Acceleration of Rent Clause
The Acceleration of Rent Clause in lease agreements allows landlords to demand immediate payment of future rent installments if the tenant breaches lease terms, expediting the rent payment schedule. It addresses default situations and safeguards the landlord's interests.
The key elements of acceleration of rent clause in a commercial contract include:
- Default Trigger: It specifies events, like lease violations, triggering acceleration.
- Demand for Future Rent: It grants the landlord the right to demand immediate payment of future rent.
- Notice Requirements: It may include provisions detailing notice periods before acceleration.
- Cure Period: This clause optionally provides a period for the tenant to remedy the default and avoid acceleration.
Examples of acceleration of rent clause in a commercial contract include:
- In a commercial lease, the landlord may use an acceleration of rent clause if the tenant breaches specific terms, demanding immediate payment of future rent.
- A lease with an option to purchase may include an acceleration clause triggered by the tenant's lease violations, expediting future rent payments.
- A long-term lease may contain an acceleration of rent clause, allowing the landlord to demand immediate payment of future rent upon significant breaches.
The Acceleration of Rent Clause provides landlords with a tool to address tenant breaches promptly. With its focus on default triggers, demand for future rent, notice requirements, and potential cure periods, it ensures a swift response to lease violations and protects the landlord's interests.
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