Fashion, Fantasy, and Warehouse Fiascos: Jack’s Retail Rumble

 Jack, the sultan of spandex and sequins, ruled a quirky kingdom of cosplay couture in Chengdu. His boutique was the go-to garrison for garb from “League of Legends” to “Honour of Kings,” a place where fantasy armors and virtual valkyries lined the racks. Business was booming, and Jack’s inventory brimmed like a magician’s hat—hence, the need for a trusty warehouse was as clear as a high-res game screen.

The warehouse in question had been Jack’s reliable retail reservoir for the past year, and like a skilled player snagging the ultimate in-game upgrade, Jack decided it was time to turn his rental relationship into a permanent alliance.

With the countdown on his tenancy ticking faster than a LoL match’s final skirmish, Jack dialed up Alex, the landlord-lord of his commercial castle, to drop the big buyout bomb. But Alex, it seemed, had already passed the loot to another—Bob, the mysterious mogul, had swooped in with a two million cash coffer.

Jack, in his most persuasive merchant voice: “Why not me, Alex? My pockets are as deep as Bob’s, and surely, as your loyal tenant, I deserve first dibs on this deal!”

Alex, with all the empathy of a final boss: “Apologies, Jack, but Bob’s cash is king, and my own gold coffers are in want of filling.”

Jack, aghast, a tenant in turmoil: “But Alex, my wares! The warehouse is woven into my business tapestry as tightly as a corset at Comic-Con! I can match Bob’s gold, cash for cash!”

Alex, unmoved, a landlord with a heart of cold hard coins: “Jack, my dear tenant, your pleas are but background music in this transactional tango. Vacate the vault when the lease lapses, and let Bob’s banner fly.”

What’s a boutique baron in a bind to do? Jack faces a quest more daunting than a dragon-slaying side mission: to negotiate the treacherous terrain of tenant rights and real estate regulations. Can he don his legal armor and claim the warehouse as his retail realm, or is he destined to decamp, inventory in tow, in search of a new lair?

The battle lines are drawn, and Jack must marshal his resources—perhaps a swift consultation with a real estate oracle (lawyer) or an appeal to the high council of commerce (local business bureau) could turn the tides in his favor. Only time will tell if Jack’s boutique will be fortified with its storied stockpile, or if he must embark on an epic relocation quest.

 

Law In A Minute

Alex is obligated to provide Jack with reasonable advance notice if he intends to sell the property. Alex is not at liberty to finalize the sale with Bob unless Jack opts not to purchase it. Under the Contract Law of China, Jack is entitled to a right of first refusal. Nonetheless, this right is contingent on the condition that Jack can match the offer on the same terms and conditions. If Jack can only procure the 2 million Yuan even a single day beyond Bob’s immediate cash payment, or if Jack proposes to pay in installments, then he forfeits this preferential right.

Should Alex have completed the sale of the warehouse to Bob without alerting Jack, Jack’s recourse is limited to seeking reasonable compensation from Alex. It is not within Jack’s power to demand that Bob relinquish the warehouse, as Bob is considered a bona fide purchaser. This term, “bona fide,” denotes that Bob acted in good faith, meaning he was unaware of Jack’s preemptive right or Jack’s interest in acquiring the warehouse.

Legal Basis

Civil Code

Article 726

The lessor who sells the leased property must notify the lessee within a reasonable period before the sale, and the lessee has the right to purchase the property with priority under the same conditions; however, this does not apply if a co-owner of the property exercises their right of first refusal or if the lessor sells the property to a close relative.

After the lessor has fulfilled the obligation to notify, if the lessee does not explicitly express their intention to purchase within fifteen days, it is deemed that the lessee has waived their right of first refusal.