Disaffirmation Clause Samples
A Disaffirmation clause allows a party, typically a minor or someone lacking legal capacity, to void or reject a contract or specific contractual obligations. In practice, this means that if a minor enters into an agreement, they may later choose to disaffirm, or cancel, the contract without penalty, provided they do so within a certain timeframe or before reaching the age of majority. The core function of this clause is to protect individuals who may not have the legal capacity to fully understand or consent to contractual terms, thereby preventing them from being unfairly bound by agreements.
Disaffirmation. If this Agreement is terminated as to any portion of the Property
Disaffirmation. If this Agreement is terminated as to any portion of the Property by reason of (i) any default or (ii) as a result of a bankruptcy proceeding, or if this Agreement is disaffirmed by a receiver, liquidator, or trustee for the Developer or its property, the City, if requested by any Mortgagee, shall negotiate in good faith with such Mortgagee for a new development agreement for the Project as to such portion of the Property with the most senior Mortgagee requesting such new agreement. This Agreement does not require any Mortgagee or the City to enter into a new development agreement pursuant to this Section.
Disaffirmation. If: (i) this Agreement is terminated as to any portion of the Property by reason of any default, or (ii) this Agreement is disaffirmed or otherwise cancelled by a receiver, liquidator, or trustee for the Developer or its property as a result of a bankruptcy or other insolvency proceeding, the City, if requested by any Mortgagee, shall negotiate in good faith with such Mortgagee for a new development agreement for the Project as to such portion of the Property with the most senior Mortgagee requesting such new agreement and such new development agreement shall be prior to any security financing interest or lien, charge, or encumbrance on the Property in favor of any such security financing interest and each applicable party shall execute such additional consents and/or subordination agreements as may reasonably requested by the City or the new Developer to evidence the priority of such new development agreement to all security financing interests, whether recorded prior or subsequent to execution of such new development agreement. This Agreement does not require any Mortgagee or the City to enter into a new development agreement pursuant to this Section 6.25.7.
Disaffirmation. If this Agreement is terminated with respect to a portion of the Land by reason of any default by the Company or as a result of a bankruptcy proceeding of the Company, or if this Agreement is disaffirmed by a receiver, liquidator or trustee for the Company or its property, then the County, if requested by a Mortgagee, shall negotiate in good faith, with the most senior requesting Mortgagee, a new agreement for the Project as to such portion of the Land. This Agreement does not require any Mortgagee or the County to enter into a new agreement pursuant to this Section 17.4.