Hancock Bank & Trust Co. v. Shell Oil Co.

365 Mass. 629, 309 N.E.2d 482 (1974)

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Hancock Bank & Trust Co. v. Shell Oil Co.

Massachusetts Supreme Judicial Court
365 Mass. 629, 309 N.E.2d 482 (1974)

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Facts

Shell Oil Co. (Shell) (defendant) entered into a written lease in 1962 for a term of fifteen years. The lease provided an option for Shell to extend the lease for another fifteen years, and gave Shell the option of terminating the lease at any time by giving the lessor ninety days’ notice. Hancock Bank & Trust Co. (Hancock) (plaintiff) later acquired the premises which Shell was leasing through a public auction after foreclosure proceedings against the original lessor. At this time, Hancock sought to void the original lease with Shell on the ground that its terms were so unfair for Hancock as to violate public policy. Hancock brought suit in Massachusetts state court, and the trial court upheld the lease. Hancock appealed.

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Holding and Reasoning (Rescript)

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