radius clause

radius clause

A shopping center lease clause that prevents a tenant from opening another store within a certain radius of the current shopping center.The purpose is to prevent a competitor from duplicating the landlord's tenant mix in a nearby mall.In the drawing,a 5-mile radius clause would not prohibit the second store, even though they probably have overlapping market areas.Most courts require the restriction to be reasonable in duration and geographical area in order to be enforceable. Contrast with reverse radius clause.