DAMAGE AND LOSS; CONDEMNATION Sample Clauses

The "Damage and Loss; Condemnation" clause outlines the rights and responsibilities of the parties if the property involved in the agreement is damaged, destroyed, or subject to government condemnation. Typically, this clause specifies who bears the risk of loss, how insurance proceeds are handled, and what options are available to the parties, such as repair, replacement, or termination of the agreement. For example, if a leased building is partially destroyed by fire or taken by eminent domain, the clause will dictate whether the lease continues, is modified, or can be terminated. Its core function is to provide a clear process for handling unexpected property loss or government action, thereby reducing uncertainty and potential disputes between the parties.