Damage Destruction and Termination Sample Clauses
The 'Damage, Destruction and Termination' clause defines the rights and obligations of the parties if the subject property or asset suffers significant damage or is destroyed. Typically, this clause outlines the procedures for assessing the extent of damage, the responsibilities for repair or restoration, and the conditions under which either party may terminate the agreement if the damage is substantial. For example, if a leased building is rendered uninhabitable by fire, the clause may allow the tenant or landlord to end the lease without penalty. Its core function is to provide a clear process for handling unexpected destructive events, thereby allocating risk and ensuring both parties know their options in such scenarios.
Damage Destruction and Termination. (a) If the Building becomes Untenantable such that the Building or any substantial part thereof is rendered not reasonably capable of use and occupancy by the Tenant for its use thereof pursuant to this Lease then:
(i) from and after the date of occurrence of the event rendering the Building Untenantable and until the Premises are again reasonably capable of use and occupancy as aforesaid, Rent shall ▇▇▇▇▇ from time to time in proportion to the part or parts of the Building not reasonably capable of use and occupancy; and
(ii) unless this Lease is terminated as hereinafter provided, the Landlord shall repair such damage with all reasonable diligence to the extent only of insurance proceeds actually received by the Landlord (the “Landlord’s Work”). The Landlord’s obligation to rebuild and restore the Premises and the Building shall not include the obligation to rebuild, restore, replace or repair, without limitation, any chattel, furniture, inventory, fixtures (including trade fixtures), Leasehold Improvements including, without limitation, any alterations constructed or installed for or on behalf of the Tenant or for its benefit, installations, additions or partitions in respect of which the Tenant is required to maintain insurance under this Lease, or any other thing that is the property of the Tenant located on, in, under, above or which serve the Premises. Nothing herein shall require the Landlord to rebuild the Premises and the Building in the condition and state that existed before the damage, but the Premises and the Building, as rebuilt, will have reasonably similar facilities and services to those that existed prior to the damage.
(b) If the Building is substantially damaged or destroyed by any cause to the extent such that in the reasonable opinion of the Landlord’s architect or engineer (to be delivered to the Landlord and Tenant within thirty (30) days after the damage or destruction) it cannot be repaired or rebuilt (based on standard hours of construction work) or if access cannot be restored within twelve (12) months after the occurrence of the event rendering the Building Untenantable or the expiration of the Term (whichever is sooner), either the Landlord or the Tenant may at its option, exercisable by written notice to the other party given within ninety (90) days after the occurrence of such damage or destruction, terminate this Lease, in which event the Landlord shall not be bound to repair, and the Tenant shall instead deliver up posses...
Damage Destruction and Termination