) leased commercial property from Lloyd (plaintiff) specifically to sell, service, and repair new cars and sell gasoline, needing Lloyd's written consent to use it for anything else. After the federal government restricted new car sales due to World War II, Murphy told Lloyd he couldn't continue his business as planned; Lloyd orally waived the use restriction and offered reduced rent, but Murphy vacated anyway and repudiated the lease, first orally and then in writing days later. Lloyd confirmed the waiver in writing, tried unsuccessfully to get Murphy to perform, then re-let the property to a third party and sued for a declaratory judgment on the parties' rights plus unpaid rent; the trial court held the wartime restrictions didn't terminate Murphy's obligations and awarded Lloyd the unpaid rent, and Murphy appealed.